HomeMy WebLinkAboutR23-Redevelopment Agency
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AGBNCY.MQUEST POR co.IlSSION/COUNCIL ACTION
em: Glenda Saul, Executive Director
Oept: Redevelopment Agency
Date: December 11, 1985
Subject: TEFRA PUBLIC HEARING CAL-SHEL PROJECT
Synopsis of Previous Commission/Council ection:
10/1/84 Adopted Resolution 84-383, inducement resolution
6/17/85 Community Development Commission adopted Resolution 4770 reinducing the
project for a Redevelopment Agency issue
7/1/85 Adopted Resolution 85-237 - TEFRA Public Hearing
12-2-85 Adopted Resolution 85-504 ratifying publication of Notice and setting
TEFRA Public Hearing.
Recommended motion: (MAYOR AND COMMON COUNCIL)
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Open Public Hearing
Close Public Hearing
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
AMENDING A CERTAIN APPLICATION AND RATIFYING THE PUBLICATION OF A NOTICE OF PUBLIC
HEARING ON THE ISSUANCE OF APPROXIMATELY $27,000,000 PRINCIPAL AMOUNT OF MULTIFAMILY
MORTGAGE REVENUE BONDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
(CAL-SHEL PROJECT)
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Signature
Glenda Saul
Contact person:
Supporting data attached:
YES
Phone: 383-5081
5
Ward:
FUNDING REQUIREMENTS:
Amount: $
N/A
SC
Project :
December 16, 1985
No edverse Impact on City:
CCil Notas:
17*",11
12-16-85
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CIO OF SAN BERNARDCo - REQUQT FOR COUNCIL A~ON
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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 was
reached. On June 17, 1985, the Community Development Commission approved
Resolution 4770 re1nducing the project as a Redevelopment Agency issue. The
resolution before you is for the TEFRA public hearing (Tax Equity and Fiscal
Responsibility Act). A TEFRA public hearing was held on July 1, 1985. However,
bond counsel has requested another TEFRA hearing since the developer has
requested an additional $2,000,000 in financing.
The name of the project has been changed to Ca1-She1j 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:
$27,000,000 (amended from $25,000,000)
Purpose:
Construction of 720 apartment units in 35
two-story buildings located on a 43-acre site to
include three swimming pools and 1,600 vehicle
parking spaces
Location:
Shandin 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, 1986 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 $27,000,000 . $270,000
1 bedroom - $460/mo. (360 units)
2 bedroom - $490/mo. (360 units)
720 Units
Rental Schedule:
172G/EB
12-16-85
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CI10 OF SAN BERNARDIO - REQUa FOR COUNCIL ACQN
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75-0264
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STAFF REPORT
In order for the City to i88ue Multifamily Mortgage Revenue Bonde under our IDB
Ordinance, the applicant aust agree to rent 20 percent of the unite to
low/.oderate incoae f8lllilie8 for a8 long as the bond is out8tanding. The
applicant agrees to this covenant in the final bond dOCUllents.
The project location i8 zoned a-l and PRD (ReBidential, Planned Ree1dential
Developllent) and the project would have appronmate1y 16.74 unite per acre. The
applicant will not reque8t a density bonus.
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SBE 069-2/l273S/jm
12106/85
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING A
CERTAIN APPLICATION AND RATIFYING THE PUBLICATION
OF A NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF
APPROXIMATELY $27,000,000 PRINCIPAL AMOUNT OF
MULTIFAMILY MORTGAGE REVENUE BONDS BY THE
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO (CAL-SHEL PROJECT)
WHEREAS, the Community Development Commission of the Ci ty
of San Bernardino (the "Commission"), on behalf of the Redevelopment
Agency of the City of San Bernardino (the "Agency"), is authorized
by the Community Redevelopment Law of the State of California,
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constituting Part 1 of Division 24 of the California Health and
Safety Code (the "Community 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 wi thin
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 "Applicant"),
has previously submitted a certain application (the "Application")
to the Mayor and Common Council of the City of San Bernardino,
California
(the
"Mayo r and Common Counc i I" ) ,
for tax-exempt
financing for a certain multifamily rental housing development
c:: pursuant to Ordinance 3815, as amended, and the Applicant has
previously requested the Agency to issue and sell its multifamily
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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 "Project") pursuant to the Community Redevelopment
L9w without any liability to the City, the Commission or the Agency
whatsoever; 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, shall include approximately sixteen hundred (1600)
on-site vehicle 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 renta 1 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 of financing the Project; and
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WHEREAS, pursuant to its Resolution, adopted on June 17,
1985, and entitled:
"Resolution of the Communi ty Development
Commission of the City of San Bernardino
Declaring its Intent to Issue Multifamily
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 "Bonds") 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 City Council, by adoption of its Resolution
No. 85-237 on July 2, 1985 approved the substitution of Ca 1-Shel, a
California general partnership, or its successors or assigns (the
"Developer")
the Applicant
for
beneficiary of
said
as
the
Resolutions of the Mayor and Common Council and the Commission,
approved the findings and determinations to be made in connection
with the public hearing as required pursuant to Section 103(k) of
the Interna 1 Revenue Code of 1954, as amended (the "Code"), and
declared its intent that the Developer be the beneficiary of said
public hearing and that Bonds be issued in an amount not to exceed
$25,000,000; and.
WHEREAS, the City has been requested by the Developer to
accept certain conforming amendments to the Application to effect,
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in view of ,certain increases in the total anticipated cost of
construction of the Project, an increase in the aggregate principal
amount of tax-exempt financing for the Project from $25,000,000 to
$27,000,000; and
WHEREAS, the certain amendments to Section 103 of the Code,
as enacted by Congress under the Tax Equity and Fiscal
Responsibility Act of 1982 ("T.E.F.R.A."), require that a public
hearing be held in connection with the 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
C WHEREAS, the City has been requested by the Applicant to
hold a public hearing pursuant to the Code, as amended by
T.E.F.R.A., for the issuance and sale of multifamily mortgage
revenue bonds by the Agency to provide funds for the financing of
the Project of the Applicant to be located within the City as
permitted by the Community Redevelopment Law; and
WHEREAS, the City must now approve the requests of the
Applicant.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
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Section 1. The recitals set forth hereinabove are true
and correct in all respects.
Section 2. The Mayor and Common Council hereby accepts
and approves the conforming amendments to the Application of the
Applicant, which amendments effect, in view of certain increases in
the total anticipated cost of construction of the Project, an
increase in the aggregate principal amount of tax-exempt financing
for the Project from $25,000,000 to $27,000,000.
Section 3. Pursuant to the requi rements of Code
Section 103(k), the Mayor and Common Council hereby ratifies and
approves the publication of notice of the public hearing by the City
Clerk in connection with the Project referred to in the recitals
hereof to be held in accordance with said Code Section 103(k) on
December 16, 1985, at the hour of 11:00 A.M., in the Council
Chambers, San Bernardino City Hall, for the purpose of considering
the public benefits and public purposes to be furthered by the
financing or financings contemplated by the action of the City
pursuant to this Resolution for the issuance by the Agency of
multifamily mortgage revenue bonds by the Agency for the Project
pursuant to the Community Redevelopment Law and the Ordinance, as
amended. A public hearing shall be held at the hour and on the date
herein provided for the Project. The Mayor and Common Council
hereby ratifies and approves the action of the City Clerk, which
City Clerk caused to be published by at least two (2) insertions,
one of which shall not be less than fourteen (14) days prior to said
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hearing, in The Sun, a notice of public hearing substantially in the
form of the notice attached hereto as Exhibit "A" and incorporated
herein by reference and made a part hereof.
Section 4. 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 5. Prior to issuance of any bonds for the
Project as may hereafter be approved pursuant to an appropriate
resolution or resolutions of the Agency and 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 6. The approval as herein granted and the final
approval of the Project and the financing thereof are specifically
conditioned upon the Mayor and Common Council approving the final
environmental assessments and other environmental documents prepared
or to be prepared pursuant to the provisions of the California
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Environmentai Quality Act of 1970, as amended, with respect to any
and all environmental conditions with regard to the operations of
the Project as proposed by the Developer in the Application.
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, including any actions or recommendations
by or appeals from the Development Review Committee and the Planning
Commission. Nothing herein shall be construed as advance commitment
C or approval as to any such matter, and the Developer is hereby
notified that normal planning processing shall be required, in
accordance with the standard procedures of the City and that
Developer will be required to comply with all applicable laws and
ordinances of the City, State and federal government.
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Secfion 7.
This Resolution shall take effect upon
adoption.
I HEREBY
adopted by the
San Bernardino at
day of
CERTIFY that
Mayor and
a
the foregoing resolution was duly
Common Counci 1 of the City of
meeting thereof, held on the
, 1985, by the following vote, to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
C of
The foregoing resolution is hereby approved this
, 1985.
day
Mayor of the City of
San Bernardino
Approved as to form:
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;61.tZulJ::.ity Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO)
CITY OF SAN BERNARDINO )
ss.
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
the official seal of the City of San Bernardino this
, 1985.
and affixed
day of
City Clerk
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EXHIBIT "A"
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NOTICE OF PUBLIC HEARING BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, FOR A CERTAIN MULTIFAMILY MORTGAGE
REVENUE BOND FINANCING AND THE ISSUANCE BY THE
CITY OF MULTIFAMILY MORTGAGE REVENUE REVENUE
BONDS IN CONNECTION THEREWITH (CAL-SHEL PROJECT)
NOTICE IS HEREBY GIVEN that a public hearing shall be
conducted by the Mayor and Common Council of the City of San
Bernardino, California (the "Mayor and Common Council") on Monday,
December 16, 1985, at the hour of 11:00 A.M., in the Council
Chambers,
City Hall,
300 North
"D"
Street,
San Bernardino,
California 92418, for the purpose as hereinafter set forth.
The purpose of said public hearing is to consider a
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proposal by CAL-SHEL,
a California
general
partnership,
or
its
successors or assigns
(the "Developer"),
in accordance with
Section 103(k) of the Internal Revenue Code of 1954, as amended, for
the Redevelopment Agency of the City of San Bernardino, California
(the "Agency"), to provide certain industrial development revenue
bond financing by the issuance of multifamily mortgage revenue bonds
for the "University Park Apartments Project" which Project shall
consist of the acquisition of land and the construction thereon in
one or more phases of approximately seven hundred twenty (720)
apartment units in thi rty-fi ve (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 Hi 11s, on the north side of Kenda 11
C Drive, and approximately one and one-half (1-1/2) miles west of
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Li ttle Mountain,
shall include approximately sixteen hundred (1600)
on-site
vehicle
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.
The Agency intends to issue its multifamily mortgage
revenue bonds pursuant to Part 1 of Division 24 of the California
Health and Safety Code (the .Community Redevelopment Law"). The
financing for this Project shall be derived from the issuance of
tax-exempt bonds in a maximum principal amount presently estimated
not to exceed Twenty-Seven Million Dollars ($27,000,000). The City
C intends to issue its bonds pursuant to the Community Redevelopment
Law, in an amount present ly estimated not to exceed $27,000,000 for
the financing thereof without any liability to the Agency or the
Ci ty whatsoever.
All persons interested in the subject matter and the pUblic
purposes and public benefits and the issuance by the Agency, of
multifamily mortgage revenue bonds in an estimated principal amount
not to exceed $27,000,000 in connection with the Project may attend
such hearing and/or file their written comments thereto.
NOTICE GIVEN as of this 26th day of November
1985.
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/S/ Glenda Saul
City Clerk of the City of
San Bernardino, California
To be published in The Sun on 11/29/85 and 12/6/85
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APPLJCA~JON OP CARous~i DEVELOPM~NT aNn aSS~Ta~~
.OR INDUSTRIAL .rv2NUE BOND .tNAN~TNG
~ITY OF SAN RERNARnTNO. t'!&T.TPORNtA
GENERAL AND BUSINESS INFDIUlATION
~be legalna.e of tbe Applicant is .Carousel Develop-
.ent and Associate.-
~be applicant is a California partnersbip in the
process of for.ation which .hall engage in the
development, leasing, and ownership of approximately
720 apartment units located in tbe Sbandin Bills
.ubdivi.ion off of lendall Drive in the City of San
Bernardino, California. ~he real property where
tbe apartments will be constructed is owned by Block
Bros. Industries (USA) Inc., one of tbe general
partners of the partner.bip.
~he .ailing address of the Applicant is:
Carousel Development and Associate
720-475 Bowe St.
Vancouver, British Columbia
CANADA V6C 283
Employer ~ax I.D. No. - HA
1.5 Mr. Rick Jeffs is the prinCipal contact for the
Applicant.
1.6 ~be telepbone number for the Applicant is 604 689-2944.
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~he Applicant is a California general partnership in
the process of formation.
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~he Applicant .hall own property and conduct
business in the County of San Bernardino,
State of California.
~he general partnersbip organizational
documents of the Applicant shall be executed
prior to the time when Applicant acquires
legal title to said property wbicb shall be
developed in connection witb the Project.
~be Applicant is not related to any other
legal entity.
~be ownership interest of each of the general partners
associated with the Applicant .hall be as follows:
1.7.2
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carou..l Dev.lopa.nt, Inc. ,
a california corporation
25'
Van Karan Con.truction, Inc.,
a California corporation 25'
Block Group Devalopa.nt. (California), Inc. 50'
1.' 'l'h. n... of 1:11. ,.n.ral partn.r of Applicant who will
bav. priaary r..pon.ibility of con4uctinq ~he
budn... of 1:11. Applicant 1a a. follow.:
1Ir. Rick J.ff.
'04 'U-2tU
1.10 au.in... venture. of 1:I1e ,en.ral partn.r. of the
Applicant:
A. 1Ir. Rick Jeffa t. 1:11. Pred4ent of Carousel
Dev.lopa.nt, Inc., a California corporation.
Mr. J.ff. ha. tnt.r..t. tn ..v.ral bu.in... v.ntures
tnclu4inq 1:I1e followinq:
1. Carou.el Inve.blent. Lt4.
2. lIanch..ter Development Lt4.
3. Con.ort En.rq}' Corp.
4. COIlIla40r P.trol.ua. Inc.
I. Ba14a Botel partn.r.hip
B. Mr. "mi. Van Kar.n t. 1:11. Pr.d4.nt of Van
Karen Con.truction, Inc., a California corporation.
Mr. Van lIar.n ba. tnter..t. tn ..v.ral budn.as
v.ntur.. tnclu4inq 1:11. followinq:
1. Van Kar.n Con.truction Co. Lt4., a Cana4ian
corporation
C. Block Group Dev.lopm.nt. (California), Inc. has
ext.n.iv. lan4 bo14inqs 1n 1:11. State of California
an4 1nclu4.. 1:I1e '00 acre .a.t.r plan 4evelopment
known a. Ihan4in Rill. 10cat.4 tn 1:11. City of San
"rnar4ino. The Univ.r.ity Park ..ction of the
Ihan4in Bill. '00 acr. .ast.r plan dev.lopment is the
parc.l 1:I1at 1. to b. d.v.lop.4. Block Bros. In4us-
tri.. (USA) Inc. 1. a wholly-own.4 aub.i4iary of
Olympia , York, Inc.
bploy...
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'l'h. Applicant curr.ntly ha. ..ro .mploy.... Bowever,
con.truction an4 coapl.tion of 1:11. proj.ct by the
Applicant will utliaat.ly provide nuaerou. .mployment
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opportunitiea in the City of San Bernardino. 7he
Applicant plana to locate in San B.rnardino County.
~he Applicant currently ha. office. at 720-.75 Howe
Street, Vancouver, Britiah COluabia, Canada V6C
2B3.
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'rofeaaional service. will be provided as follows:
1.12.1
steres, Alpert' Carne shall .erve as the
accountant for tbe Applicant and the contact
person with said firm is Gary Carne, tele-
phone number '19 292-3200.
~be law firm of .agner, Loftu., Chucas ,
McCue is the attorney for the Applicant. 7he
contact person with .aid firm is
7. M. Chuca., telephone number '19 299-196..
~he law office. of ~imothy J. Sabo shall
..rve a. Bond Counael to the City with regard
to the tax-.xempt financing for the project.
~he principal civil engineer ahall be Van
Del , Associates, 17801 Cartwright Road,
Suite A, Irvine, CA '271..
7he principal architect shall be Kermit
Dorius Architects 'Associate., 1550 Bayside
Drive, Corona Del Mar, CA '2625, telephone
number 71. ,.. 7111.
1.13 7he principal banking accounts of the Applicant shall
be at Security 'acific .ational Bank, San Bernardino,
and opened upon financing becoming available.
1.12.2
1.12.3
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1.12.5
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~he source of funding for tbe Project is anticipated to
be derived from a variety of aource. inClUding the
private placement of a tax-exempt bond or other
obligation with a lender to be obtained bereafter.
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.AR7 II BORD ISSUE
2.1 ~he estimated total cost of the finanCing package and
the proposed use of bond proceeds ia a. follow.:
2.1.1
Construction costs
. 21,582,288.
2.1.2
Legal, printing and related fe.s
rinancing costa and fees
100,000.
"9,600.
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C 2.1.4 capit.li..d int.r..t 2,128,06S1.
2.1.5 oth.r Mi.c.llan.ou. co.t. 100,000.
2.1.1 Land ac;Ui.ition 1,040,000.
~t&1 . 30,311,'57.
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!h. ..tiaat.d t.r;.t d.t. for the fin.ncing i.
pr...ntly anticipat.d in 1.14 with con.truction to
comm.nc. a. .oon a. po..ibl. aft.r the fin.ncing
packag. i. coapl.t. and to be co.pl.t.d in three
con.truction ph.... which sh.ll t.ke betw..n 18 .nd
30 month. to compl.t..
It b propo..d th.t the fin.ncing b. in the form of a
con.truction loan during the con.truction period
which would b.v. the tr.ditional con.truction loan
provbion. in th.t ctr.wdown. would be parmitt.d as
con.truction proc..d. upon .Ub.i..ion of r.qui.ition
vouch.r.. Upon compl.tion of con.truction of the
Proj.ct and certific.tion th.t all iaprov..ents have
be.n compl.t.d, the l.nd.r will th.n p.rmit .n
int.r..t r.t. adju.ta.nt and a principal amount
incr...., a. w.rrant.d, and conv.rt the con.truction
loan to a parm.n.nt fin.ncing.
!h. pr...nt propo..l for the fin.ncing of the Project
anticip.t.. that the t.x ax..pt bonds or other obliga-
tion. will be .old to a comm.rci.l b.nk or other .uch
l.nd.r through a private pl.c...nt or that th.r. be a
public off.ring of ..id ..curiti...
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PART III PINAJfCLU, INFORMATION
3.1 Upon it. formation, the Applic.nt .hall b. . ..all
bu. in... doing bu. in... a. a ,.n.r.l p.rtner.hip
pur.u.nt to the l.w. of the St.t. of C.lifornia, .nd
the Applic.nt would be con.id.r.d a ...11 busin.s. with
r.g.rd to it. r.l.tiv. .i.. in comp.ri.on with other
.uch bu. in..... und.rt.king proj.ct. of thia type.
Although the Applic.nt i. a ...11 bu.in..., no f.deral
...11 bu. in... lo.n gu.r.nt... w.r. propo..d in connec-
,tion with the propo..d fin.ncing .. cont..pl.ted by this
Applic.tion.
PART IV PROJEC'1' INFORMATION
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!he proj.ct a. propo..d by the Applic.nt sh.ll include
the con.truction of approxi..t.ly 720 aparta.nt unit. in
the Univ.r.ity P.rk ..ction of the 100 acra m..ter plan
d.v.lop..nt known a. Sh.ndin 8ill.. !h. approxi..te
720 unit. .hall be con.truct.d in thr.. ph....
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oy.r.n 11 to 30 aonth periOlS. Th. ".n1u.. in the
.parta.nt proj.ct ahall includ. 8Vi..ing POOl., r.crea-
tion cent.r. barbequ. .r.a., ba.k.tba~l and voll.yball
court.. Th. Proj.ct is locat.d within the Red.velopment
Proj.ct Area of the aed.velopaent Ag.ncy of th. City of
Ian Bernardino. The propo..d .roj.ct .b.ll be located
upon land Whicb is .ore particul.rly de.cribed in
Exhibit "A" .ttached bereto.
The Project i. a bu. in... venture that would increase
the .......d valuation of currently undarutilized land
and ,.n.rate aignificant ..ployaent opportunities
wi thin th. city.
The coaponent. .nd the e.ti.at.d total cost of the
functional part. of th. Project .re .s follows
4.2.1 !.and
4.2.2 Building construction
4.2.3 Engin..ring' technical a.rvic.s
$ 5,040,000.
21,582,288.
180,000.
4.2.4
Misc.llan.ous it..s
.. 5' con.truction conting.ncy
b. Int.r..t during construction
c. a.al e.tat. brok.rag. cOlDIDi..ion
d. oth.r .i.c.llan.ous co.t.
1,079,144.
6,200,000.
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200,000.
b
1'otal
$ 34,281,432.
4.3
Th. e.timated con.truction periOlS for the Project is as
follows:
4.3.1
4.4
Construction of th. Proj.ct would COlDIDence as
aoon .. possible .ft.r is.uance of the
tax-.x..pt obligations.
Th. plann.d construction aball occur in three
pha... .nd .hall b. compl.t.d within 18 to 30
.onths from the date of cOlDlD.nc...nt.
Th. aupervi.ing civil engin.er re.pon.ible for the
de.ign of the 'roj.ct on b.ha1f of the ,Applicant .hall
b. Van Del' A..ociate., 17801 Cartwright aoad, Suite
A. Irvin., CA '2714.
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4.5
Th. .roj.ct aba11 b. known .s
divi.ion of the Ibandin Hills
d.V.1op..nt."
"Univ.rsity Park, a
600 .cr. .a.ter plan
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'~he .roj.ct ait. ia the d.v.lopment of apartment units
.nd ia not an expan.ion or an .It.ration of an existing
facility. ~h. n.c....ry infra.tructure it..s .nd other
public i~rovem.nt. au.t b. in.talled on the .roject
ait. .nd the Applicant d..ir.. to obtain'. below market
rat. tax-.x.~t conatruction and permanent fin.ncing of
the i~rov...nt. to be pl.c.d ther.on from a combin-
.tion of aourc...
f.7 ~he property on which th. proj.ct i. propo.ed to be
locat.d i. curr.ntly own.d by 8lock 8ro.. Industries
(DSA) Inc. and the Applic.nt b.s.n option to .cquire
aaid property purauant to the t.r.s of the joint
v.nture .gr....nt b.tw.en tbe propo.ed general
p.rtn.r..
f.8 ~be proj.ct will provide .pproxim.tely 720 rental units
to be l....d to v.riou. t.nants.
f.8.l
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Attacb.d .s Exbibit -B- i. .n 8-1/2 x 11 inch
..p .howing tbe .ite loc.tion of tbe proposed
.roj.ct.
A d.scription of tbe pl.nt process-not
.pplicable.
A n.g.tive decl.r.tion pur.uant to tbe provisions of
the C.liforni. Environment.l Qu.lity Act of 1970, .s
..ended, would in .11 prob.bility be ..ti.f.ctory for
the proj.ct .s propo..d by tbe Applicant. lowever, the
.roject .h.ll co.ply with .11 .pplic.ble provi.ions of
..id Act.
..8.2
f.lO ~bere .r. no permits, w.ter qU.lity enforcement orders,
.ir pollution per.it. or v.riance. or other .vidence of
.ctions n.c....ry in conn.ction with thi. Project.
f.ll ~here are no loc.I, st.te or feder.l pollution control
.gencies which impo.e r.gul.tions, st.ndards or
requir.ments with r.g.rd to the operations of the
propo.ed proj.ct to be undert.ken by the Applic.nt.
f.12 ~he propo..d proj.ct ah.ll comply with .11 applicable
City of S.n Bernardino, County of San Bern.rdino, and
other r.gion.l, county or basin pl.ns ~o which this
Project .hall conform .nd the .ppropri.te waste water
.nd .ir qu.lity requir.ment. which .h.ll b. in conform-
ity with .11 of the .bove juri.dictions.
It ia prea.ntly anticipated tbat the propo.ed Project
will not produce .ny byproduct. or r.sidu.. wbich would
involve the ulti..te di.po.al or the need for. plan
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PART V
1.1
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~o .ccOllplbh ..... bcyclinq or ..lv.q. vill not b. a
function of the propo..4 Proj.ct nor vill th.r. be .ny
aark.t opportuniti.. ,.n.r.t.4 vith r.q,rd to .....
JlUBLIC UKEFITS
!h. city of I.n Bern.rdino vill r.c.iv. .iqnificant
ben.fit. by the initi.tion of thi. Proj.ct .. propo.ed
by the Applicant an4 particul.rly throuqh the utili-
..Uon of the financinq ..thod.. 18 .v.il.bl. under
Ordinanc. Mo. 3115, .. ...nd.d, of the City of San
"rn.r4ino. Du. ~o the f.ct th.t conv.ntional interest
r.t.. for con.truction .n4 parm.n.nt fin.ncinq for the
~yp. of Proj.ct contupl.t.4 by the Applic.nt .re .t
.uch .n extre..ly bigh 1.vel on convention.lly borrowed
fund., if .v.ilabl..t .11, n.ith.r the Applic.nt nor
any oth.r per.on. or leg.l entitie. .r. able to provide
the ~yp. of .od.rn and .ttr.ctiv. .parta.nt buildinqs
n..4.d vithin the City of Ian Bernar4ino. AddiUon-
.lly, the city of Ian Bern.rdino, it. inhabitant. and
the ..4.v.lopa.nt Ag.ncy of the City of S.n Bernardino
vill ben.fit from the incr....d .......d v.lu.tion of
the property vithin the ..d.v.lop..nt Proj.ct Ar.a.
l.i4 incr....d ........nt vill occur.. the r..ult of
the compl.tion of the Proj.ct. !'bb incr.... in the
.......d v.lu.tion of the property includ.4 in the
Proj.ct vill ...ur. th.t the ..d.v.lop..nt Aq.nay of
the City of I.n Bern.r4ino vill b.v.. .or. viable
..an. of und.rt.kinq it. r.d.v.lop..nt .ctivit.. vithin
..i4 Proj.ct Ar... Th. City lik.wi.. vould b.n.fit by
Obt.ininq qu.lity bou.inq for the citie.n. of San
"rn.rdino. oth.r bu. in..... vill b. .ncour.q.d to
locat. or r.loc.t. vithin the City of I.n Bernardino
.nd thu. cr..t. .n upw.rd .pir.ling .ff.ct on the
economy of the City.. . r..ult of the Proj.ct.
5.1.1
5.1.2
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!'b. Proj.ct vill provide lonq t.rm ..ployment
opportuniti.. for the inh.bitant. of the City
of I.n Bern.rdino. Wh.n fully con.truct.d .nd
l....d the proj.ct vill provi4. employm.nt oppor-
tuniti.. for. .Ub.t.nti.l numb.r of p.r.on.. The
c.t.gory of job. ~o b. provid.d in the proj.ct
.ft.r it. compl.tion inclu4. ..naq.ri.l, .killed,
...i-.kill.d, .nd un.kill.d. Th. v.qe. to be paid
in the variou. jOb C.t.qori.. ...t local .nd
r.gion.l .t.nd.rd. .nd vill .u.t.in . ..ti.f.ctory
l.v.l of financi.l .t.bility.
Con.truction of the proj.ct i. .nticip.t.d to add
.pproxi.at.ly 520,000,000.00 to S25,ODD,DDD.DD of
.......d v.lu.tion to the t.x roll. of the City.
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PART VI
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5.1.3
rhe uaeful ..tbod of financing provided for
in Ordin.nce Ro. 3815 of tbe City, vis-a-vis
tbe uae of tbe conventional .ethod will
permit tbe Applicant to coapl.t. tbe finan-
cing and construction of tbe. Project within
an accel.r.t.d time frame. rbe ..thod of
finanCing provid.d in Ordinanc. Ro. 3815 will
provide new aources of financing to the
Applic.nt and auch financing viII be made at
lower tax-.xempt inter.st rates.
rbe City viII benefit, a. can be demon.tr.ted pursuant
to Section 1 of Ordin.nce Ro. 3815, a. am.nded, of the
City of .an .ernardino, in tbat employment opportun-
itie. viII be ,enerated by tbe propoaed Project both
during tbe con.truction ph..e and after aaid Project is
con.tructed and l....d. rbe Applicant ia not attempt-
ing to con.truct aaid propoaed Project ..rely for the
financi.l inducem.nt tbat i. offered purauant to the
Ordinance, but r.tb.r due to tbe long-term business
r.a.on. tb.t are aignificant due to tbe location of the
propo.ed Project and tbe r.al .conomic benefits
available to tbe community.
.
rbere are no detrimenta tbat can be incurred by the
City vith r.gard to this type of financing for this
Project, and tbe City of San .ern.rdino and the
Redevelopment Agency of the City of San .ernardino viII
r.ceive aubat.ntial benefits tbrough increa.es in
a..e..ed valuation of property vithin. redevelopment
Project area, plus the increased long-term employment
opportunities that viII be available to the local
re.idents of tbe City.
COJIMIDlENTS
rbe Applicant by tbe aubmi..ion of this Application
agree. to comply and/or to a..iat the City in complying
vith all atate and federal lavs in the i.suance of the
bonds ,or other auch tax-exempt obligations to finance
the Project, inClUding, vitbout limit.tion, making of
any required application to a governmental department,
for authorization, qualification or registration of the
offer, i..uance or a.le of tbe bonds or other tax-
exempt obligations, .nd .ny .mendments thereto, and any
permit or other .uthorization of aucb governmental
department, prior to tbe delivery by tbe City of such
bonds or other t.x-exempt obligations.
rhe Applicant further commits to c.u.e and/or to .ssist
tbe City in c.u.ing to be printed any pro.pectus or
other vritten or printed communication proposed to be
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publiah.d in conn.ction with the isau.nce, offer or
a.l. of bonda or other t.x-.xempt oblig.tions; prior to
the d.liv.ry by tbe City of auch bonds or other
t.x-.x.mpt oblig.tions, and, to the ..t.nt deemed
n.c....ry by the City, fOllowing deliY.rY'of auch bonds
or other t.x-exempt oblig.tions.
~b. Applic.nt .lso commits to p.y all ..penses in
conn.ction with the issuance, offer or a.le of the
bonds or other t.x-ex.mpt oblig.tions, whether or not
auch bond. or other t.x-.x.mpt oblig.tions .re finally
issued, .nd to hold the City b.rmless from any and .11
expenses r.l.t.d tbereto, to pay item. on an ongoing
basis ao that neith.r tbe City, nor its advisors,
attorn.ys, employ.es and tbe like will accumulate .ny
clai.. ag.inst tbe City.
6.4 ~he Applicant will aupply any additional information,
agreements, and undertaking. a. tbe City ..y require as
the result of conference. and n.goti.tions will be
r.produc.d and aupplied to the City and ahall be deemed
a. aupplementa or amendmenta to tbis Applic.tion.
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PART VII SIGNATURE
7.1.
~he undersigned .s .uthorized principals of the
Applicant.s noted below, bold the prime responsibilty
for the financing to be taken for the proposed Project, .
and c.rtify that the undersign.d bave the authority to
bind the Applicant to contr.ct terms, that this
Application to the be.t knowledge or belief of the
undersigned, cont.in. no false or incorrect information
or data, and this Applic.tion, including exhibits and
attachment. bereto, i. truly d.scriptive of the
proposed Project. ~he undersigned also r.present by
the .xecution of this Application famili.rity with
Ordinance no. 3815, as amended, of the City of San
Bernardino.
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PART VIII PEE SCHEDULE
8.1
~he Applicant acknowledges that the City requires a
non-refundable applic.tion fee of $50 for each Project
to be consid.red for eligibility to be paid when the
basic documents are requested. With the aubmittal of
this Application, 'SOD i. p.yable to the City. If this
Application i. acc.pt.d, an additional fee of $10,000
i. payable for admini.trative costs. ~be Applicant
acknowledges that the commitments in Part VI above are
in .ddition to these fixed amounts. ~hus, in the event
that no closing occurs, the City ahall reimbursed for
its proce.8ing costs.
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. All f..s of tbe City m.y be c.pit.lized .nd included in
tb. bond issue .s accept.ble to tbe bond purcbaser.
~be Applicant acknowledges tb.t tbe City derives its
entire aupport from tbe f.es for its .aervices. The
tot.l function of tbe City is conduct.d on a aelf-sup-
porting b..is, and involves no st.te ,en.r.l revenues
Or e.penditur.s from t.... from tbe st.t. or any of its
politic.l aubdivisions. Ro indebt.dness Or taxing
pow.r of tbe City is involv.d. Project rev.nues .re
the aole a.curity for bonds of tbe City. The federal
,u.rant.es, if any, enhance tbese revenues and income
and tbe aecurity of the bonds.
8.4 Pursuant to ae.olution Ro. 81-108 of the City, as
..ended by a.solution Ro. 81-410 of tbe City, one
percent (1') of the princip.l amount of the bond issue
ah.ll be depo.ited in the City Tre.sury in the Indus-
tri.l aevenue Bond aeserve and Development Fund, which
ab.ll be used in auch manner as the M.yor and Common
Council ..y direct from time to time.
1.3
APPLICAJrr
AND ASSOCIATE,
ill partnenhip
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MOUSEL DEVELOPMENT, IRe.,
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REN for VAN MREN
INC., it. general p.rtner
N for am GOJr IJ:\UIDD."IS (CALlHlR'\lAl. N'.
, its leneral p.rtner
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