HomeMy WebLinkAboutR38-Economic Development Agency
. .
. t
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Gary Van Osdel
Executive Director
SUBJECT:
o f1::: :':,~L
TIPPECANOE RETAIL PROJECT--
INLAND V ALLEY DEVELOPMENT
AGENCY
DATE:
December 11, 200 I
_______________d________________________________________________.____________________________.._____________------------------------------..---------------------------
SvnoDsis of Previous Commission/Council/Committee Action(s):
On July 12, 1999, the Community Development Commission approved a Cooperation Agreement with the Inland Valley
Development Agency.
On May 21,2001, the Community Development Commission and/or Common Council approved a Disposition and
Development Agreement with SBT Partners and certified an Environment Impact Report for the HUB Project.
On June 18,2001, the Community Development Commission adopted a Relocation Plan for Phase I of the HUB Project.
On September 4, 200 I the Community Development Commission made a decision to appraise real property for Phase I
of the HUB project.
On November 5, 2001, the Community Development Commission authorized execution of a Redevelopment
Condemnation Memorandum with Inland Valley Development Agency.
.-------------------------------------------------------------------------------------------------------------------------------------.
Recommended Motion(s):
(Community DeveloDment Commission)
MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO REFERRING CERTAIN PROPERTIES TO THE
INLAND V ALLEY DEVELOPMENT AGENCY FOR ACQUISITION PURSUANT
TO THAT CERTAIN 1999 REDEVELOPMENT COOPERATION AGREEMENT,
DATED JULY 12, 1999, REGARDING THE HUB PROJECT AND APPROVING
OTHER ACTIONS IN CONNECTION THEREWITH
Contact Person(s): Gary Van asdel/John Hoeger
Phone:
663-1044
Three (3)
;1>.'
Project Area(s)
IVDA
Ward(s):
Supporting Data Attached: 0 Staff Report 0 Resolution(s) DAgreement(s)/Contract(s) 0 Map(s) 0 LetterlMemo
3,759,000 gross
Amount: 1,257,685 net Source: Tax Increment (see Staff Report)
Budget Authority:
Requested
SIGNATURE:
Commission/Council Notes:
_~::Lc:; lX-1 ~~I:_~~_______________________________________________________m_______________________________________________
GVO:JBH:sj:12-17-01 Tippecanoe IVDA COMMISSION MEETING AGENDA
Meeting Date: 12/17/2001
Agenda Item Number: ..BM..-
. r
'Economic Development Agency Staff Report
Tippecanoe Retail Project
December II, 2001
Page Number -2-
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
---------------------------------------------------------------------------------------------------------------------
Tippecanoe Retail Proiect - IVDA
BACKGROUND
The Tippecanoe Retail Project (the HUB) is being undertaken by the Agency under the terms of
a Redevelopment Cooperation Agreement with the Inland Valley Development Agency (the
IVDA). The Agency is fully responsible for all costs of the project and can make nearly all
decisions necessary for the project to proceed. Nevertheless, the governing board of the IVDA
must issue any statutory offers and adopt any resolutions of necessity that would be required to
acquire any HUB properties by condemnation. The attached resolution will refer seven
properties to the IVDA requesting the of acquisition of the properties through eminent domain, if
necessary .
CURRENT ISSUE
The attached Resolution sets forth the Agency's request that the IVDA commence acquisition of
parcels from ten property owners in the HUB project. Those owners are JAKS, Kopitzke,
Hwang, Shelton, Jakobsen, Patel, Kazimi, Avila, Luke and Hansen. These owners have either
rejected the Agency's offer outright or do not appear to be willing to settle.
ENVIRONMENTAL IMPACT
The City certified a Final Environmental Impact Report as of May 21, 2001 in accordance with
the California Environmental Quality Act of 1970 as amended (CEQA). The Report included
elements covering the realignment and construction of the street improvements for Harriman
Place together with actions to acquire lands for right-of-way, for development of a retail
shopping center, and for redevelopment of a restaurant by In-N-Out Burgers.
FISCAL IMPACT
Under the terms of the Redevelopment Condemnation Memorandum approved on November 5,
2001, the Agency will be fully responsible for all costs of the IVDA in connection with the
acquisition of these properties. Under the terms of the HUB development agreement, the
developer is responsible to the Agency for certain payments in connection these acquisitions.
GVO:JBH:sj: 12-17-01 Tippecanoe IVDA
COMMISSION MEETING AGENDA
Meeting Date: 12/17/2001
Agenda Item Number: /(38
.'
. Economic Development Agency Staff Report
Tippecanoe Retail Project
December 11,2001
Page Number -2-
The amount of the statutory offer for the ten owners combined is $3,166,000. Relocation,
demolition and miscellaneous expenses are estimated to cost $593,000 for a total of $3,759,000.
Under the terms of the Disposition and Development Agreement with the HUB developer, the
Agency will receive $2,501,315 leaving the Agency with a net cost of $1,257,685. In terms of
cash flow however, the Agency would be required to pay for the properties now and then wait to
receive payment from the developer at the close of escrow.
Alternately, if an eminent domain action is filed, the developer will pay at the time the deposit to
the court is made. In addition to a net deposit of $664,685, the Agency would also be responsible
for legal fees and for any portion of the final settlement amount that exceeds the deposit. It is
estimated that legal fees could be in the $200,000 to $250,000 range. Relocation and demolition
costs would be different until receiving an order for possession.
RECOMMENDATION
GVO:JBH:sj:12-17-01 Tippecanoe NDA
COMMISSION MEETING AGENDA
Meeting Date: 12/17/2001
Agenda Item Number: P. 3K
RESOLUTION NO. ~C/2001-59
2
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO
REFERRING CERTAIN PROPERTIES TO THE INLAND
V ALLEY DEVELOPMENT AGENCY FOR ACQUISITION
PURSUANT TO THAT CERTAIN 1999
REDEVELOPMENT COOPERATION AGREEMENT
DATED JULY 12, 1999 REGARDING THE HUB PROJECT
AND APPROVING OTHER ACTIONS IN CONNECTION
THEREWITH
3
4
5
6
7
8
WHEREAS, the Inland Valley Development Agency (the "IVDA") was established
pursuant to a joint exercise of powers agreement in January 1990, for the purpose of assisting in
the conversion, redevelopment and civilian reuse of the former Norton Air Force Base located
within the City of San Bernardino; and
WHEREAS, the member governmental entities of the IVDA include the County of San
Bernardino, a political subdivision of the State of California, the City of Colton, a municipal
corporation, the City of Loma Linda, a municipal corporation, and the City of San Bernardino, a
California charter city (the "City"); and
WHEREAS, the IVDA was granted specific powers by the State Legislature in 1989
(Statutes 1989, Chapter 545: See now Statutes 1997, Chapter 580 and Health and Safety Code
Section 33492.40, et seq.) to assist in the redevelopment of the former Norton Air Force Base
and the lands in proximity thereto pursuant to the Community Redevelopment Law (Health and
Safety Code Section 33000, et seq., is hereinafter referred to as the "CRL"); and
WHEREAS, the IVDA adopted the Redevelopment Plan for the Inland Valley
Redevelopment Project Area (the "Redevelopment Plan") in accordance with the provisions of
the CRL, and the Redevelopment Plan provides for certain redevelopment activities to be
undertaken within the redevelopment project area, as more fully described in the
Redevelopment Plan (the "Project Area"); and
WHEREAS, approximately eighty percent (80%) of the Project Area is situated within
the territorial jurisdiction of the City; and
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SB2001 :35562.1
-1-
CDC/2001-59
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
WHEREAS, the IVDA, the City and the Redevelopment Agency of the City of San
Bernardino (the "Agency") previously entered into an agreement entitled "1999 Redevelopment
Cooperation Agreement", dated as of July 12, 1999, pursuant to which the IVDA, the City and
the Agency initiated the redevelopment of a potion of the Project Area referred to in the 1999
Redevelopment Cooperation Agreement as the "Agency Implementation Area" and which area
has since been referred to by the Agency as the "HUB Project"; and
WHEREAS, the IVDA previously designated the City to serve as the "lead agency" as
this term is defined in the California Environmental Quality Act of 1970, as amended,
("CEQA") for the purpose of conducting an environmental review of the HUB Project; and
WHEREAS, the City certified a Final Environmental Impact Report as of May 21, 2001
(the "FEIR") for the HUB Project, in accordance with CEQA; and
WHEREAS, the HUB Project, as analyzed in the FEIR includes the following key
elements:
(i) the realignment and construction of a new public street improvement
project referred to in the FEIR as the Harriman Place Improvement Project;
(ii) the assembly and acquisition of public street right-of-way for the
Harriman Place Improvement Project;
(iii) the assembly of land for the redevelopment of a new commercial retail
shopping center to be undertaken by the Developer and In-N-Out;
(iv) the assembly and exchange of lands for the redevelopment of a restaurant
by In-N-Out as an owner participant in the HUB Project; and
WHEREAS, the Agency has approved a Disposition and Development Agreement,
dated as of May 21, 2001, with SBT Partners, LLC, a California limited liability company (the
"Developer") and the Agency also approved an Owner Participation Agreement, dated as of
September 17, 2001, with In-N-Out Burgers, Inc., a California corporation ("In-N-Out") for the
implementation of the commercial shopping center portion of the HUB Project; and
WHEREAS, the Agency transmitted offers to purchase parcels of land situated within
the site of the HUB Project, to the owners of such land; and
SB2001 :35562.1
-2-
CDC/2001-59
2
3
4
5
6
WHEREAS, the Agency has previously transmitted to the IVDA for its consideration
and approval the form of an implementation agreement entitled "Redevelopment Condemnation
Memorandum", dated as of November 5, 2001, that sets forth the procedures for the Agency to
refer properties to the IVDA for acquisition by the IVDA through eminent domain, if necessary,
in furtherance of the 1999 Redevelopment Cooperation Agreement and redevelopment of the
HUB Project; and
WHEREAS, at this time, the Agency deems it appropriate to refer certain properties to
the IVDA for acquisition by the IVDA through eminent domain, if necessary, in furtherance of
the 1999 Redevelopment Cooperation Agreement and redevelopment of the HUB Project.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, AS FOLLOWS:
Section I. The recitals of this Resolution are true and correct. On December 17,
2001, the Community Development Commission of the City of San Bernardino (the
"Commission"), as the governing board of the Agency, conducted a public meeting with the
Mayor and Common Council of the City of San Bernardino relating to the matters set forth in
this Resolution. This Resolution evidences the referral by the Agency to the IVDA of a
"Condemnation Parcel" under Section 5(a) of the Redevelopment Condemnation Memorandum.
Section 2. The Commission hereby refers the properties described below by the
name of the property owner listed on the most current property tax assessment roll of the
Assessor of the County of San Bernardino and the property address, to the IVDA for acquisition
by the IVDA through eminent domain, if necessary, in furtherance of the 1999 Redevelopment
Cooperation Agreement and redevelopment of the HUB Project:
Property Owner: HUB Site Property Address:
JAKS, LLC Cleared land southerly of East Rosewood
Kopitzke 1037 East Rosewood
Hwang 1083 East Laurelwood
Jakobsen 1060 and 1072 East Rosewood
Shelton 942,957,969,983,1015 and 1094 East Rosewood
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SB2001 :35562.\
-3-
2
3
4
5
6
7
8
9
10
11
12
13
CDC/2001-59
Patel
Avila
Luke
Hansen
Kazini
Moreno
1914 South Tippecanoe Avenue
969 East Laurelwood
995 East Rosewood
1048 East Rosewood
914 East Rosewood
1874 Tippecanoe Avenue
Section 3. The Commission hereby authorizes and directs Agency staff to provide to
the IVDA a suitably detailed description of each of the properties being referred to the IVDA by
this Resolution and the ownership thereof, pertinent appraisal information, relocation assistance
information, if applicable, and a copy of the Agency's offer to purchase each such property,
along with other information requested by IVDA staff.
Section 4. This consideration by the IVDA of the acquisition of each of the
properties described in Section 2 shall be subject to the provisions of the Redevelopment
Condemnation Memorandum.
14 Section 5. This Resolution shall take effect upon adoption.
15 1111
1111
16
1111
17
1111
18
1111
19 1111
20 1111
21 1111
22 1111
23 1111
1111
24
1111
25
1111
SB2001:35562.1
-4-
CDC/2001-59
2
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO REFERRING CERTAIN PROPERTIES TO THE
INLAND VALLEY DEVELOPMENT AGENCY FOR ACQUISITION PURSUANT
THAT CERTAIN 1999 REDEVELOPMENT COOPERATION AGREEMENT, DATED
JULY 12, 1999 REGARDING THE HUB PROJECT AND APPROVING OTHER
ACTIONS IN CONNECTION THEREWITH
3
4
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Community Development Commission of the City of San Bernardino at a joint reg. meeting
6
thereof, held on the
17th day of
December
,2001, by the following vote, to wit:
7
8 COMMISSION AYES NAYS
ESTRADA X
9 LIEN X
McGINNIS X
10 SCHNETZ X
SUAREZ X
It ANDERSON X
McCAMMACK
12
ABSTAIN ABSENT
.,
..'/
/i
14
.'-
, &,"(
ecre,y
The foregoing Resolution is hereby approled this /'im day of December, 2001.
/
/
13
18
Approved as to form
and legal content:
rperson
lopment Commission
Bernardino
15
16
17
19
20
21
22
23
24
25
SB200 1:35562.1
-5-
"
2
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Secretary of the Community Development
Commission of the CIty of San Bernardmo, DO HEREBY CERTIFY that the foregoing and
attached copy of Community Development Commission of the City of San Bernardino
Resolution No. is a full, true and correct copy of that now on file in this office.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of the Community Development Commission of the City of San Bernardino this
day of , 2001.
3
4
5
6
7
8
Secretary of the
Community Development Commission
of the City of San Bernardino
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SB2001:35562.1
-6.
"
, :
** FOR OFFICE USE ONL Y - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 1"2-(",-0 \ Item # R- ~
Vote: Ayes 1- <c Nays 0- Abstain
Change to motion to amend original documents: ~t~
Resolution" COC/Z(IJ I ~ S:L________
.fj-- Absent__!l~______
Reso. # On Attachments:
Contracttenn: -
NullNoid After'
Note on Resolution of Anachment stored separately: --=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W COUNTY
By: _=-_____.
Date Sent to Mayor: 1"2 -- \ 1vD \
Date of Mayor's Signature: t '2-- \ "I-a \
Date ofClerk/CDC Signature: ,L-Lo:) -<>\
Reso. Log Updated
Seal Impressed: ___
,/
./
Date Mem
r Sent for Signature:
See Attached:
See Attached:
e Attached:
Date Returned:
~
60 Day Reminder Letter Sent on
90 Day Reminder Letter Sent on 45th day:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234,655,92-389):
Yes /
Yes
No
No --L
No /
No V
No ,/
By
By
By
By
B,_
Yes
Yes
Yes
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
EDA /
Finance
MIS
Police
Public Services
Water
Others:
Notes:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: ()'(\ Date: 1/'-2\-0'
Revised 01/12/0 I