HomeMy WebLinkAboutR31- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Ronald E. Winkler,Director SUBJECT: AMENDMENT TO PROPERTY
Development Department MANAGEMENT AGREEMENT-
PUBLIC ENTERPRISE CENTER
DATE: June 1, 1999 OR I G --`�; A L
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Synopsis of Previous Commission/Council/Committee Action(s):
On May 20, 1999,the Redevelopment Committee considered this item and recommended approval by the Commission.
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Recommended Motion(s):
(Community Development Commission)
Adopt Resolution.
Contact Person(s): Gary Van Osdel/ R. Winkler Phone: 5081
Project Area(s) Northwest Ward(s): Six(6)
❑x Staff Report ❑ Resolution(s) ❑Agreement(s)/Contract(s) ❑ Map(s) ❑
Supporting Data Attached: Letter/Memorandum
FUNDING REQUIREMENTS Amount: $ N/A Source: N/A
Budget Authority: N/A
J
SIGNATURE:
Gary Van Osdel, Executive Dire or onald E. inkier,Director
Economic Development Agency Development Department
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Commission/Council Notes:
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REW:lag:99-06-07 PEC Bldg COMMISSION MEETING AGENDA
Meeting Date: 06/07/1999
Agenda Item Number: R31—
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Amendment To Property Management Agreement- Public Enterprise Center
Background
The Public Enterprise Center is owned by the Redevelopment Agency and is located at 1505
West Highland Avenue. The building consists of 28,070 square feet and sits on a site of 3.14
acres. The first phase of the building was completed in 1976 and a second phase was completed
in 1980. The total construction costs equal $2,171,737 of which the U.S. Department of
Commerce, Economic Development Administration granted a total of $1,300,000. The grant
money carries a use restriction on any lease contracts for the facility. The restriction allows only
organizations that will serve the local community and its residents. The original grant
application states that the facility is to serve "...as a nodal point for the provision of employment,
training and business development services to the economically disadvantaged and minority
communities of San Bernardino." These restrictions carry until the year 2010 (30 years) at
which time the restrictions would no longer be enforced and any repayment obligations on the
grant money would be exonerated.
Current Issue
Current Federal Regulations provide that before the expiration of the useful life of the grant
project, the Economic Development Administration may release its interest in the real property
20 years after the date of the grant. Under this scenario, the restrictions referenced above would
carry until the year 2000, instead of the year 2010, which provides for greater flexibility in the
disposition of the property in the near future.
Recommendations
That the Community Development Commission adopt the attached Resolution and authorize the
execution of an Amendment to Property Management Agreement between the Agency and the
U.S. Department of Commerce, Economic Development Administration for the Public
Enterprise Center which reduces the Administration's encumbrance over the subject property
from 30 years to 20 years from the date of the Offer of Award or until July 17, 2000.
Ronald E//Winkler, Director
Development Department
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REW:lag:99-06-07 PEC Bldg COMMISSION MEETING AGENDA
Meeting Date: 06/07/1999
Agenda Item Number:
r ,
COFT
i RESOLUTION NO:
2
3 RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
4 AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
5 REDEVELOPMENT AGENCY (THE "AGENCY") TO EXECUTE AN
AMENDMENT TO PROPERTY MANAGEMENT AGREEMENT
6 BETWEEN THE AGENCY AND THE U.S. DEPARTMENT OF
COMMERCE, ECONOMIC DEVELOPMENT ADMINISTRATION FOR
7 THE PUBLIC ENTERPRISE CENTER
8 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION
9
OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
10
11
SECTION 1. The Executive Director of the Redevelopment Agency ("Agency")
12
is hereby authorized and directed to execute on behalf of said Agency an Amendment to
13
Property Management Agreement between the Agency and the U.S. Department of Commerce,
14
Economic Development Administration for the Public Enterprise Center, a copy of which is
1s
attached hereto, marked Exhibit"A" and incorporated herein by reference as though fully set
16
forth at length.
17
SECTION 2. The authorization to execute the above referenced Agreement is
18
rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage of
19
this resolution.
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Page 1 of 2
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
2 AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE
3 REDEVELOPMENT AGENCY (THE "AGENCY") TO EXECUTE AN
AMENDMENT TO PROPERTY MANAGEMENT AGREEMENT
4 BETWEEN THE AGENCY AND THE U.S. DEPARTMENT OF
5 COMMERCE, ECONOMIC DEVELOPMENT ADMINISTRATION
FOR THE PUBLIC ENTERPRISE CENTER
6
7 I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community
s Development Commission of the City of San Bernardino at a meeting
9 thereof,held on day of , 1999 by the following vote,
10 to wit:
11
12 COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT
13 ESTRADA
LIEN
14 MCGINNIS
15 SCHNETZ
DEVLIN
16 ANDERSON
MILLER
17
18
19 Secretary
20 The foregoing resolution is hereby approved this day of
1999.
21
22
23 Judith Valles, Chairperson
Community Development Commission
24 Of the City of San Bernardino
25
Approved as to form and Legal Content:
2 6 Agency Counsel
27
28
By:
� Page 2 of 2
AMENDMENT TO PROPERTY MANAGEMENT AGREEMENT
This AMENDMENT TO PROPERTY MANAGEMENT AGREEMENT, dated the
day of , 1999, by and between the Redevelopment Agency of
the City of San Bernardino, whose address is 201 North E Street, Suite 301, San
Bernardino, California 92401-1507 (hereinafter "Grantee"), and the U.S. Department
of Commerce, Economic Development Administration, whose address is 915 Second
Avenue, Suite 1856, Seattle, Washington 98174 (hereinafter "EDA"):
W I T N E S S E T H
Whereas, by Offer of Grant dated April 24, 1980, EDA offered to the Operation
Second Chance, a non-profit corporation, a grant under EDA project number 07-01-
02360 for financial assistance under 42 U.S.C. 3121 for the construction of an 11,770
square foot addition to the Public Enterprise Center Training Facility in San Bernardino,
California;
Whereas, on July 18, 1980, Operation Second Chance, a non-profit corporation,
pursuant to the requirement of the grant award, did execute a Property Management
Agreement, which, among other things, restricted the use of the subject project
property, described in Exhibit "A" attached hereto, for the useful life of the project,
determined to be a period of 30 years from the date of the Offer of Grant, said Property
Management Agreement being recorded in the County Recorders Office as Document
number 80-171111;
Whereas, sometime thereafter, the Grantee did assume title to the subject
property as substitute grantee under the EDA grant award;
Whereas, EDA's current regulations found at 13 Code of Federal Regulations
Section 314.11 provides that before the expiration Qf the useful life of the grant project,
EDA may release its interest in the project real property 20 years afer the date of the
offer of grant; and
Whereas, by letter dated May 3, 1999, the Grantee has requested that EDA
reduce the period for which EDA will retain an interest in the subject property to 20
years;
NOW THEREFORE, IT IS AGREED by the parties hereto and for consideration
of the premises and good cause appearing therefore, the Property Management
City of San Bernardino
Amendment to Property Management Agreement
Page Two
Agreement is amended and the period for which EDA will retain an interest over the
subject property reduced from 30 years to 20 years from the date of the Offer of Award
or until July 17, 2000. This release of interest shall be in accordance with any and all
restrictions that are contained in 13 Code of Federal Regulations Section 314.11 and
other Federal law.
Redevelopment Agency of the
City of San Bernardino
Approved as to form By:
and C t
rtent:
Its:
Agency Counsell
State of
County of
On this day of 199 before me personally
to me, or proven to me on oath, to
appeared
be the of the entity that executed the within
and foregoing instrument, and acknowledged the said instrument to be the free and
voluntary act and deed of said entity, for the uses and purposes therein mentioned, and
on oath stated that he/she was authorized to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.
Notary Public in and for the State
(Seal or stamp) of
ECONOMIC DEVELOPMENT
ADMINISTRATION
UNITED STATES DEPARTMENT OF
COMMERCE
BY:
44
4AI�.�n.rdl Smith' V
ITS: Regional Director
2
City of San Bernardino
Amendment to Property Management Agreement
Page Three _
State of
County of
On this 6 day of f 1n1 199 ! before me personally
appeared to me, or proven to me on oath, to
be the <<< r of the entity that executed the within
and foregoing i strument, and acknowledged the said instrument to be the free and
voluntary act and deed of said entity, for the uses and purposes therein mentioned, and
on oath stated that he/she was authorized to execute said instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the day and year first above written.
��-
Notary Public in and fo44he State
(Seal or stamp) of
PARCEL NO. 1
t
LEGAL DESCRIPTION FOR REDEVELOP1.11ENT AGENCY OF THE
CITY OF SAN BERNARDINO, CALIFORNIA
PUBLIC ENTERPRISE CENTER
All of Lots 9 to i nrl us i va. ?nH P.1-1 of I-nts :�Q to 40- inclusive.
Tract No. 2852, as per plat recorded in Book 40 of Maps, Pages 29 and 30,
records of the County of San Bernardino, State of California.
SAVING AND EXCEPTING therefrom the Southerly 120 feet of said Lots
34 to 40 inclusive.
d
EXHIBIT "A"
4
CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
CITY CLERK'S OFFICE
RECORDS & INFORMATION MANAGEMENT (RIM) PROGRAM
Date: June 10, 1999
To: Lisa Gomez, Staff Assistant
From: Melanie Miller, Senior Secretary
Re: Transmittal for signature-Res CDC 1999 - 18
Attached are the following:
Original documents authorizing an amendment to property management agreement regarding the
Public Enterprise Center Building.
Please obtain signatures where indicated on all copies.
PLEASE HAVE THE NOTARY SECTION COMPLETED.
Please return the executed original to the City Clerk's Office as soon as possible, to my attention.
Be advised that the resolution and agreement will be null and void if it is not executed within sixty (60)
days-August 6, 1999.
If you have any questions, please do not hesitate to contact me at ext. 3212. Thank you.
Rachel Clark
City Clerk
By: Melanie Miller
I hereby acknowledge receipt oft e above mentioned documents.
' Sw �o
Signed: � :
//11
Date: -?� U 0/ 1"-] 4�
RC:m
1
CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
CITY CLERK'S OFFICE
RECORDS & INFORMATION MANAGEMENT (RIM) PROGRAM
Date: June 10, 1999
To: Lisa Gomez, Staff Assistant
From: Melanie Miller, Senior Secretary
Re: Transmittal for signature—Res CDC 1999 - 18
Attached are the following:
Original documents authorizing an amendment to property management agreement regarding the
Public Enterprise Center Building.
Please obtain signatures where indicated on all copies.
PLEASE HAVE THE NOTARY SECTION COMPLETED.
Please return the executed original to the City Clerk's Office as soon as possible, to my attention.
Be advised that the resolution and agreement will be null and void if it is not executed within sixty (60)
days—August 6, 1999.
If you have any questions,please do not hesitate to contact me at ext. 3212. Thank you.
Rachel Clark
City Clerk
By: Melanie Miller
I hereby acknowledge receipt of the above mentioned documents.
G
Signed:
�o
Date:
RC:mam
1