HomeMy WebLinkAbout1981-406
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SAN BERNARDINO
Woodworth
50,002-1-1
RESOLUTION NO. ?/-1/~6
RESOLUTION OF THE MAYOR .l\ND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO FINDING THAT
AN APPLICATION FOR ~NDUSTRIAL DEVELOPf1ENT
EOND FINANCING HAS BEEN 3UBMITTED PURSUANT
TO THE PROVISIONS OF ORDINANCE NO. 3815 OF
THE CITY FOR A CERTAIN PROJECT, FINDING
THAT SAID APPLICATION COMPLIES WITH THE PRO-
VISIONS 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 DEVELOPl'IENT REVENUE BONDS
THEREFOR; AND MAKING CERTAIN OTHER FINDINGS
AND DETERl'IINATIONS IN CONNECTION THEREWITH
CENTRAL CITY COl'If1ERCE CENTER
WrlEREAS, the Citv of San Bernardino ("City" herein),
is a "home rule city" duly organized and existing under and
pursu2nt to a Charter adopted under the provisions of the
Constitution of the State of California; and
WHEP$AS, 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
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Woodworth
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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 CENTRAL CITY CO~lliERCE
CENTER, a California partnership (the "Applicant"), request-
ing the issuance of industrial development bonds in the
principal amount of not to exceed $2,200,000 for the purpose
of financing, on behalf of the Applicant, a certain Project,
to wit: rehabilitation of a certain office building located
at 396 North "E" Street, San Bernardino, California, includ-
ing, without limitation, equipment and off-street parking
for motor vehicles and all off-site and on-site improvements
necessary there fer and appurtenances and appurtenant work
and including during construction, costs of issuance and bond
discount, if any (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. That the recitals set forth herein-
above are true and correct in all respects.
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SAN BERNARDINO
Woodworth
50,002-1-1
section 2. The City of San Bernardino, Cali~ornia,
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. 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 Application referred to in the
recitals hereof complies with the provisions and requirements
of said Ordinance No. 3815, as amended, and the Project involved
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SAN BERNARDINO
Woodworth
50,002-1-1
in such application is.hereby approved and the p~ovisions
of Subsection (d) of section 10 and Subsection (a) of
Section 11 of said Ordinance No. 3815 shall not apply.
section 7. The city hereby declares its inten-
tion 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 bonqs shall pe 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 pro-
ceedings 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 des-
cribed. 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 any funds or properties other than
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SAN BERNARDINO
Woodworth
50,002-1-1
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 per-
sonally 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, Under-
writers, 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, in-
eluding the Project Agreements, Resolutions 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 are
hereby directed to take such steps as shall be appropriate
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San Bernardino
Woolworth
50,002-1-1
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 requirements 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 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.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at an adjourned regular meeting thereof, held on
the
14th
day of
September , 1981, by the following vote,
to wit:
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San Bernardino
Woolworth
50,002-1-1
AYES:
Council Members Castaneda, Reilly, Hernandez,
Botts, Hudson, Strickler
NAYS:
None
ABSENT:
Council Member Hobbs
~ft&~h
The foregoing resolution is hereby approved this I/,th
day. of
September
, 1981.
an Bernar ~no
~
Approved as to form:
/Z~~~I.~
City Attorney
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APPLI CA TI O:~ rOe
RE VENUE BOtW r w:.:;c Jl4G
CE:.,R:,c CITY CO~t:L?CE CE~;TEK
39~ North E Street
San Bernardino, California
September 9, 1981
RESPONSES TO APPLI CAT! ON QUEST 1 Of I:'
Part I. General and Business Information:
Item Response
....
1.1 Central City Commerce Center, a California Partnership
1.2 Real property development
1.3 Offices of one of the partners:
Charles F. King
Chuck King & Associates
26872 Calle Hermosa
Capistrano Beach, CA 92624
Ph: (714) 493-2141
1.4 Recently applied for
1.5 Charles F. King, managing partner
Joseph C. Bonadiman, civil engineer and partner
1.6 Charles F. King, (714) 493-2141
Joseoh C. Bonadiman, (714) 88~-3SJ6
1.7 General partnership
1.7.1 City of San Bernardino, County of San Bernardino, State of
California
1.7.2 Organized in August, 1981. Formal statement of partnership
filed and recorded in August, 1981.
1.7.3 Partnership is not affiliated with any other entity at this time,
nor is any affili,\tion contemplated at this time.
1.8 through
1.9.3
Partnershi p
Jerome T. Taurek
399 East Highland Ave., Suite 223
S~n Bernardino, CA 92404
Ownership Position
37.S~ (percent)
Paqe 1
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Part I. General and Bu~ine~s Informotion: (CO~'t)
Item Response
Partnership
Joseph E. Bonadin~n & Associates. Inc.,
a California corporation
Joseph C. Bona~iman, Sect/Treas.
606 East Mill St. - P.O. Box ~852
San Bernardino, CA 92412
Charles F. KinQ
26872 Calle Hermosa
Capistrano Beach, CA 92624
Ownership Position
25. a". (percent)
20.0: (percent)
Battaglia Associates, Inc.
Richard J. Battaqlia, President
21602 Brookhurst Avenue
Huntington Beach, CA 92646
17.~:. (percer,t)
100.0:. (percent)
1.10 Jerome T. Taurek, medical doctor, real property investor
Joseph C. Bonad;man & Associates, Inc., civil engineer, real
property investor
Chcrles F. KinQ, real property developer
Battaolia Associates, Inc., real property developer
1.11 throuq"
1.11.2
Partnership has no direct employees. Administrative and otn~r
servi ces conducted on behalf of tne partnershi pare provi dee by
either the individual partners or contracted by consultants.
1.12 throuqh
1.12.3
Russell M. Hou1iman, CPA
17621 Irvine Blvd.
Tustin, CA
Ph. (714) 731-0911
Thomas Shepoard,Esq.
Sheppard, Mullin, Richter & Hampton
Security Pacific Bank Plaza
333 S. Hope St.
Los Angeles. CA 90017
Ph. (213) 620-17BO
Page 2
Part I. General end Business Information: (con't)
IteM Response
James Warren Beebe (Bond Counsel)
Crocker Bank Plaza
611 West Sixth Street
Los AnQeles. CA 90017
Ph. (213) 6BO-140C
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1.13 Capistrano National Bank
32241 Camino Capistrano (Home Office)
San Juan Capistrano. CA 92625
Contact: Mr. Gonzales. Vice President & Manager
1.14 Initial acouisition by partners. Site improvement and
structure re~abilitation construction by private placement
or industrial revenue bonds.
Part II. Band Issue:
!terr, Response
2.1 throur.l,
2.1. 5
At this time. the initial estinated cost factors. includin:
band issuance expenses and reserve amounts. is indicated .
at 52.200.000.00 (two million, two hundred thousand dollars).
Preliminary conmitment coverinr, bond placement is bein9 fur-
nished to the partners by the placement parties. Formal co,,-
rnitment will be furnished upon completion of the tabl lations
for tenant an~ other improvements.
2.2 through
2.4
As soon as practical following authorization of the
industrial revenue bond issuance.
.
30 year ammortization. first 12 months interest only
durinq construction and start-up staQe.
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Private placement.
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Part III. Financial Information:
Item Respon~.e
3.1 through
3.2
.
Newly-formed partnerShip. No former financial statement
available. During initial period, partnerShip is operatirg
on a form of recei pts and disbursement journa 1.
Partnership has been established by a group of knowledgeable
and successful real property developers and investors.
Part IV. Proj~:t Information:
Item Response
4.1 Conversion and rehabilitation of an existing structure which
is located at the northeast corner of the Central City Mall,
396 North E St., San Bernardino, CA. The structure, formerly
known as "the Hoolworth Building" and as "Reynolds Plaza,"
is undergoing conversion to a three-story office and specialize~
retail complex which is to include a major lunch and dinner
restaurant operation.
At this time, tre partnerShip has received numerous requests for
office space. Some prospective tenants are most anxious to
enter into some pre-lease arrange~ents.
4.2 through
4.2.5
Existing structure. No manufacturing equipment required.
4.3 through
4.3.2
Some initial work is underway at this time, such as engineering,
structural matters, etc. Formal construction to commence upon
completion of the private placement of the industrial revenue
bonds.
Approximately 10 to 12 months following cOJTlT1encell1fnt of
construction.
4.4 Joseph E. Bonadiman & Associates, Inc., San Bernardino, CA.
4.5 396 North E St., San Bernardino, CA.
Sinqle project.
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Part IV. Project Information: (con't)
Item Response
4.6 Existina structure. Rehabilitation and remodeling.
4.7 throuah
4.7.2 .
Central City Commerce Center, a California partnership
4.8 Office/retail complex. Not a production facility.
4.9 None.
4.1 () through
4.13
Does not apply.
Part V. Public Benefits:
Ite~; Response
5.1 The rehabilitation and conversion of this existing vacant
structure will not only provide added employment and commercial
activity to the downtown area, but will completely revitalize
and beautify the dormant northeast corner of the Central City
Hall.
The ind~stria1 revenue bond program, with its tax-free interest
feature, provides for reasonable long-term financing, thereby
permitting the rehabilitation and revitalization of th's siq-
nificant historical downtown building. Otherwise, rehabilitation
could not occur under the present unreasonable conventional
financing rates, and the structure would continue to remain in
its present dormant state.
5.2 The partnershin, in rehabilitating and converting the existing
structure, which is an integral part of the Central City Mall,
will not only be providing current and long-term employment for
the area. but will also be providing added revenue to the city
throunh sales and property taxation.
Pace 5
Part VI. Commitments:
Item Response
6.1 The applicant hereby agrees and commits to comply. and/or to
assist the city in complyin~ with all state and federal laws
in the issuance of the bonds. including, without limitation,
the making of any required application to a governmental de-
partment, for authorization, qualification or registration of
the offer, issuance or sale of the bonds. and any amendnents
thereto, and any permit or other authorization of such govern-
mental deportment, prior to the delivery by the city of the
bonds.
6.2 The applicant hereby agrees and commits to cause and/or to
assist the city in causing to be printed any prospectus or other
written or printed communication oroposed to be publiShed in
connection with the issuance, offer and sale of bonds prior to
the delivery by the city of the bonds, and if deemed necessary
by the city. following the delivery of the bonds.
6.3 The applicant hereby warrants and covenants to pay all expenses
in connection with its commitments set forth abole and with the
issuance, offer and sale of the bonds, whether or not they are
finally issued, to hold the city harmless from any and all ex-
penses 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 applicant aorees that any additional information, agreements
and undertakings as the city may require as a result of various
conferences ard negotiations shall be reproduced in written,
printed, or other tangible form and shall be supplied in as
many cooies as the city prescribes, and shall be deemed su~-
plements or amendments to this application.
Page (,
Part VII. Signature:
ItE'm Response
7.1 This application is signed below by the Mana9ing Partner,of
the applicant with prime responsibility for the financing,
who, by his signature below, represents and certifies that he
has authority to bind the applicant to contract terms; that
his aoplication, to the best of his knowledge or belief, con-
tains no false or incorrect information or data, and this
application, including exhibits and attachments, is truly de-
scriptive of the project, and that the applicant is familiar
with Ordinance '3815.
Part VIII. Fee Schedule:
8.1 The applicant agrees that, for the project to be considered
for eligibility, a non-refundable application fee of $50.00
will be paid to the city when the basic documents are requestec.
With the submittal of this application form, there is enclosed
$500.00, payable to the city. If this application is accepted,
applicant aorees that it will pay the city an additional fee of
$10,000.00 for administrative costs. Applicant agrees that its
commitments in Part VI, above, are in addition to these fixed
amounts. Thus, in the event that no closing occurs, applicant
acrees that the city shall be reimbursed for its processing
costs.
* 8.4. Pursuant to Resolution No. 81-108, one percent
(1%) of the bond issue shall be deposited in the
City Treasury in the Industrial Revenue Bond
Reserve Fund which is expected to build up into
a significant amount, which shou
lower the financing costs under
Ordinance No. 3815, by reducing
By: the interest rate.
Charles F. King, Managing
Date: September 9, 1981
* Section 8.4 added by ~edevelopment Agency Staff.
Applicant used old application which did not have
this section. All applications received after
the ado?tion of Reso 81-108 must include the 1%
Reserve Fund Fee.
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