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HomeMy WebLinkAbout1981-407 , .. SAN BERNARDINO Ashton 60;009-6-1 RESOLUTION NO. $'/- r'ttlJ 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 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 DEVELOPMENT REVENUE BONDS THEREFOR; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH; AND RESONDING RESOLUTION NO. 80-125. CROWN BUILDING 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 #204(tp) 9/9/81 San BernarQino Ashton 60,009-6-1 and to thereby broaden the employment opportunities for residents of the City and its tax and revenue base; and WHEREAS, pursuant to Resolution Nos. 80-100 and 80-125, this Mayor and Common Council took official action to authorize the financing of a certain Project for Ashton Investments; and WHEREAS, Ashton Investments was not successful in obtaining financing in the current market, and that Project, as slightly revised, has been taken over by the Applicant named below; and WHEREAS, there has been presented to this Mayor and Common Council an appli- cation by CROWN BUILDING PARTNERSHIP (the "Applicant"), requesting the issuance of industrial development bonds in the principal amount of not to exceed $9,500,000 for the purpose of financing, on behalf of the applicant, a certain Project, to wit: a commercial office building which shall provide approximately 71,299 square feet of rentable space, to be located at the corner of 6th and "0" Streets in the City of San Bernardino, California, including, without limitation, land for the site, equipment and off-street parking for motor vehicles and all off-site and on-site improvements necessary therefor, and appurtenances and appurtenant work interest 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 hereinabove are true and correct in all respects. 6L #204(tp) 9/9/81 I ____ I SAN BERNARDINO Ashton 60 ;009-6-1 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. 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 #204(tp) 9/9/81 3 SAN BERNARDINO Ashton _ 60,~09-6-l 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. 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 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 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, no~ in any event shall the bonds be payable out of any funds or properties other than #204(tp) 9/9/81 4 SAN BERNARDINO Ashton _ 60;009-6-1 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 de~ails of such bonds, including Ule 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- cluding 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 #204(tp) 9/9/81 5 San Bernardino Ashton. 60,009-6-1 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. Section 13. Resolution No. 80-125 is hereby rescinded. 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: - 6 - #204 (tp) 9/9/81 AYES: Council Members Castaneda, Reilly, Hernandez, Botts, Hudson, Strickler NAYS: None ABSENT: Council Member Hobbs ~~~ / City Clerk The foregoing resolution is hereby approved this //'~ day of ~ ' 1981. an Bernardino Approved as to form: 4~~ City Attorney - 7 - *204 (tp) 9/9/81 .' APPLl CA TJ ON FOR REVENUE BOND FINANCING CROci': BUILDING By Crown Buildina Partnership Sixth and D Streets San Bernardino, California Septe~ber 9, 19B1 RESPONSE~ TO APPLICATION QUESTIONS Part 1. General and Business Inform1tion: Item Response 1.1 Crown BuildinQ, by Crown Buildinq Partnership 1.2 Real property development 1.3 Offices of one of the partners: Charles F. Kin~ 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 1.6 Charles F. Kin~, (714) 493-2141 1.7 through 1. 7.3 General partnership, Organized in September, 1981. Formal statement of partnership to be filed and recorded in the County of San Bernardino, State of Ca 1 Horni a. Partnership is not affiliated with any other entity at this time, nor is any affiliation contemplated at this time,. 1.8 through 1.9.3 Partnershi p Ownership Position Charles F. King 26872 Calle Hermosa Capistrano Beach, CA 92624 45~~ (percent) Richard J. Battaglia, President . Battaglia Associates, Inc. 21602 Brookhurst Avenue Huntington Beach, CA 92646 45~ (percent) Palj,-' 1 Part I. General end Business Information (con't) Item Response Partnershi p Ronald N. Totaro Marine Midland Bank Center Suite 3333 Buffalo, N~w York 14203 Ownership Position 10:: (percent) 100;; (percent) 1.10 Charles F. King, real property developer Richard J. Battaglia, real property developer Ronald N. Totaro, real property investor 1. 11 th rou~h 1.11.2 Partnership has no direct employees. Administrative and other services conducted on behalf of the partnership are provided by either the individual partners or contracted by consultants. 1.12 throLgh 1.12.3 Russell M. Houl iman, CPA 17621 Irvine Blvd. Tustin, CA Ph. (714) 731-0911 Thomas Sheppard, Esq. Sheppard, Mullin, Richter & Hampton Security Pacific Bank Plaza 333 S. Hope St. Los Angeles, CA 90017 Ph. (213) 620-1780 James Warren Beebe, Esq. (Bond Counsel) Crocker Bank Plaza 611 West Sixth St. Los Angfles, CA 90n17 Ph. (213) 680-1406 1.13 Capistrano National Bank 32241 Camino Capistrano (Home Office) 'San Juan Capistrano, CA 92625 Contact: Mr. Gonzales, Vice President & Manager Page i Part I. General and Business Information: (con't) I terl Response 1.14 Acquisition of approved indu~trial revenue bond project by the partners. Refer to City Council Resolution No. 80-100, March 3, 1980 (Ashton Development). Part II. Bond Issue Item Resronse 2.1 throuqh 2.1.5 At this time, the revised estimated costs, which cover such iterls as material cost increases, labor increases, administrative factors, etc., which have occurred since March, 1930, are indicated at $9,500,000.00 (nine million, five hundred thousand dollars). Preliminary commitment covering bond placement is being furnished to the partners by the placement parties. In addition, the total revised square footage has been increased to 71,299 square feet. Furthermore, approximately 50 percent of the rentable area is under a form of pre-lease arrangement. 2.2 through 2.4 As soon as practical following authorization of the industrial revenue bond issuance. 30 year ammortization, first 24 months interest only during construction and start-up stage. Private placement. Part III. Financial Information: Item Response 3.1 through 3.2 Newly-formed partnership. No former financial statement is available. During initial period, parthership is operating on a form of receirts and disbursement journal. Partnership has been established by a group of knowledgeable and successful real property developErs and investors. PafJe 3 r Part IV. Project Information: Item Response 4.1 The purpose of this project is to build and operate a six-story financial/office complex in the central dowrtown area of San Berncrdino. The building is to be located on the corner of Sixth and D Streets. 4.2 through 4.2.5 Office complex. No manufacturing equipment required. 4.3 throu~h 4.3.2 Engineering reV1Slons are underway at this time. Formal construction to commence upon completion of the private placement of thE industrial revenue bonds. Approximately 18 to 24 months following commencement of construction. 4.4 J.D. Diffenbau~h, Inc. 2375 Chicaqo Ave. Riverside, CA 92507 4.5 C8rner of Sixth and D streets, San Berncrdino, CA 4.6 New location. 4.7 through 4.7.2 Crown Building Partnership, a California partnership 4.8 Office complex. Not a production facility. 4.9 None. 4.10 through 4.13 Does not apply. Paqe 4 Part V. Public Benefits: Item Response 5.1 Refer to previous app1iCftion submitted by Ashton Development. The same benefits will apply. 5.2 The partnership. by completing this delayed project, will be providing not only long-term eMployment and increased business activities to the downtown area, but will also be enhancinq the surrounding property values and the overall appearance of the downtown San Bernardino area. Page C Part VI. Commitments: J tpm Response 6.1 The applicant hereby a'1rees anc1 cOl1l11its to comply, anc1/or to assist the city in complyin9 with all state and federal lal"s in the issuance of the bonds, includin'1, without limitation, the milkinQ of any rC'quirL'd application to a government~l de- partwent, for authorization, qualification or reqistration of the offer, issuance or sale of the bonds, and any amendments thereto, and any perlllit or other authorization of SUCll govern- r.lental depi rtplent, pl-ior to the delivery by the city of the bonds. 6.2 The apn1icant hereby aqrees and commits to cause and/or to assist tt", city in causino 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 deliverv by the citv of the bonds, and if deemed necessary by the city, folloVlinn, the delivery of the bond~,. 6.3 The applicant hereby warrants and covenants to pay all expenses in co~ne(tion with its comnitments set forth abo\e and with the issuance, offer and salp of the bonds, whether or not they are finallv issued, to hold the city harmless from any and all ex- penses related thereto and to pay items on an ongoin'1 basis so thEt neith~r the citv, nor its advisors, attorneys, employees ilnd the like, I"ill accullICJlate any claims aQilinst the city. E.!. The anolicilnt anrees thilt any additional information, a9reern~nts and undertakinQs as the city may reauire as a result of various conferences ard neqotiatinns shall be reproduced in written, printed, or other tan'1ible form and shall be supplied in as many copies as the citv prescribes, and shall be deemed sup- plements or amendments to this application. Par 6 Pill't VII. 5i'''',1(,,,.e: ---.---- I tl'l11 Respon~.c 7.1 This ilnp1iciltion is siqned below by the Manaqing Partner. of the anplicant Nith prime respon~,ihility fOl' the financil\g, \.,Im, ('.I hi, siqnatun' helol", rl'pl'l"ents illld cc"tifies OldL he has auth,q'; Ly to billd the appl ie,1I1L to cOllt"det terrlls; th,lt his apl,lieat.ion, to the best of his knowledljP or belid, con- tain, 110 false or ilicorrect information or data, and this ilpplic,1tion, inclurlillq exhibit'. and attaclll"ents, is truly dc- script ivp flf the project, and that the appl ieant is famil iilr with Ol'dinance '3:;15. Part Vl 11. Fb' Schedule: 8.1 The appl iCilnt agrees that, for the project to be considered fnr eliqibility, il non-,'efundahle application fee of $SrJ.orj \.;ill b,e pilirl t.u ti,e city \.,I,,'n tI,e basic docu:,\,'nts o,'e re,!ucstc.~, ,.:ith t'''' sU!lI:Jittal of this appl icat ion forl11, the,'e is enclos'....~ S'l[l:I.O', payable to the city. If tl,is ar'1l1iciltion is ilccer,t.e,.;, al'111ic'1"t aq"ee, thilt it \.,ill [lilV the city an additionil1 fpe 01 :,10,0')::,::;1 for ilrl",inistriltivp costs. Aprlicilllt ilqrees that its CG"::1it:':"IlV, in I'ilrt VI, ah:lve. ilre in ilddition to these fi>'nJ (!::'':.1Ll':ts. Tl,\;:" ill tnc eVl'nt that on closinC"J (ICCUt~S, Jp!llica1Ii_ {lr:r['t:S Ult1t the city 511011 be reirl:uurscd for its pt'occ:ssirlq e(iS ts. CP.O"i~ By: F. Ki nq. r'lana9i ng t'f Da te: Sep tellluer 9. 19e1 PO" 7 - , . . i ~ flr~1 !<do",\ .2.""'J' l . I '. .... t' - .n . LJ rr.l>louranl ....... J.c":",;''':' ..:~.... 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