HomeMy WebLinkAbout05- Redevelopment Agency REDEVELOPMENT AGENCY-REQUEST FOR COMMISSION/COUNCIL At,PION
Subject: CCE - LEASE - YWCA/SECCOMBE LAKE
From: Glenda Saul, Executive Director PROPERTY
-apt: Redevelopment Agency '
Date: December 30, 1987
Synopsis of Previous Commission/Council action:
9/19/83 Adopted Resolution 44512 to install new roofing
2/6/84 Adopted Resolution 44576 to sell building to YWCA
4/9/84 Adopted Resolution 44593 to convey adjacent land to State of California.
3/7/85 Adopted Resolution #4735 to grant easement to Southern California Edison.
9/22/86 Motion to set Public Hearing for October 20, 1986. to YWCA.
10/20/86 Adopted Resolution #86-442 approving sale of property
10/20/86 Adopted Resolrectedthat CityoconsidernwaivingtfeeseforuYWCA rehab -- with
2/2/87 Commission di ission further app roved
YWCA obtaining permit as tenant. Comm
reimbursement to YWCA for Workman's Compensation Instoaobtain building
2/9/87 - Mayor and Common Council approved motion for Agency
permits and waive fees.
Recommended motion: (COMMUNITY DEVELOPMENT COMMISSION)
A. Move to receive and file report by Agency counsel.
B. Move to direct City Attorney to prepare new lease with YWCA for Seccombe lake
property.
Signatu
Glenda Saul Phone: 383-5081
Contact person:
YES Ward: 1st
Supporting data attached:
FUNDING REQUIREMENTS: Amount: $ Project: CCE
Date: January 4, 1988
No adverse Impact on City:
Council Notes:
0827H/SG/RMM
1/4/88
Aoenda Item No. J
From: Glenda Saul, Executive Director Subject: YWCA
Dept: Redevelopment Agency
Date: November 6, 1987
Synopsis of Previous Commission/Council action: (continued)
2/16/87 Community Development Commission authorized the Executive Director to
sign on behalf of the RDA as owner/builder for the YWCA remodeling with
all City fees being waived.
10/8/87 Set Joint Public Hearing of Mayor and Common Council and Community
Development Commission for October 19, 1987.
10/19/87 Mayor and Common Council/Community Development Commission continued
b Public Hearing to November 16, 1987, and referred to Redevelopment
Committee for review.
10/19/87 Mayor and Common Council instructed Parks and Recreation Department to
contact State of California for preparation of Lease Agreement for use
of park land for Teddy Bear Tymes.
11/16/87 Public hearing continued to 12/21/87.
12/21/87 Mayor and Common Council directed City Attorney, City Administrator and
RDA to exaust all efforts to find existing lease with the YWCA.
0827H/SG/RMM
1/4/88
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CITY OF SAN BERNARDINO - MEMORANDU
DENNIS A. BARLOW
To MAYOR AND COMMON COUNCIL and From Sr .Asst .City Atty
COMMUNITY DEVELOPMENT COMMISSION Date December 29v1987
Subject YWCA Facility
Date
Approved
Questions have arisen as to the current status of the YWCA
property located near the intersection of 6th Street and Sierra
Way. Attached is a map showing the six lots numbered 19 , 20 ,
21 , 22 , 23 , and 24 commonly known as the YWCA property cross-
hatched on the map. Directly west of the cross-hatched portion
the top four lots numbered 1 , 2, 3 , and 4 represent the parking
lot area for the YWCA facility. We have been advised by the
title company that title for these six lots are shown as of
1981 as vested in the Redevelopment Agency. The proposed Teddy
Bear Tymes facility will be located on lot 18 as well as the
vacated alley - property owned by the State . The following is
a chronology of pertinent events affecting this project which
may be of benefit to the Commission and Council .
June 3 1974 - a memo from Warner W. Hodgdon, Agency Chairman ,
to Robert A. Covington, County Administrative Officer ,
confirming an earlier conversation regarding the
City/County/State/Federal Civic Center Complex . In pertinent
part , this letter provides as follows:
"The present YMCA/YWCA facilities which are
in excess of 50 years old are programmed to
be acquired through the Redevelopment Agency
and the YMCA/YWCA Capital Development Fund
has been established in order to build new
facilities within the Seccombe Lake Park
site . A fifty-year lease of this area has
b
been approved in principle Y the City of
San Bernardino and the YMCA/YWCA Board of
Directors . . . . "[Tlhe County Agricultural
Building which is immediately contiguous
to this property has been long viewed as a
workable facility for a city social-cultural
facility, further enhancing the Seccombe
Lake Park potentials ." (page 9)
July 2 , 1975 - letter from Warner W. Hodgdon , Agency Chairman ,
to Robert A. Covington , County Administrator , regarding interim
relocation of YWCA to the County Agricultural Building .
PRIDE .14
IN PROGRESS
December 29 , 1987
Page Two
Apparently as noted in this letter and other documents the
relocation of the YWCA to the County Agricultural Building was
originally intended to be temporary with a permanent site to be
located elsewhere in Seccombe Lake Park . It seems that such a
move was abandoned but the record I have reviewed does not
disclose why.
July 10 , 1975 - RDA Resolution No . 3070 authorizing execution
of all documents regarding relocation of (1) county facilities ,
(2) YWCA facilities , and (3) Safeco Title Insurance .
August 4 , 1975 - lease between the County as Lessor and the
Agency as Lessee of 12 ,040 square feet of office space known as
566 Lugo Street (County Agricultural Building) to be used by
the YWCA. The term of this lease was two years at a rental of
$2,000 per month. At the expiration of this lease term, it
then becomes a month-to-month; Agency to be responsible for
maintenance. This lease was executed by both parties .
October 23 , 1975 - Agency Resolution No . 3123 authorizes the
expenditure of funds for the rehabilitation of the County
Agricultural Building for the temporary occupancy of the YWCA.
November 17 , 1975 - proposed lease between the City as Lessor
and YWCA as Lessee for 50 years at $1 .00 per year with an
option to renew for an additional 50 years at a rental to be
agreed upon . YWCA was to construct a building on the property
within two years with a value of not less than $850 ,000. YWCA
was M to pay all utility costs . At the expiration of the lease
all improvements become the property of the City. This lease
was executed by the City but not executed by YWCA.
January 12, 1976 - amendment to August 4 , 1975 County/Agency
lease providing that County shall provide minor general daily
maintenance . Amendment executed by both parties .
April 9 , 1976 - letter from YWCA to City requesting a long-term
lease for the County Agricultural Building , and the three
northern lots (lots #22 , 23 , and 24) in order to construct an
enclosed swimming pool and provide necessary services to
members .
Mid-1976 (undated) - proposed amendment to August 4 , 1975
County/Agency lease to also include lots 22 , 23 , and 24 , to be
used for an enclosed swimming pool . This amendment does not
appear to be executed by either of the parties .
1976 (undated) - proposed sublease between the City as
sublessor , the County as lessor , and YWCA as sublessee in
anticipation of a lease between the County and the City. Term
December 29 , 1987
Page Three
was to be for 50 years at a rental of $1.00 per year , with an
option to renew for an additional 50 years at a rental to be
agreed upon . The property to be leased was dots 19 ,t20 2
22 , 23 , and 24. YWCA was to pay all
expiration of the lease , all improvements become the property
of the City. This sublease specifically cancelled the previous
1975 unexecuted l thisesublease City
executed YWCA.
anyThe
ofcopies I
have seen do not show
parties .
November 8 , 1976 - City/County/Agency Land Exchange Agreement
regarding exchange of numerous parcels of property, including
those in question here .
December 26 , 1976 - recordation of deed from YWCA to
Redevelopment Agency of YWCA property at 498 North Arrowhead
Avenue Conditionseof purchase) inclued purchase
the
$282 ,000 .. llowing:
1. A 50-year lease at $1 .00 per year of the
new site .
2 . Interim heated pool .
3 . RDA to pay moving expenses .
4 . Utilities at the new site to be the
responsibility of the YWCA.
5 . RDA to repair specified deficiencies
in Agricultural Building .
May 1, 1977 - sublease between City as sublessor , County as
lessor , and YWCA as sublessee , subject to long-term lease being
obtained. Sublease covered only north three lots (22 , 23 , and
24) and is to be used for enclosed swimming pool . Term is for
36 months but is apparently automatically extended for 50 years
if City obtains a comparable 50-year lease from County. Rental
is for $1.00 per year . YWCA has responsibility to maintain
premises in good repair and shall pay all utilities . At the
termination of the sublease , all improvements become property
of the City. This lease is executed by both parties . However ,
it appears to have expired.
May 1 , 1977 - lease between County as lessor and City as lessee
for the north three lots (lots 22, 23, and 24) for the
AMA
Deember 29 , 1987
Page Four
construction of an enclosed swimming pool . ermis fsrright to
months. Consideration for this lease was the
use the fire station at 3250 Harrison Street . This lease was
executed by both parties . It also appears to have expired by
its terms .
February
27 , 1979 - notice to YWCA by Agency General Counsel William A. Flory, that YWCA had a p ast-due balance on utilities
owed to the Agency in the amount ofd$17 ,133 .01. isRDA ha3 .00
advised us that the currently past
plus $2,044 .28 interest .
April 25 , 1979 - notice of cancellation of County/Agency lease
(dated August 4 , 1975) to County from Agency General Counsel
William A. Flory, since County Agricultural Department had now
moved into its permanent offices .
February 27 , 1981 - deed from Redevelopment Agency to State for
the parking lot property.
September 19 , 1983 - Commission adopted Resolution No . 4512 to
install new roofing .
February 6 , 1984 - Commission adopted Resolution No . 4576 to
sell building to YWCA.
April 9 , 1984 - Commission adopted Resolution No . 4593 to
convey adjacent land to State of California. The land covered
by this action was the alley and Lugo Street adjacent to the
six lots .
May 9 , 1984 - by Resolution No. 84-176 City vacated Lugo Street
adjacent to the property in question .
October 20 , 198llu cilladoptedYResolution No . 86-442
approving sale 6E a
October 20 , 1986 - Commission adopted Resolution No. 4942
authorizing execution of Disposition and Development Agreement
with YWCA.
February 9 , 1987 - Council , by motion , authorized Agency to
obtain building permits as owner/builder for rehabilitation and
waived fees otherwise required.
October 19 , 1987 - proposal to sell property to YWCA rejected .
From the above chronology, it seems apparent that there is
currently no valid lease between the City and the YWCA for the
YWCA property at Sixth and Sierra Way. This raises several
concerns which must be considered .
December 29 , 1987
Page Five
First , in relation to the various grants from various sources
to the YWCA for improvement of the property by the
have received the following information from Ken Henderson , the
Director of community
"Fiscal Year Amount Pur oe
1986/1987 $ 57 ,566 Rehabilitation of YWCA
facility for day care
facility.
1987/1988 $ 30 ,000 Rehabilitation -
installation of
electrical .
1987/1988 $ 3 ,000 Construction of Fence
1987/1988 $ 17 .321* Purchase of equipment
for Teddy Bear Tymes
child care center .
*Grant to Teddy Bear Tymes .
"The County of San Bernardino has also granted from its General
Fund $100 ,000 to the YWCA for renovation of the facility in
preparation for the operation of a child care center by Teddy
Bear Tymes .,
"The questions of whether or not CDBG funds would have to be
paid back to the City by the YWCA because no valid lease
existed is a local decision and would not necessarily impact
the City's Community Development grant. However , if the
City/Redevelopment Agency chooses not to renew its lease with
the YWCA, I would recommend that a lease be entered into with
Teddy Bear Tymes , inasmuch as the child care center was the
reason the Mayor and Common Council approved the funding awards
noted above. In this way the public would still benefit from
the expenditure of CDBG funds and the City would not incur any
audit . "
It would seem clear that since it was assumed by all involved
that the City was the lessor of the property and the YWCA was
the lessee , that the fact there was not a validly executed
lease would not change the circumstances providing for these
monies . Certainly, had the parties been aware that the leases
were not validly executed , the grants would not have been made-
until adequate leases were prepared. Still , there is no
apparent illegality at this point requiring return of any
monies .
December 29 , 1987
Page Six '
Secondly, the status of the various monies invested in the
property by the YWCA. All of the proposed leases reviewed by
this office disclose that the properties at the expiratioItor
earlier termination of the leases would revert to City.
would seem clear then , that the monies invested by the YWCA in
this project were for their temporary, albeit long-term use of
the properties . Generally, this was assumed to be the
remaining time of a 50-year lease , but it is clear that if the
lease terms were breached that earlier termination could occur .
It could be argued with some basis that if a new lease is not
executed that the City would hold these improvements in a type
of constructive trust for and in behalf of the YWCA. There is
also an argument to be made that the YWCA merely loses that
certain that a
YWCA would
return o
fact.
It is the recommendation of the City Attorney's office that the
YWCA and City negotiate a new lease covering all of the subject
property, including parking rights on the adjacent property in
order to clarify and memorialize the present relationship
between the parties .
i
DENNIS A. ARLOW
Sr . Asst . City Attorney
DAB:cim
Approved:
ity Attorney
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