HomeMy WebLinkAbout1985-038
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1,020/22/0330S/mcm
01/14/85
RESOLUTION NO. 85-38
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING ITS
INTENTION TO ISSUE ITS MULTIFAMILY MORTGAGE
REVENUE BONDS; DIRECTING THE PREPARATION OF
CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER
FINDINGS AND DETERMINATIONS IN CONNECTION
THEREWITH (CASTLE PARK PROJECT)
13R~
WHEREAS, the City of San Bernardino, California ("City"),
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 (the "Ordinance") 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
and to
increase the
availability of moderately priced rental units for residents of the
City and to broaden the tax and revenue base of the City; and
WHEREAS, there has been presented to the Mayor and Common
Council an Application, attached hereto as Exhibit "A" and
incorporated herein by reference by CastleBar, Inc., a California
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corporation (the "Applicant"), requesting the issuance of
multifamily mortgage revenue bonds in the principal amount not to
exceed $21,000,000 for the purpose of financing, on behalf of the
Applicant, a certain Project, to wit: the construction and
financing of a five hundred and eight (508) unit multifamily rental
housing development on a site located on the southwest corner of the
intersection of College Avenue and Varsity Drive bounded on the
southwest by the Interstate 15E Freeway in the City of San
Bernardino as more fully described in the Application. The Project
shall consist of one hundred and sixteen (116) one-bedroom, one-bath
rental units, two hundred and twenty (220) two-bedroom, one-bath
rental units and one hundred and seventy-two (172) two-bedroom,
two-bath rental units, on-site vehicle parking spaces, laundry and
recreational rooms, appurtenant landscaping and other improvements.
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND
ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AS FOLLOWS:
Section 1. That the recitals set forth hereinabove 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.
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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 construction and
permanent financing of the Project as more fully 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 Council does hereby declare its
intention to issue multifamily mortgage revenue bonds of the City
for the acquisition of land and the construction, equipping and
permanent financing of the Project under and in accordance with the
Ordinance, in amounts sufficient to pay the costs of financing the
Project and of paying the costs of issuance for the multifamily
mortgage revenue bonds and for the establishment of the necessary
reserve funds to provide for the financing of said Project. Said
Project is presently identified as the Castle Park Project.
Section 7. The City hereby declares its intention to
exercise the authority referred to in Section 3 hereof by issuing
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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 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 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 the
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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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,
Timothy J. Sabo, a Professional Corporation, as Bond Counsel to the
City, Underwriters, the Applicant 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
Agreement, Resolution 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 as referenced above 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. The issuance of multifamily mortgage revenue
bonds may be authorized by appropriate resolution or resolutions of
the City at a meeting or meetings to be held for such purpose,
subject to the execution of appropriate agreements by the Applicant
and the City as required by the Ordinance and the industrial
development bond financing program of the City.
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Section 12.
It is intended that this Resolution shall
constitute such "official action" toward the issuance of the bonds
wi thin 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.
At the closing of the financing there shall
be paid to the City the fee set forth in Resolution No. 81-108 of
the Mayor and Common Council, adopted March 13, 1981, as amended by
Resolution No. 81-410, of the Mayor and Common Council. adopted
September 24, 1981.
Section 14.
This Resolution shall take effect upon
adoption.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
regular
meeting thereof, held on the
21st
day of
Januarv
, 1985, by the following vote, to wit:
AYES:
Council Members
Castaneda, Reilly, Hernandez,
Marks, Quiel, Frazier
NAYS:
None
ABSENT:
Council Member Strickler
~~
City Clerk
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The foregoing resolution is hereby approved this 025A-/ day
of
January
, 1985.
Approved as to form:
~Cl({1i;,!4r
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l,020-23/0331S/jvz
01/15/85
APPLICATION OF CASTLEBAR, INC.
FOR MULTIFAMILY MORTGAGE REVENUE BOND FINANCING
CITY OF SAN BERNARDINO, CALIFORNIA
PART I
GENERAL AND BUSINESS INFORMATION
1.1 The legal name of the Applicant is "CastleBar, Inc., a California
corporation".
1.2 The Applicant is a California corporation which shall be engaged in
the development, construction, leasing and ownership of a five
hundred and eight (508) unit multifamily rental housing development
located near the southwest corner of the intersection of College
Avenue and Varsity Drive bounded on the southwest by the
Interstate 15E Freeway in the City of San Bernardino, California (the
"Project"). The Applicant owns the property necessary for the
proposed multifamily rental housing development (the "Project") and
shall develop said property and construct the Project thereon.
1.3 The mailing address and the address of the Applicant is as follows:
Cast1eBar, Inc.
c/o Robert Staniec
417 South Hill Street, Suite 500
Los Angeles, California 90013
1.4 Employer Tax 1.0. No. shall be submitted under separate transmittal.
1.5 Mr. Robert Staniec is the principal contact for the Applicant.
1.6 Telephone Number (213) 649-3060.
1.7 The Applicant is a California corporation and shall own property and
conduct business in the County of San Bernardino, State of California.
1.8 Mr. Robert Staniec, one of the principals and corporate officers of
Cast1eBar, Inc., will have primary responsibility for conducting the
business of the Applicant.
1.9 Business ventures of the Applicant.
1.9.1
Cast1eBar,
ventures.
Inc. has interests in several
See attached Exhibit "A".
other business
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1.10 Employees
1.10.1
1.10.2
Although the principal objective of the Project is to
provide affordable rental housing to the citizens of the
City of San Bernardino, the construction and operation of
the Project will create certain employment opportunities
within the City.
The business offices of Applicant are located at 417 South
Hill Street, Suite 500, Los Angeles, California 92660.
1.11 Professional services will be provided by the following:
1.11.1
1.11.2
1.11.3
1.11.4
Janet Davidson, Esq., of Paul, Hastings, Janofsky
555 South Flower Street, 22nd Floor, Los
California 90071 is the attorney for the Applicant.
& Walker,
Angeles,
The Law Offices of Timothy J. Sabo, a Professional
Corporation, shall serve as Bond Counsel to the City with
regard to the tax-exempt financing for the Project.
Principal Civil Engineer - Concept Environmental Sciences,
2150 N. Arrowhead Avenue, San Bernardino, California 92402.
Principal Architect - Kermit Dorius, FAIA, Architects and
Associates, 1550 Bayside Drive, Corona Del Mar, California
92625.
1.12 The source of funding for the Project is anticipated to be derived
from a variety of sources including the private placement of a
taxexempt bond or other obligation with a lender to be obtained
hereaf te r .
PART II BOND ISSUE
2.1 The estimated total amount of the financing package and the proposed
use of bond proceeds is as follows:
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
Project cost - $17,493,381
Legal, printing and related fees - $114,000
Financing costs and fees - $775,035
Capitalized interest - $1,007,536
Other miscellaneous costs - $1,280,031
Total:
$20,669,983
2.2 The estimated target date for the financing is presently anticipated
in the first half of 1985, with construction to commence as soon as
possible after the financing package is completed and to be completed
in three (3) construction phases which shall take between twelve (12)
and twenty-four (24) months to complete.
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'.
2.3 It is proposed that the financing be in the form of a construction
loan during the construction period which would have the traditional
construction loan provisions in that drawdowns would be permitted as
construction proceeds upon submission of requisition vouchers. Upon
the completion of construction of the Project and the certification
that all improvements have been completed, the lender may then permit
an interest rate adjustment and a principal amount increase, as
warranted, and convert the construction loan to a permanent financing.
2.4 The present proposal for the financing of the Project anticipates
that the tax-exempt bonds or other obligations will be sold to a
commercial bank or other such lender through a private placement or
that there be a public offering of such securities.
PART III FINANCIAL INFORMATION
3.1 The financial statement of the Applicant is included within Exhibit
"A" hereto.
PART IV PROJECT INFORMATION
4.1 The Project as proposed by the Applicant shall include the
construction and operation of a five hundred and eight (508) unit
multifamily rental housing development on a portion of a twenty-nine
(29) acre site located on the southwest corner of the intersection of
College Avenue and Varsity Drive bounded on the southwest by the
Interstate l5E Freeway in the City of San Bernardino. The Project
shall include one hundred and sixteen (116) one-bedroom/ one-bath
units, two hundred and twenty (220) two-bedToom/one-bath units, one
hundred and seventy-two (172) two-bedroom/two-bath units, on-site
vehicle parking spaces for approximately nine hundred and seventy
(970) spaces, laundry and recreational rooms, appurtenant landscaping
and other improvements. The Project shall be located on land more
particularly described in Exhibit "A" hereto.
4.1.1
The five hundred and eight (508) unit multifamily rental
housing development shall have the following proposed rent
schedule:
Unit Description
Proposed Rent/month
1 bedroom - 1 bath
2 bedroom - 1 bath
2 bedroom - 2 bath
$395
$495
$535
330
n5
6;J,o
4.2 The components and the estimated total cost of the functional parts
of the Project are as follows:
4.2.1
Land - (already acquired)
4.2.2
Building construction
contingency - $12,534,588
including
5%
construction
4.2.3
Site preparation - $1,840,000
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4.2.4
4.2.5
4.2.6
4.2.7
Engineering and technical services - $120,000
City fees - $1,108,793
Total:
$15,603,381
Miscellaneous items -
a. Developer's overhead and profit - $1,890,000
b. Interest during construction - $1,007,536
c. Other miscellaneous costs - $1,280,031
Total: $4,177,567
Project total : $19,780,948
4.3 The estimated construction period for the Project is as follows:
4.3.1
4.3.2
4.4
Construction of the Project would commence as soon as
possible after issuance of the tax-exempt obligations.
The planned construction shall occur in three (3) phases
and be completed within twelve (12) to twenty-four (24)
months from the date of commencement.
The superv1s1ng architect responsible for the
on behalf of the Applicant shall be Mr.
Architects and Associates, Inc.
design of the Project
Kermit Dorius, FAIA,
4.5 The Project shall be known as "Castle Park".
4.6 The Project is the development of a multifamily rental housing
development and is not an expansion or an alteration of an existing
facility. The necessary infrastructure items and other public
improvements must be installed on the Project site and the Applicant
desires to obtain a below market rate tax-exempt construction and
permanent financing of the improvements to be placed thereon from a
combination of sources.
4.7 The property on which the Project is proposed to be located is
currently owned by the Applicant.
The Project will
affordable rental
San Bernardino.
4.8
4.8.1
4.8.2
provide five
housing to
(508)
the
of
of
hundred and eight
the citizens of
units
City
Included within Exhibit "A" is an 8-1/2 x 11 inch map
showing the site location of the proposed Project.
A description of the plant process - not applicable.
4.9 Cast1eBar, Inc., has completed an Environmental Impact Report
pursuant to the provisions of the California Environmental Quality
Act of 1970, as amended. A Preliminary Noise Assessment and Noise
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Control Report concerning the Project, as submitted by
3.3. Van Houten and Associates, Inc., 1784 West Lincoln Avenue,
Suite D, Anaheim, California 92801, (714) 635-9520, indicated that
certain noise abatement measures are appropriate for the Project.
The Project shall comply with said report' S noise mitigation
recommendations.
4.10
There are no permits, water quality enforcement orders,
permits or variances or other evidence of actions
connection with this Project.
air pollution
necessary in
4.11 There are no local, state or federal pollution control agencies which
impose regulations, standards or requirements with regard to the
operations of the proposed Project to be undertaken by the Applicant.
4.12 The proposed Project shall comply with all applicable City of San
Bernardino, County of San Bernardino, and other regional, county or
basin plans to which this Project shall conform and the appropriate
waste water and air quality requirements which shall be in conformity
with all of the above jurisdictions.
4.13 It is presently anticipated that the proposed Project will not
produce any by-products or residues which would involve the ultimate
disposal or the need for a plan to accomplish same. Recycling or
salvage will not be a function of the proposed Project nor will there
be any market opportunities generated with regard to same.
PART V PUBLIC BENEFITS
5.1 The City of San Bernardino will receive significant benefits by the
initiation of this Project as proposed by the Applicant and
particularly through the utilization of the financing method as is
available under Ordinance No. 3815, as amended, of the City of San
Bernardino. Due to the fact that conventional interest rates for
construction and permanent financing for the type of multifamily
rental housing construction contemplated by the Applicant are at such
an extremely high level on conventionally borrowed funds, if
available at all, neither the Applicant nor any other persons or
legal entities are able to provide the type of modern and attractive
affordable rental housing that is needed within the City of San
Bernardino.
5.1.1
The Project will provide long term affordable rental
housing opportunities for the inhabitants of the City of
San Bernardino.
5.1. 2
Construction of the Project is anticipated
approximately $20,000,000 to $21,000,000 of
valuation to the tax rolls of the City.
to add
assessed
5.1.3
The useful method of financing provided for in
Ordinance No. 3815 of the City vis-a-vis the use of the
conventional method will permit the Applicant to complete
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the financing and construction of the Project within an
accelerated time frame. The method of financing provided in
Ordinance No. 3815 will provide new sources of financing to the
Applicant and such financing will be made available at lower
tax-exempt interest rates.
5.2 The City will benefit, as can be demonstrated pursuant to Section 1
of Ordinance No. 3815, as amended, of the City of San Bernardino, in
that affordable rental housing opportunities will be generated by the
proposed Project. The Applicant is not attempting to construct said
proposed Project merely for the financial inducement that is offered
pursuant to the Ordinance, but rather due to the long-term business
reasons that are significant due to the location of the proposed
Project and the real economic benefits available to the community.
There are no detriments that can be incurred by the City with regard
to this type of financing for this Project, and the City of San
Bernardino will receive substantial benefits through increases in
assessed valuation of property, plus the increased long-term
affordable housing opportunities that will be available to the local
residents of the City.
PART VI COMMITMENTS
6.1 The Applicant by the submission of this Application agrees to comply
and/or to assist the City in complying with all state and federal
laws in the issuance of the bonds or other such tax-exempt
obligations to finance the Project, including, without limitation,
making of any required application to a governmental department, for
authorization, qualification or registration of the offer, issuance
or sale of the bonds or other tax-exempt obligations, and any
amendments thereto, and any permit or other authorization of such
governmental department, prior to the delivery by the City of such
bonds or other tax-exempt obligations.
6.2 The Applicant further commits to cause and/or to 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 or other tax-exempt obligations,
prior to the delivery by the City of such bonds or other tax-exempt
obligations, and, to the extent deemed necessary by the City,
following delivery of such bonds or other tax-exempt obligations.
6.3 The Applicant also commits to pay all expenses in connection with the
issuance, offer or sale of the bonds or other tax-exempt obligations,
whether or not such bonds or other tax-exempt obligations are finally
issued, and to hold the City harmless from any and all expenses
related thereto, 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 will supply any additional information, agreements and
undertakings as the City may require as a result of conferences and
negotiations and copies of such additional information shall be
forwarded to the City by the Applicant and shall be deemed to be
supplements or amendments to this Application.
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PART VII SIGNATURE
7.1 The undersigned as an authorized principal of the Applicant as noted
below, holds the prime responsibility for the financing to be taken
for the proposed Project, and certifies that the undersigned has the
authority to bind the Applicant to contract terms; that this
Application to the best knowledge or belief of the undersigned,
contains no false or incorrect information or data, and this
Application, including exhibits and attachments hereto, is truly
descriptive of the proposed Project. The undersigned also represents
by the execution of this Application familiarity with Ordinance No.
3815, as amended, of the City of San Bernardino.
PART VIII FEE SCHEDULE
8.1 The Applicant acknowledges that the 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 submittal of this Application, $500 is payable to the City. If
this Application is accepted, an additional fee of $10,000 is payable
for administrative costs. The Applicant acknowledges that the
commitments in Part VI above are in addition to these fixed amounts.
Thus, 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.
8.3 The Applicant acknowledges that the Ci ty 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 subdivisions. No indebtedness or taxing power of the City
is involved. Project revenues are the sole security for bonds of the
City. The federal guarantees, if any, enhance these revenues and
income and the security of the bonds.
8.4 Pursuant to Resolution No. 81-108 of the City, as amended by
Resolution No. 81-410 of the City, one percent (lX) of the principal
amount 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.
"APPLICANT"
CASTLEBAR, INC.,
:,C.~~
Robert Staniec, Executive Vice-President
of Cast1eBar, Inc.
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Exhibit "A"
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