HomeMy WebLinkAboutItem No. 24-5Th Street Gateway Property - Extension of ERN W/ICO Real
24
Consent Calendar
City of San Bernardino
Request for Council Action
Date: February 5, 2020
To: Honorable Mayor and City Council Members
From: Teri Ledoux, City Manager
By: Michael Huntley, Community & Economic Development
Director
Subject: 5Th Street Gateway Property - Extension of ERN W/ICO Real
Estate Group
Recommendation
Adopt Resolution No. 2020-35 of the Mayor and City Council of the City of San
Bernardino, California extending the Exclusive Right to Negotiate Agreement by and
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between the City of San Bernardino and ICO Real Estate Group, Inc. for the 5 Street
Gateway Property.
Background
On December 6, 2017, the City issued a Letter of Interest seeking interested
development entities to submit a letter identifying their qualifications and a detailed
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proposal concerning the development of the 5 Street Gateway properties formerly
owned by the San Bernardino Redevelopment Agency.
On January 31, 2018, the City received eight (8) proposals for consideration.
Subsequent to evaluating all of the proposals and interviewing the interested
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was the most responsive and qualified to develop the 5 Street Gateway properties. In
May 2018, the Mayor and City Council authorized staff to negotiate an Exclusive Right
On September 19, 2018, the Mayor and the City Council adopted Resolution No. 2018-
251 approving an ENA by and between the City of San Bernardino and ICO Real Estate
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Group, Inc. for the 5 Street Gateway Property (Note: The September 19, 2018 staff
report is included as Attachment - 3). The term of the agreement was for one year and
expired on September 19, 2019.
Discussion
Since the adoption of the ERN, City staff has been working with ICO to develop an
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acceptable development plan for Phase 1 of the 5 Street Gateway Project area. On
November 30, 2018, ICO submitted its first Preliminary Development Concept to staff
for its review. Since that time, the City has reviewed a number of other site
development concepts for consideration. In February of 2019, the City retained the
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24.a
Resolution No. 2020-35
RESOLUTION NO. 2020-35
RESOLUTION OF MAYOR AND CITY COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING AN
EXTENSION OF AN EXCLUSIVE RIGHT TO NEGOTIATE
AGREEMENT BETWEEN THE CITY OF SAN
BERNARDINO AND ICO REAL ESTATE GROUP, INC.
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FOR THE 5 STREET GATEWAY PROPERTY
WHEREAS, the City is the owner of certain vacant real property comprising
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approximately 6.56 acres, which is commonly referred to as the 5 Street Gateway ,
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is generally located along 5 -053-20-23, 25 &
26; 0134-054-07-09 and 24-26; 0134-061-21, 22, 25 & 30; 0134-093-05-09; 0134-101-02-06 &
WHEREAS, pursuant to its responsibility to implement the long range property
management plan (LRPMP) on behalf of the Successor Agency for the Property, on December 6,
interest including detailed proposals from developers concerning the development of the
Property; and
WHEREAS, subsequently, the City received eight (8) proposals by the January 31, 2018
submittal deadline, including a proposal submitted by ICO Real Estat
WHEREAS, at the conclusion of a thorough review process, City staff determined that
ICO submittal was the most responsive to the Invitation, whereupon City staff recommended
that City engage the Developer in continued negotiations pursuant to an exclusive right to
agreement with the intention that such continued negotiations will include
the negotiation of a disposition and development agreement for the Property; and
WHEREAS, the City entered into an ERN Agreement with Developer for the Property
dated September 5, 2018; and
WHEREAS, the City and Developer have agreed to the major business terms but require
additional time to finalize a formal agreement; and
WHEREAS, now the City and Developer desire to extend the term of the ERN
Agreement through September 2020.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2. The City Manager is hereby authorized to execute the extension of the
ERN Agreement for the Property.
Attachment: CED.Extend ERN With ICO for 5th Street Gateway.Resolution 2.5.20 (6610 : 5Th Street Gateway Property - Extension of ERN W/ICO
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24.b
Attachment: Resolution 2018-251 ICO Exclusive Right to Negotiate (6610 : 5Th Street Gateway Property - Extension of ERN W/ICO Real Estate
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24.c
EXTENSION OF AN
EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT
BETWEEN THE
CITY OF SAN BERNARDINO
AND
ICO REAL ESTATE GROUP, INC.
This EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT (is dated
as of February 5, 2020 (the Effective Date and is entered into by and between the CITY OF
SAN BERNARDINO, a municipal corporation and charter city City, and ICO REAL
ESTATE GROUP, INC., a ). Each of City and Developer is
,they are collectively referred to
RECITALS
A. The City is the current owner of certain vacant real property located within the
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area commonly referred to as the 5 Street Gateway within the City of
San Bernardino and comprising 27 parcels of land equaling approximately 6.56 acres, generally
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located along 5 -053-20 to -23, -25, and -26;
0134-054-07 to -09, -24, -25, and -26; 0134-061-21, -22, -25, and -30; 0134-093-05 to -09;
0134-101-02 to -06, and -Property
and
B. On December 6, 2017, the City issued a Letters of Interest
seeking letters of interest including detailed proposals from developers concerning the
development of the Property; and
C. The City received eight (8) proposals by the January 31, 2018 submittal deadline,
; and
D. At the conclusion of a thorough review process, City staff determined that the
ICO Submittal was the most responsive to the Invitation, whereupon City staff recommended
that City engage Developer in continued negotiations under this Agreement with the intention
that such continued negotiations will include the negotiation of a disposition and development
a. The DDA, which will be prepared by
City, will require that a fair market value price be paid for the Property and will contain
provisions customarily included in agreements by the City concerning the disposition and
development of property (such as the provision of offsite improvements to the extent reasonably
associated with the proposed development) and, in this case, will include at a minimum those
features of the ICO Submittal which resulted in City staff making a favorable recommendation in
connection with the selection of the Developer as the entity with which the City would
participate in negotiations as to the Property; and
E. Based upon information furnished by the Developer to the City, the Developer is
qualified to assist the City in undertaking the economically sustainable development of the
Property, which will include the planning for and development of a specific study, evaluation
and planning by the Developer and City of appropriate and feasible development alternatives for
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Attachment: CED.Extend ERN Wityh ICO for 5th Street Gateway. ERN w Exhibits 2.5.20 (6610 : 5Th Street Gateway Property - Extension of ERN
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