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HomeMy WebLinkAboutR20-Redevelopment Agency I " AGENCY..lGUEST FOR I-ISSION/COUNCL AlflON _m: Glenda Saul, Executive Director Dept: Redevelopment Agency Subject: TEFRA PUBLIC HEARING - CAL-SHEL PROJECT (FORMERLY CAROUSEL PROJECT) Da~: June 24, 1985 Synopsis of Previous Commission/Council action: Ordinance 3815 providing for the issuance of Industrial Development Bonds 10-1-84 Resolution 84-383 adopted by Mayor and Common Council declaring its intentilll to issue Multifamily Mortgage Revenue Bonds 6-17-85 Resolution 4770, by Community Development Commission, reinduced project for issue by Redevelopment Agency due to the State Cap being reached for multifamily issues. Recommended motion: (MAYOR AND COMMON COUNCIL) . Open Public Hearing Close Public Hearing RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON THE ISSUANCE OF APPROXIMATELY $25,000,000 PRINCIPAL AMOUNT OF MULTIFAMILY MORTGAGE REVENUE BONDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (CAL-SHEL PROJECT ) .~/M Signature Contact person: GLENDA SAUL FUNDING REQUIREMENTS: Amount: $ N/A Phone: 383-5081 Ward: 5 Project: SC Date: July 1, 1985 Supporting data attached: YES No adverse Impact on City: encil Notes: 11 "'Ill T J"R Agenda Item No. R~o I . CI* OF SAN BERNARD. - REQU.... FOR COUNCIL AcilbN . . . 75-0264 STAFF REPORT The application before you was originally induced in October, 1984 as a City issue. Subsequently, the State cap for Multifamily Mortgage Revenue Bonds has been reached. On Jun 17, 1985, the Community Deve10pment Commission approved Resolution 4770 reinducing the project as a Redevelopment AGency issue. The Resoltuion before you is for the TEFRA Public Hearing. (Tax Equity and Fiscal Responsibility Act.) This hearing is required by law and must be held by the Mayor and Common Council. The name of the project has been changed to Cal-Shel, however, the principals remain the same. The applicant is ready to pursue financing. Below is a recap of the project. APPLICANT: Carousel Development & Associates. PRINCIPALS: Carousel Development Inc. - 25% Van Maron Construction Inc. - 25% Block Group Developments - 50% FINANCING: $25,000,000 (Originally induced for $32,000,000) PURPOSE: Construction of 720 apartment units in 35 two-story buildings located on a 43 acre site to include three swimming pools and 1600 vehicle parking spaces LOCATION: Shand in Hills - on the north side of Kendall Drive approximately 1 1/2 miles west of Little Mountain. TARGET DATE OF FINANCING: December, 1985 CONSTRUCTION SCHEDULE: 1st Quarter, 1985 to start 3 construction phases 18-30 months to complete JOBS: During construction - approximately 200 After construction - 12 PROJECT COST: $21,582,288 1% of $21,582,288 - $215,823 (State College Project) INCREASE TAX: RESERVE & DEVELOPMENT FEE 1% x $25,000,000 - $250,000 1 Bedrooms - $460 Mo (360 Units) 2 Bedrooms - $490 Mo (360 Units) 720 Unit RENTAL SCHEDULE In order for the City to issue Multifamily Mortgage Revenue Bonds under our IDB Ordinance, the Applicant must agree to rent 20% of the units to low/moderate income families for as long as the bond is outstanding. The Applicant agrees to this covenant in the final bond documents. The project location is zoned, R-l and PRO, (ReSidential, Planned Residential Development) and the project would have approximately 16.74 units per acre. The appplicant will not request a density bonus. 1138J/EB 7-1-85 . . . . l,020-47/0767S/cmh 06/24/85 . RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON THE ISSUANCE OF APPROXIMATELY $25,000,000 PRINCIPAL AMOUNT OF-' MULTIFAMILY MORTGAGE REVENUE BONDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (CAL-SHEL PROJECT) WHEREAS, the Conununity Development Conunission of the City of San Bernardino (the RConunission"), as the Redevelopment Agency of the City of San Bernardino (the RAgencyR), is authorized by the Conununity Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the California Health and Safety Code (the . RConununity Redevelopment Law"), to issue and sell its multifamily mortgage revenue bonds for the purpose of enabling the developer to pay the costs of financing the development of multifamily rental housing located within survey areas and redevelopment project areas of the Agency; and WHEREAS, Carousel Development and Associate, a California general partnership, or its successors or assigns (the RApplicant"), has previously submitted a certain application (the "Application") to the Mayor and Conunon Counci 1 of the Ci ty of San Bernardino, California (the RMayor and Conunon CouncilR), for tax-exempt financing for a certain multifamily rental housing development pursuant to Ordinance 3815, as amended, and the Applicant has . previously requested the Agency to issue and sell its multifamily - 1 - . . . . mortgage revenue bonds for the purpose of providing financing for . the acquisition and construction by the Applicant of a multifamily rental housing development as more fully described in said Application (the Rproject") pursuant to the Community Redevelopment Law; and WHEREAS, the Project consists of the acquisition of land and construction thereon of approximately seven hundred twenty (720) apartment units in thirty-five (35) two-story buildings located in the State College Project No. 4 on an approximately forty-three (43) acre site in the University Park section of the 600 acre master plan development known as Shandin Hills, on the north side of Kendall Drive, and approximately one and one-half (1 1/2) miles west of Little Mountain, . on-s i te vehic Ie shall include approximately sixteen hundred (1600) parking spaces, three (3) swimming pools, landscaping, recreation center, barbecue areas, basketball and vOlleyball facilities and shall consist of three hundred sixty (360) one-bedroom, one-bath rental units and three hundred sixty (360) two-bedroom, one-bath rental units; and WHEREAS, pursuant to Resolution No. 84-383 of the Mayor and Common Council, adopted on October 1, 1984, the Mayor and Common Council has previously declared its intent to issue multifamily mortgage revenue bonds in an aggregate principal amount not to exceed $32,000,000 for the purpose qf financing the Project; and '. . - 2 - . . . . WHEREAS, pursuant to its Resolution, adopted on June 17, . 1985, and entitled: RResolution of the Community Development Commission of the City of San Bernardino Declaring its Intent to Issue Multifami.1y. ,. Mortgage Revenue Bonds (Carousel Development and Associates Project)" the Commission has previously declared its intent to issue multifamily mortgage revenue bonds in an aggregate principal amount not to exceed $32,000,000 (the RBondsR) and to authorize such financing by the Agency for the aforesaid purposes and for the Project pursuant to the terms and conditions of said Resolution No. 84-383; and . WHEREAS, the Applicant has informed the City of San Bernardino, California (the RCityR), the Commission and the Agency that the Applicant has conveyed its ownership interest in the Project to Cal-Shel, a California general partnership, or its successors or assigns (the RDeveloperR), and that the general partners of the Developer, as well as their respective ownership interests in the Developer, are identical to the general partners of the Applicant and their respective ownership interests in the Applicant; and WHEREAS, it is the intent ~f the City that the Developer be '. substituted for the Applicant as the beneficiary of said Resolutions ",Of the Mayor and Common Council and the Commission, respectively; and - 3 - . . . . WHEREAS, the Agency shall, in furtherance of the goals and . intent of the Community Redevelopment Law, issue the Bonds to enable the Developer to finance the cost of the Project without any liability to the City, the Commission or the Agency whatsoever; and WHEREAS, the City, pursuant to Internal Revenue Code Section 103 (k), has set a public hearing on the issuance of the Bonds and has authorized the publication of notice thereof which has been duly published in The Sun; and WHEREAS, the City must now approve the substitution of the Developer for the Applicant as the beneficiary of said Resolutions of the Mayor and Common Counci 1 and the Commission and approve the . findings and determinations to be made in connection with said pUblic hearing, and it is the intent of the City that the Developer be the beneficiary of said public hearing. NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The recitals set forth hereinabove are true and correct in all respects. Section 2. The Ci ty, lifter having which was duly published within the City as said conducted a public in a newspaper of '. hearing, notice of .general circulation pUblic hearing is - 4 - . . . . required pursuant to the requirements of Internal Revenue Code . Section 103(k), does hereby find and determine that the purposes and intent of the Community Redevelopment Law wi 11 be furthered by the issuance of the Bonds for the express purpose of providing financing to assist the Developer to acquire and develop the, Project. The ~otal principal amount of the Bonds which shall be issued to assist the Developer to acquire and develop the Project to be undertaken by the Developer shall not exceed $25,000,000. The Bonds shall be issued upon such terms and conditions as shall be set forth in one or more Project Agreements by and among the Agency and the Developer or such other documents prepared in connection with the issuance and delivery of the Bonds, and shall be issued solely for the Project but in any event said Agreements shall clearly state that the funds of the City, the Commission and the Agency are not liable, nor shall . be pledged for repayment of the Bonds. Section 3. The Mayor and Common Council hereby find and determine that the public purposes and public benefits as set forth in the Community Redevelopment Law will be furthered by the issuance of the Bonds; specifically, that the Bonds will provide for financing to assist the Developer to acquire and develop an approximately seven hundred twenty (720) unit apartment development on the property as described in the recitals hereof, that such. financing will thus make the Project a financially viable and productive project and thereby. increase the availability of moderately priced rental units for residents of the City and provide .emPIOyment opportunities within the City. '. - 5 - . . . . Section 4. The Mal/or and Common Council hereby . acknowledge and consent to the construction, development and financing of the Project by the Developer as described in the recitals hereof, and the initial inducement resolution of the City, the initial inducement resolution of the Commission and the notice oOf public hearing with respect to the financing of the project are hereby amended, to the extent necessary, to incorporate the Developer as the beneficiary of said inducement resolutions and said notice of public hearing. The Mayor and Common Council hereby , further approve the substitution of the Developer as the borrower and recipient of any tax-exempt financings of the Agency with respect to the Project, and all subsequent proceedings of the City, the Commission and the Agency in furtherance of the tax-exempt . financing of the Project by the Agency shall so state that the Project shall be undertaken by the Developer. Section 5. The Mayor of the City is hereby appointed as the elected official to approve the issuance of the Bonds pursuant to Internal Revenue Code Section l03(k) at such time as the Commission shall have approved the other appropriate Bond financing documents as referenced in Section 2 of this Resolution. Section 6. This Resolution shall take effect upon adoption. . - 6 - . . . . . 1 HEREBY adopted by the San Bernardino at day of CERTIFY Mayor a that the foregoing resolution was duly and Common Counci 1 of the Ci ty of meeting thereof, held on the , 1985, by the following vote, to wit: AYES: Council Members NAYS: ABSENT: City Clerk of The foregoing resolution is hereby approved this I 1985. day Mayor of the City of San Bernardino 4It Approved as to form: ~~~ '. . - 7 - . . . . STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) SS CITY OF SAN BERNARDINO ) I, SHAUNA CLARK, City Clerk in and for Bernardino, DO HEREBY CERTIFY that the foregoing of San Bernardino City Resolution No. is correct copy of that now on file in this office. . the City of San and attached copy a full, true and 1- the IN WITNESS WHEREOF, I have hereunto set my hand official seal of the City of San Bernardino this , 1985. and affixed day of City Clerk . . - 8 - '. I~- . ( . . Employer ~ax I.D. No. - NA Mr. Rick Jeffs is the principal contact Applicant. 1.6 ~he telephone number for tbe Applicant is 604 689-2944. . .AltT I 1.1 1.2 1.3 1.4 1.5 1.7 1.8 . . . APPLI~~]ON OP ~AROUS~L b2V~lnPM~NT aNn A~~~t&~~ POR INDUSTRIAL REVENUE ROND PINANCING ~In 0" SAN BERNARDINO. t!&'.1Il'ORNIA GENERAL AND BUSINESS INFORMATION ~be legal name of tbe Applicant is .Carouael Develop- .ent and Associate.. ~be applicant is a California partnersbip in the process of formation wbich aball engage in the development, leaSing, and ownerahip of approximately 720 apartment unit. located in tbe Sbandin Bills aubdiviaion off of lendall Drive in tbe City of San Bernardino, California. ~he real property wbere the apartments will be constructed is owned by Block Bro.. Industries (USA) Inc., one of tbe general partner. of tbe partnerabip. ~be mailing addre.s of tbe Applicant is: Carousel Development and Asaociate 720-475 Bowe St. Vancouver, Britisb Columbia CANADA V6C 2B3 for the ~be Applicant is a California general partnership in tbe process of formation. . . 1.7.1 ~he Applicant ahall own property and conduct business in the County of San Bernardino, State of California. 1.7.2 ~he general partnerahip organizational documents of the Applicant ahall be executed prior to the time when Applicant acquires legal title to said property which shall be developed in connection with the Project. ~be Applicant is not related to any other legal entity. ~he ownerabip intereat of each of tbe general partners asaociated with tbe Applicant ahall be as follows: 1.7.3 1 . . . . . CaroU..l Dav.lopa.nt, Inc., a California oorporation 25' Van Mar.n Con.truction, Inc., a California oorporation 25' Block Group Dav.lopa.nt. (California), Inc. 50' 1.t !h. na.. of the g.n.ral partn.r of Applicant who will have pri.ary r..pon.ibility of conducting the bu. in... of the Applicant i. a. follows: Mr. Rick .:r.ffs 104 IU-2tU ( . 1.10 Busin.ss v.ntur.s of the g.n.ral partn.rs of the Applicant: A. Mr. Rick .:r.ff. i. the Pr.sid.nt of Carousel Dav.lopa.nt, Inc., a California corporation. Mr. .:r.ff. ha. int.r..t. in ..v.ral busin.ss v.ntures including the following: 1. Carous.l Inv.sta.nt. Ltd. 2. Manch.st.r Dav.lop.ent Ltd. 3. Consort Energy Corp. 4. Commador P.trol.ums Inc. 5. Haida Hot.l partn.r.hip B. Mr. Berni. Van Mar.n i. the Presid.nt of Van Mar.n Construction, Inc., a California corporation. Mr. Van Maren bas inter..t. in ..varal busin.ss v.ntur.. including the following: 1. Van Mar.n Con.truction Co. Ltd., a Canadian corporation C. Block Group Davelop..nts (California), Inc. has extensive land bolding_ in the State of California and includes the 600 acre .ast.r plan d.v.lop.ent known a. Shandin Hills locat.d in the City of San Bernardino. Th. Univ.rsity Park ..ction of the Shandin Hills 600 acr. aast.r plan dev.lop..nt is the parc.l that is to b. d.v.lop.d. alock aros. Indus- tri.s (USA) Inc. i. a wholly-own.d sub.idiary of Olympia , York, Inc. hploy... 1.11 . Th. Applicant curr.ntly ha. a.ro ..ploy.... How.ver, construction and co.pl.tion of the Proj.ct by the Applicant will utli.at.ly provide num.rous ..ployment 2 : . (l . . . . . . opportunities in the City of San Bernardino. The Applicant plan. to locate in San Bernardino County. The Applicant currently ba. office. at 720-475 Howe Street, Vancouver, Briti.h Columbia, Canada V6C 2B3. 1.12 Profe..ional .ervice. will be provided a. follows: 1.12.1 Stere., Alpert' Carne .hall .erve as the accountant for the Applicant and the contact p.r.on with .aid firm i. Gary Carne, tele- phone number '1' 2'2-3200. The law firm of Wagner, Loftu., Chucas , McCue i. tbe attorney for the Applicant. The contact per.on with .aid firm is T. M. Cbuca., telepbone number '1' 2"-1'64. The law offices of Timothy J. Sabo .hall aerve a. Bond Coun.el to the City with regard to the tax-exempt financing for the project. The principal civil engineer .hall be Van Del , A..ociate., 17801 Cartwright Road, Suite A, Irvine, CA 92714. The principal architect ahall be Kermit Dorius Architects 'A.sociate., 1550 Bayside Drive, Corona Del Mar, CA 92625, telephone number 714 '44 7111. 1.13 The principal banking accounts of the Applicant .hall be at Security Pacific Hational Bank, San Bernardino, and opened upon financing becoming available. 1.12.2 1.12.3 1.12.4 1.12.5 1.14 The aource of funding for tbe Project i. anticipated to be derived from a variety of .ources including the private placement of a tax-exempt bond or other obligation with a lender to be obtained hereafter. PART II 2.1 BOND ISSUE The .stimated total cost of the financing package and the proposed use of bond proceeds is as f~llow.: 2.1.1 Construction co.ts . 21,582,288. 2.1.2 Legal, printing and related fee. FinanCing costs and fees 100,000. '69,600. 2.1.3 3 ." . c. . . . . . . 2.1.4 C.pit.li..d int.r..t 2,128,069. 2.1.5 oth.r Ni.c.ll.n.ou. co.t. 2.1.t Land acqui.ition 'lot.l 100,000. 1,040,000. . 30,31',157. 1.2 'l'h. e.tim.t.d t.rv.t d.te for th. fin.ncing i. pr...ntly anticip.ted in 1.14 with con.truction to coma.nc. .. aoon a. po..ibl. aft.r th. fin.ncing pack.g. i. compl.t. and to b. co.pl.t.d in three con.truction ph.... which ah.ll t.ke b.tween 18.nd 30 month. to co.pl.t.. It i. propo..d th.t th. fin.ncing b. in the form of a con.truction lo.n during th. con.truction period which would bav. th. tr.dition.l con.truction loan provi.ion. in th.t drawdown. would b. permitt.d as con.truction proc..d. upon aubmi..ion of r.qui.ition Vouch.r.. upon compl.tion of con.truction of the Proj.ct and c.rtific.tion th.t all improv...nt. h.ve be.n compl.t.d, th. l.nd.r will th.n p.rmit an int.r..t rat. adju.t..nt and a princip.l a.ount incr...., a. w.rrant.d, and conv.rt the con.truction loan to a perman.nt financing. 'l'h. pr...nt propo..l for th. fin.ncing of the proj.ct anticip.t.. that th. tax ex..pt bond. or oth.r obliga- tion. will b. .old to a comm.rci.l bank or other .uch lend.r through a private pl.ce..nt or that th.r. be a public off. ring of aaid ..curitie.. 2.3 2.4 PART III FINANCIAL INFORMATION 3.1 Upon it. formation, th. Applicant ahall be a ..all bu. in... doing bu. in... a. a v.n.ral partn.r.hip pursuant to th. law. of th. Itat. of California, and th. Applicant would be con.ider.d a a.all bu.in.ss with r.gard to it. rel.tiv. ai.. in comp.ri.on with other auch bu.in..... und.rtaking proj.ct. of this type. Although the Applicant i. a a.all bu.in..., no f.deral a..ll bu.in... loan guarant... w.r. propo..d in connec- tion with the propo..d financing a. cont..plat.d by this Application. PART IV PROJECT INFORMATION .. 4.1 'l'h. proj.ct a. propo..d by th. Applicant ahall include the con.truction of approximat.ly 720 apartm.nt unit. in the Univ.r.ity Park a.ction of the 100 acr. ma.t.r plan d.v.lopm.nt known a. Ihandin Hilla. 'l'h. approxi.ate 720 unit. ahall be oonstruct.d in thr.. ph.... . 4 . (1 . . '~t.""'" . . . . over.n 11 to 30 .onth period. !'be ..en1t:ie. in the .partaent project ahall inclu4. ~i..in, pool., r.crea- tion cent.r, barbequ. .rea., ba.k.tball an4 .oll.yball court.. !'b. Project 1a locate4 within the b4.Velopllent Project Ar.. of the R.4.v.lopm.nt A,.ncy of the City of San BernanUno. !'b. propo..4 .roject ahall be located upon 1.nd which i. .ore particularly de.cribed in Exhibit -A- .ttached h.r.to. 4.2 !'b. 'roj.ct 1.. bu. in... ..ntur. that would incr.ase th. .......4 ..luation of curr.ntly und.rutiliz.d land .nd ,.n.rat. ai,nificant ..ploym.nt opportunities wi thin th. city. !'b. component. .n4 the e.timat.d total co.t of the functional part. of th. Proj.ct .r. .. follows 4.2.1 Land $ 5,040,000. 21,582,288. 180,000. 4.2.2 8ui14in, con.truction En,in..rin, , t.chnical a.rvic.. Mi.cell.n.ou. item. .. 5' con.truction contin,.ncy b. Int.r..t durin, con.truction c. R..l e.tat. brok.ra,. co..i..ion d. Oth.r mi.c.ll.n.ou. co.t. 1,079,144. 6,200,000. -0- 200,000. 4.2.3 4.2.4 Total $ 34,281,432. 4.3 Th. ..timated con.truction period for th. .roj.ct i. .s fOllow. : 4.3.1 Con.truction of th. .roj.ct wou14 co..ence .s aoon .. po..ibl. .ft.r i..uance of the t.x-.xempt obli,ation.. !'b. pl.nn.d con.truction ah.ll occur in three ph.... .nd .hall be co.pl.t.4 within 18 to 30 .onth. from the date of co...nc...nt. .. .. 4.3.2 4.4 !'b. aup.rvi.in9 civil engin..r r..pon.ibl. for the d..ign of th. .roj.ct on behalf of th. .Applicant .hall be V.n Del' A..ociat.., 17801 Cartwright Ro.d, Suite A, Irvin., CA '2714. 4.5 !'b. .roj.ct ahall ba known .. divi.ion of th. 'handin Mill. d.v.lop..nt.- -Univ.r.ity P.rk,. 600 .cr. .a.ter plan 5 ~ . o . . . .~ -~ ". . . . . C.6 ~b. .ro~.ct ait. ia tb. d.v.lopm.nt of .part..nt units and ia not .n e.panaion or .n .It.r.tion of .n .xisting f.cility. ~b. n.c....ry infr..tructur. it... .nd other public improv.ment. ~.t b. in.t.lled on tb. .roj.ct ait. and th. Applic.nt d.sir.. to obt.in. below market r.t. t.x-...mpt conatruction and permanent fin.ncing of th. improve..nt. to b. pl.c.d tb.r.on from a combin- .tion of aourc... C.7 ~b. property on whicb th. .roj.ct i. propo.ed to be loc.ted is currently owned by Block Bros. Industries (OSA) Inc. and th. Applic.nt bas.n option to .cquire ..id property pursuant to tb. t.r.s of tb. joint venture .gr....nt betw..n th. propos.d g.neral p.rtn.r.. C.8 ~be 'ro~.ct will provide .pproxi.ately 720 r.ntal units to be leased to v.rious tenant.. C.8.l c., Att.ched .. Exbibit -.- is .n 8-1/2 x 11 inch map sbowing tbe aite location of tbe proposed 'ro~.ct. A description of the plant process-not .pplic.ble. A neg.tive d.cl.r.tion pur.u.nt to tb. provi.ions of tbe C.liforni. Environmental Qu.lity Act of 1'70, as ..end.d, would in .11 prob.bility be ..ti.f.ctory for the .roject .. propos.d by tbe Applicant. Bowever, the .roject .h.ll comply with .11 .pplic.ble provi.ions of ..id Act. C.8.2 C.lO ~here .r. no permit., wat.r qu.lity .nforc.ment orders, .ir pollution p.rmit. or varianc.s or other evid.nce of actions n.c....ry in conn.ction with this .roject. C.ll ~her. .re no local, atat. or f.deral pollution control .genci.s whicb impo.e regul.tions, atandards or requir.ment. with r.gard to tbe op.r.tions of the propos.d 'ro~ect to b. undert.k.n by the Applicant. C.12 ~he proposed .roj.ct .h.ll co.ply witb .11 .pplicable City of San Bern.rdino, County of San Bern.rdino, and other r.gional, county or basin plans to which this .roject ah.ll conform .nd the .ppropriate waste water and air quality requirements which aball b. in conform- ity with .11 of the .bove jurisdictions. C.13 It i. pr.s.ntly anticipated th.t the propo.ed .roject will not produc. any byproducts or r.sidu.s whicb would involve tbe ultimate disposal or the ne.d for . plan , . . . 6 .. . c' . . '. pmv 1.1 . . . ~o .ccompli.h ..... ..cycling or ..lv.g. vill not be a runction of the propo..~ proj.ct nor vill th.r. be .ny aark.t opportuniti.. g.n.r.t.~ vith regard to ...e. PUBLIC BENEFITS Th. City of 'an Bernardino vill r.c.iv. .ignificant ben.fit. by the initiation of thi. proj.ct .. proposed by the Applic.nt .n~ particul.rly through the utili- ..tion of the rinancing ..thod.. i. .v.il.bl. under Or~in.nc. Bo. 3115, .. ...n~.~, of the City of San Bern.r~ino. Du. to the f.ct th.t conv.ntion.l interest r.t.. ror con.truction .n~ p.ra.n.nt fin.ncing for the ~yp. of Proj.ct cont.mpl.t.~ by the Applic.nt .re .t .uch .n .xtr...ly bigh l.v.l on conv.ntion.lly borrowed fun~., if .v.il.bl..t .11, n.ith.r the Applic.nt nor .ny oth.r par.on. or l.g.l .ntiti.. .r. .bl. to provide the type of .od.rn .n~ .ttractiv. .p.rt..nt buil~ings n..~.~ vithin the City of I.n Bern.r~ino. A~~ition- .Uy, the City of I.n Bern.r~ino, it. inh.bit.nts and the ..~.v.lop..nt Ag.ncy of the City of Ian Bernardino vill ben.fit rrom the incr....~ .......d v.lu.tion of the property vithin the ..~.v.lopaent Proj.ct Ar.a. '.i~ incr....~ ........nt vill occur.. the r..ult of the compl.tion of the Proj.ct. Thi. incr.... in the .......d v.lu.tion of the property inclu~.~ in the Proj.ct vill ..aure that the ..~.v.lopaant Ag.ncy of the City of .an Bernar~ino vill bav.. .or. viable ...n. of un~.rt.king it. r.d.velop.ent .ctivit.a vithin .aid proj.ct Ar... Th. City likevi.. vould b.nefit by obtaining qu.lity bou.ing for the citi&.n. of San Bernardino. Oth.r bu.in..... vill b. .ncouraged to loc.t. or r.locat. vithin the City of Ian Bern.rdino .nd thu. cr..t. .n upvard .pir.ling eff.ct on the econo.y of the City.. . re.ult of the proj.ct. " .' 5.1.1 Th. Project vill provide long tera employment opportuniti.s for the inh.bitant. of the City of '.n Bern.rdino. When fully con.truct.d .nd l....d the Proj.ct vill provide ..ploym.nt oppor- tuniti.. for. .Db.t.nti.l numb.r of par.ona. The c.t.gory of job. to b. provid.d in ~he Project .ft.r it. compl.tion includ. ..n.g.ri.l, .killed, .emi-.kill.d, .nd un.kill.d. Th. v.g.. to be paid in the v.riou. jOb c.t.gori.. ...t local .nd r.gion.l .t.nd.rd. .nd vill .uat.in . ..ti.f.ctory l.v.l of financial .tability. Con.truction of the proj.ct i. .nticipat.d to .dd .pproxim.t.ly $20,000,000.00 to '25,000,000.00 of .......d v.lu.tion to the t.x roll. of the City. 5.1.2 7 . o . . . 5.2 PART VI 6.1 6.2 . . . 5.1.3 ~b. ua.ful met bod of fin.ncing provided for in Ordin.nce Ro. 3815 of the Cityvis-.-vis tbe use of tbe convention.l method will permit tbe Applic.nt to complete tbe finan- Cing and construction of tb. proj.ct within an acc.lerated time frame. ~b. method of financing provid.d in Ordinanc. Ro. 3815 will provide new aourcea of fin.ncing to the Applicant and auch fin.ncing vill be made at lov.r t.x-.x.mpt intereat r.t.s. ~be City viII b.nefit, a. can be demon.tr.ted pursu.nt to Section I of Ordin.nce Ro. 3815, aa .mend.d, of the City of S.n Bern.rdino, in th.t .mployment opportun- iti.. vill b. g.ner.ted by tbe propo.ed Project both during tbe con.truction ph.se and .fter ..id Project is con.truct.d and l....d. ~he Applicant ia not attempt- ing to con.truct a.id proposed proj.ct merely for the fin.nci.l inducem.nt th.t i. offer.d pur.u.nt to the Ordin.nc., but rather due to the long-term business r...ona th.t are aignific.nt due to the loc.tion of the propo.ed proj.ct and the r.al .conomic benefits av.ilable to the community. ~her. .re no detri..nt. that c.n be incurred by the City vith r.g.rd to thia type of fin.ncing for this Project, and the City of S.n Bern.rdino .nd the ..dev.lopment Agency of the City of S.n Bernardino will r.ceive .ub.t.nti.l benefita through incre.ses in a.sea.ed v.lu.tion of property vithin. redevelopment proj.ct ar.a, plua the increa.ed long-term .mployment opportunities th.t vill be .v.il.ble to the local reaid.nts of the City. COMMITMENTS ~he Applic.nt by the aubmi..ion of this Application agrees to comply and/or to ...iat the City in complying vith all atate and f.der.l laws in the isau.nce of the bond. or other auch t.x-exempt obligations to finance the Project, inClUding, vithout limit.tion, making of any requir.d .pplic.tion to a government.l department, for .uthoriz.tion, qu.lific.tion or regi.tration of the Offer, i..uanc. or aale of the bond. or other tax- .xempt obligations, and any amendment. thereto, and .ny permit or other authoriz.tion of auch governmental dep.rtment, prior to the delivery by the City of such bonda or other tax-exempt obligations. ~he Applicant further commit. to cau.e and/or to assist the City in causing to be print.d any pro.pectus or other vritten or printed communication proposed to be 8 .' : . c' . . . . . . publi.h.d in conn.ction with the i..uanc., offer or aal. of bond. or other tax-.xempt obligation.; prior to tb. d.liv.ry by tbe City of auch bond. or other tax-.x.mpt oblig.tions, and, to the ..t.nt d..med n.c....ry by the City, following d.liv.ry of auch bonds or other tax-...mpt oblig.tion.. 1.3 ~b. Applicant al.o commit. to p.y all .xpenses in conn.ction with the i..uance, off.r or aale of the bonds or oth.r tax-.x.mpt oblig.tions, wh.th.r or not auch bonds or oth.r tax-.x.mpt oblig.tions ar. fin.lly is.u.d, and to hold the City b.rmless from any and .11 exp.ns.. r.l.ted ther.to, to p.y items on an ongoing b.sis ao th.t neither tbe City, nor it. advisors, attorn.ys, employe.s and tbe like will accumul.te .ny cl.ims ag.in.t tbe City. 1.4 ~he Applic.nt will .upply any addition.l information, agr..ments, and undert.kings as tbe City may require .s the re.ult of confer.nc.s and negotiations will be reproduced and .uppli.d to the City and .hall be d.emed a. .uppl.m.nts or amendments to tbis Application. PART VII SIGNATURE 7.1. ~be under.igned as authori.ed principalS of the Applic.nt as noted below, bold tb. prime r.sponsibilty for the fin.ncing to be t.k.n for tbe proposed Project, and certify th.t the undersign.d b.ve tbe authority to bind the Applicant to contr.ct ter.., that this Applic.tion to the best knowledge or belief of the undersigned, cont.ins no false or incorrect information or dat., and tbi. Applic.tion, including exhibits and attacbments bereto, is truly descriptive of the propo.ed Project. ~he und.rsigned also represent by tbe .xecution of tbis Application famili.rity with Drdinance no. 3815, as amend.d, of the City of San Bernardino. PART VIII PEE SCHEDULE 8.1 ~he Applic.nt acknowledges tbat the City r.quires a non-refundable applic.tion f.e of 'SO for each Project to be consid.red for eligibility to be paid when the b.sic documents are requested. With the submittal of this Applic.tion, '500 is p.y.ble to the City. If this Applic.tion i. accepted, an addition.l f.e of '10,000 is p.y.ble for administrative co.ta. ~he Applicant acknowledges th.t the commitments in Part VI above are in .ddition to these fixed amounts. ~hu., in the event th.t no clo.ing occurs, the City shall reimbursed for its processing costs. , . . " : . . . . ." 1.2 . All fe.. of tbe City .ay be capitalized and included in tbe bond iaaue aa acceptable to tbe bond purchaaer. ~h. Applicant acknowledge. tbat tbe City derives its entire aupport from tbe fees for its -aervices. The total function of tbe City is conducted on a aelf-sup- porting ba.i., and involve. no atate general revenues or expenditures from taxe. from tbe .tate or any of its political aubdiviaions. No indebtedne.s or taxing power of tbe City is involved. Project revenues are tbe aole aecurity for bonda of tbe City. The federal guarantee., if any, enhance these revenue. and income and tbe aecurity of tbe bond.. 1.4 Pursuant to a..olution Ro. 11-108 of tbe City, as a.ended by ae.olution No. 11-410 of the City, one percent (It) of the principal amount of the bond issue aball be deposited in tbe City Treasury in the Indus- trial aevenue Bond ae.erve and Development Fund, which ahall be uaed in auch .anner a. the Mayor and Common Council .ay direct from time to time. 1.3 (\ . APPLICANT AND ASSOCIATE, III partnership I MOUSEL DEVELOPMENT, INC., , er " REN for VAN MREN INC., it. general partner for a.ro;. OUIl' 1J:\1URof}1IS (CAI..D-1R\1A1. N, , its general partner . .L. ..__, .. ------ ------~- - 10 I \ -. . 'f .: I r'~~" -" .~ ":---~''-~T .j , . I . -- .." g 00 I .... ~ I !~ ~~ - .QI ..,.. gj ~ 2-:1 ~~ i ,.,1 0 Gl I ffii ib . ~ ... 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'" 0 lD Gl ... 8' . tl> u c: 0 ... ... 1: ... ... ti .Q Gl , .... ti :1 ti =11 .... ) c: 0 6 c: ~ ., ... ~ t: .... ... .c: B t: QI ... QI f:! .... ~ ... .. ... c: ~ ~ ... '" '" ... c: N ., '" I I 0 QI .... .... .. '" os ~ M ~ QI M ... . . '" '" .. I I I I I I ... I ... I .. I !! ~ ~ ~ :! :: ~ :! ~ ) .......,...~..- ...... . I...<...<...._':...~ ,~' ~ ~ . . . . . 1,020-43/07526/cr 6/13/85 NOTICE: OF PUBLIC HEARING BY THE CITY OF SAN BERNARDINO. CALIFORNIA. FOR A CERTAIN MULTIFAMILY MORTGAGE REVENUE eOND FINANCING AND THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (CAROUSEL DEVELOPMENT AND ASSOCIATE PROJECT) NOTICE IS HEREBY GIVEN that a public hearing shill be held by the City Council of the City of San Bernardino. Cllifornia, on July 1. 1985. at the hour of 11:00 A.M., in the Council Chambers. City H.II, 300 North -0- Street, Sin Bern.rdino, C.liforniB. for the purposes IS hereinafter set forth. The purpose of said public hearing is to consider the proposlI by Carousel Development and Associate. B California general partnership, or its successors or assions (the "Developer"). for the Redevelopment Aoency of the City of San Bernardino (the "Agency.) to provide certain industrial development revenue bond financing by the issuance of multifamily mortgage revenue bonds for the purpose of financing a project which shall include the acquisition of land and the d8.i9n and construction thereon of approximately seyen hundred twenty (720) apartment units in thirty-five (35) two-story buildings located in the State College Project in the City of San Bernardino. .california (the "City"), on an approximately forty-three (43) acre site in the University Park section of the six hunclred (600) acre master plan development known as Shandin Hills. on the north side of Kendall Drive. and approximately one and one-half (1-1/2) miles west of Little Mountain (the .Project"). The Project shall include approximately sixteen hundred (1600) on-site vehicle parkin9 spaces. three (3) swimll..ing pool s. landscaping. a recreat ion center. barbecue areas, basketball and volleyball facilities. There shall be three hundred sixty (360) one-bedroom, one-bath rental units and three hundred sixty (360) two bedroom. one-bath rental units. There shall be considered at such public hearing the public benefits and public purposes to accrue as the result of such financino by the Allency. and that the acqdsi tion or irr.proyement of the Project is in the public interest of the Agency. Said public hearing shall be held pursuant to Section l03(k) of the Internal Revenue Code of 1954. as amended. in the manner and for the purposes requirecl thereunder. All persons interested in the subject ~atter and the public purpose and public benefit and the issuance by the Agency of certain industrial development revenue bond financinll as described above in an estimated principal amount not to exceed thirty-two million dollars ($32.000.000) for the acquisition of land and the design and construction thereon of said Project to be undertaken by the Developer may attend such hearin9 and/or file their written objections or comments thereto. or may otherwise communicate in .favor of the Project to be undertaken by the Developer. and financed - 1 - I . ... . . 'by the Agency pursuant to the Community Redevelopment Law (Health and Satety Code Section 33000. et sea.) whether in one or more .serie. of such financing.. NOTICE GIVEN as of this 17th day of June, 1985. ,., &ffi;~~ ~f" Clty 1. of the City of San Bernardino, California To be published in The Sun on June 17, 1985, and June 24, 1985 . . - 2 - .