HomeMy WebLinkAbout05-Community Development
c'IT9' OF SAN BERNARDI~ - REQUE9r FOR COUNCIL AC-hbN
F,om: Kenneth J. Henderson, Director
Subject:
AUTHORIZATION TO ADVERTISE
FOR BIDS FOR DEMOLITION OF
RESIDENTIAL STRUCTURED LOCATED
AT 930 WEST SECOND STREET, SAN
BERNARDINO
Dept: Community Development
Date: April 5, 1988
Synopsis of Previous Council action:
r<q
None.
Recommended motion:
That the Mayor and Common Council authorize staff to advertise for bids
for demolition of a residential structure located at 930 West Second
Street, San Bernardino, California.
L~.l~
Slgnatura
Contact penon:
Ken Henderson/Lisa Dickey
Staff Report
Phone:
5065
Ward:
3
Supporting da.. IUached:
FUNDING REQUIREMENTS:
Amount:
$3,000.00
121-544-57553
NO.)
Source:
(ACCT.
(ACCT.
DESCRIPTION) CDBG Demolition
Finance:
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Council Notel:
Agenda Item No,
~(
C~T~OF SAN BERNARDIJa - REQUE~ FOR COUNCIL ACTQN
STAFF REPORT
On March 25, 1988, Community Development received a demolition request
for a business warehouse recently destroyed by fire (see attached). The
property had been previously inspected by Mr. Alex Valenzuela, Code
Enforcement Officer for the Building and Safety Department, and
recommended for demolition due to fire damage. Although Mr. Lang's
insurance policy provided $200,000 in coverage, the check received by
Mr. Lang for settlement amounts to only $36,000. It is likely that Mr.
Lang will contest the proposed settlement in court.
In order to rebuild his warehouse facility, Mr. Lang needs assistance to
demolish a vacant residential structure on his property located at 930
West Second Street.
On March 31,1988, the community Development citizen Advisory Committee
(CDCAC) considered Mr. Lang's request. Although a quorum was not
present, the consensus of those present was to recommend assistance in
the form of a loan. Repayment of loan was recommended to be made in the
following manner:
Communitv Deve10nment citizen Advisorv Committee Recommendation:
a) Repay loan within one (1) year with no interest charges, either in
payments or upon settlement from the Insurance Company: or
b) Repay loan within two (2) years with five percent (5%) interest to
be charged on the outstanding principle after the first year.
Staff Recommendation:
Mr. Lang's project is within the boundaries of the City Enterprise Zone
which is a special impact area of the City's CDBG Demolition Program.
The area is also within a census tract where fifty-one percent (51%) of
the residents are at or below the poverty line. Given the above and the
situation described earlier regarding Mr. Lang's insurance, I recommend
the demolition assistance be in the form of a grant.
Kennet . Henderson
Director of Community eve I opment
KJH/LRD/lab/0876
attachment
4-5-88
75-0264
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,'.;/f d.,'. S~'N WItdCO ~~
o
tl7t W, LA CADENA AVE,
RIVERSIDE, CALIFORNIA
......510
1<<1 WEST SECOND STREET
SAN BERNARDINO, CALIFORNIA ..to
_501111 ..7327
March 25, 1988
Hr. Kenneth Henderson
c/o Community Development Department
300 North 'D' Street
San Bernardino, CA. 92418
Dear Hr. Henderson,
It was a pleasure meeting with you and Councilman Flores today to diacuss the
possibility of having the assistance of your department in the removal of a
single family residence at 930 West 2nd Street.
As you know,my warehouse was completely destroyed in a fire on July 7, 1987,
at 940 West 2nd Street. I am trying to put together some kind of a package
to rebuild on the same location, which will include both 930 and 940 West
2nd Street. ---
This section of San Bernardino is in need of more business space. I. is my in-
tention to make that available, as well as answer my own needs in my planned
,reconstruction.
I continue to get tbe same old runaround from Royal Insurance.
To cover a $200,000.00 insurance contract, they sent a cbeck for $36,298.00,
marked "Full Settlement". Obviously, they are making it necessary for ~ to enlist
the court's assistance to have this matter settled appropriately. Even if this
were the correct amount, it wouldn't make much of a down payment for the new
construction necessary for me to get on with the running of my business.
Because my destroyed warehouse and the residence to be demolished are both within
the Enterprise Zone and within the city's Special Impact Area, there may be
Grant assistance available.
Ken, we are not a large business. We only employ 10 people, but I am going to
need all the help I can muster. This fire has been the most devastating disaster
I have ever experienced. It has created an unbelievable hardship in my life.
I appreciate all you help. Thank you so much.
Yours
4-5-88
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