HomeMy WebLinkAbout1981-534
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San Bernardino
Turner Dev. Corp.
50,002-1-2
RESOLUTION NO. Rl-S'4
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
TURNER DEVELOPMENT CORPORATION
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
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San Bernardino
Turner Dev. Corp.
50,002-1,.2
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 TURNER DEVELOPMENT
CORPORATION, general partner of two limited partnerships, to
wit: Richardson, Ltd. and Gibson Bros, Ltd. (the "Applicant"),
requesting the issuance of industrial development bonds in
the principal amount not to exceed $1,500,000 for the purpose
of financing a certain Project, to wit: two industrial
buildings as follows:
1. Richardson, Ltd.
1615 East Riverview Drive
18,710 sq. ft. (approximately)
2. Gibson Bros., Ltd.
1795 East Riverview Drive
38965 sq. ft. (approximately)
in the City of San Bernardino, California, including, without
limitation, land, equipment and off-street parking for motor
vehicles and all off-site and on-site improvements necessary
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San Bernardino
Turner Dev. Corp.
50,002-1-2
therefor and appurtenances and appurtenant work (the "Project"),
such financing to be either on a combined basis for Turner
Development Corporation or on a separate basis for each
building and each limited partnership or for any successors
or assigns of such entities, including, without limitation,
any purchaser(s) of either or both of such industrial buildings;
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETE~1INED
AND ORDERED BY THE MAYOR AND COMi.10N 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.
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
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San Bernardino
Turner Dey. Corp.
50,002-1-2 .
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 in such application is hereby approved and the
provisions of Subsection (d) of Section 10 and Subsection
(u) of Section 11 of said Ordinance No. 3815 shall not
apply.
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.
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San Bernardino
Turner Dev. Corp.
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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 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. ~'he bonds are
not a debt of the city, the State of California or any of
its political subdivisions, and neith.,r the city, the State,
nor any of its political subdivisions is liable thereon, nor
in any event shall the bonds by 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.
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San Bernardino
Turner Dev. Corp.
50,002-1~2
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-
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
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.
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San Bernardino
Turner Dev. Corp.
50,002-l~2
section 12. It is intended that this Resolution
sha-ll 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 1n 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 Resolu-
tion No. 81-108, as amended by Resolution No. 81-410, of the
Mayor and Common Council, adopted September 24, 1981.
I HEREBY CERTIFY that the foregoing Resolution was
duly adopted by the Mayor and Conunon Council of the city of
San Bernardino at a
regular
meeting thereof,
held on the 2nd day of
following vote, to wit:
November
, 1981, by the
AYES:
COUNCIL MEMBERS:
Castaneda, Reilly,
Hernandez, Botts, Hobbs, Strickler
NAYS:
None
ABSENT:
None
A4-MA/ Ll;;&
-' C1ty Clerk
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10/27/81
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San Bernardino .
Turner Dev. Corp.
50,002-1-2
The foregoing Resolution is hereby approved this
.,oli day of
i~
, 1981.
APPROVED AS TO FORM:
&~~ ,~../fi?
c~ty torney
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APPLICATION FOR
REVENUE BOND FINANCING
PART I
1.1
.
GENERAL AND BUSINESS INFORMATION
Legal Name of the Applicant:
Turner Development Corporation
1.2 Line of Business:
Manufacturing facilities
1.3 Mailing Address and Headquarters Address:
#3 Upper Newport Plaza Drive
Newport Beach, CA 92660
1.4 Employer 1.0. Number:
95-3448098
1.5 Name and Title of General Contact:
Rusty Turner
1.6 Phone Number:
(714) 851-9407
1.7 Type of Business Organization: Corporation
1.7.1 Place of Organization: Orange County
1.7.2 Date of Organization: 12/17/79
1.7.3 Nature of Legal Affiliation: N/A
1.8 Constitution of Ownership of the Company:
Rusty Turner - Sole Owner
1.9 Name and Location of Key Officials:
1.9.1 Principal Official:
Rusty Turner
#3 Upper Newport Plaza Drive
Newport Beach, CA 92660
1.9.2
1.9.3
Directors: N/A
Principal Stockholders: N/A
1.10 Description of Other Business Affiliations of Principals:
Capital Associates: Partner
Canyon Gate Partners: Partner
La Palma Partners: Partner
1.11 Emplpyees:
1.11.1
1.11.2
Number of Employees in California: None
Locations in California:' One
1.12 Expert Services:
1.12.1
Applicant's Accountant:
Coleman & Grant
5020 Campus Drive
Newport Beach, CA 92660
1.12.2
Applicants' Attorney
Tucker, Boortz and Heffernan
Mr. Larry Tucker
#3 Upper Newport Plaza Drive
Newport Beach. CA 92660
1.12.3
Architect:
Professional
145 W. First
Tustin, CA
Design Concepts
Street. Suite A
92680
Howard F. Thompson & Associates
16520 Aston Street
Irvine. CA 92714
General Contractor:
Prizio & Prizio
17711 Mitchell North
Irvine. CA 92715
1.13 Principal Banks of Account and Officers Name:
Manufacturers Bank - Mr. Jeff Gwin
1.14 Source of Funding for the Project:
Tax Exempt Mortgage
PART II BOND ISSUE
2.1 Provide the Estimated Total Amount of the Financin with a
Ta ulation of Proposed Use of Bond Proceeds, Including:
2.1.3
2.1.4
2.1.5
Project Cost $1,500,000
Underwriting, Legal and related
fees (included in 2.1.1)
Financing Costs (included in 2.1.1)
Capitalized Interest (included in 2.1.1)
Other Miscellaneous Costs (included in 2.1.1)
2.1.1
2.1.2
,
2.2 Estimated Target Date of Financing:
February.1, 1982
2.3 Estimated Time of Financing:
10 Years
2.4 Type of Bond Sale:
N/A
PART III FINANCIAL INFORMATION
3.1 Financial Statements
Confidential Financial Information Provided
3.2 Income (Profit & Loss) Statement:
Same as 3.1
3.3 Analysis of Sources and Application of Funds:
Source - Tax Exempt Mortgage
PART IV PROJECT INFORMATION
4.1 Short Summary of Purpose, Objective & Function
The proposed project will provide two buildings of approximately
1B,710 square feet and 3B,965 square feet, respectively. They
will be modern manufacturing facilities that are sorely needed
in San Bernardino today.
4.2 Description of Components and Estimated Total Cost of
Functlonal Parts of Project:
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
Land Value
Buil di ngs
Equipment
Engineering & Architecture
Financing Charges
City Fees
Total Project Cost
$ 300,000
995,000
N/A
60,000
120,000
25,000
$1,500,000
4.3 Estimated Construction Period: 6 Months
4.3.1
4.3.2
Scheduled Starting Date:
Scheduled Completion Date:
September 20, 1981
February I, 1982
4.4 Name and Location of Supervisin9 or Consulting Engineer Who
Designed Project:
Professional Design Concepts
145 W. First Street, Suite A
Tustin, CA 92680
4.5 Location of Project:
1615 and 1795 East Riverview Drive
San Bernardino, CA
4.6 Advise as to Whether Project is New Location:
New location
4.7 Name of Legal Owner of Location:
1615 East Riverview Drive - Richardson, Ltd.
1795 East Riverview Drive - Gibson Brothers, Ltd.
Terms and Nature of Occupancy: Manufacturing
Legal Relationship Between Applicant and Owner
of Location: Turner Development Corporation is the
general partner of Richardson, Ltd. and Gibson
Brothers, Ltd. Both buildings are for sale to
manufacturing concerns. This financing will be
assumed by the ultimate buyers. Two separate
loans are needed (one for each building).
4.8 Description of Operation to be Conducted at Project:
4.7.1
4.7.2
General Manufacturing
4.8.1
4.8.2
81," X 11" Map Showing Site: Attached
Description of Plant Process: N/A
4.9 List of Environmental
equirements to e Met
A negative declaration has been issued by the San Bernardino
City Environm~ntal Review Committee. '
4.10 A List of Permits, Water Qualit
oll~tion Permlts an Varlances
Project:
Building Permits have been issued.
4.11 Pollution Control A encies
tandards, or Requirements
N/A
4.12 Regional County or Basin Plan to Which This Project is to
Conform:
N/A
4.13 By Products or Residues of Project: N/A
PART V
PUBLIC BENEFITS
5.1 The benefits that will accrue to the City and its citizens as
as result of the installation of the project and the use of
tax exempt financing vis-a-vis a conventional method include
the following:
(1) The project provides long-term employment for a substantial
section of the locally unemployed. When construction on the
project site has been completed and facilities on the site
are operational, it is estimated that an average of approx-
imately 150 jobS will be created. The categories of jobs
to be provided are anticipated to include mangerial, skilled,
labor, and service. The wages to be paid by the enterprises
locating in subject Project for the employees in various job
categories are anticipated to meet local and regional stan-
dards and to sustain a satisfactory level of financial
stability. Working conditions in the facilities (all of
which will be newly constructed and are anticipated to be
constructed in accordance with all applicable federal, state
and local laws and regulations) are anticipated to be satis-
factory.
(2) The property is located within the City Redevelopment Area.
The proposed project will greatly enhance the immedaite
area. The addition of the new, modern manufacturing facil-
ities wll provide goods and services in a pleasant environment.
(3) Additional benefits anticipated to be attributable to the
said Project and the general economic revitalization
resulting therefrom in the financial district of the City
of San Bernardino include the reduction of public assis-
tance expenditures, all because this Project will be'
self-supportying at no unreimbursed cost to the City.
(4) 'The operation of the Project on this site will add
buildings whose approximate market value of $2,500,000
will be to the c Hy ta x ro 11 s .
(5) The use of the method of financing provided for in Ordin-
ance #3815 of the City vis-a-vis the use of a conventional
method will permit the applicant to move forward with the
financing and construction of the Project within an accel-
erated timeframe. As the City is well aware, conventional
interest rates are at historically high levels and many
sources of conventional financing do not currently have
funds available to loan at ~ interest rate. The method
of financing provided in Ordinance #3815 will provide new
sources of financing to the applicant and such financing
will be available at lower, tax-exempt interest rates.
5.2 The applicant believes that the acquisition and operation of
this Project and the Financing thereof pursuant to Ordinance
#3815 of the City are in conformance with the findings set
forth in Section 1 of Ordinance #3815. In particular:
A. The firms that will occupy these buildings will add sub-
stantially to the industrial base of the city.
B. The project is anticipated to have a significant impact
on the unemployment problem of the City without imposing
a financial burden on the City.
C. The Project will not produce detrimental effects on, or
conflict with, or otherwise restrain State efforts to
solve problems of legitimate State concern.
D. The applicant has legitimate, long-term business reasons
for acquisition and operation of said Project including
the long-term profit potential from said operation. The
financing of said Project under the method provided by
Ordinance #3815 will provide additional financing sources
to the applicants at lower tax-exempt rates.
E. The City will only provide a method of financing the Pro-
ject and will only be paid certain fees to reimburse the
City for costs incurred by the City in connection with
the financing of said Project. The City will not realize
a profit in such a manner as to compete with or rival
private firms and the applicant is not requesting the City
to take any more action than is necessary to consummate
the financing. As described in Part 5.1, certain inci-
dental benefits will, of course, accrue to the City as
a result of said Project.
F. The City'will receive a substantial benefit from said
Project that exceeds any detriment incurred by the City.
,The Project will be absolutely self-supporting. Indirect
benefits, such as the increase in the property tax base
and increase in other taxes and user fees, are anticipated
to exceed any indirect detriments to the City such as
increases in costs of police, fire and other municipal
services.
G. The applicant will not take any action that will result
in a violation of any applicable State standards relating
to sewage disposal and will provide the City with a satis-
factory plan for the disposal of any anticipated wastes.
PART VI COMMITMENTS
6.1 The Applicant hereby agrees and commits to comply, and/or to
assist the City in complying, with all state and federal laws
in the issuance of the tax-exempt mortgage.
6.2 The Applicant agrees that any additional information, agree-
ments 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
supplements or amendments to this Application.
PART VII SIGNATURE
7.1 This Application is signed below by 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 Application, to the best
of his knowledge or belief, contains no false or incorrect infor-
mation or data, and this Application, including exhibits and
attachments, is truly descriptive of the Project, and that the
Applicant is familiar with Ordinance #3815.
PART VIII FEE SCHEDULE
The Applicant agrees that, for the Project to be considered
for eligibility, a non-refundable application fee of $5D will
be paid to the City when the basic documents are requested.
With the submittal of this Application form, there is enclosed
$500 payable to the City. If this Application is accepted,
Applicant agrees that it will pay the City an additional fee
of $10,000 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 agrees that the City shall be reimbursed for its
processing costs.
.
* ADDED BY STAFF:
8.4 Pursuant to Reso 81-108, as
amended by Reso 81-410, one percent
(1%) 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 Common Council may direct from
time to time.
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