HomeMy WebLinkAboutR04-Redevelopment Agency
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AGENDA ITEM INFORMATION SUMMARY
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GENERAL INFORMAnON:
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INFORMAnONAl DATA FORWARDED TO CITY DEPARTMENTs/COUNCIL OFFICES:
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Mayor'S Office
Council Ward
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COMMENTS/CONCERNS: Include pertinent comments and concerns of offices and persons clearing the
aummary, such as controvel'8lallssues, time constraints and funding complications. Indicate dstes when
action must be taken.
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RDA -174
REV. 6-29-89
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Redevelopment Agency · City of San Bernardino
300 Nar1h "D" S_~ Pounh FJoor . SOlI Bemardino, CaIifcmia 92A18
(714) 384.SOB1 FAX (714) 888-\1413
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hv... H. Dulcett
Execulive Direcror
SEPTEMBER 12, 1989
SETTING OF PU8LIC HEARING - COURT & "E"
Synopsis of Previous Commission/Council/Committee Action:
12-21-87 Resolution No. 5059 adopted a Pre-Disposition Agreement between the
Redevelopment Agency and Simchowitz Corporation.
05-23-88 Resolution No. 5114 adopted approving execution of an Amendment to
the Pre-Disposition Agreement.
(continued on page 2)
(MAYOR AND COMMON COUNCIL)
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Recommended Motion:
Move to set a Joint Public Hearing of the Mayor and Common Council
with the Community Development Commission at 11:00 a.m. on October
16. 1989 to consider the sale of certain real property owned by the
Redevelopment Agency within the Central City Project Area to One
Sunset Court Ltd.. subject to the conditions described in the staff
report.
(continued on page 3)
Supporting data attached: Yes
Hard:
FUNDING REQUIREMENTS: $1,900,000
Project: Central City Project
Commission Notes:
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Agenda of: October 2. 1989
Item No.
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Redevelopment Agency
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(continued from page 1)
Svnopsls of Previous Commission/Council/Committee Action:
07-18-88 Resolution No. 5131 adopted approving execution of a Second
Amendment to the Pre-Disposition Agreement.
09-19-88 Resolution No. 5151 adopted approving execution of a Third
Amendment to the Pre-Disposition Agreement.
02-20-89 Commission authorized the execution of a Fourth Amendment to the
Pre-Disposition Agreement.
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Redevelopment Agency
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(continued from DaQe 1)
(COMMUNITY DEVELOPMENT COMMISSION)
Move to set a Joint Public Hearing of the Community Development
Commission with the Mayor and Common Council at 11:00 a.m. on
October 16. 1989 to consider the sale of certain real property owned
by the Redevelopment Agency within the Central City Project Area to
One Sunset Court. Ltd., subject to the conditions described In the
staff report.
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Redevelopment Agency
S T A F F R E P 0 R T
It is requested that the Mayor and Common Council and the Community
Development Commission set a joint public hearing on October 16. 1989 to
consider the sale of Agency owned property at the Southeast corner of Court
Street and liE" Street to One Sunset Court., Ltd.
BACKGROUND
On December 22. 1988. the Agency entered into a Pre-Disposition Agreement
(PDA) with the Simchowitz Corporation (Developer) for the development of a
high rise retail/commercial structure on the Agency-owned 2.03 acre site at
the Southeast corner of Court Street and "E" Street.
The original PDA has been amended four (4) times to extend the expiration date
of the Agreement. which expires September 30. 1989. as the Developer was
unable to meet financing requirements that forty to fifty percent of the
building be leased before construction begins.
The Developer has formed a limited partnership and has pre-leased
approximately eighty percent of the building to the limited partners, which he
represents will assure the availability of financing.
The Developer proposes to construct an eight to ten story retail/office
building comprising at least 155.500 square feet and a parking structure for
at least 617 cars. Total construction cost Is estimated at approximately
$30.000.000. Construction is scheduled to start in July 1990 and to be
completed In July 1992.
It is estimated that the first year's revenue to the RDA/City will be $310,000
in tax increment and $43,0<l0 in sales tax. Average projected revenues (tax
Increment and sales tax) for the first 10 years are $415.000 per year.
Both the Developer and Staff have worked diligently to negotiate a DDA. On
August 5, 1989. the Developer and Staff completed discussions on the basic
deal points to be reflected in the proposed DDA. The Developer now has to
submit the proposed DDA to the limited partners for their review and approval.
RECOMMENDATION
It Is recommended that the Mayor and Common Council and the Commission
joint pUblic hearing on the matter for 11:00 a.m. on October 16. 1989.
DDA Is not finalized and signed by 11:00 a.m. on October 16, 1989. the
should be continued.
set a
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matter
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SUMMARY OF FINANCIAL ASPECTS
OF A PROPOSED SALE OF
REDEVELOPMENT AGENCY OWNED REAL PROPERTY
WITHIN THE CENTRAL CITY PROJECT AREA
TO ONE SUNSET COURT. LTD.
(In Accordance with California Health and Safety Code Section 33433)
It Is proposed that the Redevelopment Agency of the City of San
Bernardino will enter Into a Disposition and Development Agreement (DDA>
with One Sunset Court. Ltd.. A california Limited Partnership (Developer)
under the terms of which the Agency will sell that certain parcel of land
located at the southeast corner of Court Street and "E" Street as shown
on the map attached as Exhibit "A" and further identified as Assessors
Parcel Numbers 134-251-44 and 134-251-56. .
The following financial summary has been prepared pursuant to Section
33433 of the Health and Safety Code.
1.
Cost of the agreement to Agency
a. Total cost to Agency to purchase
b. Agency contribution under DDA ·
c. Estimated closing costs
less payment by Developer
Total Net Cost
Land $ 402.283
$1.900.000
30.000
$2.332.283
1.300.000
$1.032.283
2.
The estimated value of the Interest to be conveyed Is
$1.300.000.
3. The purchase price to be paid by the Developer is $1.300.000.
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Agency contributions to be used for:
1. . Demolition. clearance. excavation and soil preparation costs;
2. Footings and foundations; and
3. Cost of parking structure.
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