Loading...
HomeMy WebLinkAbout1985-047 1,020-26/0346S/cb 01/25/85 RESOLUTION NO. 85-47 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 (THE WOODLANDS PROJECT) WHEREAS, the City of San Bernardino, Cal Hornia ("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 - 1 - WHEREAS, there has been presented to the Mayor and Common Council an Application, attached hereto as Exhibit "A" and incorporated herein by reference by Block Group Developments (California), Inc., a California corporation (the "Applicant"), and its successors or assigns requesting the issuance of multifamily mortgage revenue bonds in the principal amount not to exceed $28,000,000 for the purpose of financing, on behalf of the Applicant, a certain Project, to wit: the construction and financing in one or more phases of a five hundred and sixty (560) unit multifamily rental housing development which shall be constructed on an approximately twenty-eight (28) acre parcel of land located on the south side of Kendall Drive approximately two (2) miles east on Little Mountain Drive within the master planned community known as Shandin Hills and as more fully described in the Application. The Project shall consist of approximately one hundred sixty-eight (168) one-bedroom, one-bath rental units and one hundred sixty-eight (168) two-bedroom, two-bath rental units, two hundred twenty-four (224) 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: - 2 - 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. 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 - 3 - 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 in one or more series of financings 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 Woodlands Project. 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 wi 11 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, subj ect 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 - 4 - 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. 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 - 5 - 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. 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. 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. adoption. This Resolution shall take effect upon - 6 - 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 an adiourned reqular meeting thereof, held on the 28th day of January , 1985, by the following vote, to wit: AYES: Council Members Castaneda. Reillv. Hernandez. Quiel, Frazier, Strickler NAYS: None ABSENT: Council Member Marks ~~/~# Ci t'y Clerk The foregoing resolution is hereby approved this day of F~br,!ary , 1985. Approved as to form: ~~~~ - 7 - PART I 1.1 APPLlCATIOO .Of BIDCK GRaJp nF.\TF.rL'Il'MEN'lS (CALIFORNIA) .M mE INOOS'1lUAL RE\7EHJE )glD FINANCIR; .cnx .Of &N BERNARDIOO. oo,IFORNA GENERAL 1\ND BUSINESS INEORMATIOO '!he legal name of the Applicant is -Block Group Deve10pnents (California) INC.- '!he aRllicant is a California corporatioo which shall engage in the deve1opnent, leasing, and amership of approximately 560ap:u't:ment units located off of Kendall Drive in the City of San Bernardino, California. '!he real property where the apartments will be constructed is owned ~ Block Bros. Industries (USA) Inc. '!he mailing address of the Applicant is: Block Group Deve10pnents (California) Inc. c/o Marlborough Developnent COrporatioo 2029 Oentury Bark East 11550 Los Angeles, CA 90067 1.4. Employer Tax I.D. No. - NA 1.2 1.3. 1.5 Mr. Dorian A. Johnson, A.I.A. is the principiI contact for the Applicant. 1.6 '!he telephone Ill1Ilber for the Applicant is (213) 553-5131. 1.7 '!he Applicant is a California COrporation. 1.7.1 '!he Applicant shall own property and conduct business in the COunty of San Bernardino, state of California. 1.7.2 '!he app1. icant is not related to any other legal entity. 1.8 Business ventures of the general partners of the Applicant: A. Block Group Deve10pnents (California) ,Inc. has extensive land holdings in the State of California and includes the 600 acre master plan deve10pnent known as Shandin Hills located in the City of San Bernardino. Block Bros. Industries (USA) Inc. is a wholly-owned subsidary of Olympia & York, Inc. 1.9 Employees '!he aRllicant currently has zero anployees. However, constructioo and canpletioo of the Project ~ the Applicant will ultimately provide nunerous anployment opportunities in the City of San Bernardino. '!he Applicant plans to locate in San Bernardino COunty. '!he Applicant currently has offices at c/o Marlborough Deve10pnent COrporatioo. 2029 Oentury Bark East, SUite 1550, Los Angeles, CA 90067. 1.10 Professional services will be provided as follows: 10.1 steres, Alpert & Carne shall serve as the accoWltant for the Applicant and the contact person with said fiIl\l is Gary Carne, telephone number 619/292-3200. 10.2 '!he law fiIl\l of Gresham, Varner, savage, Nolan & Tilden. 398 West Fourth Street, San Bernardino, C2\ 92401. is the attorney for the Applicant. 1.11 10.3 '!he law offices of Timothy J. Sabo shall serve as Bond COWlse1 to the City with regard to the tax-exempt financing for the project. 10.4 '!he princip:ll. civil engineer shall be Psanas/Harris & Assoc. 3901 Lime st. Riverside, C2\ 92501. 10.5 '!he princip:ll. architect shall be Dorian A. Johnson, A.I.A. 2029 Century Park East, Suite 1550, Los Angeles, C2\ 90067. '!he princip:ll. banking aocoWlts of the Applicant shall be at Security Pacific National Bank, San Bernardino, and opened upon financing becaning available. '!he source of fWlding for the Project is anticipated to be derived fran a variety of sources including the private placement of a tax-exempt bond or other obligation wiht a lender to be obtained hereafter. BClID ISSUE 1.12 PART II 2.1 '!he estimated total cost of the financing package and the proposed use of bond proceeds is as follows: 2.1.1 COnstruction costs $18,518,000 2.1.2 Legal, printing and related fees 100,000 2.1.3 Financing costs and fees 3,800,000 2.1.4 Capitalized interest 3,862,000 2.1.5: Land a<X}uisition (has been a<X}uired) Total $26,280,000 2.2 '!he estimated target date for the financing is presently anticip:lted in 1986 with construction to call1lence as soon as possible after the financing p:lckage is cxxnplete and construction to be canpleted in 30 months. 2.3 It is proposed that the financing be in the fOIDI of a construction loan during the construction period which would have the traditional constructicn loan provisicns in that drawdowns would be premitted as construction proceeds upon subnission of requisiticns vouchers. Upon canpleticn of construction of the Project and certification that all improvements have been canpleted, the lender will then peImit an interest rate adjustment and a principal anount increase, as warranted, and convert the constructicn loan to a peImanent financing. 2.4. '1he present proposal for the financing of the Project anticipates that the tax exempt bonds or other obligaticns will be sold to a cannercial bank or other such lender through a private placenent or that there be a plblic offering of said securities. PART III FINANCIAL INFORMATION 3.1 '1he Applicant shall be a anall business doing business as a corporaticn pursuant to the laws of the state of California, and the Applicant would be considered a anall business with regard to its relative size in canparison with other such businesses mdertaking projects of this type. Although the Applicant is a snall business, no federal snall business loan guarantees were proposed in connecticn with the proposed financing as contE!llplated ~ this Applicaticn. PART N ProJElCl' INFORMATION 4.1. '1he Project as proposed ~ the Applicant shall include the constructicn of cq:proximately 560 aparbnent units in the WOodlands secticn of the 600 master plan developnent known as Shandin Hills. '!be awroximate 560 units shall be constructed in three ~ses. '1he awroximate 560 units shall be constructed over a 6 IOOllth period. '!be anenities in the aparbnent project shall include a swimning pool, recreaticn center, and barbeque areas. '1he Project is located within the Redevelopnent Project Area of the Redevelopnent Agency of the City of san Bernardino. '1he proposed Project shall be located upon land which is IIIOre particularly described in Exhibit "A" attached hereto. '1he Project is a business venture that would increase the assessed valuaticn of currently underutilized land and generate significant E!IIployment opportunities within the city. 4.2 '1he canponents of the estimated total cost of the functional parts of the Project are as follows: 4.2.1 4.2.2 4.2.3 Land $ 3,360,000 17,395,000 200,000 Building construction Engineering & technical services 4.2.4 Total Miscellaneous items a. 5% construction contingency b. Interest during construction c. Real estate brokerage carmission d. Other miscellaneous costs 723,000 3,862,000 -0- 200.000 $25,740,000 4.3 '!he estimated constructien period for the Project is as follows: 4.3.1 4.3.2 COnstruction of the Project would oarmence as soon as possible after issuance of the tax-exempt obligations. '!he planned construction shall be oanpleted within 6 IOO1'lths fran the date of cxmnencenent. 4.4 '!he supervising civil engineer responsible for the design of the Project on behalf of the ~icant shall be Psanas/Harris, 2901 Lime st. Riverside, CA 9250l. 4.5 '!he Project shall be known as -'!he Woodlands-. 4.6 '!he Project site is the developnent of ap!rbnent units and is oot an expansion or an alteration of an existing facility. '!he necessary infrastructure items and other public improvenents must be installed en the Project site and the ~icant desires to obtain a bel<M market rate tax-exempt constructien and permanent financing of the improvenents to be placed thereon fran a oanbinatien of sources. 4.7 '!he property on which the Project is proposed to be located is currenUy c:Mned ~ Block Bros. Industries (USA) Inc. 4.8 '!he Project will provide approximately 560 rental units to be leased to various tenants. 4.8.1 4.8.2 Attached as Exhibit -B- is an 8-1/2 x 11 inch map sh<Ming the site location of the proposed Project. A description of the plant process-not applicable. 4.9 A negative declaration :p.u:suant to the provisions of the California Enviranental Quality Act of 1970, as CIIIended, would in all probability be satisfactory for the Project as proposed ~ the ~icant. HCMeVer, the Project shall canply with all applicable provisions of said Act. 4.10 '!here are no permits, water quality enforcenent orders, air pollutien permits or variances or other evidence of actions necessary in connectien with this Project. 4.11 '!here are no local, state or federal pollutien control agencies which impose regulations, standards or requirenents wiht regard to the opera- tions of the proposed Project to be undertaken ~ the ~icant. 4.12 '!be proposed Project shall canply with all applicable City of san Bernardino, CoWlty of san Bernardino, and other regional, COWlty 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 anticipited that the proposed Project will not produce any byproducts or residues which would involve the ultiJnate disposal or the need for a plan to accanplish same. Recycling or salvage will not be a fWlCtioo of the proposed Project nor will there be any market cpportWli- ties generated with regard to same. 4.14 '!be Project shall consist of approxiJnately five hWldred sixty (560) apirtment Wlits in fifty (50 two stoty building located 00 an approx- iJnately twenty eight (28) acre site in the "Woodlands" sectioo of the 600 acre master planned developnent known as Shandin HillS, 00 the South side of Kendall Drive, and approxiJnately two (2) miles east of Little ft>Wltain )the "Project"). '!be Project shall include approx- iJnately 1000 on-site vehicle pirking spaces, three (3) Slitimning p>ols, landscaping and recreatioo center. '!here is projected to be ooe- hWldred sixty eight (168) one bedroan, one bath Wlits renting for $410 per IOOIlth7 one hWldred sixty eight (168) two bedroan, one bath Wlits renting for $465 per IOOIlth7 and two hWldred twenty four (224) two bedroan, two bath Wlits renting for $520 per IOOIlth. PART V RlBLIC BENEFITS 5.1 '!be City of san Bernardino will receive significant benefits ~ the initiatioo of this Project as proposed ~ the Applicant and pirticularly through the utilitization of the financing method as is available Wlder Ordinance No. 3815, as amended, of the City of san Bernardino. Due to the fact that conventional interest rates for constructioo and permanent financing for the type of Project cootanplated ~ the Applicant are at such an extreme lweI 00 conventionally borrowed fWlds, if available at all, neither the Applicant nor any other persons or legal entities are able to provide the type of IOOdem and attractive apirtment wildings needed within the City of san Bernardino. Jldditionally, the City of san Bernardino, its inhabitants and the Redevelopnent 1\gency of the City of san Bernardino will benefit fran the increased assessed valuation of the property within the Redevelopnent Project Area. Said increased assessment will occur as the result of the canpletioo of the Project. 'lbis increase in the assessed valuation of the property included in the Project will assure that the Redevelopnent 1\gency of the City of san Bernardino will have a IOOre viable means of W1dertaking its redevelOJr rnent activities within said Project Area. '!be City likewise would benefit ~ obtaining quality housing for the citizens of san Bernardino. Other wsinesses will be encouraged to locate or relocate within the City of san Bernardino and thus create an upward spiraling effect on the econany of the City as a result of the Project. 5.1.1 5.1.2 5.1.3. Project will provide long term anployment opportlDlities for the inhabitants of the City of san Bernardino. When fully constructed leased the Project will provide employment oppor- tlDlities for a substantial nllllber of persons. '!be category jobs to be provided in the Project after its caopletion include managerial, skilled, semi-skilled, and unskilled. '!be wages to be J;8id in the various job categories meet loca 1 and regional standards and will sustain a satisfactory level of financial stability. COnstruction of the Project is anticipated to add awroximately $25,760,000 assessed valuation to the tax rolls of the City. '!be 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 Awlicant to caoplete the financing and construction of the Project within an accelerated time frame. '!be method of financing provided in Ordinance No. 3815 will provide new sources of financing to the AJ:lllicant and such financing will be ne.de at lower tax-exempt interest rates. 5.2 '!be City will benefit, as can be demonstrated plrsuant to section 1 of Ordinance 3815, as anended, of the City of san Bernardino, in that employment opportunities will be generated ~ the proposed Project both during the construction IiJase and after said Project is constructed and leased. '!be Awlicant is not attempting to construct said proposed Project merely for the financial inducement that is offered plrsuant 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 econanic benefits available to the oamumity. '!bere are no detriments that can be incurred ~ the City with regard to this type of financing for this Project, and the City of san Bernardino and the Redevelopnent Agency of the City of san Bernardino will receive substantial benefits through increases in assessed valuation of property within a redevelopnent Project area, plus the increased long-term Employment qlportunities that will be available to the local residents of the City. PART VI <XJoItII'DlEm'S 6.1 '!he Applicant ~ the subnission of this Application agrees to caoply and/ or to assist the City in CXJI\plying 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, ne.king of any required awJ.ication to a governnental deparbnent, for authorization, qualifi- cation or registration of the offer, issuance or sale of the bonds or other tax-exEmpt obligations, and any adnenclnents thereto, and any permit or other authorization of such governnental deparbnent, prior to the delivery ~ the City of such bonds or other tax-exempt obligations. . . 6.2 The A{:.plicant further OClIIIIits to cause and/or to assist the City in causing to be printed arrj prospectus or other written or printed CCIIIIIWl- icatim proposed to be published in connection with issuance, offer or sale of bonds or other tax-exempt obligatims, prior to the delivery by the City of such bonds or other tax-exempt obligatims, and, to the extent deemed necessary by the City, following delivery of such bonds or other tax-exempt obligatims. 6.3 '1he A{:.plicant also OClIIIIits to J;ElY all expenses in connectim with the issuance, offer or sale of the bonds or other tax-exempt obligatims, whether or not such bonds or other tax-exempt obligatims are finally issued, and to hold the City harmless fran arrj and all expenses related thereto, to pay items m an cngoing basis so that neither the City, nor its advisors, attorneys, employees and the like will accllllulate arrj claims against the City. 6.4 '1he A{:.plicant will suJ;Ply arrj additiooaJ. information, agreements, and undertakings as the City may require as the result of conferences and negotiatims will be reproduced and suJ;Plied to the City and shall be deemed as suJ;Plements or anenc\nents to this A{:.plication. PART VII SIGNAWRE 7.1 '!be undersigned as authorized principals of the A{:.plicant as noted below, hold the prime responsibility for the financing to be taken for the proposed Project, and certify that the undersigned have the authority to bind the A{:.plicant to contract terms, that this A{:.plicaticn to the best knowledge or belief of the undersigned, contains no false or incorrect informaticn or data, and this A{:.plicatim , including exhibits and attadJnents hereto, is truly descriptive of the proposed Project. '!be undersigned also represent by the executicn of this A{:.plicaticn familiarity with Ordinance No. 3815, as amended, of the City of San Bernardino. PART VIII FEE SQlEIlJLE 8.1 The A{:.plicant acknowledges that the City requires a non-refundable aJ;Plication fee of $50.00 for each Project to be considered for eligibility to be paid when the basic docIIIIents are requested. With the subnittal of the A{:.plication, $500.00 is payable to the City. If this A{:.plicaticn is accepted, an additiooaJ. fee of $10,000 is J;ElYable for Mninistrative costs. The A{:.plicant acknowledges that the OClIIIIitments in Part VI above are in additicn to these fixed anounts. Thus, in the event that no closing occurs, the City shall be reimbursed for its process- costs. 8.2 All Fees of the City may be captalized and included in the bond issue as acceptable to the bond plrchaser. . . 8.3 '1he Applicant acknowledges that the City derives its entire su:r;p>rt fran the fees for its services. '1he total function of the City is conducted on a self-sU:r;plrting basis, and involves no state general revenues or expenditures fran taxes fran 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 bonds of the City. 'lhe federal guarantees, if any, enhance these revenues and inoane and the security of the bonds. 8.4 Pursuant to Resolution No. 81-108 of the City, as l'.IIIended ~ Resolution No. 81-410 of the City, one percent (1%) of the principall'.lllount of the bond issue shall be deposited in the City Treasury in the Industrial Revenue Bond Reserve and Developnent Fund, which shall be used in such manner as the Mayor and CaIInon Council uay direct fran time to time. APPLICANT BLClCX GIaJP DEVELOFMENTS (CALIFORNIA) ,INC. ::: .... .... .Q .... &. >< ...... . . o '<.:l .' J"" .;:: " .r: .-' " .") ~ '. ~ 00 ~ l- - ~ c) -Je\l! ~~ ~i!i ~ : ,. t-., ..-- . . ~ ~ , , 1';1~ 8 ~ t -.:..>.. .. .. !:: - . co . - l; ~ ~ 2. .... .~ .Q .~ .c' )(. LLJ ,- ~ ~ @! &: '" :r @ ~ I: " , . . . . . @ - - J -",. ~\ .-,...... ~ ~ - "', . , 1; .. ~ co .1Il~, . c: ~ cD , - ~ ~ n " 1" to -:"'Y'""