HomeMy WebLinkAbout1976-1207 rda_CCv0001.pdf MINUTES of a regular meeting of the Redevelopment Agency
° of the City of Redlands held in the Council
Chambers, Safety Hall, 212 Brookside Avenue, on
December 7, 1976, at 4 :10 P.M.
PRESENT Charles G. DeMirjyn, Chairman
Chresten M. Knudsen, Vice Chairman
Ellsworth E. Miller, Member
Bertha Rose Grace, Member
Warren R. Elliott, Member
Robert H. Mitchell, Acting Executive
Director
Edward F. Taylor, City Attorney
Peggy A. Moseley, Secretary
Erwin S . Hein, Redlands Daily Facts
Pat Sheeran, San Bernardino Sun
ABSENT Done
The minutes of the regular meeting of October 19,
1976, were not presented for approval.
Mr . Mitchell stated that before going into the
scheduled agenda, he would like to bring before
Sale-- the Agency members a letter from the Ernest W.
Leaseback Hahn Corporation requesting that the Agency
Agreement approve a Sale-Leaseback agreement of the Redlands
Shopping Center, between the developer, Redlands
Mall Associates, and the Huntington Land Company
with respect to parcels 1, 2, and 5 of the
Redevelopment Project Area. Mr . Mitchell
reminded the members that they had been briefed
on this matter previously; he added that Mr .
Taylor had prepared a resolution for adoption
by the Agency.
Attorney Taylor explained that this resolution
would place the same obligation on the Huntington
Land Company as had applied to the Redlands Mall
Associates under the requirments of the Disposi-
tion and Development Agreement and Implementation
Agreement (D.D.A. ) .. Mr . Taylor stated that the
Hahn letter dated November 30, 1976, is incor-
porated in the resolution by reference, and
recommended that a further paragraph be added
to the resolution requiring that all documents
be subject to the approval of the Acting Director
and the Agency Attorney.
Mr. Taylor further explained that the Sale-
Leaseback documents are not presently available
as they are being prepared by two groups of
attorneys - those of the Hahn Corporation and
those of the Huntington Land Company. He
further clarified that these documents would
carry a shifting of responsibility to the
Huntington Land Company which will purchase the
mall; lease it back to the Redlands Mall Asso-
ciates for completion; and then take the property
back when completion on construction is accom-
plished and the center is in full operation.
Mr. Al Young restated the concept of the Sale-
Leaseback between the Redlands Mall Associates
and the Huntington Land Company. He added that
section 315 of the D.D.A. requires Agency approval
of this sale.
Questions from the Agency members were answered..
Mr. Mitchell stated that a financial report of
the Huntington Land Company was extremely
favorable.
Mrs . Grace reminded the Agency members of the
necessity to accomplish transfer of the property
north of Redlands Boulevard to the Redlands Mall
Associates in order that this property be placed
back on the tax roll; she added that the developer
has obligations which she feels should be com-
pleted simultaneously with the Agency approval
of the Sale-Leaseback in Resolution No. 153.
Mr. Knudsen agreed that he wished to see the
best possible use of this property north of
Redlands Boulevard. He then moved for adoption
of Resolution No. 153, a resolution of the
Redevelopment Agency of the City of Redlands
approving the Sale-Leaseback agreement between
Redlands Mall Associates and Huntington Land
Resolution Company, provided that by December 24th, the
No. 153
Sale-- Agency would receive a full cost accounting of
Leaseback the underground garage; that each party pay to
Agreement the other party the amount owed; that the pro-
perty north of Redlands Boulevard be transferred
to Redlands Mall Associates and so recorded; and
inclusion in Resolution No. 153 of the require-
ment for further approval by the Acting Redevelop-
ment Executive Director and the Agency Attorney
of all documents . The motion was seconded by
gmzMrs . Grace and unanimously adopted.
Mr. Mitchell introduced Mr . Robert G. Bulot of
Refunding Stone and Youngberg, financial consultants, who
Bonds
brought two estimates of savings and costs which
could be accrued by issuance of refunding bonds .
Following discussion and questions, on motion of
Member Knudsen, seconded by Member Miller, Mr .
Bulot was authorized to proceed on the fore-
shortened schedule which, with an assumed 6-3f4f
interest rate, would develop a savings of
$290, 000.00 to the Agency. Mr. Bulot added that
with the present bond market, it might be possi-
ble to sell at an interest rate of 6-1f2%.
On motion of Member Miller, seconded by Member
Elliott, the Agency elected to retain the ser-
Legal vices of legal firm Rutan & Tucker, jointly with
Services
IN the law firm of Orrick, Herrington, Rowley &
f Sutcliffe, for this sale.
176
Mr. Mitchell then presented a statement to be
X ' included in these minutes to clarify the Agency
minutes of February 17, 1976, as follows :
"The parcels referred to in the February 17,
1976 minutes were those originally deeded to
Connors and Associates , subsequently deeded
to R-J Investments . The property was deeded
back to the Redevelopment Agency on 23 July
1976. The concern expressed by Mr . Knudsen
was that the parcels would be off the tax roll
Clarification for the period of 23 July 1976 until deeded back
Of to the developer; thereby causing a tax loss
Minutes to the Agency. To preclude this loss, a letter
(2/17/76) dated February 27, 1976, was obtained from R-J
Investments stating that they would assume
pecuniary liability up to an amount of
$25, 000.00 for any tax loss to the Agency
during the period when the parcels were trans-
ferred to the Agency and back to the developer.
The Staff is now working with the assessor to
correct tax bills and to reconcile any payments
due to Agency under the R-J Investments letter
of February 27, 1976. "
On motion of Member Miller, seconded by Member
Knudsen, this statement of clarification was
ordered incorporated in the minutes of this
date. This was approved unanimously.
There being no further business, the Redevelop-
ment Agency adjourned, on motion, at 4.45 P.M.
Next regular meeting, December 21, 1976.
Attest.
F
n
5 r w a r an of the Red16pmpA Agency
0-0. 0-o-0-0-C1-0'=0-0-0