HomeMy WebLinkAbout2000-249
(See Companion Resos, CDc/2000-27, CDC/2000-28
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RESOLUTION NO,
2000-249
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA APPROVING THE CONTRACT
FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS
AMENDED, 42 U,S,C, SECTION 5308 (CDBG SECTION 108
CONTRACT NO, B-94-MC-06-0539) FOR THE 303 THIRD STREET
PROJECT AND AUTHORIZING THE APPLICATION OF UP TO
$344,000 IN ECONOMIC DEVELOPMENT INITIATIVE GRANT
PROCEEDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO FOR THE 303 THIRD STREET PROJECT
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8 WHEREAS, the Redevelopment Agency of the City of San
9 Bernardino (the "Agency") shall concurrently with the approval of
10 this Resolution authorize and approve the terms of an owner
11 participation and Economic Development Initiative Loan agreement
12 (the "OPA") by and between 303, L,L,C" a California limited
13 liability company (the "Owner") and the Agency and authorize and
14 approve the terms of a separate Section 108 loan agreement (the
15 "Agency Section 108 Loan Agreement") by and between the Owner and
16 the Agency which affects certain lands (the "303 Third Street
17 Property", as more particularly described in the OPA and the
18 Section 108 Loan Agreement) situated in the Central City
19 Redevelopment Project of the City of San Bernardino (the "City");
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21 WHEREAS, the OPA sets forth the terms and conditions on
22 which the Owner shall conclude its purchase of the "303 Third
23 Street Parcel" as presently owned by the State of California, for
24 redevelopment and reuse by the Owner in accordance with the OPA
25 and the Agency Section 108 Loan Agreement; and
26 WHEREAS, the transaction contemplated under the OPA and
27 the Agency Section 108 Loan Agreement is subject to: (i) the
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2000-249
1 acquisition by the Owner of the 303 Third Street Parcel from the
2 State of California; and (ii) the receipt by the City and the
3 Agency of final approval from the Secretary of the United States
4 Department of Housing and Urban Development ("HUD") for the
5 application of certain Community Development Block Grant loans by
6 the Agency to the Owner pursuant to OPA (the "EDI Loan") in an
7 original principal amount not to exceed Three Hundred Forty Four
8 Thousand Dollars ($344,000,00), and by the Agency to the Owner
9 pursuant to the Section 108 Loan Agreement in a principal amount
10 not to exceed One Million Eight Hundred and Forty Thousand
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Dollars ($1,840,000,00),
The proceeds of the EDI Loan and the
12 Agency Section 108 Loan, together with other sources of funds as
13 provided by the Owner, shall be used and applied by the Owner for
14 the acquisition of all the lands necessary for the 303 Third
15 Street Project and the payment of certain costs of the
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environmental
remediation work,
development,
construction,
17 improvement and financing of the special Economic Development
18 Activity (the "303 Third Street Project") described in the
19 written revision to the Community Development Block Grant loan
20 application (CDBG Section 108 Contract No. B-94-MC-06-0539),
21 dated May 24, 2000, (the "HUD Loan Application") submitted to HUD
22 by the City; and
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WHEREAS, the sole source of funds available to the
24 Agency to provide for the disbursement to the Owner of any sums
25 from: (i) the EDI Loan; and (ii) from the Agency Section 108 Loan
26 shall be obtained by the Agency under (A) that certain United
27 States Department of Housing and Urban Development Economic
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1 Development Initiative Grant No, B-93-ED-06-0539 included within
2 the HUD Loan Application, to the 303 Third Street Project and (B)
3 a "Contract for Loan Guarantee Assistance Under Section 108 of
4 the Housing and Community Development Act of 1974, As Amended (42
5 U,S,C. Section 5308)N (the "HUD Section 108 Loan AgreementN) by
6 and among the Secretary of HUD, the City, as the unit of local
7 government and the Agency, as the designated public agency
8 borrower under the HUD Section 108 Loan Agreement and the related
9 HUD Section 108 Loan Guarantee Program regulations of HUD set
10 forth at 24 C,F,R, Part 570,700, et ~.; and
11 WHEREAS, subject to the receipt of approval by HUD of
12 the 303 Third Street Project, as described in the HUD Loan
13 Application, HUD shall issue to the City and the Agency a loan
14 guarantee commitment under Section 108 of the Housing and
15 Community Development Act of 1974, as amended for HUD Section 108
16 Loan Guarantee Program Grant Number B-94-MC-06-0539 which shall
17 authorize the Agency to administer the disbursement of the EDI
18 Grant in the amount of $344,000,00 with a loan under the Section
19 108 Loan Guarantee Program of HUD in accordance with the terms
20 and conditions set forth in the HUD Loan Application in an amount
21 not to exceed $1,840,000,00 for the redevelopment of the 303
22 Third Street Project by the Owner; and
23 WHEREAS, the Agency shall disburse the proceeds of the
24 EDI Loan in an amount not to exceed $344,000,00 for the assembly
25 of the lands necessary for the 303 Third Street Project and shall
26 also disburse the proceeds of the HUD Section 108 Loan in an
27 amount not to exceed $1,840,000.00 to the Owner for the
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1 acquisition, environmental remediation, construction, improvement
2 and financing of the 303 Third Street Project in accordance with
3 the terms and conditions of the Agency Section 108 Loan Agreement
4 by and between the Owner and the Agency; and
5 WHEREAS, the Mayor and Common Council of the City of
6 San Bernardino deem it appropriate at this time to authorize the
7 acceptance of a HUD Section 108 Loan Agreement by and among HUD,
8 the City and the Agency for the 303 Third Street Project which is
9 substantially consistent with the terms and conditions of the
10 loan as requested in the HUD Loan Application, and to authorize
11 the actions related to the Community Development Block Grant
12 funding assistance to be provided to the Agency, as the
13 designated public agency borrower, under such HUD Section 108
14 Loan Agreement and the related EDI Grant upon the approval of the
15 Secretary of HUD, as set forth in this Resolution,
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NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
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CITY OF SAN BERNARDINO, CALIFORNIA,
DOES HEREBY RESOLVE,
18 DETERMINE AND ORDER AS FOLLOWS:
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Section 1,
The Mayor and Common Council have
20 previously conducted a public hearing on January 11, 2000,
21 related to the use and application of the EDI Grant and HUD
22 Section 108 Loan Guarantee Program funds for the 303 Third Street
23 proj ect in an aggregate amount not to exceed Two Million One
24 Hundred Eighty Four Thousand Dollars ($2,184,000,00) and the
25 Mayor and the Common Council have previously authorized the
26 submission by the City and the Agency of the HUD Loan Application
27 for the HUD Section 108 Loan Guarantee Program assistance for the
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1 303 Third Street Project, The text of the HUD Loan Application,
2 together with the confirming correspondence of the Mayor
3 addressed to HUD as presented at the meeting at which the
4 Resolution is adopted is hereby ratified and approved by the
5 Mayor and Common Council.
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Section 2,
On August 7, 2000, the Mayor and Common
7 Council conducted a public hearing relating to the use of the EDI
8 Grant and HUD Section 108 Loan Guarantee Program assistance and
9 funding for the 303 Third Street Project as described in the HUD
10 Loan Application and as further set forth in the Agency staff
11 report dated August 2, 2000, and Agency staff presentation as
12 submitted to the Mayor and Common Council at the meeting and
13 which this Resolution is adopted. The Mayor and Common Council
14 have considered all comments and information submitted by
15 interested persons in connection with the HUD Loan Application
16 and the HUD Section 108 Loan Agreement by and among HUD, the City
17 and the Agency and the OPA by and between the Owner and the
18 Agency and the Agency Section 108 Loan Agreement by and between
19 the Owner and the Agency.
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Section 3,
The Common Council hereby approves the
21 terms of the HUD Section 108 Loan Agreement as set forth in the
22 HUD Loan Application as submitted to the Mayor and Common Council
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at the meeting during which this Resolution is adopted,
Upon
24 receipt of notice of written acceptance by HUD of the HUD Loan
25 Application which may contain special HUD conditions as deemed
26 consistent with such HUD Loan Application, in the determination
27 by the Mayor in consultation with the Executive Director of the
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1 Economic Development Agency and Special Legal Counsel, such
2 special conditions may be included in the form of the final HUD
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Section 108 Loan Agreement.
The Mayor and the City Clerk are
4 hereby authorized and directed to execute the final form of the
5 HUD Section 108 Loan Agreement on behalf of the City as the "Unit
6 of General Local Government", The Mayor and the City Clerk are
7 further authorized and directed to execute on behalf of the City
8 as the "Unit of General Local Government" all of the other HUD
9 Section 108 Loan Agreement related instruments and certificates
10 as may be required by HUD in order to complete the transaction
11 contemplated under the HUD Section 108 Loan Agreement as relates
12 to the 303 Third Street Project.
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Section 4.
Subject to the adoption of an approving
14 resolution of the Agency, upon the execution by the Agency of the
15 HUD Section 108 Loan Agreement and the related HUD Section 108
16 Loan Agreement promissory notes, instruments and certificates to
17 be executed by the Agency as the designated public agency
18 borrower under the HUD Section 108 Loan Agreement, including
19 without limitation, a fiscal agent agreement with the custodian
20 of HUD Section 108 Loan Agreement funds as shall be designated by
21 HUD, the Executive Director of the Economic Development Agency
22 shall cause the fully executed original copy of the HUD Section
23 108 Loan Agreement and the related promissory notes, instruments
24 and other certificates executed by the Agency as the designated
25 public agency borrower for the 303 Third Street Project to be
26 delivered to HUD as soon as practicable after all such documents
27 have been executed on behalf of the City and the Agency, as
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The Executive Director is further authorized and
applicable.
2 directed to initiate all other ministerial actions on behalf of
3 the City relating to the delivery to HUD of all related
4 documents, wire fund transfer instructions, account fund balance
5 confirmation reports and the like, as contemplated under the HUD
6 Section 108 Loan Agreement for the 303 Third Street Project,
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Section 5,
(al The Mayor and Common Council hereby
8 acknowledge that the HUD Loan Application sets forth a specific
9 schedule of repayments by the Agency to HUD of the principal
10 amount of the HUD Section 108 loan funds as shall be disbursed to
11 the Agency under the HUD Section 108 Loan Agreement, as shall be
12 due and payable in the amounts and at the times provided as
13 follows:
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Installment of
Principal Due
Date of Principal
Installment
Installment of
Principal Due
Date of Principal
Installment
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June 1, 2001 $ -0- June 1, 2011 $100,000.00
June 1, 2002 -0- June 1, 2012 100,000.00
June 1, 2003 100,000,00 June 1, 2013 100,000.00
June 1, 2004 100,000.00 June 1, 2014 100,000.00
June 1, 2005 100,000.00 June 1, 2015 100,000.00
June 1, 2006 100,000,00 June 1, 2016 100,000.00
June 1, 2007 100,000.00 June 1, 2017 100,000.00
June 1, 2008 100,000.00 June 1, 2018 100,000,00
June 1, 2009 100,000.00 June 1, 2019 100,000,00
June 1, 2010 100,000.00 June 1, 2020 140,000.00
Payments of interest which accrue on the outstanding
principal balance of the HUD Section 108 loan shall be paid by
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1 the Agency at the rates of interest per annum at the times and in
2 the amounts provided in the HUD Section 108 Loan Agreement.
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(b)
Except for the special source of funds as may be
4 available to the Agency for the 303 Third Street Project upon
5 receipt and acceptance by the Mayor of the terms and conditions
6 of the written approval by HUD of the HUD Loan Application, as
7 set forth in Section 3(a), above, and the execution by the Agency
8 of the HUD Section 108 Loan Agreement, no other source of funds
9 of the City shall be made available to the Agency for the 303
10 Third Street Project,
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Section 6,
Special legal counsel to the City in
12 connection with the 303 Third Street Project, shall be the law
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firm of Sabo & Green, L.L.P,
Provided the Mayor receives the
14 written approval of HUD of the HUD Loan Application as provided
15 in Section 3 (a) of this Resolution, special legal counsel is
16 hereby authorized and directed to submit to HUD on behalf of the
17 City, as the unit of local government and a party to the HUD
18 Section 108 Loan Agreement, an approving legal opinion with
19 respect to the transaction contemplated under the HUD Section 108
20 Loan Agreement, in the form required by HUD as part of the
21 documentation associated with the HUD Section 108 Loan Agreement,
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Section 7,
Executive
is
hereby
The
Director
23 authorized and directed to complete any necessary environmental
24 certifications relating to the 303 Third Street Project as may be
25 required under the National Environmental Protection Act, as
26 amended.
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2000-249
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA APPROVING THE CONTRACT FOR LOAN GUARANTEE
ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974, AS AMENDED, 42 U,S.C. SECTION 5308 (CDBG
SECTION 108 CONTRACT NO, B-94-MC-06-0539) FOR THE 303 THIRD
STREET PROJECT AND AUTHORIZING THE APPLICATION OF UP TO $344,000
IN ECONOMIC DEVELOPMENT INITIATIVE GRANT PROCEEDS BY THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR THE 303
THIRD STREET PROJECT
Section 8,
This Resolution shall take effect upon
the date of its adoption,
I HEREBY CERTIFY that the foregoing Resolution was duly
adopted by the Mayor and Common Council of the City of
San Bernardino at a Joint Regular
meeting thereof, held
on the
7th
2000, by the following vote, to
day of August
wit:
Council: AYES NAYS ABSTAIN ABSENT
ESTRADA X
LIEN X
MCGINNIS X
SCHNETZ X
SUAREZ X
ANDERSON X
Me CAMMACK X
~;
/b. C4JL.
ci Clerk
The foregoing resolution
day of August ,2000.
y approved this 1()xL
Valles, Mayor
of San Bernardino
Approved as
and legal content:
By:
Special gal counsel
to the City
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STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
CITY OF SAN BERNARDINO
ss
.t..
I, City Clerk of the City of
4 San Bernardino, DO HEREBY CERTIFY that the foregoing and attached
copy of Mayor and Common Council of the City of San Bernardino
5 Resolution No, is a full, true and correct copy of that
now on file in this office,
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IN WITNESS WHEREOF, I
the official seal of the
San Bernardino this
affixed
City of
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have hereunto set my hand
Mayor and Common Council of
day of , 2000,
and
the
City Clerk
City of San Bernardino