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HomeMy WebLinkAbout1981-535 .. San Bernardino IFl1and-Assoc. 50,002-1-2 RESOLUTION NO. 81-535 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 FItIDINGS AND DETERI1INATIONS IN CONNECTION THEREWITH INLAND ASSOCIATES, A LIMITED PARTNERSHIP 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 / #P15(is) 10/26/81 San Bernardino 'Inland Assoc. 50,002-1-2 . WHEREAS, said Ordinance No. 3815, as amended, is in~ended 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 INLAND ASSOCIATES, A LIMITED PARTNERSHIP (the "Applicant"), requesting the issuance of industrial development bonds in the principal amount not to exceed $750,000 for the purpose of financing a certain Project, to wit: three (3) concrete tilt-up industrial buildings providing a total of approximately 31,000 square feet of manufacturing and office space, on a certain site now known as lots 35 and 36 of tract 5464 of the Inland Industrial Park, San Bernardino, including, without limitation, eauipment and off-street parking for motor vehicles and off- site and on-site improvements necessary therefor and appur- tenances and appurtenant work (the "Project"). The Applicant is applying for construction financing and permanent financing of the Project, on its own behalf and on behalf of its successors and assigns, if any, including without limitation the purchaser(s) of any or all of the three (3) industrial buildings of the Project. #P15(is) 10/27/81 2 .- .San Bernardino Inland Ass,oc. 50,002-1-2 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. 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. #P15(is) 10/27/81 3 .San Bernardino Inland Assoc. 50,002-1-2 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 tbe 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 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. revenues described in said Ordinance No. 3815, as amended. Section 8. The bonds shall be payable from the 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 #P15(is) 10/27/81 4 San Bernardino Inland Assoc. 50,002-1-2 held by the trustee or fiscal agent, and are payable as to principal, redemption price, if any, and interest from thf' revenues of the City as therein described. The bonds are not a debt of the City, the State of California or ~ny 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 by payable out of any funds or properties other than all or any part of the revL.lues, 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, 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- #P15(is) 10/27/81 5 San ~ernardino 'Inland Assoc. 50,002-1-2 eluding the Project Agreements, Resolutions of Issuance, and such othel- 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. 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 #PlS(is} 10/26/81 6 San Bernardino Inland Assoc. 50,002-1-2 The foregoing resolution is hereby approved this ..5;1<. day of APPROVED AS TO FORM: 7~ , 1981. ~4~hf3 c~ y A orney #P15(is) 10/27/81 - 8 - San Bernardino . Inland Assoc. 50,002-1-2 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, as amended by Resolution 81-410, of the Mayor and Common Council, adopted September 24, 1981. duly adopted by the I HEREBY CERTIFY that the foregoing Resolution was of November Mayor and Common Council of the City of regular -- meeting thereof, held on the 2nd day , 1981, by the following vote, to wit: San Bernardino at a AYES: COUNC I L MEr-lEERS: Castaneda, Rein v . Hernandez, Botts, Hobbs, Strickler None NAYS: None ABSENT: ~,da'??@~1.6 / C~ ty Clerk #P15(is) 10/27/81 7 APPLICATION *109 PAGE 1 . APPLICATION FOR REVENUE BOND FINANCING PART 1. GENERAL AND BUSINESS INFORMATIO~ I.I LEGAL NAME OF APPLICANT INL~~ ASSOCIATES, A Limited Partnership I.2 LINE OF BUSINESS Industrial Real Estate Development 1.3 MhlLlNG A~J HEADJ~ARTERS ADDRESS 74 Linda 151 e Nehrort Beach, Ca. 92660 1.4 EMPLOYER I.D. NUMBER Applied For 1.:' NAME AMI TITLE OF PFlNClPAL COr;,ACT David ~. Ariss, General Partner President - DAL Development Co., Inc. 1.6 PHO~E NUM5EP (714) 675-6270 (714) 371-3470 I.7 TYPE OF BUSINESS ORGA~JZATION Limited Partnership I.B CONSTITUTION OF OWNERSHIP DAL Development Co. - 36'0 (General Partner) Eric Thorson - 32% (Limited Partner Richard Cummins - 16% (Limited Part.) David Current - 16% (Limited Partner) I.9 NAMES AND LOCATIONS OF KEY OFFICIALS David W. Ariss President DAL DEVEWMO,\T CCl>lPA.\'Y, INC. 74 Linda Isle Newport Beach, Ca. 92660 APpTTclItion for Re~enue Bond Financing PAGE 2 ].]0 DESCRIPTIONS OF OTHER BUSINESS AFFILIATIONS OF PRINCIPAL OFFICERS Various other real estate partnerships and development. l.]] EMPLOYEES o at present 1.12 EXPERT SERVICES 1.12.1 APPLICANT'S ACCOUNTANT David Current Universal Equity Corporation 2310 Long Beach Boulevard Long Beach, Ca. 90806 (213) 427-8981 1.]2.2 APPLICANT'S ATTORNEY H. M. Peccorini 323 East Court Street, #402 San Bernardino, Ca. (714) 888- 5731 1.12.3 APPLICANT'S UNDERWRITER NO!\E ].]2.4 APPLICANT'S ARCHITECT Chester Schultz McLean & Schultz 2000 East Chapman Boulevard Fullerton, Ca. 92631 (714) 871-7370 ].]3 PRINCIPAL BAN~ AND OFFICER FIRST INTERSTATE MJRTGAGE 245 South Los Robles Pasadena, Ca. 91109 Allan Griffith (213) 356-7873 Application for Revenue Bond Finanei- PAGE 3 PART 2. BOND ISSUE 2.] Provide the estimated total amount of the financing with a tabulation of proposed use of Bond Proceeds: USE OF lOAN PROCEEDS: $750,000.00 combination construction and takeout financing to build three (3) industrial buildings on Lots 35 & 36, Tract 5464 (Inland Industrial Center) to total approximately 31,000 sq. ft.. The Partnership is applying for long term/permanent financing on behalf of a prospective purchaser for the buildings. 2.2 ESTIMATED TARGET DATE or CONSTRUCTION FINANCING January, 1982 2.3 ESTIMATED TIME OF CONSTRUCTION FINANCING 9 months to 1 year, through December, 1982 2.4 TYPE or BOND SALE Private Placement with Bank or Insurance Company. PART 3. FINANCIAL INFORMATION 3. I GENERAL: Personal Financial Statement for David W. Ariss/DAL as General Partner, attached. Application for Revenue Bond Financing PAGE 4 PART 4. 4.1 PROJECT INFORMATION SUMMARY OF PURPOSE. OBJECTIVE. AND FUNCTION OF THE PROPOSED PROJECT The proposed project is designed to provide the small businessman a means to purchase his own industrial facility. We anticipate three businesses in the facilities with employment at 24 - 30 workers. 4.? DESCRIPTION OF COMPONENTS AND ESTIMATED TOTAL COST OF THE FUNCTIONAL PARTS OF THE PROJECT: Uses of Funds: $750,000.00 to construct three industrial buildings with permanent financing to be provided each business. Sources of Funds: Private Placement 4.3 ESTIMkTED CONSTRUCTION PERIOD 6 - 8 months, beginning January, 1982. 4.4 NAME AND LOCATION OF APPLICANT'S SUPERVISING ARCHITECT RESPONSIBLE FOR DESIGN OF THE PROJECT Chester Schultz McLean & Schultz 2000 East Chapman Avenue Fullerton, Ca. 92631 PART 5. PUBLIC BENEFITS: Increase availability of industrial building inventory - provide additional johs in southeast redevelopment area (approximately 24 to 30 new jobs) - add additional tax base for increment financing of redevelopment bonding. PART 6. 6.1 PART 7. Applicafion for Revenue Bond Financing PAGE 5 COMMITMENTS 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 Bonds, including. without limitation, the making of any required application to a government department, for authorization, qualifi- cation or registration of the offer, issuance or sale of the Bonds, and any amendments thereto, and any permit or 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 comnunication proposed 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 Bond s . 6.3 The Applicant hereby warrants and covenants to pay all expenses in connection with its commitments set forth above 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 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 Applicant 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 forffi. shall be supplied in as many copies as the City prescribes and shall be deemed supplements or amendments to this Application. SIGNATURE This Application is signed below by -1:>o.viJ W. 4ri!>~ , who, by their signature represent and certify that they have authority to bind the Applicant to contract terms; that their Application, to the best of their knowledge of belief, contains no false or incorrect information or data, and this Application, including exhibits and attachments, is truly descriptive of the Project, and that the Applicant is familiar with Ordinance 13815. '. Application for Revenue Bond Financing PAGE 6 PART 8. FEE SCHEDULE 8.] On acceptance and placement of the Bond, the Applicant agrees that it will pay the City a fee of $]0,000.00 for administrative costs. Applicant agrees that its commitments in Part 6 above are in addition to these fixed amounts. 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 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 sub-divisions. No indebtedness or taxing power of the City is involved. Project revenues are the sole security for its Bonds. The federal guarantees, if any, enhance these revenues and income and the security for the Bonds. 8.4 Pursuant to Resolution No. 81-108, As Amended by Resolution 81-4]0, 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. DATE : October 27, 1981 "flaJ!2