HomeMy WebLinkAbout1981-626
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RESOLUTION NO. 81-626
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO FINDING THAT AN APPLICATION FOR
INDUSTRIAL DEVELOPMENT BOND FINANCING HAS BEEN SUBMITTED
PURSUANT TO THE PROVISIONS OF ORDINANCE NO. 3815 OF THE
CITY FOR A CERTAIN PROJECT, FINDING THAT SAID APPLICATION
COMPLIES WITH THE PROVISIONS AND REQUIREMENTS OF SAID
ORDINANCE NO. 3815; APPROVING SAID APPLICATION AND THE
PROJECT TO WHICH IT REFERS; DIRECTING THE PREPARATION OF
A PROJECT AGREEMENT, A RESOLUTION OF ISSUANCE AND SUCH
OTHER LEGAL DOCUMENTS AS MAY BE NECESSARY TO CARRY OUT
SAID PROJECT AND PROVIDE FOR THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS THEREFOR; AND MAKING CERTAIN
OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH.
ALL AMERICA CITY PUBLIC GOLF INC.
WHEREAS, the City of San Bernardino ("City" herein) 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 ("Ordinance" herein) to finance various types of
projects, as 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 for residents of the City and its tax and revenue base; and
WHEREAS, there has been presented to this Mayor and Common Council an
Application by All American City Public Golf,Inc, (attached hereto as
Exhibit "A"), requesting the issuance of industrial development bonds in the
principal amount of, not to exceed, $2.000.000
, on behalf of the Applicant,
-1-
, a.certa~n Pr9ject to wit:
To construct a 14,000 sq. ft. food & beverage facility to be located
at 3380 Little Mountain Drive, San Bernardino, California.
Development cost to include without limitation the acquisition of
land and equipment therefor and off-site parking for motor vehicles
and all on & off siteimprovements necessary therefor and appurtenances
and appurtenant work (the "Project").
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY THE
MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOllOWS:
SECTION 1-
in all respects.
That the recitals set forth hereinabove are true and correct
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
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 permanent financing as described in the recitals hereof.
SECTION 4.
legally authorized
the City.
This body constitutes the governing
to provide for the issuance of such
body of the City and is
special revenue bonds by
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 Application referred to in the recitals hereof complies
with the provisions and requirements of said Ordinance No. 3815, as amended, and
the Project involved in such application is hereby approved and the provisions
of Subsection (d) of Section 10 and Subsection (a) of Section 11 of said Ordinance
No. 3815 shall not apply.
-2-
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 3815, as amended.
SECTION g. The bonds shall be and are special obligations of the City,
and, subject to the right of the City to apply monies as provided in the
applicable laws, are secured by such revenues as are specified in the proceedings
for the 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 sub-
divisions, 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 any
funds or properties other than all or any part of the revenues, mortgage loans,
and funds 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 purpose. The City Staff, Bond Counsel, Underwriters, the Applicants and the
Agents and Representatives of same are hereby authorized and directed to prepare
or cause to be prepared the necessary legal documents, including the Project
Agreements, Resolutions of Issuance, and such other documents IS 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 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. This Resolution constitutes a proper exercise of the powers
of this Mayor and Common Council and conforms to State and local legal require-
ments relating to the issuance of such special revenue bonds and other bonds
or debt obligations by a charter city in this State.
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 legisla-
tion 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. BI-108, as amended by Resolution No.
81-410, of the Mayor and Common Council, adopted September 24,1981.
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. .
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by
the Mayor and Common Council of the City of San Bernardino It I reaular
Meeting thereof, held on the 21st day of December ,19Bl, by the
following vote, to wit:
AYES:
COUNCIL MEMBERS: Castaneda, Reilly, Hernandez,
Botts, Hobbs, Strickler
NAYS:
ABSENT:
None
None
~R$~d
m CLERK
The foregoing Resolution is hereby approved thi!i.7 "3 day of
.-
December
, 1981.
APPROVED AS TO FORM:
~ff~
CITY ATTORNEY
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APPLICATION FOR
REVENUE BOND FINANCING
PART I
GENERAL AND BUSINESS INFORMATION
1.1 Legal Name of Applicant. All America City Public Golf, Inc.
1.2 Line of Business. Development of commercial and
recreational facilities for occupancy by various
entities.
1. 3 and
e Mounta1n Drive,
1.4 Employer I.D.H 95-3318609
1.5 Name and Title of Principal Contact. Warner W. Hodgdon,
President
1.6 Phone Number. Area Code 714/886-0669
1.7 Type of Business Organization.
1. 7.1
1. 7.2
1. 7.3
Place of Organization. San Bernardino, California
Date of Organization. March 6, 1978
Nature of Le al Affiliation or relationshi
wit ot er ent1t1es. None
1.8 Constitution
ercentage 0
to Follow
Warner W. Hodgdon,
, San Bernardino,
Names and Locations of Key Officials.
President - 3380 Little Mountain Drive
California 92407
1.10 Affiliations and Princi le
p e toc 110 ers.
1.9
1.11 Employees
1.11.1
1.11.2
Number of Employees in California. Fifteen (15)
Locations in California:
3380 Little Mountain Drive
San Bernardino, California 92407
l( Fi-~ A 'I
Application For
Revenue Bond Financing
Page 2
PART I (Cont.)
GENERAL AND BUSINESS INFORMATION (Cont.)
1.12 Expert Services
1.13
1.14
1. 12.1
1. 12.2
1. 12. 3
1. 12.4
1.12.5
1.12.6
Princi~al Accountant: Lester Witte & Company,
CPA, 2 0 North "D" Street, San Bernardino,
California 92401
Principal Attorney: Allen Gresham, Gresham,
Varner, Savage, Nolan & Tilden, Attorneys,
398 West 4th Street, San Bernardino,
California 92401
Principal Architect:
Frick, AlA, 3616 Main
California 92501
Jerry Cole, Cole &
Street, Riverside,
Principal Engineer:
Information to Follow
Principal Soils Engineer: Dave Turner,
Pioneer Consultants, 251 Tennessee Street,
Redlands, California 92373
Princital Contractor: Jack Hawkins, J. D.
Diffen augh, 2375 Chicago Street, Riverside,
California 92507
Principal Bank Account. Wells Fargo Bank, Main Branch,
334 West 3rd Street, San Bernardino, California 92401
Proj ect Funding Sources
1.14.1
1.14.2
Equity Capital to be contributed by All
America City Public Golf, Inc.
Debt Funding - To be funded through proceeds
of Bond sale
Application For
Revenue Bond Financing
Page 3
PART II
BOND ISSUE
PROJECT COST
LEGAL, PRINTING AND RELATED
FEES
FINANCING COSTS & FEES
CAPITALIZED INTEREST
OTHER COSTS (ENGINEERING,
ADMINISTRATIVE, ARCHITECT,
$2,000,000.00
$1,500,000.00
2.1
The Estimated Total Amount of Financing.
2.1.1
2.1.2
2.1. 3
2.1.4
2.1.5
15,000.00
60,000.00
135,000.00
TOTAL
MISC) 15,000.00
$2,000,000.00
2.2 Estimated Target Date of Financing. June I, 1982
2.3 Estimated Times of Financing. Permanent financing
to be recorded June I, 1982
2.4 Type of Sale. Private Placement
PART III
FINANCIAL INFORMATION
3.1 Financial Statement. Information to Follow
3.2 No small business loan or federal guarantee is to be
involved in this development.
PART IV
PROJECT INFORMATION
4.1 The project, consisting of approximately 14,000 sq.ft.,
is being undertaken to provide a food and beverage
facility as services for the golfer and to accommodate
banquets for groups utilizing the Shandin Hills Golf
Club as well as providing food and beverage services for
the general public. The project will provide much needed
banquet and meeting facilities, to accommodate approxi-
mately 500 guests, for the overall community.
Application For
Revenue Bond Financing
Page 4
PART IV (Cont.)
PROJECT INFORMATION (Cont.)
4.2 A description of the components and estimated total
cost of the project is as follows:
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
LAND AND BUILDINGS
EQUIPMENT
$1,425,000.00
350,000.00
ENGINEERING,ARCHITECTURAL AND
OTHER TECHNICAL SERVICES 15,000.00
LEGAL, PRINTING AND RELATED
FEES 15,000.00
FINANCING COSTS AND FEES 60,000.00
CAPITALIZED INTEREST 135,000.00
TOTAL $2,000,000.00
4.3 Estimated Construction
Site work and construction of improvements are
expected to start approximately June I, 1982 and
will require approximately six (6) months to
complete. Therefore, it is estimated that the
facility will be open to the public on January I, 1983.
4.4 Supervising Engineer. Information to Follow
4.5
4.6 The project site is immediately contiguous to the
existing Shandin Hills Golf Club Pro-Shop consisting
of approximately 10,000 sq. ft. and, as previously
mentioned, will be an expansion of the existing
Pro-Shop.
4.7 The legal owner of the site is the Redevelopment Agency
of the City of San Bernardino. The site is currently
in the possession of All America City Public Golf, Inc.
under a fifty-five (55) year lease which went into
effect on August I, 1981.
Application For
Revenue Bond Financing
Page 5
PART-IV (Cont.)
PROJECT INFORMATION
4.8
4.9
4.10
4.11
4.12
4.13
PART V
Operations to be conducted within the development in-
clude, but are not limited to, preparation and
serving of food, dispensing and serving of alcoholic
beverages, providing space for, and accommodating
group meetings and banquets.
The project location is within the previously approved
State College Project #4 Redevelopment Project Area
and is, therefore, exempt from the requirements of an
Environmental Impact Study. The only known environ-
mental quality regulation to be met regarding the
project are the requirements of the City of San
Bernardino Environmental Review Committee.
No water quality enforcement order, air pollution
permits or variances are known to be needed for
construction of this project.
No known pollution control agency (local, state or
federal) have applicable regulations or requirements
for the operations described.
No known regional county or basin plan is established
with which the proposed project must conform.
By-products or residues of the proposed operations
shall be disposed of at available public disposal
facilities.
PUBLIC BENEFITS
5.1 The benefits that will accrue to the City and its
citizens as a result of construction of this project
and the use of Industrial Revenue Bond financing
vis a vis conventional financing include, but are
not limited to, the following:
5.1.1
The project will employ approximately
thirty (30) temporary jobs, during
construction, and approximately twelve
(12) permanent jobs when the facility is
in full operations. It is anticipated that
the project will have an annual payroll
Application For
Revenue Bond Financing
Pa~e 6
PART-V (Cont.)
PUBLIC BENEFITS (Cont.)
5.1 Cont.
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
(Cont.)
of approximately $137,000.00 when in full
operation. The category of jobs to be
provided will include managerial, skilled,
semi-skilled and unskilled. Wages to be
paid in the various job categories will
be competitive with other like and/or
similar jobs locally and regional. The
facility will be constructed in accordance
with all applicable local, state and federal
standards, thereby resulting in working
conditions being satisfactory.
The Cityk involvement in the development of
this project through its issuance of Industrial
Revenue Bonds will enable the project to be-
come reality when current national economic
conditions would otherwise prevent such
because of, among other factors, high interest
rates.
Additional benefits realized by the community
will result from, but are not limited to,
removing of persons from the unemployment and
public assistance roles and employing the
under employed. The project will be self-
supporting and will not rely on any support
through anreimbursed expenditures from the
City or any other public agency.
The project, when completed, will add an
additional $1,500,000.00 in assessed valuation
to the City's tax rolls. In addition, the
project will increase sales tax revenues to
the City as well as additional business
tax revenues.
The method of financing provided for in San
Bernardino City Ordinance 3815 will permit this
project to begin construction and be completed
on an accelerated schedule. As the City is
aware, current conventional interest rates
are at historically high levels; and, in
addition, many sources of conventional financing
Application For
Revenue Bond Financing
Page 7
PART V (Cont.)
PUBLIC BENEFITS (Cont.)
5.1 (Cont.)
(Cont.)
do not have funds available to make loans
of this nature. Therefore, financing through
the use of Industrial Revenue Bonds for this
project will assure the developer that the
project can now proceed in a timely manner
without undue delays resulting from problems
that would be incurred in obtaining con-
ventional financing.
5.2 We believe that the construction of this project and the
financing therefore, as set forth herein, as in full
compliance with the overall requirements and intent of
San Bernardino City Ordinance 3815. In particular:
5.1.5
5.2.1
5.2.2
5.2.3
5.2.4
The project is anticipated to have a bene-
ficial impact on the unemployment problem in
the City without imposing a financial burden
or adverse effects on areas outside the
boundries of the City or on transient residents
of the state.
The project will not produce detrimental effects
on or conflict with or otherwise restrain state
efforts to solve problems of legitimate state
concern.
The applicant has legitimate long-term business
reasons including, but not limited to, the
betterment of the community environment by
providing long-term employment, labor pool
access and other economic factors to which
the financing of this project is not as
important.
The City of San Bernardino will only be in-
volved in this project by the use of its
abilities to provide Industrial Revenue
Bond financing and will only be paid those
fees necessary to reimburse the City for its
administrative costs, incurred in connection
with the issuance of the bonds herein referred
to. The City will not realize a profit from
Application For
Revenue Bond Financing
Page 8
PART V (Cont.)
PUBLIC BENEFITS (Cont.)
5.1 (Cont.)
5.2.4
5.2.5
5.2.6
5.2.7
(Cont.)
this project as a result of the Industrial
Revenue Bond method of financing in such a
manner that it will be competing with rival
private firms; and, the developer is not
requesting that the City take any more action
than is necessary to consummate the financing.
As described previously in this application,
certain incidential benefits such as in-
creased property taxes, increased business
license fees will accrue to the City as a
result of this overall development.
In paragraph 5.1.3 we have outlined certain
programs by which it is expected that the
projects activity in the City will increase
long-term employment and short-term employ-
ment, during construction, of local residents.
The City will receive a substantial benefit,
as previously described, from the development
of this project that far exceeds any detriment
incurred by the City. This project will be
self-supporting and shall not rely upon
the City for any further support than that
which is necessary to consummate the issuance
of bonds for the financing. City Ordinance
3815 and any and all other documents relative
to the issuance of the Industrial Revenue
Bonds requested herein will contain pro-
visions that subject bonds are limited ob-
ligations of the City to finance this develop-
ment payable only from revenue generated by
the development and that all fees and expenses
incurred by the City in connection therewith
will be reimbursed by the developer.
The developer commits herein that no action
shall be taken on the part of the developer
that will result in a violation of any appli-
cable federal, state or local standards
related to sewage disposal.
Application For
Revenue Bond Financing
Pa~e 9
PART VI
COMMITMENTS
6.1 By execution hereof the applicant does hereby commit
itself to comply with and to assist the City in
complying with all State and Federal laws in the
issuance of bond financing including, without limi-
tation, the making of any required application to a
Governmental Department for authorization, qualification
or registration of the offer, issuance or sale of the
bonds and any amendments thereto and any permit or
other authorization of such Governmental Department
prior to the delivery by the City of such bonds.
6.2 By execution hereof the undersigned does hereby commit
to cause and/or 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 prior to the
delivery by the City of such bonds and if deemed
necessary by the City following the delivery of such
bonds.
6.3 By execution hereof the undersigned does hereby commit
to pay all expenses in connection with the issuance,
offer or sale of the bonds whether or not they are
finally issued, to hold the City harmless from any and
all expenses related thereto and 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 undersigned hereby agrees that any additional
information, agreements and undertakings as the City
may require as a result of various conferences and
negotiations shall be reproduced in written, printed
or other tangible form, shall be supplied in as many
copies as the City prescribes and shall be deemed
suppliments or amendments to this application.
. .
Application For
Revenue Bond Financing
Page 10
PART VII
SIGNATURE
7.1 The applicant by executing this document certifies
that he has authority to bind the partnership to
contract terms. that the application to the best of
his knowledge or belief contains no false or in-
correct information or data and the application in-
cluding the exhibits and attachments is truly
descriptive of the project. The undersigned further
represents that the undersigned is familiar with
Ordinance Number 3815.
DATED:
/~a/
SEE SECTION 8 NEXT PAGE
ADDED BY STAFF.
WARNER W. HODGDON, President
~~,'d B :
Mt/~
WALLACE GREEN. Projects Coordinator
ADDED TO APPLICATION BY STAFF - APPLICATION DOES NOT ADDRESS
TH~ APPROVED FEE SCHEDULE SET FORTH BELOW:
..
PART VIII FEE SCHEDULE
8.1 ~he 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
aubmittal of the application form, $500 is payable to the
City. If the application is accepted, an additional fee of
$10,000 is payable for administrative costs. Please note,
however, that the commitments in Part VI above are in
addition to these fixed amounts. ~us, 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.
B.3 ~e City derives its entire aupport from the fees for its
services. ~e total function of the City is conducted
on a self-svpporting basis, and involves no state general
revenues or expenditures from taxes from the state or any
of its political subdivisions. No In~btedness or taxing power of the
City is involved. Project revenues are the sole security for Its bonds.
The federal suar.ntees. If any, enhance these revenues and Income
and the security of the bonds.
L" Pursuant to Resolution 11-108. as amen~d by Resolution 11-'10, one
percent (I'll.) of the bond issue shall be ~posited in the City Treasury
in the Industrial Revenue Bond Reserve and Development Fund. which
shall be used in such manner as the Mayor and Common Council may
direct from time to time.
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SBRDA-23
10-19-76
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MEMORANDUM
IEDEfELOPIUT JUJU
Of THE tIlY Of SAn BERnRROInO. CRLlfORnlR
DATE 12/16/81
TO Honorable Mayor and Common Council
FROM Redevelopment Agency
SUBJECT IDB APPLICATION: ALL AMERICA CITY PUBLIC GOLF, INC.
:?/-t..;l{..
The following is a condensed recap of the Application submitted by ALL
AMERICA CITY PUBLIC GOLF, INC.:
PRINCIPALS: Warner W. Hodgdon, President
ESTIMATED AMT OF FINANCING: $2,000,000
ESTIMATED TARGET DATE OF FINANCING: June 1, 1982
PURPOSE: Construction of a 14,000 s.f. food & beverage facility for the
golfer and banquet user utilizing the Shandin Hills Golf Course.
ESTIMATED IMPROVEMENT COST: $1,500,000 Project Cost
500,000 Related Costs
$2,000,000
ESTIMATED CONSTRUCTION: Start June 1, 1981
6 months to complete - Open to Public 1-1-83
LOCATION: 3380 Little Mountain Drive
ESTIMATED JOBS: 30 Temporary, 12 preminent
ESTIMATED INCREASED TAX: 1% of $1,500,000 = $15,000
ESTIMATED IDB RESERVE & DEVELOPMENT FUND: 1% of $2,000,000 = $20,000 **
** Section 8 added by Staff to Application. Applicant failed
to address the fee schedule
~AJ
Glenda Saul
Deputy Director
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