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HomeMy WebLinkAboutR05-Redevelopment Agency o o o Redevelopment Agency · City of San Bernardino 300 Nclnh "D" Slree~ Fourth Floor . Sm Bemardino, Cllifcmia 92418 (714) 384-5081 FAX (714) 888-9413 PrIde ./ ~.. Stevu H. Duke<< Executive Dinctor SEPTEMBER 20, 1989 CURRENT ACTIVITY STATUS REPORT FIRST QUARTER F.Y. 1989-90 SvnoDsis of Previous Commission/Council/Committee Action: 09-21-89 Committee recommend that the Commission receive and file the Current Activity Status Report. Recommended Motion: (COMMUNITY DEVELOPMENT COMMISSION) Receive and file the Current Activity Status Report. o Supporting data attached: Yes FUNDING REQUIREMENTS: N/A Hard: All Project: All Commission Notes: Agenda of: October 2, 1989 Item No. 5' o SHD:JH:sm:2349H o o Redevelopment Agency o S T A F F R E P 0 R T Attached for your Information Is the Agency's Current Activity Status Report. The Report highlights the significant projects currently being pursued by Agency staff and explains their status through the first quarter of F.Y. 1989-90. It Is Important to note that the Agency Is currently planning or Implementing a myriad of development projects when added together have a development value well In excess of $100 million. It Is staff's intention to give the Committee/Commission an update of this report on a quarterly basis. This will occur during the month following the close of each calendar quarter. The next report. therefore. will be submitted In January 1990. o 10 SHD:JH:sm:2349H o o o o REDEVELOPMENT AGENCY CURRENT ACTIVITY STATUS REPORT First Quarter F.Y. 1989-90 o o o o o o CENTRAl CITY PROJECT AREA Central City South -- Sports/Entertainment/Cultural Center · Description: Proposed regional sport/entertainment/ cultural center with surface parking plus surrounding mixed commercial uses including high rise office and residential plus street level retail covering a total of %100 acres. The project site is generally located between Rialto Avenue on the north, I-21S on the west, Mill Street on the south and the rear property line of the properties located on the west side of "D" Street. The project's financial feasibility has not been determined. · Developer: As a result of an RFQ, two proposals have been recelved--one from the Sunset Group and one from ADI Propertles/Hestdome holdings corporation. · Status: Staff has requested that each proposer submit detailed financial information by September 29th. He will then invite presentations to be made to a selection committee who will recommend which proposal, if any, should be considered for a negotiation agreement. · Estimated Development Value: Undetermined E Street and Athol Site (Old Harmon Motors Site) · Description: Proposed retail center on 3.89 acres of vacant property owned by the Agency. · Developer: The Sunset Group had an agreement for exclusive rights of negotiation which expired on August 1. 1989. · Status: The Sunset Group and two other developers have expressed interest in further negotiations. They have asked to present specific proposals. · Estimafed Development Value: Undetermined 181 So. "G" St. (City Surolus Prooerty) · Description: Old transit yard and recycling center owned by the City. · Developer: None. - 1 - 0382j o o o · Status: Commission/City approved Agency purchasing the property for $300.000. Bids to do an environmental assessment of the site are being obtained. · Estimated Development Value: Unknown. Central Cltv South Assessment District · Description: The 125 acre District, under consideration at the request of the Agency. would Install $10 to $12 million In infrastructure improvements in accordance with the City's Overlay Zone guidelines. The principal Improvements are construction of new streets, reconstruction of existing streets, undergrounding of utilities and landscaping. · Status: The district has been approved on two occasions (Including one public hearing>, but still requires one more public hearing before it will be officially formed in the spring of 1990. A contract to design public improvements has been let by the City's Engineering Department. · Estimated Development Value: Unknown o Carel and Assoc.. Inc. (Court & Allen> · Description: A five phase project for 154 multi-family units and 170 mini-storage units on former Agency property located between 3rd and 4th streets, west of Haterman. o · Developer: Cliff R. Carel and Associates have a Disposition and Development Agreement with the Agency. · Status: Developer has completed Phases I through III. Phase IV for 70 multi-family units and Phase V for 170 mini-storage units have not been started. Property for Phase IV has transferred to the developer, but property for Phase V remains in the ownership of the Agency. Developer is In default on commencement of Phases IV and V. Negotiations have been carried on for some time and were temporarily suspended awaiting the adoption of the amended General Plan. Developer has been put on notice that he is in default and if a proposal is not received in the near future the Agency will recommend proceeding with available remedies under the DDA. · Estimated Development Value: $5.980,000 Court and E Street Site · Description: Proposed 155,000 SF, eight to ten-story, granite-faced office and retail building with a 617 space parking structure on the SHC of Court and E Streets (currently used as surface parking>. As currently proposed. the building would be a dramatic architectural statement in downtown and would set a new standard for corporate headquarters bUildings in the area. - 2 - 0382j o o o o o · Developer: Currently under an exclusive negotiation agreement with The Sunset Group which expires September 30, 1989. · Status: The developer Is reviewing a Disposition and Development Agreement which Is ready for signature. Developer has secured joint venture partners who will commit to leasing sufficient space to make financing possible. Developer has agreed to pay $1.3 million for the land and the Agency will provide $1.9 million in assistance. The DDA Is scheduled for consideration at a public hearing on October 16, 1989. · Estimated Development Value: $15,000,000 Hanford Foundry Acquisition · Description: The former Hanford Foundry site consists of 10.8 acres which has recently been cleared and rough graded. The owner has an approved tentative map to subdivide the property Into ten parcels. The Commission has approved purchase of the property for $2,200.000. · Status: An environmental assessment indicated potential toxic waste problems and. at the request of the owner, the staff agreed to allow the owner to. cance 1 the escrow. F Street Rallwav Crosslnq · Description: Implementation of the Central City South Overlay Zone mentioned above In connection with the CCS Assessment District. will be dependent upon obtaining an "at grade" public crossing of the AT&SF railway for F Street south of Rlalto Avenue. · Status: A preliminary agreement with the railroad has been obtained, but It Is dependent upon the closing of two other "at grade" crossings, one on Main Street and another on 8roadway In the Uptown Area (Subarea 8). The PUC staff has supported the railroad's position. The Mayor and Common COuncil have directed that the Engineering Department proceed with the necessary street vacations. Those who might be damaged In any way by the vacations were invited at the Council meeting to ask the Agency for assistance, but no one has come forward. San 8ernardlno Downtown Main Street. Inc. · Description: "Main Street," a non-profit pUblic benefit corporation formed on July 22, 1987, was created to utilize a comprehensive management approach to help revitalize the City's downtown core lying between I-215 and Sierra Hay, north of Rlalto Avenue and south of 8th Street. An amended agreement, dated April 17, 1989, provides a specific work program supported by a three-year budget totaling $915.985. In addition to this, the Commission has bUdgeted $2,108,015 for related public improvements. The budgeted funds are to be supplied by the Agency, prlmarlly from the Central CIty North project area's reserves. - 3 - 0382j o o o o o · Status: In addition to ongoing education, promotion, and economic restructuring activities, Main Street is involved in the preliminary design of pUblic improvements to be built in the central portion of the program area. The public improvement activities will total $2,108,015 of the program effort and will be constructed by or on behalf of the City through the Department of Public Harks. Other program elements In the work program Include a building facade renovation program and, a sign abatement program, both of which require Main Street to specify In writing the program elements and obtain Commission Approval. Main Street has submitted a written explanation of each program. Commission approval has yet to occur. Main Street will make a quarterly status report in October, 1989. - 4 - 0382j o o o o o CENTRAL CITY NORTH PROJECT AREA Platt Bulldinq . Description: and E Street. to expand the Renovation of an historic building at the SEC of 5th Street The Agency was Involved In obtaining parking which was used downtown parking lots as well as for the Platt Building. · Owner: Art Gregory. · Status: Owner Is In default on completion of exterior improvements. partially due to difficulties In obtaining tenants. Main Street Is cooperating to locate tenants and Agency staff has been negotiating an amendment to the existing agreement. Remedy under existing agreement Is $50,000 to Agency from owner. Developer has been put on notice that he is in default and demand has been made for $50,000. If a timely response is not received the matter will be referred to counsel for further action. · Estimated Development Value: $1.200,000 Miles House · Description: Renovation and relocation of the Queen Anne style Victorian Miles house to Agency-owned land adjacent to the Historical Society building on the SHC of 8th and D Streets. The Agency will sell the land (an Improved parking lot) to the developer who has relocated the house onto a portion, use another portion for parking for commercial uses in the renovated house, and maintain parking on the balance for the benefit of the Agency under an easement for SUbsequent license or lease to the Historical Society. · Developer: Rock Enterprises. · Status: Under the Disposition and Development Agreement developer has relocated the house and has started renovation. An escrow has been opened to transfer the land. · Estimated Development Value: $240,000 Hhole 810ck Development Concept North of City Hall · Description: Complete renovation and/or reconstruction of the block between Court and 4th Streets and between D and E Streets for a mixed use development of retail and office plus a limited amount of third story residential. - 5 - 0382j o o o ~ o o · Status: Originally proposed by the Janss Corporation who has since asked that the. Agency evaluate the concept and issue a request for qualifications to developers. They suggested that after a qualified developer Is selected, specific development criteria would be determined. Agency economist has reviewed the site potential and recommended that the Agency not proceed with the project until the SEC of Court and "E" Streets Is developed. It Is their opinion that lacking the development of this new building, there Is no significant market for the deSired Improvements. · Estimated Development Value: Unknown Main Street Please see the description on the Central City Project. NH Corner of 5th and "E" Streets · Description: Proposed twelve (12) story 150 unit senior citizens complex with ground floor office and commercial space. · Developer: Investors Capital Partnership. L.P. · Status: The Community Development Department (COD) has been negotiating with a developer (Bob Uthom) for construction of a senior citizens complex. COD has requested that developer submit a proposal In conformance with the Agency's Developer Relations Guidelines. The Agency may be Involved In this project. · Estimated Development Value: $15,000,000. - 6 - 0382j - - o o c::> NORTHWEST PROJECT AREA o o Northwest Shopping Center · Description: A 92,000 SF neighborhood shopping center on ten acres of Agency-owned property (with a remainder parcel of 5.5 acres), As presently conceived, the $12.2 million center Is proposed to be financed from the following sources: Haagen Contribution UDAG Grant Convetlonal First Agency Land Purchase Agency Bonds Agency/City Second TOTAL $500,000 1,834,000 3,256,000 1,325,000 2,000,000 3.296.000 $12,225,000 . In addition, there would be three years of very low Interest Interim financing from City and County CDBG float funds to reduce the project carry to acceptable levels. The turrently proposed mechanism Includes a ground lease to the City who will sublease to Haagen. Haagen will have a 'best efforts' right to negotiate a purchse at some point In the future. After receiving $3,296,000 which would pay off our second trust deed, the City/Agency would be entitled to a 35~ share in the proceeds of sale or refinancing. Developer: Alexander Haagen Status: Since Inception, the project budget has Increased $2,077,000. This Is because the supermarket Is 12,000 feet larger and $5 per square foot more expensive to build ($730,000 of the Increase); the larger supermarket requires full flxturlzatlon ($1,050,000 of the Increase); and there are Increased financing costs. The City Is being asked to bear the Increase in construction costs for the supermarket while Haagen bears the financing costs. These Items are currently the subject of negotiations with Haagen. Haagen -has confirmed that the Board of Directors of American Stores (the parent of Lucky) has determined that the site, with appropriate lease terms, meets their basic criteria for a new market location and has authorized formal lease negotiations. American has, however, continued the item at theIr board meetings. They are seeking resolution of two matters. First, the outcome of negotiations between the City and Haagen. Second, the outcome of an appeal by California to block their merger with Alpha Beta. If the Supreme Court agrees to hear the matter, American says they will not be able to go forward during the protracted hearings before the court. . - 7 - 0382j o o o u 1 4 o o Meanwhile, continued availability of the UDAG grant Is dependant upon substantial progress In the Lucky negotiations. The current status of the UDAG Is subject to change on a day to day basis because HUD Is looking for money from Infeasable projects that could be used to fund current requests In the next funding cycles. · Estimated Development Value: $12,225,000 Ninth Street and Pennsvlvanla Property Acquisition · Description: A 3.87 acre parcel appeared on the tax-defaulted property list and the Agency has been authorized to purchase It using $7,500 from the low-to-moderate-Income housing fund. · Status: A request has been filed with the county and, If the property is not redeemed by the owner, the Agency will acquire the parcel sometime next year. It Is usable for a single-family residential project. · Estimated Development Value: Unknown HAB Land Development Corporation · Description: A 40 acre parcel designed for heavy Industrial users. landlocked by county flood control channels. · Owner: HAB Land Development Corporation. · Status: HAB has discussed requesting Agency assistance and has Indicated that they are considering further conversations with the County Flood Control District over an old obligation to Muscoy Hater Company with respect to vehicular crossings which they Interpret to be bridges to the property. This may Involve the Agency In that It Is possible we will attempt to renegotiate a pass-through of tax Increment from the County to the Agency. The original. temporary pass-through agreement for the Northwest project area expired without being replaced by a permanent agreement. Agency and County representatives were involved In an attempt last year to develop a permanent agreement. Negotiations were suspended to expedite the Northwest Shopping Center which is dependent upon the loan of CDBG float money from the County. · Estimated Development Value: Unknown Public Enterprise Center · Description: The Agency owns the PEC buildIng on the SHC of Western and Highland Avenues. The six existing tenants are the City Library, the Community Access Cable TV studios, the Drop-in Center run by Parks and Recreation, the branck Post Office and bill payment center, People's Choice, and the Northwest Project Area Committee. - 8 - 0382j o o o ~ o o · Status: He are continuing to make progress in correcting the maintenance problems. The electrical problems at the building have been corrected and the parking lot has received a seal coat. Bids to replace the roof, renovation of refinishing of exterior wood surfaces and Interior painting have been received, The PEC Task Force issued a RFQ In June of 1989, as a result of the RFQ only one consultant submitted a proposal. Because only one proposal was received, the Task Force has decided to re-issue the RFQ. The Task Force Is currently working on new mailing list to improve response to RFQ. · Estimated RFQ completion date is October 1989. Arrowhead Health Care Systems · Description: A 50,000 to 100,000 SF professional medical office complex to be built partly on land owned by Arrowhead (former school property) and partly on land now owned by the Agency (former park property) on the west side of Medical Center Drive south of 19th Street. · Developer: Arrowhead In joint venture with Dowdell Corporation, a subsidiary of Xerox, · Status: Agency staff and Arrowhead Health Care representatives have met several times over the past weeks to work out deal points to DJDA. Agency's Counsel Is now drafting the final document. He expect to have DJDA signed by Arrowhead Health Care In September 1989 for presentation to the Commission on October 2, 1989. · Estimated Development Value - $5,000,000 to $10,000,000. SHC of Baseline and Mt Vernon · Description: A retangular-shaped piece of ground totaling 3.6 acres Including ~0.5 acres owned by the Agency. There Is an existing, abandoned Pioneer Chicken on the corner, but the balance of the site Is vacant. The proposed General Plan land use designation would allow for either commercial uses or multi-family uses on the site. · Status: The Agency's economist is analyzing the development potential for the site. We will then consider whether an Agency-sponsored or -assisted project Is worthwhile. · Estimated Development Value: Unknown Senior Citizen HouslnQ Pro1ect · Description: A 50 unit senior citizen residential project to be built on land owned by Arrowhead Health Care Systems. The proposed financing comes 50~ from the County Housing Authority and 50~ from the Agency. The Agency's share will be obtained from the sale of tax allocation bonds secured by revenues from 20~ set aside funds. - 9 - 0382j o o o o a · Status: The City's Department of Community Development is Involved in the negotiation of the various leases, agreements, and studies required to form the project. Public hearings are being set and Community Development has contracted out the architectural plans and specifications. Finalization of this project has been delayed due to negotiations on the AHCS Office Building, This project should come back on line In October 1989. · Estimate Development Value: $2,000,000 - 10 - 0382j L w - o Q o STATE COLLEGE PROJECT AREA o o Greenleaf Development · Description: A speculation development of ten Industrial buildings totaling 350,000 SF expected to produce 700 jobs. · Developer: Greenleaf/Neely Investors. · Status: The project has received all entitlements and six of the ten buildings have been completed. Developer has requested assistance (which the Agency's economist says Is warranted) for the cost of Improving a city-owned storm drain that conveys water underneath the freeway and through the development to a public street. An assistance agreement has been drafted and Is under review with the developer. It would provide assistance of $100,000. Details of agreement have been worked between the Agency and Greenleaf and we be able to present the agreement by October 1989. · Estimated Development Value: $13,000,000 · General Plan - IL: Planning Case - PM12482: Planner - not assigned ColleQe Parkway Development Associates · Description: Ten parcels of land on the SHC of University Parkway and 1-215. Existing development Is comprised of Papa's Pantry, Motel 6, and Taco Bell, · Developer; College Parkway Development Associates. · Status: College Parkway received a loan of $350,000 from the Agency secured by second trust deeds. It was substantially paid back and then reloaned under an amendment to their loan agreement which substituted new deeds of trust. The loan has now been paid down to $122,954 In connection with releases of various parcels. They are asking that the Agency once again loan funds for the final phase of the development and Increase the principal balance to $500,000. The developer has not met the time requirements for construction of Phase II and Is now in default. College Parkway has been asked to submit economic data justifying their need for additional funds but they have not responded to our written request. · Estimated development Value: $15,125,000 - 11 - 0382j o o o ~ - - o a University VIllaQe Apartments · Description: A 197 unit apartment project on the NEC of University Parkway and Kendall Drive on land assembled by the developer and by the Agency. In addition to site assembly assistance, the Agency will reimburse a portion of the landscaping expenses required to screen the development from the entrance to the University. · Developer: University Village Associates. · Status: The apartment units are complete and have received certificates of occupancy from the city. The developer has a remaining obligation to complete landscaping In the median of North Park Boulevard and on a one acre park site adjacent to the University. Landscaping of median has begun and should be completed by mid October 1989. · Estimated Development Value: $7,500,000 5055 Hallmark Building · Description: On June 23, 1989, the Redevelopment Agency acquired, at a Trustee's sale, an Industrial building located at 5055 Hallmark Parkway, formerly owned by Hestslde Community Development Corporation, In accordance with a covenant between the Economic Development Administration and the redevelopment Agency, the Agency may use the property as a light industrial incubator facility for small businesses. · Status: On July 7, 1989. Agency staff ran newspaper ads and mailed Invitations to fifty-one (51) consultants to submit proposals to develop a long-term use, management and Implementation plan for the Hallmark building. Two consultant teams submitted proposals and, based on the written proposals and Interviews, staff ranked InnovatIve Partners Inc. to be the best suited for the Agency's needs. Subject to Commission approval of the consulting contract, the 90-day study will begin In October 1989. NEC of 27th Street and Little Mountain Drive · Description: A privately owned ~14 acre site proposed to be designated as commercial office In the amended General Plan. This Is the last major piece of vacant land in the area and is at the approximate center of the preferred area located by the consultant who assessed alternative locations for a pOlice headquarters building. · Status: The Agency's economist Is conducting an analysis of the site's potential. A number of studies would be required for development of the property Including storm water control and traffic assessment studies. The location Is convenient to freeway access for both 1-215 and Route 30. It is not immediately adjacent to mapped fault zones and Is unlikely to have Liquefaction potential. He will consider whether an Agency-sponsored or -assisted project is worthwhile once we receive the economist's report. · Estimated Development Value: Unknown. - 12 - 0382j - . - o o o SOUTHEAST INDUSTRIAL PARK o o Sunset Business Park · Description: Twelve low-rise office/commercial buildings (nine under agreement with the Agency) on Hospitality west of Hunt's Lane. · Developer: The Sunset Group. · Status: Eight office buildings and one commercial building have been completed and the first seven of these have received partial certificates of completion. The first seven office buildings were three-story structures, but the most recent was a four-story building. The developer Is ahead of the schedule in the agreement. Rough grading has been completed for the remaining buildings, but construction will depend upon market conditions and the outcome of negotiations for an amendment to the OPA. More square footage would be built on additional land. In return for further financial assistance for public improvements (possibly Including expansion of the South "E" Street bridge). Continued development of four story and higher buildings will be dependent upon mitigation of significant traffic impacts and may require structured parking. The developer has applied for a UDAG grant to assist the financing of this parking structure. A special study will be made by the Planning Department to develop building height limitations for the Commerce Center/Tri-Clty area. · Estimated Development Value: $50,000,000. San Bernardino Auto Plaza · Description: A regional auto plaza which will ultimately contain 11 new car dealerships added to 2 existing dealerships, plus an auto service center and ancillary retail buildings on Auto Plaza Drive west of 1-215. · Developer: Orange Show Plaza Associates (master site Improvements) and 8 & M Properties (general commercial areas). · Status: Master site Improvements and six of the new car dealerships have been completed. Acura and Nlssan dealerships as well as the auto service center and ancillary retail buildings are under construction. A Volvo dealership recently received DRC approval to begin construction. One dealership site remains available. Construction has started on the commercial areas. · Estimated Development Value: $8,000,000 - 13 - 0382j j - ~. o o o Friedlander Auto Dealership (Acura) · Description: Acura Car Dealership for San 8ernardino Auto Plaza. · Developer: Herb Friedlander · Status: Because construction of the dealership fell behind the date called for In the underlying Auto Plaza OPA, negotiations with Herb Friedlander led to a separate OPA covering just this dealership. Under Its terms, Mr. Friedlander deposited $75,000 with the Agency, which is to be refunded If the following construction deadlines are met: Obtain building permits - by May 1, 1989 Start construction - by July 1, 1989 Certificate of Occupancy - by January 1, 1989 To date, $50,000 has been refunded and construction Is continuing to progress on schedule. o o DeGroot/Sunset Group · Description: A 20,000 SF Industrial building to be built on Rlverview Drive. · Owner: Ted and Jacqueline DeGroot (recently joint ventured with The Sunset Group). · Status: The agreement has been amended five times to allow in-lieu fees to be paid Instead of proceeding with construction. Construction is once again overdue and the Commission has authorized the staff to proceed with the default provisions of the agreement. In response to staff's, notification of Intent we have been advised that The Sunset Group (Slmchowltz) Is interested In amending the agreement and substituting themselves for DeGroot. We have been receptive to the concept of substitution and expect to receive a written proposal In the near future. · Estimated Development Value: $600,000 King Default · Description: An 11.3 acre parcel of Industrial property on the NWC of Tippecanoe and Cooley Avenues. The developer was obligated to construct 5 Industrial buildings totaling 145,000 SF and worth $5.000,000 under an agreement signed In 1979. · Developer: Chuck King & Associates. · Status: Only two buildings (83,000 SF) have been built. Developer owed the Agency $44,000 In in-lieu fees as of January I, 1989. On November 21, 1988. the Commission authorized the City Attorney to proceed with litigation to recover the fees due. An action has been filed but Mr. King has not been served because he has not been located. - 14 - 0382j o o o Rockwell International · Description: Modification of existing Industrial buildings at the west end of Cooley Avenue for aerospace design, production, and testing facilities for the MX rail garrison program, · Status: The Agency has an agreement to provide $770,000 in assistance to Rockwell over a period of 5 years in exchange for 1250 man years of employment. Rockwell has successfully bid for another project which will be placed in buildings adjacent to their current facility. The Agency is examining the feaSibility of acqUiring a 6 acre parcel of land which will be leased to Rockwell for a periOd of 10 years to be utilized as a parking site. A DOA Is In Rockwell's hands for review which will provide that the Agency acquire the property (eminent domain will be required due to the Mayor's partial ownership of the site) and assist in the improvement of the parking lot, not to exceed total assistance of $600,000. Rockwell will double their employment commitments. The matter Is scheduled for Commission consideration on October 2, 1989. · Estimated development Value (current project): $12,000,000 o o - 15 - 0382j ~ - II\.. o a o SOUTH VALLE PROJECT AREA The Club Center · Description: A large scale, discount retail, center in South Valle located on Caroline Street between Hunts Lane and Haterman. · Developer: SP Investments. · Status: Construction pursuant to the original OPA Is complete, except that the agreement will require an amendment, which Is currently being reviewed by staff, before a certificate of completion can be issued. The square footage was less than required by the agreement, but the value has been exceeded. The project was also completed several years ahead of schedule. On a related matter, the Department of Public Works, on behalf of the Agency, Is completing a railroad crossing on Hunts Lane In cooperation with Colton, Construction bidding can begin as soon as permisSion to perform the work Is received from the Southern Pacific Railroad. Merv Slmchowltz, a principal In SP Investments, plans to submit a new proposal which will provide for an expanded bulldout of the Club Center, In return for additional financial assistance needed for further public Improvements In the area. o · Estimated Development Value: $10,000,000 o - 16 - 0382j j o o c::> TRI-CITY PROJECT AREA o o Pace Warehouse · Description: A 150,000 SF discount retail center featuring Pace Harehouse and Sportmart with additional retail shops and a restaurant site located on Harriman near Hospitality. Agency agreed to provide $1,200,000 In assistance. · Developer: Alexander Haagen Company and Doug Golding. · Status: All development Is complete with the exception of the restaurant site. An amendment was recently executed and a certificate of completion issued. The amendment prOVides the developer additional time to complete the restaurant, while delaying the commencement of reimbursement payments to him until this construction Is complete. · Estimated Development Value: $12,500,000 Trl-Clty Corporate Center · Description: A regional commercial and business center totaling 2 million SF with a value, when complete, of well in excess of $150 million located on the site of the old Trl-City Airport. · Developer: Rancon Realty Funds IV and V. · Status: Twelve buildings, including two four-story and one six-story office building, have been completed. Current construction has slowed, but a regional headquarters building and operations center for Santa Fe is under construction. The Agency's obligations Include the cost of constructing a new off-ramp for 1-10 at Haterman Avenue, which Is currently estimated to cost $1.25 million. Southeast Industrial Park will be loaning this amount to the City, which will It turn loan It to Trl-Clty. The Agency's other primary obligation under the existing agreement Is to pay for the design engineering of the new on and off-ramps (estimated cost $250,000), which design work is presently 95~ complete. Rancon has requested further Agency assistance on the construction of approximately $1.9 million In public improvements. Staff is negotiating with Rancon to develop an agreement for presentation which will provide for $600,000 in Agency reimbursement to Rancon. · Estimated Development Value: $150,000,000 - 17 - 0382j L .~ o o o Santa Fe Relocation · Description: The retention and relocation of the Santa Fe Yard Office and facilities to provide control of all Santa Fe trains operating In California. This Is a large regional dispatch center requiring specialized communication and control equipment. The Agency Is contributing $100,000 In relocation assistance. · Developer: Santa Fe. · Status: Construction in process; the projected completion date in November 1, 1989. · Estimated Development Value: $3,800,000 in special equipment. o o - 18 - 0382j - - 11.. o o o UPTOWN PROJECT AREA Rlalto and I Site · Description: The Agency owns a 13,000 SF building on a 48,709 SF lot on the NEC of Rialto and "I" (the former Hashington Elementary School>. The proposed General Plan land use designation Is Light Industry. · Status: Agency staff Is forwarding a recommendation that the Commission authorize staff to obtain bids for the demolition of the Agency-owned building; authorize staff to Issue an RFQ/RFP for developing the block in which the building Is located; and authorize staff to prepare a financing plan to support the development. · Estimated Development Value: Unknown o o - 19 - 0382j o o o OTHER DEVELOPMENT ACTIVITIES o o Enterprise Zone · Description: The existing Enterprise Zone sunsets In November of 1989. Staff Is preparing a report on the effect of the zone's existence from Inception as well as for the last year of operation. · Status: An application was made for a federally designated enterprise zone. Our raw score for the rating criteria was low, but we have requested special consideration because the proposed zone Is adjacent to Norton AFB and would be an Important tool In offsetting the effects of the closing of the base. Neighborhood Spirit · Description: Neighborhood Spirit combines several low-and moderate-income housing rehabilitation and neighborhood Improvement programs offered by various City departments Into one ~fflclent and comprehensive program designed to enhance the value of homes in selected neighborhoods In a short periOd of time, Neighborhood Spirit will be offered to neighborhoods which are members of NeighborhOOd Hatch and which are willing to commit to making the program successful. These neighborhoods, called focus neighborhoods, will receive the concentrated effort of all City services for a six month period of time. NeighborhOOd by neighborhood, San Bernardino will Improve Its regional Image as an attractive, safe residential center. · Status: The Neighborhood Spirit program concepts will be reviewed with Commission and Council on October 2, 1989. Subsequently, staff will recommend two demonstration neighborhoods, a speCific program and operations manual, and marketing tools, The program is expected to begin on November 1, 1989. Proposed Mt Vernon Business Corridor Redevelopment Pro1ect Area · Description: A potential redevelopment project area principally focused on Mt. Vernon Avenue, Foothill Boulevard and the Santa Fe freight yards. · Status: A Council appOinted task force (composed of Councilmembers Estrada, Flores, and Pope-Ludlam) is holding community meetings in order to explain the process and to receive public comments on the concept. A recommended survey area is expected to be presented to the Council in November. - 20 - 0382j o o o ~ ~ o o Amendment of Redevelooment Plans · Description: Amendment of eight pre-1976 plans to increase the tax allocation limit by 20~ and the amedment of all plans to conform with the newly adopted General Plan. · Status: A staff report has been prepared for presentation to the Commission following environmental review, This will be the first step which will Increase tax allocation limits in eight (8) plans. Agency staff and Counsel are reviewing each of the plans for a more general amendment to conform each plan with the General Plan. - 21 - 0382j - o o o ADMINISTRATIVE SUPPORT ACTIVITIES o 1. BudQet The fiscal year 1989-90 budget documents have been revised to improve tracking of expenditures and revenues for each project area. The proposed 1989-90 budget has been completed and submitted to the Redevelopment Committee for review. Final adoption of the budget will be proposed In October pending completion of the review by the Committee. 2. Audit Findings/Status All accounting records relating to mortgage revenue loans have been reconciled with Pacific Savings and Security Pacific National Bank to complete the outstanding portion of last year's annual audit conducted by Eadie & Payne. All project area accounts for the fiscal year ending 6/30/89 have been closed out, and the 19B8-89 annual audit is In progress. To date, there are no indications of any audit exceptions. To address the one outstanding audit exception cited by Eadie & Payne in last year's audit, the chart of accounts is currently being revised to comply with all fund accounting procedures required by Government Accounting standards. 3. Accounting Comouter ProQram The accounting computer program is currently being modified to accommodate the revised budget format and chart of accounts, Hhen completed, the program will facilitate budget analysis and reporting on a more timely basis. 4. Bond Refinancing Coordinated all Agency reports and data needed by Bond Counsel and the financial consultants (Miller & Schroeder) to Implement the refinancing of the Agency's bond issues and to establish the Joint Powers Financing Authority. 5. Financial Planning The analysis of the Agency's tax revenues and bond obligations was completed in accordance with the consulting contract with Katz Hollis. 6, Personnel Policies and Procedures o A full revision of the Agency's personnel manual to update and incorporate various changes In the law and other polley and procedural changes since 1981 was completed and adopted by the Commission. 7. SalarY/Benefit Adjustments A 3~ cost of living salary adjustment and the full pick-up of the employee PERS contribution (representing a l~ increase) was proposed and adopted for all non-management employees. - 22 - 0382j o o o u _ J - - - -- o o A long-term disability insurance program was approved by the Commission and instituted for all employees effective September 1, 1989. 8. Master Services AQreement To facilitate the contracting of various services between the Agency and the City, a Master Services Agreement was developed and implemented. 9. Consolidated Vendors' List The Agency developed a consolidated list of all current and prospective vendors, Including minority and local vendors, to facilitate the widest pUblication of RFP's and RFQ's and the procurement of the most cost-effective services. 10. Staffing Comoonent Two positions In the Administrative Services Division have been proposed for elimination. One position (recently vacated) has been recommended for deletion from the proposed 1989-90 budget, and a second position (also vacant) has been recommended for transfer to the Development Division in the proposed budget. The administrative support operations will be further reviewed to assess the most efficient staffing levels needed by the Agency. - 23 - 0382j