1999 AGN MAY 04 I15 - Laserfiche WebLink

Browse Search

Cooperative Loan Agreement Staff Report 05/04/99 Page 2 Developer"s Reggggailifies: 1 . Rehabilitate the existing Motel by refurbishing the interior and exterior of the building so as to satisfy the requirements of a national franchise motel or hotel acceptable to the Agency. 2. Remodel as necessary the remaining buildings and site improvements to retain or attract businesses. 3. Construct a fourth building on the property, which may include a fast food restaurant, sit down restaurant, retail or office facility consistent with the zoning of the property., 4. Construct and install all off-site improvements in connection with the development. 5. Pay all applicable fees, assessments or charges levied against the project 6. Provide evidence satisfactory to the Agency that it has the financial capacity to commence and complete the Scope of Development Redevelopment Agency responsibilities: 1 - Assist the Participant in obtaining approvals, including a variance for parking requirements, from the City of Colton and other governmental agencies, at no cost to Agency. 2. Assist the Participant and use its best efforts to secure the utilization rights for not less than two existing freeway oriented billboards. 3. Assist the Participant in identifying and securing other appropriate off-site sign locations. 4. Secure an agreement with City to borrow the Transient Occupancy Taxes (TOT) generated from the- project to reimburse developer for off -sites and a portion of billboard advertisements. 5. Use its best efforts to either secure the vacation of Parcel "B" - H Street between 9 th & 1 Streets, rights to use or re -striping of street to provide additional parking as may be required for the development. Financial Impact: Given little or no tax increment revenues in the Downtown #1 Project Area from which to offer incentives or rebates, the Agency must look toward other creative methods to offer incentives or encourage this project to take place. In order to reimburse the developer for these costs, it is proposed that the City of Colton enter into a Redevelopment Cooperation Loan Agreement with the Redevelopment Agency. Under such an agreement the City would agree to loan a percentage of the Transient Occupancy Taxes (TOT) generated by the project to the Agency so it may reimburse the Participant for the cost of the off-site improvements and costs associated with billboard advertising (Please refer to proposed Redevelopment Cooperative Loan Agreement attached hereto as to Exhibit "B"). Given that the Downtown #1 tax increment has already been pledged to pay off existing debts, it is unlikely that the loan to the Agency will be repaid. Depending upon final development concept implemented, the developer has estimated the cost of off-site improvements for the project at $300,000-$500,00o, please refer to Exhibit "C" attached hereto. The cost for ongoing billboard advertising has not been determined; however, it will be dependent upon the use and availability of the City/Agency signs and cost for securing other signage from billboard advertising companies. The cost for billboards space is estimated at $3,000 per month to $6,000 per month, depending upon the location and the length or term of the contract. For cost projection purposes, a figure of $4,000 per month was assumed. To reimburse Vanir for the costs for the off -sites and the expense of billboard advertising, including interest at a rate of 7% per annum, the OPA would provide that 100% of TOT 7