HomeMy WebLinkAbout38- Council Office CITY OF SAN BERNS--"IDINO - REQUEST K I COUNCIL ACTION
From: Councilwoman Valerie Pope-Ludlam Subject: Spring Mountain Homes Project
Dept: Council office
Date: July 23 , 1993
Synopsis of Previous Council action:
- r
`_3 g7� 32
Recommended motion:
To approve a deferral of fees for the Spring Mountain Homes
project.
Signature
Contact person: Councilwoman Valerie Pope-Ludlam Phone: 5378
Supporting data attached: yPC Ward:
FUNDING REQUIREMENTS: Amount:
Source: (Acct. No.)
(Acct. Description)
Finance:
Council Notes:
75-0262 Aaenda Item No
v
Ms. Valerie Pope-Ludlam, CITY!�`S - ce Ccfjl-t
Councilwoman, Sixth Ward,
City of San Bernardino, ,,,
Real 300 North D Street, ' J/' (?
Estate San Bernardino, Ca. 924118
Brokers
July 15 1993
1950 Sawtelle Blvd. Re: Construction Opportunity, Verdemont Area
Suite 280
Los Angeles,CA 90025 Dear Valerie
Tel: t310)479-4933
Fax:(310)312-0830 At a recent meeting with you, you shared with me
your concern at the distinct lack of construction
j and engineering activity in San Bernardino.
I am familiar with a residential project located in
the Verdemont/Devore area that could commence
construction almost immediately if the Economic
Development Agency could lend a "helping hand" .
VERDEMONT PROJECT:
My client SPRING MOUNTAIN HOMES currently owns 24
lots free and clear with plans ready to submit to
the Planning Department. Michael Geber the
builder/General Partner, plans on initially
constructing three model homes along with 8
production homes for sale. All 24 lots however
would be improved at this stage of the development.
Further homes will be built once all or
substantially all of the initial 8 homes are in
escrow.
The total amount required for this initial phase of
construction is $1,900,000. The builder has
received preliminary approval from a local bank for
a construction loan in the amount of approximately
$1,500,000. The shortfall is due to the stringent
loan-to-value ratios and high interest reserves
demanded by the bank although my client has
substantial equity in the lots.
ROLE OF EDJ%:
The EDA could play a vital role in bringing this
project to fruition if it were to front all of the
City fees and permits on behalf of the builder and
receive payment froii him, deferred on the sale of
new homes .
1
DEFERRAL AMOUNT: $403,864
My client is NOT asking for a grant or waiver. What
he is asking for is a deferral of fees as a way of
closing the gap between the initial project cost
and the construction loan offered.
A list of the fees that this project will incur is
attached hereto. It is the deferral of these fees
that would enable the project to start.
BENEFITS:
There are many benefits to the City that would
follow such a deferral:
(a) The project will employ local subcontractors
thereby providing numerous employment
opportunities.
(b) As houses sell, the City will recoup its
infrastructure investment dollars.
(c) A new tax basis for the property will be
created once development takes place.
(d) The City will receive development fees, permit
payments etc into their coffers.
(e) Once houses sell, allied industries such as
furniture, insurance, home improvement etc will
benefit.
My client requests that this proposal receive your
favorable consideration in the form of approval at
the EDA level in addition to subsequent council
approval.
The EDA will truly be fulfilling its role as
"lender of last resort" in getting this project off
the ground. I would be happy to answer any
questions that either you or the committee/council
may have.
We thank you in advance for your attention to this
important matter.
Sincerely,
Rod Shain
H. FEES/P;_3MITS DETAIL:
TOTAL
COST
THIS
ITEM PROJ
----------------------------------------- -----------
Building Plan Check $6,546
Building Pe^mits $8,729
Mechanical Permit (Elec,Plumb,Heat) $3,175
Strong Mot'--n $147
Mechanical Plan check (Elec,Plumb,Heat) $959
Storm Drair - Chstnt Strm Drn Assmt Dist 541,179
Parks & Rec. $15,742
Sewer Conn. $9,900
Sewer Capacity Fee $41,030
Signs 1781
Cultural D.C.
Traffic System Fee $1,590
Trfc Sig Assmt/Box Clvrt (Palm Ave) $6,952
School Fees (Avg House Area x $1.65sq ft) $36,899
Investigation Fees
Drainage Fee $16,140
Palm Ave Igor Assmnt Dist 15,676
Verdemont Dev. Infrastructure Fee $84,689
Notice of Exemption $100
Map Checking Fees (Final Map) $1,720
Street Imp. Plan Check Fees $11,443
Street Imp. Inspection Fee $11,443
On-Site Im'^ovement Plan Check Fee $715
On-Site Imp^ovement Inspection Fee $858
Grading Plan Check $75
Grading Inspector Fee $320
Landscape Plan Review $400
Retaining & Garden Wall Plan Checking Fee $1,400
Retaining & Garden Wall Permit Fee $2,100
New Street Light Electrical Energy Fee $2,836
C.OF 0 $517
Grading Permit $750
Water department fees $76,235
SCE Tax $1,639
Gas Tax $979
Misc $10,200
------------------------------------------ -----------
TOTAL COST/UNIT = $403,864