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HomeMy WebLinkAbout10-Redevelopment Agency R&CcYELOPMENT AGENCY-.:.AuEST FOR -.bMMISSION/COUNCIL A~ION .... From: Glenda Saul, Executive Director ,.- ,-"t: Redevelopment Agency Subject: TEFRA PUBLIC HEARING - NOBLE PROPERTIES, INC. PROJECT Date: October 14, 1985 Synopsis of Previous Commission/Council action: 9-23-85 Adopted Resolution 85-382, inducement resolution and setting TEFRA Public Hearing Recommended motion: (MAYOR AND COMMON COUNCIL) /.,-,^ I "'- RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF TIlE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON THE ISSUANCE OF APPROXIMATELY $15,920,000 PRINCIPAL AMOUNT OF MULTIFAMILY MORTGAGE REVENUE BONDS (NOBLE PROPERTIES, INC. PROJECT) ~# Signature Contact person: GLENDA SAUL FUNDING REQUIREMENTS: Amount: $ N/A Phone: 383-5081 Ward: 1 Project: N/A Date: October 21, 1985 Supporting data attached: YES No adverse Impact on City: P'""'ncil Notes: ........ 1 "~1 1/.." Agenda Item No, If) CI~ OF SAN BERNARD~O - REQU~T FOR COUNCIL Acl10N " ~ '- ,......,.., ~ -- '-' 75-0264 STAFF REPORT Ordinance 3815 provides for the issuance of Multifamily Mortgage Revenue Bonds. Noble Properties has submitted an application for finance. The Resolution before you today is the TEFRA Public Hearing required under the Tax Equity Fiscal Responsibility Act of 1984. A recap of the project application follows: APPLICANT: Noble Properties, Inc. AMOUNT OF FINANCING; $15,920,000 PROJECT: Construction of a 300 unit multifamily rental housing development LOCATION: 20.6 acre parcel of land located on the north side of 6th Street between Sterling Avenue and Lankershim Avenue. TARGET DATE OF FINANCING: December, 1985 CONSTRUCTION SCHEDULE: As soon as possible after financing - completed by February, 1987 RESERVE & DEVELOPMENT FEE: 1% x $15,920,000 - $159,200 INCREASE IN JOBS: During Construction Only RENT SCHEDULE: 2 Bedroom - $395.00/month 3 Bedroom - $425.00/month 4 Bedroom - $505.00/month ZONING; R-3-2000 - 21.78 units per acre Project Total - 14.56 per acre Bond Counsel will be present to answer any questions. l451J/EB 10-21-85 c -- \- c c /'" ., \j l,020-82/1030S/cmh 10/10/85 , j -- 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 $15,920.000 PRINCIPAL AMOUNT OF MULTIFAMILY MORTGAGE REVENUE BONDS (NOBLE PROPERTIES, INC. PROJECT) WHEREAS, the City of San Bernardino, California (the "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 enabling various developers to finance the cost of 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 opportunities increase the employment and to availability of moderately priced rental units for residents of the City and to broaden the tax and revenue base of the City without any liability to the City whatsoever; and - 1 - c r ~, /. '-" '-' --' , WHEREAS. there has been presented to the Mayor and Common .--- .,-, Council of the City of San Bernardino. California (the "Mayor and Common Council"). a certain Application by Noble Properties. Inc.. a California corporation. or its successors or assigns (the "Applicant"). requesting the issuance of multifamily mortgage revenue bonds in the principal amount not to exceed $15.920.000 for the purpose of financing. on behalf of the Applicant. a certain Project. to wit: the acquisition of an approximately twenty and six~tenths (20.6) acre parcel of land located on the north side of 6th Street between Sterling Avenue and Lankershim Avenue in the City and the construction and operation thereon of a three hundred (300) unit multifamily rental housing development and which Project shall include an appropriate mix of two. three and four bedroom units. on-site vehicle parking spaces. laundry and recreation rooms. <=: appurtenant landscaping and other improvements: and WHEREAS. the certain amendments to Section 103 of the Internal Revenue Code of 1954. as amended (the "Code"). as enacted by Congress under the Tax Equity and Fiscal Responsibility Act of 1982 ("T.E.F.R.A."). req~ire that a pUblic hearing be held in connection with tile authorization and issuance of any industrial development bonds including such bonds issued for the purpose of enabling various developers to finance the cost of mUltifamily rental housing; and -- , '- - 2 - c c '..-...... v WHEREAS, pursuant to its Resolution No. 85-382. adopted r-- September 23, 1985. said Mayor and Common Council declared its "-' intent to issue multifamily mortgage revenue bonds in an aggregate principal amount not to exceed $15.920.000 for the purpose of financing the Project and set a pUblic hearing for October 21. 1985, as required by Section 103(k) of the Code; and WHEREAS. the City. pursuant to Resolution No. 85-382, has authorized the pUblication of notice of said public hearing, which notice has been duly published in The Sun; and WHEREAS. the City must now approve the findings and determinations to be made in connection with 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 City, after having conducted a pUblic hearing. notice of which was duly published in a newspaper of general circulation within the City as said pUblic hearing is required pursuant to the requirements of Section 103(k) of the Code, does hereby find and determine that the purposes and intent of the ,-"";- '- - 3 - c -- '-' ,- '- c .,.-.., v , ) I""" '-" Ordinance. as amended. will be furthered by the issuance of multifamily mortgage revenue bonds for the express purpose of providing financing to assist the Applicant to develop the Project. The total principal amount of the multifamily mortgage revenue bonds which shall be issued to assist the Applicant to develop the Project shall not exceed $15.920.000. The multifamily mortgage revenue bonds shall be issued upon such terms and conditions as shall be set forth in one or more Project Agreements by and among the City and the Applicant or such other documents prepared in connection with the issuance and delivery of the multifamily mortgage revenue bonds. and shall be issued solely for the Project but in any event said Agreements shall clearly state that the funds of the City are not liable. nor shall be pledged. for repayment of the multifamily mortgage revenue bonds. Section 3. The Mayor and Common Council hereby finds and determines that the public purposes and pUblic benefits as set forth in the Ordinance. as amended. will be furthered by the issuance of the multifamily mortgage revenue bonds; specifically. that the multifamily mortgage revenue bonds will provide for financing to assist the Applicant to develop an approximately three hundred (300) 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 employment opportunities within the City. - 4 - c .-. '- ,- '- c ,- '-' " ~,..J , Section 4. The Mayor of the City is hereby appointed as the elected official to approve the issuance of the multifamily mortgage revenue bonds pursuant to Section 103 (k) of the Code at such time as the Mayor and Common Council shall have approved the other appropriate mUltifamily mortgage revenue bond financing documents as referenced in Section 2 of this Resolution. Section 5. 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 wi thin the meaning of any constitutional or statutory debt limitation or restriction. Nei ther 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. - 5 - c c --., .....) ~) Section 6. The Applicant shall provide appropriate "- '- covenants in the tax-exempt financing documents as may hereinafter be submitted to the City for consideration and approval in a form acceptable to the City Attorney and Bond Counsel and to assure that not less than twenty percent (20\) of the multifamily rental housing units included in the project are to be occupied or reserved for occupancy by the individuals of low and moderate income as provided in the Code. Section 7. Prior to issuance of any bonds for the Project as may hereafter be approved pursuant to an appropriate resolution or resolutions of the City. the Applicant shall provide for the recordation of a covenant running with the land in a form approved by the City Attorney of the City whereunder the Applicant ~ waives any claim under state law to a density bonus. as defined by \..... Government Code Sections 65915 and 65915.5. for the property on which the project is to be constructed. Section 8. Adoption of this Resolution shall not be construed as approval of the plans or concept of the proposed development, nor as an indication that the Mayor and Common Council will hereafter take any particular action toward granting any planning, zoning, or other approval relating to a plan of development. The Mayor and Common Council reserves its right to evaluate any future adminstrative procedures and appeals based solely on the information available at the time of consideration, c - 6 - , ,.~' "~ i...., r' ...... -... v , including any actions or recommendations by or appeals from the C Development Review Committee and the Planning Commission. Nothing herein shall be construed as advance commitment or approval as to any such matter. and the Applicant is hereby notified that normal planning processing shall be required. in accordance with the standard procedures of the City and that Applicant will be required to comply with all applicable laws and ordinances of the City. State and federal government. Section 9. This Resolution shall take effect upon adoption. I HEREBY adopted by the San Bernardino at day of CERTIFY that the foregoing resolution was duly Mayor and Common Council of the City of a 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 . 1985. day Mayor of the City of San Bernardino Approved as to form: ~~~ (City Attorney - 7 - ,..-.. '- ,,- '- ,-- '- c r........ .",..,. >....-I ~. ,/ ....... STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss. CITY OF SAN BERNARDINO ) I. SHAUNA CLARK. City Clerk in and for the City of San Bernardino. DO HEREBY CERTIFY that the foregoing and attached copy of San Bernardino City Resolution No. is a full. true and correct copy of that now on file in this office. IN WITNESS WHEREOF. I have hereunto set my hand and affixed the official seal of the City of San Bernardino this day of . 1985. City Clerk - 8 - - - \..... {-, '- _. \..- - c ~" .J \ j r-. '-" EXHIBIT "A" l,020-76/0952S/cmh 09/12/85 APPLICATION OF NOBLE PROPERTIES, 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 "Noble Properties, Inc." 1.2' The Applicant is a California corporation which shall be engaged in the development, construction, leasing and ownership of a three hundred (300) unit multifamily rental housing development on real property located on the north side of 6th Street between Sterling Avenue and Lankershim Avenue in the City of San Bernardino, California (the "Project"). The Applicant has an option to acquire said property (the "Property") and shall develop the Property and construct the Project thereon. 1.3 The mailing address and the address of the Applicant is as follows: Noble Properties, Inc. 1746 Spruce Street Riverside, California 92507 1.4 Employer Tax I.D. No. has been applied for. 1.5 Ms. Deborah L. Pentkowski and Mr. Freeman A. Parsons are the principal contacts for the Applicant. 1.6 Telephone Number (714) 788-5700. 1.7 The Applicant is a California corporation. 1.7.1 The Applicant shall conduct business in the Riverside, California, County of Riverside, California. City State of of 1.7.2 The Applicant was incorporated on June 21, 1985. 1.8 The Applicant is a wholly-owned subsidiary of Greyhawk, Ltd., a Nevada corporation ("Greyhawk, Ltd."). 1.9 The principal officers and directors of both the Applicant and Greyhawk, Ltd., are Dean O. Bradley and Donald E. Morgenstern, C.P.A. William A. Zambonie is a principal officer and director of the Applicant. Said officers and directors may be contacted at the above-listed address of the Applicant. - 1 - c c c c 1.10 ....... '-" ,J The principal officers and directors of the Applicant and Greyhawk, Ltd., are also the principal officers and directors of: 1.11.1 1.ll.2 1.12.1 1.12.2 1.12.3 1.12.4 Noble Capital Corporation, a California corporation; American Dualwide Homes, a Nevada corporation; Pacific Living Systems, a Nevada corporation; Pacific Living Systems, a California corporation; and Noble Mortgage Corporation, a California corporation. 1.11 Employees 'The Applicant currently has eight (8) permanent office employees. Although the principal objective of the Project is to provide affordable rental housing to the citizens of the City, the construction and operation of the Project will create certain employment opportunities within the City. The Applicant is engaged in real estate development and has projects in San Bernardino and Riverside Counties. Noble Capital Corporation is engaged in real estate development and has projects in San Bernardino and Riverside Counties. American Dualwide Homes is engaged in the production of manufactured housing and has a manufacturing facility in the City of Riverside, California. Pacific Living Systems (Nevada) is engaged in the export of manufactured housing and has a business office in the City of Reno, Nevada. Pacific Living Systems (California) is engaged in the production of manufactured housing and has a manufacturing facility in the City of Riverside, California. Noble Mortgage Corporation is a mortgage originator and servicer has an office in the City of Riverside, California. The sole business office of the Applicant is located at the above-listed address. 1.12 Professional services will be provided by the following: The accountant for the Applicant is Leo Giroir, C.P.A., and he is located at 7177 Brockton Avenue, Suite 216, Riverside, California 92506. The attorney for the Applicant is George Gillette, Esq., and he is located at 335 Centennial Way, Tustin, California 92680. The law offices of Sabo & Gondek, a Professional Corporation, shall serve as Bond Counsel to the City with regard to the tax-exempt financing for the Project. The principal architect and civil engineer. for the Project is L. A. Wainscott & Associates, and they are located at 22400 Barton Road, Suite 200, Grand Terrace, California 92324; Larry Vesely shall be the principal contact. - 2 - .. /'--- '- c' ,,- '- c c o ; ........- 1.12.5 The financial consultant for the Financial Services, North Fif th California 92373; the principal Jeff Stoffel. Applicant Street, contact is J & K Redlands, shall be 1.13 The principal banking accounts of the Applicant shall be held by Rancho Bank, 530 West Bonita Avenue, San Dimas, California 91773; the principal contact shall be Jerry Burgh. 1.14 The source of funding for the Project is anticipated to be derived from a variety of sources including the private placement of a tax-exempt bond or other obligation with a lender to be obtained hereafter. 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 Project cost - $11,000,000 Legal, printing and related fees - $160,000 2.1.2 2.1.3 Financing costs and fees - $1,600,000 2.1.4 Capitalized interest - $360,000 2.1.5 Other miscellaneous costs - $1,000,000 2.1.6 Land acquisition - $1,800,000 Total: $15,920,000 2.2 The estimated target date for the financing is presently anticipated in December of 1985, with construction to commence as soon as possible after the financing package is completed and to be completed by February of 1987. 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 will 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. - 3 - c t"'''' ,,-...., , v ""'" ,j :- '- PART III FINANCIAL INFORMATION 3.1 The financial statements of the Applicant are included as Exhibit "A" hereto. 3.2 The Applicant is a small business doing business as a California corporation pursuant to the laws of the State of California and the Applicant would be considered a small business with regard to its relative size in comparison with other such businesses undertaking projects of this type. Although the Applicant is a small business, no federal small business loan guarantees are proposed in connection with the proposed financing as contemplated by this Application. PART IV PROJECT INFORMATION 4.1 The Project as proposed by the Applicant shall include the acquisition of an approximately twenty and six-tenths (20.6) acre parcel of land located on the north side of 6th Street between Sterling Avenue and Lankershim Avenue in the City, and the construction and operation thereon of a three hundred (300) unit multifamily rental housing development. The Project shall include an appropriate mix of two, three and four bedroom units, on-site vehicle parking spaces, laundry and recreation rooms, appurtenant landscaping and other improvements. The Project shall be located on land more particularly described and included as Exhibit "B" hereto. r, '-' 4.1.1 The three hundred (300) unit multifamily rental housing development shall have the following proposed rent schedule: Unit Description 2 bedroom 3 bedroom 4 bedroom Proposed Rent/month $395.00 $425.00 $505.00 4.2 The components and the estimated total cost of the functional parts of the Project are as follows: 4.2.1 Land - $1,800,000 4.2.2 Building construction - $10,000,000 4.2.3 Site preparation, engineering and technical services and City fees - $1,000,000 Total: $12,800,000 -- I...... - 4 - ~,,- ,,-. r:;-. '- /_. '- c - r ",", ,....,"'1\\ , .,) v ""'" 4.2.4 Miscellaneous items - a. 31 construction contingency - $300,000 b. Developer's overhead and profit - $1,638,000 c. Interest during construction - $1,000,000 d. Real estate brokerage commission - $182,000 Total: $15,920,000 4.3 The estimated construction period for the Project is as follows: 4.3.1 Construction of the Project would cOllllllence as soon as possible after issuance of the tax-exempt obligations. 4.3.2 The planned construction shall be completed by February of 1987. 4.4 The supervising civil engineer responsible for the design of the Project on behalf of the Applicant shall be Larry Vesely of L. A. Wainscott & Associates. 4.5 The Project shall be known as the "Noble Apartments". 4.6 The Project is the development of a new 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. The Project shall utilize conventional construction methods and for all purposes under the applicable federal tax laws and the laws of the State of California providing for or permitting the issuance of mortgage revenue bonds for the Project 4.7 The Applicant owns an option to acquire the Property on which the Project is proposed to be located. Any escrow to acquire the Property shall not exceed $1,800,000. 4.8 The Project will provide three hundred (300) units of affordable rental housing to the citizens of the City of San Bernardino. 4.8.1 Attached as Exhibit "c" is an 8-1/2 x II inch map showing the site location of the proposed Project. 4.9 A negative declaration pursuant to the prov1s1ons of the California Environmental Quality Act of 1970, as amended, would in all probability be satisfactory for the Project as proposed by the Applicant. However, the Project shall comply with all applicable provisions of said Act. - 5 - r '- t, c c -- - I'*' '-' .~ '-" ......'.... J 4.10 There are no permits, water quality enforcement orders, air pollution permits or variances or other evidence of actions necessary in connection with this Project. A sewer permit for the service of three hundred (300) apartments is now available and will be obtained prior to construction. 4.ll 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, 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 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. 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 a 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. 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 to add approximately $12,000,000 of assessed valuation to the tax rolls of the City. 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 the financing and construction of the Project within an accelerated time frame. The method of - 6 - ~ c c t - '- 1''''-' '-" "'"" . ...,. ....~./ 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, 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 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, the 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 cOllllllits to cause and lor 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. - 7 - /~ ........ Ci -. L- c - r '-' .'1 '-" .'""'"" ..-J 6.4 The Applicant will supply any additional information, agreements and undertakings as the City may require as a result of conferences and negotiations will be reproduced and supplied to the City and shall be deemed as supplements or amendments to this Application. 6.5 The Applicant shall provide appropriate covenants in the tax-exempt financing documents as may hereinafter be submitted to the City for consideration and approval in a form acceptable to the City Attorney and Bond Counsel and to assure that not less than twenty percent (201) of the multifamily rental housing units included in the Project are to be occupied or reserved for occupancy by the individuals of low and moderate income as provided in the Internal Revenue Code of 1954, as amended (the "Code"). 6.6 Prior to issuance of any bonds for the Project as may hereafter be approved pursuant to the appropriate resolution or resolutions of the City, the Applicant shall provide for the recordation of a covenant running with the land in a form approved by the City Attorney of the City whereunder the Applicant waives any claim under state law to a density bonus, as defined by Government Code Sections 65915 and 65915.5, for the property on which the Project is to be constructed. 6.7 The Applicant acknowledges and recognizes that acceptance of this application shall not be construed as approval of the plans or concept of the proposed development, nor as an indication that the Mayor and Common Council of the City of San Bernardino, California (the "Mayor and CODlllOn Council"), will hereafter take any particular action toward granting any planning, zoning, or other approval relating to a plan of development. The Applicant acknowledges and recognizes that the Mayor and COllllllon Council reserves its right to evaluate any future administrative procedures and appeals based solely on the information available at the time of consideration, including any actions or recommendations by or appeals from the Development Review Committee and the Planning Commission. The Applicant acknowledges and recognizes that nothing herein shall be construed as advance commitment or approval as to any such matter, and the Applicant hereby acknowledges and recognizes that normal planning processing shall be required, in accordance with the standard procedures of the City and that Applicant will be required to comply with all applicable laws and ordinances of the City, State and federal government. - 8 - .' /'- '- - '- - \..- c - v ....""'" , ~ '-' PART VII FEE SCHEDULE 7.1 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: 7.2 All fees of the City may be capitalized and included in the bond issue as acceptable to the bond purchaser. 7.3 The Applicant acknowledges that 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 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. 7.4 Pursuant to Resolution No. 81-108 of the City, as amended by Resolution No. 81-410 of the City, one percent (11) 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. - 9 - ~~".,... '- t' -- ........ c - ,-. i....,' --. ...,.,4 PART VIII SIGNATURE 8.1 The undersigned, as the 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. "APPLICANT" a Calif By: ,- '- t c - ...... - - - - - I..,~ ,.......- .......... " ....J '-' ""'" GOARAN'1'IlE AGREEMENT EXHIBIT "A" Property Description Parcel No.2: That portion of the West ~ of the Lot 3, Block 62, Rancho San Bernardino, as per plat recorded in Book 7 of Maps, Page 2, Records of said County, ' lying Northerly of the center line of Sixth Street, (formerly known as Rathburn Street), as described in the Deed to the County of San Bernardino, recorded June 25, 1926 in Book 1100, Page 351, of Official Records. Except therefrom an undivided ~ interest in and to that certain well site and in and to the well; and in and to the pipe line running South therefrom, which said well site is. more particularly described as follows. Beginning at the point of intersection of the center line of Sixth Street and the East line of the West ~ of said Lot 3, Block 62, Thence North along the said East line of the said West ~ of said Lot 3, North 0016' West 620 feet for the true point of beginning, Thence West parallel with the center line of Sixth Street, 25 feet to a point, Thence North parallel to the East line of the West ~ of said Lot 3. a distance of 40 feet, Thence East 25 feet to a point in the East line of the West ~ of said Lot 3, a distance of 40 feet to the Point of Beginning. - - 'i . , \,"~, " .' ( ,,-- ........ t, c 1.0' - I en '" t\j ... .. ;;: '" ::> 00 .S ~ 1!q o COO' t'g "'uon c_~ ~a2Q o .S ~ E Q) !Xl ~ c:'" o . (l)CI! ~ o .c: u c: o ll: .: & @ -- - -- ...... ""I J" ...11...& . II .1' ..;,~.1 . .. 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