Santa Claus came early to the Inland Valley Development Agency. The agency received a $960,775 profit-participation check from Hillwood, the master developer for much of San Bernardino International Airport. As part of the master development agreement, signed in 2002, Hillwood is required to give the IVDA a portion of its operating profits. In spring, Hillwood presented the agency with a check for $270,000, its first check under the profit-participation pact. The amount of the check delivered to the IVDA on Wednesday at a regularly scheduled board meeting in the Loma Linda Council Chambers was “larger than anticipated,” said Don Rogers, interim executive director of the IVDA. The agency receives 20 percent of the profit for a sale or refinancing and 15 percent of the net-lease income, Rogers said. This is on top of the 75 cents per square-foot selling price of land. “Originally, we had to take a discount on the land value because of the condition of the property. Our hope was that the profit participation would bring the land value up to a higher level,” Rogers said. And that appears to be happening. Profit-participation checks go into the IVDA’s general fund. The IVDA board approved an agreement, in concept, with the city of San Bernardino that would allow exemption from city traffic-mitigation requirements as redevelopment brings more cars and trucks back to the former Norton Air Force Base. A standing letter of agreement with the city allows 46,500 traffic credits based on the number of jobs at the base before it closed in 1994, Rogers said. This conceptual plan would also give recognition to the funds the IVDA helped secure for road and other infrastructure improvements around San Bernardino International Airport, Rogers said. The idea of the plan is to keep the IVDA from overpaying city impact fees for redevelopment success, Rogers said. IVDA board members also agreed to accept the no-cost ownership transfer of the sewer collector system at SBIA from the Air Force. Ownership of this system will later be transferred to the city of San Bernardino.
News Article | 12/16/2005