HomeMy WebLinkAboutR15-Redevelopment Agency
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REDEVELOPMENT AQcy ~ REOOEST ~R. ctMIISSION/COONCI l ACTION 0
FROM: James E. Robbins, Acting Executive Director
SUBJECT: HOOLHORTH BUILDING - THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT
WITH OPTION RIGHTS
Qa!f: AUGUST 8, 1988
SvnoDsls of Previous Commission/Council Action:
3-02-21 Resolution No. 83-53 adopted a Parking License Easement Agreement,
Central City Commerce Center, Woolworth Building.
84-02-18 Approval In concept of Amendment to Lease. Agency Counsel
Instructed to prepare.
85-03-07 Resolution No. 4737 adopted an Agreement amending Parking License
and Easement Agreement.
88-05-31 Resolution No. 5115 authorized execution of a Grant of Easement to
Southern California Edison Company for Installation of a new
transformer.
88-08-01 Resolution No. 5138 was adopted.
(MAYOR AND COMMON COUNCIL)
Recommended Motion:
MOVE TO ADOPT A RESOLUTION OF THE CITY OF SAN BERNARDINO CONSENTING TO THE
EXECUTION OF A THIRD AMENDMENT TO PARKING LICENSE AND EASEMENT WITH OPTION
RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO AND CENTRAL CITY COMMERCE CENTER.
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gnature
(Continued on page 2)
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Contact Person: James E. Robbins
Phone:
384-5081
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SUDDortlnQ data attached: Yes
FUNDING REQUIREMENTS: None
Ward:
PrOject: CC (Ent. Zone)
Date: August 15, 1988
Council Notes:
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Agenda Item No. Q
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(COMMUNITY DEVELOPMENT COMMISSION)
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF A THIRD AMENDMENT TO
PARKING LICENSE AND EASEMENT HITH OPTION RIGHTS BETHEEN THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AND CENTRAL CITY COMMERCE
CENTER AND REPEALING RESOLUTION NO. 513B.
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S T A F F R E P 0 R T
On February 4, 1988, the Committee approved, In concept, a Third Amendment to
the Parking License and Easement with Option Rights. 8ased, In part, upon
that approval the developer proceeded with a lease to the COunty's Social
Service Department. The attached amendment corresponds to the concept
approved by the Committee except that the assistance Is reduced from $20 per
space to $14.40 and requirements are added relating to Improvements In the
area around the electrical transformer.
BACKGROUND
In 1983, the Agency entered Into an Agreement with the owners of the Hoolworth
Building, leasing to them 80 total spaces In the 3-level parking structure 35
on the third level and 45 spaces on land leased by the Agency from Central
City Company (IS-year lease).
Under the terms of the lease, the owners of the Hoolworth Building pay to the
Agency $13,000 per year for five years, for a total of $65,000 to reimburse
the Agency for the cost of construction of the 45 spaces on the ground level
(referred to as the "J" site>. Owners are also obligated to pay $20/month
plus CPI adjustments for each parking space.
In the past, the owner has had difficulty leasing the bUilding. The
Commission, recognizing the financial hardships of the owner, granted two
amendments relieving payments until a tenant could be obtained.
The County of San Bernardino Department of Social Service has agreed to a
lease rate at $0.95/SF. This extremely low rate represents the developer's
competitive bid to entice the County to relocate to the downtown area. This
has saved 126 Immediate jObs In San Bernardino.
The developer has agreed to join Main Street security and maintenance
districts If they are formed. In addition the developer has agreed to spend
up to $50,000 to make such Improvements as are required by the Main Street
Revitalization Project to the exterior building and parking structure facade.
The developer will expend approximately $33,588 on the building facade leaving
$16,412 to be applied to the parking structure facade. The amount for the
parking structure will be paid to the Agency upon occupancy of the building.
The "J" site which provides 45 of the 80 spaces Is owned by the Central City
Company and Is leased to the Community Development Coantsston with an option
to purchase for $135,000 plus annual CPI adjustment starting In 1998. The
current lease payment Is $1,500 per month. The first five years were at $920
per month, the second five Is $1,500 and the final five will be at $2,500.
There are options to extend for 40 years. Agency pays taxes, Insurance and
repairs.
There Is no payment to Central City Company for the 35 spaces although, at one
time, there had been some reimbursement for a portion of the cost of a parking
control system.
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PROPOSED AMENDMENT
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The developer requested $285,410 of assIstance In November of 1987. The
proposed agreement wIll provIde $96,768 spread over 7 years ($13.824 per year).
The proposed ThIrd Amendment would change the developer's oblIgatIons as
follows:
a. Delay the start of the $20 lease payment per parkIng space per
month for seven (7) years; however developer to pay $5.60 plus
Increases per space per month for operatIon and maIntenance.
b. Developer to provIde exterIor maIntenance and appearance as well as
agreement to joIn maIntenance and securIty dIstrIct If one Is
formed for the MaIn Street RevItalIzatIon Project.
c. Developer to pay up to $50,000 for facade Improvement to the
buIldIng and parkIng structure.
d. The west wall of the buIldIng Is to be resurfaced by developer In
such a manner to be compatIble wIth and archItecturally conform
wIth the exIstIng north wall.
e. A wrought Iron securIty fence wIll be Installed by developer around
the transformer. The securIty fence Is to be approved by the
Project Manager of San BernardIno Downtown MaIn Street. Inc.
f. The transformer pad wIll be desIgned by developer to draIn to the
street.
Staff and the CommIttee recommend that the CommIssIon authorIze the executIon
of the ThIrd Amendment.
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING THE EXECUTION OF
3 A THIRD AMENDMENT TO PARKING LICENSE AND EASEMBNT WITH OPTION
RIGHTS BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
4 OF SAN BERNARDINO AND CENTRAL CITY COMMERCE CENTER AND REPEALING
RESOLUTION NO. 5138.
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BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
Resolution No. 5138 is hereby repealed.
SECTION 2.
The chairman and Secretary of the Community
Development Commission of the City of San Bernardino are hereby
authorized and directed to execute for and on behalf of the
11 Redevelopment Agency of the City of San Bernardino a Third
12 Amendment to Parking License and Easement with Option Rights
13 between the Community Development Commission of the City of San
14 Bernardino and Central City Commerce Center, with such
15 nonsubstantive changes to said Amendment as may be approved by
16 the Chairman and Agency Counsel. A copy of said Amendment is
17 attached hereto as Exhibit 818 and incorporated herein by this as
18 though fully set forth at length.
19 Dated:
20 Approved as to form
and legal content:
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AGENCY COUNSEL
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1 The foregoing resolution was duly adopted by the following
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AYES:
Members
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NAYS:
ABSENT or
ABSTAIN:
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SECRETARY'S CERTIFICATE
OF
ADOPTION AND AUTHENTICATION
I,
Commission, DO
and correct
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Secretary of the Community Development
HEREBY CERTIFY that the attached Resolution is a true
copy of Resolution No. adopted
' 19 , by the Community Development Commission
of the City of San BeiDardino, by the vote set forth below, and that
said Resolution has not been amended or repealed.
COMMISSION MEMBERS
YEAS
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ESTHER R. ESTRADA
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JACK REILLY
JESS FLORES
MICHAEL MAUDSLEY
TOM MINOR
VALERIE POPE-LUDLAM
NORINE MILLER
DATED:
, 1988.
Check ADDroDriate Box
NAYS
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ABSENT
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ABSTAIN
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Secretary of the
Community Development Commission
of the City of San Bernardino
[SEAL]
SBE00088/2356S
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PRE-PARTICIPATION AGREEMENT BETWEEN THE COMMuNITY
DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO ON BEHALF OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO AND
EMPIRE DOME CORPORATION FOR THE DEVELOPMENT OF A
SPORTS AND ENTERTAINMENT FACILITY WITHIN THE
CITY OF SAN BERNARDINO
THIS AGREEMENT, entered into effective the
of
day
, 1988, by and between the COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO ON
BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, a public body corporate and pOlitic, hereinafter
"Agency", and EMPIRE DOME CORPORATION, a California
of the parties as to the matters set forth hereinafter.
corporation, hereinafter "Owner", constitutes the agreement
WITNESSETH:
WHEREAS, there is certain property located within the
City of San Bernardino generally described as
(the "site"), which
Agency desires to have developed into a Sports and
entertainment facility with onsite parking facilities and
attendant commercial, retail and residential development (the
"Project" ); and
WHEREAS, Owner represents that it has the experience
and expertise to develop upon the Site such development,
inCluding onsite parking, to meet the Agency's goals for such
development.
NOW, THEREFORE, the parties hereto agree as follows:
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1. For the periOd commencing with the signature of the
parties hereto, and continuing for 270 days thereafter,
unless sooner terminated in accordance with the provisions
set forth hereinafter, Agency and Owner shall negotiate
exclUSively with each other and in good faith toward the
preparation and execution of an Owner's Participation
Agreement ("OPA") between the parties, for the development of
a suitable sports, entertainment, commercial, retail and
residential facility upon the site, or upon any other
suitable site within the City.
2. This Agreement is intended to be preliminary in
nature, and does not create and is not intended to create any
interest in the land described. The parties hereto agree
that this Agreement is not specifically enforceable. Any
breach of this Agreement shall give rise only to an action
for damages, and only then in the absence of good faith.
3. The parties set the fOllowing as a tentative action
schedule, to be complied with substantially, unless otherwise
mutually agreed:
a. Within ninety (90) days of the date of
execution hereof, Owner shall provide Agency with soils
reports (including liquefaction, and toxic and hazardous
contaminants) and a feasibility study.
b. Within one hundred and twenty (120) days of
the date of execution hereof, Owner shall provide Agency with
a pro forma, proposed conceptual plans and specifications and
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such other materials as may be needed by the Agency to review
the Project as proposed. The pro forma shall contain
adequate information to enable Agency to' obtain a full
economic analysis from its economic consultant.
b. Within one hundred twenty (120) days of the
date of execution hereof, Agency shall submit to owner a
first draft of its proposed OPA.
c. Within two hundred forty (240) days of the
date of execution hereof, Agency Staff and OWner shall submit
a final proposal to the Redevelopment Committee of the
Agency.
4. In order to carry out the foregoing tentative
action schedule, Agency and Owner covenant that they will
respond forthwith to any and all reasonable requests for
additional information by the other party, and agree that any
failure to provide the information requested within ten (10)
working days from the date of such request shall constitute
grounds for immediate termination of this Agreement, unless
additional time is granted by the requester. Termination
under this paragraph shall be on written notice served on the
opposite party.
5. The following items shall be discussed during
negotiations in an attempt to arrive at a mutually agreeable
OPA:
a. The providing by Owner of a model prior to
completion of an OPA.
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b. Owner will have the right, subject to such
requirements as may be imposed by third parties, such as the
City of San Bernardino or the County of San Bernardino, to
increase the project size during preliminary discussions or
after execution of an OPA.
c. Owner shall submit a complete marketing
package, including how it intends to promote and market the
site, which information shall include a description of the
types of events anticipated for the sports and entertainment
facility.
d. Negotiation of performance bond to guarantee
completion of construction, or some other mechanism to assure
that construction is proceeding as planned, and that adequate
financing remains at all times available for completing the
project, or other means are arrived at to satisfy Agency's
concern that this project will be satisfactorily completed.
e. Agency participation in profits based on
Agency participation in expenses, if appropriate.
f. Control of parking facility, and provisions
for including controls over charges for parking, and Agency
participation in construction expenses for the parking
facility. These matters shall include whether any obligation
will exist for making public parking available.
g. Maintenance standards and adequate security
provisions.
h. OWner shall identify early in negotiations any
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Agency assistance which OWner requests from Agency, including
any assistance in obtaining tax-exempt financing, low-cost
financing, zoning changes, liquor license approval
(conditional use permits may be required in some
circumstances) and any other matters which will require
special considerations from Agency or from the City of San
Bernardino.
i. Assurance that Owner will be bringing new
tenants into the City of San Bernardino, unless transfer of
present occupants of buildings within City are brought into
this complex only after Agency review and consent. Some
safeguards against "stealing tenants" from other businesses
or locations in the City of San Bernardino shall be devised.
j. OWner shall provide a tenant-mix plan, and a
leasing schedule, with letters of interest from proposed
tenants and other evidence of leasability of the proposed
development. Agency is not interested in a facility which
will be vacant.
k. Provisions in lieu of development, if any, for
any reason, Owner fails to complete development within the
time specified.
1. Provisions ensuring against hOlding for
speculative purposes, inCluding prohibitions against
transfers of interest without Agency consent. Similar
prohibitions against change of principals of developing
entity and the development team.
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m. Participation by Owner in any ongoing or
subsequently enacted program having general public benefit in
the area, including, without limitation, Agency programs
regarding streetscape, lighting, community "themes" in
building design or maintenance.
6. The items listed for negotiation are not
necessarily the only items which will be discussed in the
negotiating process. Agency and Owner shall negotiate
exclusively with each other and in good faith toward
completion of an Owner's Participation Agreement in such form
as to grant to the parties the greatest assurance Possible
that the development will be operated in a successful manner
and contribute to the greatest Possible betterment of the
City of San Bernardino.
7. The parties acknowledge and understand that
financial incentives of the Agency come from the tax
increment developed in the specific redevelopment area and
any such incentives depend on sufficient tax increment being
available.
IN WITNESS WHEREOF, the parties have executed this
Agreement effective the date and year first set forth above.
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REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
300 North "0" Street
San Bernardino, CA 92418
By
Chairman
By
Secretary
Approved as to form
and legal content:
AGENCY COUNSEL:
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Dennis A Barlow
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EMPIRE DOME CORPORATION
a California corporation
301 Vanderbilt Way, #245
San Bernardino, CA 92408
By
By