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LAW OFFICES
PARKER AN J) COVEHT
CLAYTON H. PARKE~
SPENCER E.COVERT, JR.
MARGARET A. CHIDESTER
P. ADDISON COVERT
SUSAN l. STRAIGHT
DANA W. PHILLIPS
CHARLES S. SCOlASTICO
E. WALLACE DINGMAN
A PAHT/lIEH"'t<lF' 01 ....O,-C~~IO.....l C:OIH'O"""0N~.
AREA CODE 714
TelEPHONE 913 - 2137
1901 EAST FOURTH STREET. SUITE 312
SANTA ANA, CALIFORNIA 92705
REF. OUR FilE
October 24, 1985
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Mayor and Common Council
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Re: San Bernardino City Unified School District's
Appeal From the Legislative Review Committee's
Decision of October 15, 1985 (Landtech Inc.)
Attention: Mayor Wilcox and Honorable Members of the
Common Council
Tbis firm represents the San Bernardino City Unified
School District with respect to .the above-entitled matter.
The San Bernardino City Unified School District hereby appeals
the decision of the Legislative Review Committee made on
October 15, 1985 in connection with the petition of Landtech
Inc. to exempt its project entitled Sun Pointe Village from
payment of school facilities fees pursuant to Resolution
llul1bers 85-337 and 85-354. This appeal is based on the
following grounds:
1. The District did not receive adequate notice of the
LeRislative Review Committee's hearing of October 15, 1985;
and
2. Landtech Inc. has not established that it qualifies
for an exemption from payment of school facilities fees.
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DISTRICT DID NOT RECEIVE ADEQUATE NOTICE OF
THE LEGISLATIVE REVIEW COMMITTEE
HEARING OF OCTOBER 15, 1985
The Distr.ict did not receive written notice of the
October 15, 1985 Legislative Review Committee hearing on
Landtech Inc.'s Petition for Exemption From School Fees.
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LAW OffICES
PARKER AND COVErn
l1ayor and Common Council
City of San Bernardino
October 24, 1985
Page two
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On October 9, 1985, the District received informal oral
notice of a hearing to be held on the Landtech Inc. Petition.
however, said notice was inaccurate in that the District was
advised that the hearing on Landtech's Petition would be
scheduled for 2:00 p.m. on October 15, 1985. The actual
hearing time was 12:30 p.m. on October 15, 1985.
The District received no information or communications
which advised it that the actual hearing time of Landtech
Inc.'s Petition was earlier than 2:00 p.m. on October 15.
1985.
The failure of City to provide the District with adequate
notice of the hearing scheduled for October 15, 1985,resulted
in the District being denied an opportunity to present its
case al!ainst Landtech Inc.'s request for exemption from school
facilities fees. As the District is the real party in
interest with respect to payment of school facilities fees and
exemptions thereto, due process requires the District to be
notified of such hearings and afforded an opportunity to rebut
the evidence presented by Landte.ch Inc. Such failure by the
City to notify the District of the Legislative Review
Committee's hearing of October 15, 1985 is a denial of the
District's right to due process and accordingly, the decision
of the Legislative Review Committee of October 15, 1985 should
be vacated by the Mayor and Common Council.
II
LANDTECH INC. DOES NOT QUALIFY FOR AN EXEMPTION
TO SCHOOL FACILITIES FEES
The District was not present at the Legislative Review
Committee hearing of October 15, 1985, however, documents
provided to the District by the City of San Bernardino clearly
indicate that the basis of Landtech Inc. 's request for
exemption to Resolution 85-337 (school facilities fees) rests
in Section 9-J of said resolution. The documents received by
the District from the City are an October 7, 1985 letter
addressed to City Attorney from Landtech Inc., a September 13,
1985 letter addressed to Steven C. Miller from Nevada National
Bank and a memo regarding the Legislative Review Committee
meeting of October 15, 1985. These documents are attached
hereto. as Exhibits A, B, and C respectively and incorporated
herein by this reference.
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LAW OFFICES
PARKER AND COVEl-ff
Mayor and Common Council
City of San Bernardino
October 24, 1985
Page three
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Section 9-J of Resolution 85-337 provides for an
exemption to the payment of school facilities fees if:
"Residential developments for which verified, firm
commitments for financing are in place and recorded
within 30 days following the date of the adoption
of this resolution."
Thus, an exemption under Section 9-J is proper only where
the residential developer establishes that verified, firm
commitments for financing are in place and recorded within 30
days following the date of adoption of Resolution 85-337.
Resolution 85-337 was adopted on August 19. 1985 and
thus, verification of a firm commitment for financing must be
in place and recorded before September 18, 1985. District is
advised that the only substantive documents presented by
Landtech Inc. at the hearing of October 15, 1985 to substan-
tiate its exemption pursuant to Section 9-J is Exhibit B. (No
documents other than Exhibit A, Band C were presented to the
District on its request for copi~s of the documents presented
at the Legislative Review Committee hearing of October 15,
1985 with respect to Landtech Inc.'s request for exemption.)
Clearly, Exhibit B, does not indicate on its face that it has
been recorded nor is there any other evidence that said letter
or any other document constituting a verified. firm commitment
for financing was recorded prior to September 18, 1985.
Consequently, Landtech Inc. does not qualify for exemption
pursuant to Section 9-J.
Moreover, the September 13, 1985 letter does not
constitute a verified, firm commitment. The September 13.
1985 letter states that financing is conditioned upon "review
and approval by lender's senior loan committee at lender's
sole discretion". Such conditional language is inconsistent
with Section 9-J's requirement that "firm commitments for
financing" are in place prior to September 18, 1985.
Notwithstandinl! the fact that Landtech Inc. did not
establish a recorded document evidencing verified, firm
commitments of financing in place as of September 18, 1985,
the Legislative Review Committee in its hearing of October 15.
1985 acted as follows:
"Committee recommends approval of Landtech's
request for exemption giving Landtech 30 days to
complete all necessary documents." (Exhibit C)
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lAW OFFICES
PARKEH AND COVERT
Mayor and Common Council
City of S~n Bernardino
October 24, 1985
Page four
This action taken by the Legislative Review Committee is
not consistent with Section 9-J in that it allovls Landtech to
put financing in place subsequent to September 18, 1985 and
allows the document evidencing such financing to be recorded
subsequent to September 18, 1985. Thus, the Legislative
Review Committee is acting in excess of the authority granted
to it by Resolution 85-337.
Finally, the City Attorney has determined that the letter
of September 13, 1985 does not qualify Landtech Inc. for an
exemption to payment of school facilities fees pursuant to
Section 9-J. (Exhibit D)
CONCLUSION
For the above stated reasons, San Bernardino City Unified
School District respectfully requests the Mayor and Common
Council to vacate. the October 15~ 1985 decision of the
Legislative Review Committee. -
Respectfully submitted,
PARKER AND COVERT
(tj~j~ ~i !r'J~.J ~6L'-"
CHARLES S. SCOLNSTICO,
Attorneys for San Bernardino
City Unified School District
CSS: ijdl155
cc: City Attorney's Office
Attn: John Wilson
San Bernardino City Unified
School District
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Nevada National Bank
September 13, 1985
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Mr. Stephen-C. Miller
LendTeeh Inc.
6' ~~ Br I sto I Perkwey 1270 iJ
Culver CIty, CA 902~0
RE: Sunpolnte VIllage
Deer ~Ir. Mill en
Pleese be advIsed thet Nevede Hetlonel Benk (hereIn "Lender") has epproved
f Inenc"lng on the above referenced epertment development In eccordence with the
fol lowIng terms end conditIons:
LOAN Ar-nJHT:
S2,500,OOO
12 I-Ionths
TERM:
IHTEREST RATE:
2.00% In excess of Lender's PrIme Rete adjusted delly.
8QPJlOWER :
The borrower shell be a Joint venture comprIsed of Young
Amerlcen Development of Nevlldll and LendTech Inc.
FEES:
1.50$ (S~7,500) plus llddltlonal costs of establishment of e
construction control llccount to be determined.
SECURITf:
The loan shall be unsecured.
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GUAAAtlTORCS>:
Norm Peterson, Jeck lIbby, Robert Bugbee, Arnold Oarlnl end
their wIves.
The above commitment Is subject to revIew and epproval by lender's SenIor Loen
Co~~ittee at Lender's sole discretion.
Steve, please feel free to cell me If you need any additIonal Information or
have any que tlons.
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Ro~J;l<<w
AssIstant VIce PresIdent
ce. Young AmerIcan Development
EXHIBIT
B
BY FEDERAL EXPRESS
Il.ar E.la,. D.perlm'''l
233 Soulh Fourlh Sr.. P.O. Box J8415
Ltu V.g..... N.ueda 89J 14 I Pho". (702/386-3719
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(
LEGISLA~E REVIEW COM~TEE
)
October 15, 1985
ATTENDEES:
Councilman Jack Strickler; Councilman Jack Reilly,
Councilman Gordon Quiel; Council Executive Assistant - Phil
Arvizo; Mayor's Administrative Assistant - Richard Bennecke,
Finance Director Warren Knudson; Deputy City Attorney-
John Wilson; Deputy City Administrator Ray Schweitzer;
Purchasing Agent - Dean Meech; Park Superintendent - James
Parker; Public Buildings Supt. - Wayne OVerstreet; Planning
Director - Frank Schuma; Building 'Safety Supt. - Jack
Rosebrough; GTE Representative - Pat Leather; Land Tech and
Allied Finance Representatives.
1. UTILITY TAX EXEMPTIONS - Discussion ensued on the
possibility of originating a program that will automatically
(on anniversary date) furnish an application to citizens who
are eligible for a Utility Tax Exemption. Issue was referred
to Mr. Warren Knudson for study, coordination with the
ut~~anies and report back within thirty days.
~ L~~TECH, INC. RE SUN POINTE VILLAGE - SCHOOL
IMPACTION Committee recommendS: approval of LandTech's
request for exemption giving LandTecb thirty days to complete
all necessary documents.
3. ORDINANCE GRAN'fING THE AUTHORITY 'l'O MAKE EMERGENCY
PURCHASES - Item tabled.
ORDINANCE ELIMINATING REQUIREMgNT OF SECOND PUBLICATION
OF BIDS AND AUTHORIZING PURCHASING AGENT 'l'O ESTABLISH/MAIN-
TAIN LIST OF SUPPLIERS AND TO MAIL REQUES'l' FOR BIDS - I tell",
tabled.
4. ORDINANCE - INCREASING EXPENDITURE LIMITATIONS, FROM
$4,000 'l'O $5,000, FOR PUBLIC PROJECT WHICH MUST BE CONTRACTED
FOR - Committee recommended approval.
5. REVIEW OF MUNICIPAL. CODE SECTIONS 19.62.050 AND
19.62.060 RE FENCES, HEDGES, WALLS - Item referred to Plan-
ning Director for review and recommendation to Committee.
EXHIBIT C
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CITiY~f..SAN BERNARDINO
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300 NOR1H .'D" ~TAEET. SAN Bf.RNARDINO. CALlFOR'~IA 92t;lB
RALPH H. PRINCE
CITY Al10~NfY
Septemb~r 27,1985
14.9917
Gary W. Smith
Attorney at Law
Suite 408 First American building
323 West Court Street
San Bernardino, California 92401
Re: Sunpointe Village (LandTech, Inc.)
Dear Mr. Smith:
I am in receipt of your letter of Septe~ber 23, 1985, asking
whether the letter of the Nevada National Bank dated September
13, 1985, approving financing for Sunpointe Village complies with
the exemption provisions of Subsection 9J of Resolution No. 85-
337, the "school impaction" fee resolution.
The financing is conditioned by the following language in the
letter:
"The above commitment is subject to review and
approval by Lender's Senior Loan Committee at
Lender's sole dis~retion."
Thus, it was a conditional and not, in my judgment, a verified
firm commitment for financing in place and recorded as required
by Subsection 9J, 2S W2S previously det~rmined by John ~ilson,
Deputy City Attorney on September 16 and on September 19, i;c~.
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RALPH H. PRINCE
City 'Attorney
RHP:ca
cc:: Frank Ayala
John Wilson
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EXHIBIT D