1995 JT MIN FEB 21 - Laserfiche WebLink

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Steward will have the responsibility of developing a restaurant on the site with an anticipated opening of January 1, 1997. Director Gabriel reported two changes have been made to the document before the Agency and they are: (1) The interest rate will be equal to what the City receives presently through the Local Agency Investment Fund, and (2) the interest payments will be made on the outstanding principal only. Mayor/Member Fulp opened the floor for public comment. Mr. Charles Jackson, 2568 E. Topanga Way, stated he wanted to speak with regard to Agency Resolution No. 657. Mr. Jackson said he wondered why the City wants to do business with such a controversial businessman. Mr. Jackson said Mr. Steward has been involved in a litigated controversy in Riverside County. He asked if Mr. Steward was also the same individual involved in controversy with the City of San Bernardino regarding default on a loan. Mayor/Member Fulp advised Mr. Jackson that under the Rules of Decorum, comments directed at an individual are not allowed. Mayor/Member Fulp stated Mr. Jackson was welcomed to speak to the merits of the project. Councilmember/Chairperson Beltran emphasized the matter before the Agency/Council is a development agreement and remarks should be limited to this matter. Mr. Jackson said he found it difficult to comment without knowing the full content of the proposal and agreement. Moved by Councilmember/Member Sandoval, seconded by Councilmember/Member Sanders, to close the public hearing. Motion passed by unanimous vote. Moved by Mayor/Member Fulp, seconded by Counc i lmember /Member Bennett, to reject Agency Resolution No. 657 and the Disposition and Development Agreement in its current form. Councilmember/Member Hutton asked if there was any immediate positive cash flow to the City or the Agency from the sale of this property. Director Gabriel said the return on the investment would not be realized until January 1997 when the restaurant opens. The money received by the Agency would be interest payments on the principal amount owed, then there would be four payments made to pay the principal amount. There would be three payments of $100,000 and a final payment of $75,000 over a ten-year period. Councilmember/Member Hutton asked what would be the amount of the payment when the restaurant opens in 1997. Director Gabriel replied it would be interest on the full amount owed over a twelve- month period. Councilmember/Member Hutton requested more time to consider the proposal. Councilmember/Member Sanders commented that under Article II, Agency Assistance, the Agency agrees to waive the planning - 2 - FEB 21 1995