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HomeMy WebLinkAbout1984-288 1,020-3/860 7/27/84 RESOLUTION NO. 84-288 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING ITS INTENTION TO ISSUE. ITS MULTIFAMILY MORTGAGE REVENUE BONDS; DIRECTING THE PREPARATION OF CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (FREDRICKS DEVELOPMENT CORPORA- TION) WHEREAS, the City of San Bernardino, California ("City"), is a "home rule city" duly organized and existing under and pursuant to a Charter adopted under the provisions of the Constitution of the State of California; and WHEREAS, pursuant to its home rule powers, the City duly and regularly enacted Ordinance No. 3815 (the "Ordinance") to finance various types of projects, lIS defined in the Ordinance, and to issue its special revenue bonds for the purpose of paying the cost of financing such projects, and has amended the same from time to time; and WHEREAS, said Ordinance No. 3815, as amended, is intended to finance the development of industry and commerce and to thereby broaden the employment opportunities and to increase the availability of moderately priced rental units for residents of the City and to broaden the tax and revenue base of the City; and WHEREAS, there has been presented to this Mayor and Common .". Council an Application, attached hereto as Exhibit "An and incorporated herein by reference by Fredricks Development Corporation, a California corporation (the "Applicant"), requesting the issuance of multifamily mortgage revenue bonds in the principal amount of not to exceed $12,000,000 for the purpose of financing, on behalf of the Applicant, a certain Project, to wit: construction of approximately three hunW:ed twenty-eight (328) unit apartment complex located on an approximately fifteen and forty-nine tenths (15.49) acre site on the south side of Pumalo Street, west of Arden Avenue and bordered on the south by State Highway 30 in the City (the "Project"). The Project shall consist of thirty-five (35) eight (8) unit buildings and three (3) sixteen (16) unit buildings and included a total of six -1- hundred twenty-five (625) vehicle parking spaces, landscaping, three (3) swimming pools and other amenities. There shall be one hundred and eight (108) one bedroom, one bath rental units, one hundred eighty (180) two bedroom, one bath rental units, twenty-eight (28) two bedroom and two bath rental units and twelve (12) two bedroom, one bath rental units designed for handicapped persons; and WHEREAS, eertain provisions contained in Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code"), as said Section was enacted by Congress under the Tax Equity and Fiscal Responsibility Act of 1982 ("T.E.F.R-A."), require that a public hearing be held in connection with the authorization and issuance of multifamily mortgage revenue bonds for the Project and that an elected representative be appointed to approve the issuance of said bonds; and WHEREAS, the Mayor and Common Council have been requested to hold a public hearing pursuant to Code Section 103(k) for the issuance and sale of multifamily mortgage revenue bonds to provide funds for the financing of the Project to be located within the City of San Bernardino, County of San Bernardino, as hereinafter set forth; and WHEREAS, it is in the public interest, for the public benefit and furtherance of the public purposes of the City that such public hearing be authorized and a date be set for the holding of same. NOW, THEREFORE, IT 18 HEREBY RESOLVED, DETERMINED AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Section 1. That the recitals set forth hereinabove are true and correct in all respects. Section 2. The City of San Bernardino, California, is a municipal corporation duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Constitution and laws of the -2- State of California, and the City Charter of the City, and the powers of the City include the power to issue bonds for any of its corporate purposes. Section 3. Pursuant to the Charter of the City and Ordinance No. 3815, as amended, of the City, the City is legally authorized to issue special revenue bonds for the construction and permanent financing as described in the recitals hereof. Section 4. This body constitutes the governing body of the City and is legally authorized to provide for the issuance of such special revenue bonds by the City. Section 5. The Project referred to in the recitals hereof constitutes a project which may be financed by the issuance of such special revenue bonds by the City and located within the jurisdiction of the City. Section 6. The City Council does hereby declare its intention to issue multifamily mortgage revenue bonds of the City for the construction, equipping and permanent financing of the Project under and in accordance with the Ordinance, in amounts sufficient to pay the costs of financing the Project and of paying the costs of issuance for the multifamily mortgage revenue bonds and for the establishment of the necessary reserve funds to provide for the financing of said Project. Said Project is presently identified as the Pumalo Palms. Section 7. The City hereby declares its intention to exercise the authority referred to in Section 3 hereof by issuing bonds of the City in such amounts as will be adequate to implement the City financing of the Project. - Section 8. The bonds shall be payable from the revenues described in said Ordinance No. 3815, as amended. Section 9. The bonds shall be and are special Obligations of the City, and, subject to the right of the City to apply moneys as provided in the applicable laws, are secured by such revenues as are specified in the proceedings for the -3- issuance of such bonds and funds and accounts to be held by the trustee or fiscal agent, and are payable as to principal, redemption price, if any, and interest from the revenues of. the City as therein described. The bonds are not a debt of the City, the State of California or any of its political subdivisions, and neither the City, the State, nor any of its politiCal subdivisions is liable thereon, nor in any event shall the bonds be payable out of the funds or properties other than all or any part of 'the revenues, mortgage loans, and fun~ and accounts as in this Resolution set forth. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither the persons serving as the Mayor and Common Council nor any persons executing the bonds shall be liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance thereof. Section 10. The details of such bonds, including the establishing of the aggregate face amount of such obligations, shall be authorized by indenture, resolution or resolutions of the City at a meeting or meetings to be held for such p\ll1lOSe. The City Staff, Timothy J. Sabo, a Professional Corporation as Bond Counsel to the City, Underwriters, the Applicant and the agents and representa- tives of same are hereby authorized and directed to prepare or cause to be prepared the necessary legal documents, including the Project Agreement, Resolution of Issuance, and such other documents as may be necessary to effect said Project and the issuance of industrial development revenue bonds therefor and to present same to said Mayor and Common CounciL The Mayor of the City is hereby authorized and directed to coordinate the efforts of all concerned relating to the issuance and sale of the bonds, and the City Staff, consultants, legal counsel to the City and Bond Counsel as referenced above are hereby directed to take such steps as shall be appropriate to implement such sale and delivery of the bonds including working with persons who may acquire vested rights as the result of such actions. Section 11. The issuance of multifamily mortgage revenue bonds may be authorized by appropriate resolution or resolutions of the City at a meeting or meetings to be held for such purpose, subject to the execution of appropriate agreements by the Developer and the City as required by the Ordinance and the -4- industrial development bond financing program of the City; provided, further, that this Resolution shall be subject to and conditioned upon the Developer submitting a formal Application to the City in accordence with the adopted Guidelines of the City together with the payment of the applicable application fees and other amounts as required pursuant to the industrial development bond financing program of the City and compliance with all other provisions of said program. Section 12. It is intended that this Resolution shall constitute such "official action" toward the issuance of the bonds within the meaning of the United States Treasury Regulations, the United States Tax Laws, and any legislation now or hereafter pending in the Congress of the United States which may require official action in order for the bonds to be exempt from Federal income taxation. Section 13. At the closing of the financing there shall be paid to the City the fee set forth In Resolution No. 81-108 of the Mayor and Common Council, adopted March 13, 1981, as amended by Resolution No. 81-410, of the Mayor and Common Council, adopted September 24,1981. Section 14. Pursuant to the requirements of Code Section 103(k), the Mayor and Common Council hereby authorize the public hearing in connection with the Project to be held in accordance with said Code Section 103(k) at the first meeting of the Mayor and Common Council to be held in September 1984, at the hour of 11:00 A.M., in the Council Chamber, City Hall, 300 North "D" Street, San Bernardino, for the purpose of considering the public benefits and public purposes to be furthered by the financing contemplated by the action of the City pursuant to this Resolution for the issuance of multifamily mortgage revenue bonds by the City pursuant to the Ordinance. The public hearing shall be held at the hour and on the date herein provided for the Project. The City hereby authorizes and directs the City Clerk to publish by at least one (1) insertion in The Sun for at least fourteen (14) days prior to said hearing date a notice of public hearing substantially in the form of the notice attached hereto as Exhibit "B" and incorporated herein by reference and made a part hereof for the Project. The public hearing shall also -5- consider, and if deemed advisable, appoint an elected representative to approve the issuance of multifamily mortgage revenue bonds for the Project. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a TP.qU] aT meeting thereof, held on the 6th day of August , 1984, by the following vote, to wit: AYES: Council Members castaneda, Reilly, Hernandez, Marks, Quiel, Frazier, strickler NAYS: ABSENT: None None ~~/A?At,~.... CitY Clerk The foregoing resolution is hereby approved this Auqust , 1984. of Approved as to form: ~#~ -6- 1,020-3(&)/860 7/27/84 EXHffiIT "B" NOTICE OF HEARING BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, FOR A CERTAIN MULTIFAMILY MORTGAGE .REVENUB BOND FINANCING AND THE ISSUANCB OF MULTIFAMILY MORTGAGB REVENUE BONDS (FREDRICKS DEVELOPMENT CORPORATION) NOTICE IS HEREBY GIVEN that a public hearing shall be held on September -J 1984, at the hour of 11:00 A.M., in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California 92418, for the purposes as hereinafter set forth. The purpose of said public hearing is to consider the proposal by Fredricks Development Corporation, a California corporation (the "Company"), for multifamily mortgage revenue bond financing for a project which. shall be the construction and equipping of an approximately three hundred twenty-elght (328) unit apartment complex to be located on an approximately fifteen and forty-nine one-hundredths (15.49) acre site on the south side of Pumalo Street, west of Arden Avenue and bordered on the south by State Highway 30 (the "Project") in the City of San Bernardino, California. The Project shall consist of thirty-five (35) eight (8) unit buildings and three (3) sixteen (16) unit buildings and included a total of six hundred twenty-five (625) vehicle parking spaces, landscaping, three (3) swimming pools and other amenities. There shall be one hundred and eight (108) one bedroom, one bath rental units, one hundred eighty (180) two bedroom, one bath rental units, twenty-eight (28) two bedroom and two bath rental units and twelve (12) two bedroom, o~e bath rental units designed for handicapped persons, to be financed by the City of San Bernardino pursuant to Ordinance No. 3815, as amended (the "Ordinance"), and there shall be considered at such public hearing the public benefits and public purposes to accrue as the result of such financing, and that the acquisition or improvement of the Project is in the public interest of the City. Said public hearing is being held pursuant to Section 103(k) of the Internal Revenue Code of 1954, as amended, in the manner and for the purposes required thereunder. All persons interested in the subject matter and the public purpose and public benefit and the issuance of the multifamily mortgage revenue bonds in an 'estimated principal ainount not to exceed twelve million dollars ($12,000,000) for the construction of said Project to be undertaken by the Company, may attend such -1- hearing and/or me their written objections or comments thereto, or may otherwise oommunice,te in favor of the Project to be undertaken by the Company, and financed by the City pursuant to the Ordinance whether in one or more series of such financings. NOTICE GIVEN as of this day of ,1984. ~lty Clerk of the City of San Bernardino To be publiShed in The Sun on _/_/84 -2- 1.010-21/00305 7/27/84 APPLICATION OF FREDRICKS DEVELOPMENT CORPORATION FOR INDUSTRIAL UVENUE BOND FINANCING CITY OF SAN BERNARDINO. CALIFORNIA PART I. GENERAL AND BUSINESS INFORMATION 1.1 The legal name of the Applicant is "Fredricks Development Corporation." 1.2 The Applicant is a California Corporation engaged in the development and sale of real estate. principally residential housing and apartments. and the management of rental operations. The Applicant currently owns certain property located on the south side of Pumalo Street. west of Arden Avenue and is generally bounded on the south by State Highway 30 in the City of San Bernardino and has prposed to construct thereon a three hundred twenty-eight (328) unit multifamily rental housing complex which shall provide rental housing at moderate rental amounts to residents of the City. 1.3 The mailing address and the address of the Applicant is as follows: Fredricks Development Corporation 18 Brookhollow Drive Santa Ana. California 92705 1.4 Employer Tax I.D. No. 95-2107248. 1.5 Mr. Manuel J. Armendariz, Vice President and Treasurer and Mr. Robert Saunders are the principal contacts for the Applicant in connection with the multifamily rental housing complex. as more fully descirbed herein. 1.6 Telephone Number (714) 549-4877. 1.7 The Applicant is a California Corporation. 1.7.1 The Applicant shall own and operate the multifamily rental housing complex. as more fully described herein. in the County of San Bernardino. State of California. 1.7.2 The Applicant was incorporated on July 16. 1959. - 1 - 1.7.3 The Applicant is 4 subsidiary of Pacific Real Estate Projects, Inc., which is a member of the Pacific Lighting Corporation Group. 1.8. The Applicant Projects, Inc., Applicant. 1.9 The names of the key officials of the Applicant: is wholly owned by Pacific Real Estate which owns 1001 of the stock of the 1.9.1 Principal officers of the Applicant: E. James Hunter, Jr., Chairman of the Board Wade H. Cable, President Ronald W. Case, Executive Vice President Manuel J. Armendariz, Vice President and Treasurer Nancy M. Harlen, Secretary 1.9.2 Directors of the Applicant: Wade H. Cable Charles T. Dierker E. James Hunter, Jr. 1.9.3 Principal stockholders: Pacific Real Estate Projects, Inc. owns 1001 of the shares of the Applicant. 1.10 Description of some of the other business affiliations of principal officers and directors 1.10.1 E. James Hunter, Jr., is also: President of Pacific Real Estate Projects, Inc., Chief Executive Officer of Carmel Mountain Properties, Vice President of Blackfield Hawaiian Corporation 1.10.2 Wade H. Cable is also: Vice President of Pacific Real Estate Projects, Inc. 1.10.3 Charles T. Dierker is also: An officer of Pacific Real Estate Projects, Inc. An officer of Pacific Lighting Corporation - 2 - 1.11 Employees 1.11.1 The Applicant currently has 102 employees who are located at the Applicant's corporate offices in Santa Ana. California. 1.12 Professional services will be provided by the following: 1.12.1 1.12.2 1.12.3 1.12.4 Deloitte. Haskins &. Sells. 695 Town Center Drive. Costa Mesa. California 92626. shall serve as the accountant for the Applicant. The law firm of McKittrick. Jackson. DeMarco &. Peckenpahg. 4041 MacArthur Boulevard. Newport Beach. California. 92660. Mr. Scott Jackson are the attorneys for the Applicant. The law firm of Timothy J. Sabo. a Professional Corporation shall serve as Bond Counsel to the City with regard to the tax-exempt financing for the Project. Principal Civil Engineer - The McMahon Partnership. 203 North Golden Circle Avenue. Santa Ana. California 92705 (714) 973-0993 shall provide civil engineering and design services in connection with the Project. 1.13 The Principal banking accounts of the Applicant are held by Bank of America. 4101 MacArthur Boulevard. Newport Beach. California 92660. and the officer of said bank responsible for such account is Thomas J. Rosselli. Jr. 1.14 The source of funding for the Project is anticipated to be derived from a variety of sources including the issuance of tax-exempt bonds or other obligations with a lender to be obtained hereafter. The Applicant has conducted certain preliminary 'discussions in this regard with California Federal Savings and Loan and Colonial Mortgage Company. PART II BOND ISSUE 2.1 The estimated total amount of the financing package and the proposed use of bond proceeds is as follows: 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 Project cost - $9,508.975 Legal. printing and related fees ~ $85.000 Financing costs and fees - $480.000 Capitalized interest - $1.891.025 Other miscellaneous costs - $35,000 Land acquisition - $-0- Total: $12.000,000 - 3 - 2,2 The estimated target date for the financing is anticipated in 1984, with construction to cOlIJIIence possible after the financing package is completed completed in two (2) construction phases which approximately twenty-four (24) months to complete. presently as soon as and to be shall take 2.3 It is proposed that the financing be in the form of a construction loan during the construction period which would have the traditional construction loan provisions in that drawdowus would be permitted as construction proceeds upon submission of requisition vouchers. Upon the completion of construction of the Project and the certification that all improvements have been completed, the lender will then permit an interest fate adjustment and a principal amount increase, as warranted, and convert the construction loan to a permanent financing. 2.4 The present proposal for the financing of the Project anticipates that the tax-exempt bonds or other obligations will be sold to a COlIJIIercial bank or other such lender through a private placement or that there be a public offering of such securities. PART III FINANCIAL INFORMATION 3.1 The financial statements of the Applicant for 1982 and 1983 are included as Exhibit "A" hereto. 3.2 The Applicant is a large developer of real property and has recently been identified in a survey conducted by the Los Angeles Times as within the top 101 of developers, by dollar volume, of real property in California. PART IV PROJECT INFORMATION 4.1 The Project as proposed by the Applicant consists of the construction and installation of a three hundred twenty-eight (328) unit apartment project, appurtenant vehicle parking, landscaping, 3 swimming pools and other amenities on approximately fifteen and forty-nine hundredths (15.49) acres of land located on the south side of Pumalo Street west of Arden Avenue, and bordered on the south by State Highway 30, in the City of San Bernardino. The Project shall be constructed in two (2) phases as follows: - 4 - Phase I 160 Units ~ Square Footage No. Total Sq. Ft. lBr-lBa 715 56 40040 2Br-lBa 896 82 73472 2Br-2Ba 983 15 14745 2Br-lBa (Handicap) 983 ...1. 6881 160 135,138 Phase II 168 Units Type Square Footage No. Total Sq. Ft. lBr-lBa 715 52 37180 2Br-lBa 896 98 87808 2Br-2Ba 983 13 12779 2Br-lBa (Handicap) 983 .2 4915 168 142,682 Offsite work required is the widening and improving of Pumalo Street across the northern side of the site. This work will be done in conjunction with Phase I. All utilities are available at the site. . 4.2 The components and the estimated total cost of the functional parts of the Project are as follows: 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 Land Real estate brokerage Coomission Site preparation Building construction Engineering, architectural and technical services, construction supervision, fees, insurance and 2% contingency Financing and carrying costs during construction TOTAL $1,500,000 300,000 1,327,088 6,808,799 1,373,088 2.361,005 $13,669,980 4.3 The estimated construction period for the Project is as follows: 4.3.1 4.3.2 Construction of the Project would coomence as soon as possible after issuance of the tax-exempt obligations. The planned construction shall occur in two (2) phases and be completed within twenty-four (24) months from the date of coomencement. 4.4 The supervising civil engineer responsible for the design of the Project on behalf of the Applicant shall be William Snell, Ultra Engineering, Post Office Box 5361, San Bernardino, California 92412. - 5 - 4.5 The Project shall be known as "Puma1o Palms". 4.6 The Project consists of the development of three hundred twenty-eight (32.8) new rental uni,ts which shall be made available at moderate rents. The necessary infrastructure items and other public improvements must be installed on the Project site and the Applicant desires to obtain a below market rate tax-exempt construction and permanent financing of, the improvements to be placed thereon from a combination of sources. 4.7 The property on which the Project is proposed to be located is currently owned by the Applicant. 4.8 The Project will prove three hundred twenty-eight (32.8) multifamily rental units. 4.8.1 Attached as Exhibit "B" is an 8-1/2. x 11 inch map showing the site location of the proposed Project. 4.9 The Applicant believes that a negative declaration pursuant to the provisions of the California Environmental Quality Act of 1970, as amended, would in all probability be satisfactory for the Project. However, the Project shall comply with all applicable provisions of said act. 4.10 There are no permits, water quality enforcement orders, air pollution permits or vadances or other evidence of actions necessary in connection with this Project. 4.11 There are no local, state or federal pollution control agencies which impose regulations, standards or requirements with regard to the operations of the proposed Project to be undertaken by the Applicant. 4.12. The proposed Project shall comply with all applicable City of San Bernardino, County of San Bernardino, and other regional, county or basin plans to which this Project shall conform and the appropriate waste water and air quality requirements which shall be in conformity with all of the above jurisdictions. 4.13 It is presently anticipated that the proposed Project will not produce any by-products or residues which would involve the ultimate disposal or the need for a plan to accomplish same. Recycling or salvage will not be a function of the proposed Project nor will there be any market opportunities generated with regard to same. PART V PUBLIC BENEFITS 5.1 The City of San Bernardino will receive significant benefits by the initiation of this Project as proposed by the Applicant and particularly through the utilization of the financing method as is available under Ordinance No. 3815, as amended, of the City of San Bernardino. In view of the fact that conventional - 6 - interest rates for construction and permanent financing for the type of Project contemplated by the Applicant are at such an extremely high level on conventionally borrowed funds, if available at all, neither the Applicant nor any other persons or legal entities are able to provide the type of modern and attractive multifamily rental housing units at moderate rents which are needed within' the City of San Bernardino. Additionally, the City of San Bernardino, its inhabitants will benefit from the increased assessed valuation of the property. 5.1.1 5.1.2 5.1.3 The Project will provide long term rental housing opportunities for the inhabitants of the City of San Bernardino. Construction of the Project is anticipated to add approximately $13,670,000 of assessed valuation to the tax rolls of the City. The useful method of financing provided for in Ordinance No. 3815 of the City vis-a-vis the use of other conventional methods will permit the Applicant to complete the financing and construction of the Project within an accelerated time frame. The method of financing provided in Ordinance No. 3815 will provide new sources of financing to the Applicant and such financing will be made available at lower tax-exempt interest rates. 5.2 The City will benefit, as can be demonstrated pursuant to Section 1 of Ordinance No. 3815, as amended, of the City of San Bernardino, in that employment opportunities will be generated by the proposed Project during the construction phase, and after said Project is constructed, it shall provide sigoificant low- to moderate-income rental housing opportunities to the residents of the City of San Bernardino. The Applicant is not attempting to construct said proposed Project merely for the financial inducement that is offered pursuant to the Ordinance, but rather due to the long-term business reasons that are sigoificant due to the location of the proposed Project and the real economic benefits available to the community. There are no detriments that can be incurred by the City with regard to this type of financing for this Project, and the City of San Bernardino will receive substantial benefits through increases in assessed valuation of property, plus the increased long-term low- to moderate-income rental housing opportunities that will be available to the local residents of the City. PART VI COMMITMENTS 6.1 The Applicant by the submission of this Application agrees to comply and/or to assist the City in complying with all state and federal laws in the issuance of the bonds or other such tax-exempt obligations to finance the Project, including, - 7 - without limitation, making of any required application to a governmental department, for authorization, qualification or registration of the offer, issuance or sale of the bonds or other tax-exempt obligations, and any amendments thereto, and any permit or other authorization of such governmental department, prior to the delivery by the City of such bonds or other tax-exempt obligations. 6.2 The Applicant further commits to cause and/or to assist the City in .causing to be printed any prospectus or other written or printed communication proposed to be published in connection with the issuance, offer or sale of bonds or other tax-exempt obligatio~s, prior to the delivery by the City of such bonds or other tax-exempt obligations, and, to the extent deemed necessary by the City, following delivery of such bonds or other tax-exempt obligations. 6.3 The Applicant also commits to pay all expenses in connection with the issuance, offer or sale of the bonds or other tax-exempt obligations, whether or not such bonds or other tax-exempt obligations are finally issued, and to hold the City harmless from any and all expenses related thereto, to pay items on an ongoing basis so that neither the City, nor its advisors, attorneys, employees and the like will accumulate any claims against the City. 6.4 The Applicant will supply any additional information, agreements and undertakings as the City may require as a result of conferences and negotiations which will be reproduced and supplied to the City and shall be deemed as supplements or amendments to this Application. PART VII SIGNATURE 7.1 The undersigned as officers of the Applicant as noted below, hold the prime responsibility for the financing to be taken for the proposed Project, and certify that the undersigned have the authority to bind the Applicant to contract terms; that this Application to the best knowledge or belief of the undersigned, contains no false or incorrect information or data, and this Application, including exhibits and attachments hereto, is truly descriptive of the proposed Project. The undersigned also represents by the execution of this Application familiarity with Ordinance No. 3815, as amended, of the City of San Bernardino. PART VIII FEE SCHEDULE 8.1 The Applicant acknowledges that the City requires a non-refundable application fee of $50 for each Project to be considered for eligibility, to be paid when the basic documents are requested. With the submittal of this Application, $500 is payable to the City. If this Application is accepted, an additional fee of $10,000 is payable for administrative costs. The Applicant acknowledges that the commitments in Part VI above - 8 - are in addition to these fixed amounts. Thus, in the event that no closing occurs, the City shall be reimbursed for its processing costs. 8.2 All fees of the City may be capitalized and included in the bond issue as acceptable to the bond purchaser. 8.3 The Applicant acknowledges that the City derives its entire support from the fees for its services. The total function of the City is conducted on a self-supporting basis, and involves no state general revenues or expenditures from taxes from the state or any of its political subdivisions. No indebtedness or taxing power of the City is involved. Project revenues are the sole security for bonds of the City. The federal guarantees, if any, enhance these revenues and income and the security of the bonds. 8.4 Pursuant to Resolution No. 81-108 of the City, as amended by Resolution No. 81-410 of the City, one percent (11) of the principal amount of the bond issue shall be deposited in the City Treasury in the Industrial Revenue Bond Reserve and Development Fund, which shall be used in such manner as the Mayor and Coomon Council may direct from time to time. "APPLICANT" FREDERICKS DEVELOPMENT CORPORATION, A California corporation ~.~ Ti~le:' ,-. ~.L.<~~ ~~- Title: ~II~ ?-A-u:rr......f- ~ By: - 9 - ':'u[ - I -~ ~ 0 i:~ . j" ", I ., I. , ;::. . OlAV p.l>t I a&s8J() ,I... '- ~ ~ ~ I ~ J !i .. .. >- ! O'HD0 . ~ ~~~ Ullsill q xeD:! ONC') In ~>-ilO~... ~!C\I!~ 10 ell ~ . ",=,=...J ~; ~oiig ~!i g 8 ~!ii ill ~ill~ ~ffi >- 2 5 ~ ~ Sea"" ffio .~>-~I.>I~ ~~~ ~~ ' !i t; a1:im ('II":' · ~ (\I...... I ~ i h I in ~n - ~ 0 lU NN_ ifC\l.... · ~ as CJ 0 "'. .. . jo 1 ~ Jl ~ " - , I ~ Jl '" - . l' ! ~ Jl . Btl! 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