HomeMy WebLinkAbout1981-499
U50W'fJOII 110. ~
USOW'fJOII or tHE IlAYOIl AND C'a'O'ON ClOUNCJL
or 1ft[ CITY OF IAN .UJlMI>INO FINDIIIC ftAT
AJI APPLJCATION FOil JtlDUSTIlIAL DI:VE&.OpJ1DIT
IOND r INANC INe .....S .E EN 'U8I" I 'J'TEt> t'UJt S UNrr
to ft(I PROVISIONS OF ORDINANCE 110. ..a OF
ft(I CITY rOR A CERTAIN PROJECT, FINDINC
I'tiAT lAID APPLICATION COMPLIES ViTti 'I'Kt Plto-
.ISIONS AND aEQUlREMENTS OF lAID OIU>INANCE
.0. IllS; APPROVINC lAID APPLICATION AND
ft(I PROJECT TO VltIeB IT aEFERS; DlltECTINC
'I'HL PIlEPAAATION OF A PROJECT ACIlEEICDI7, A
aESOLUTION OF ISSUANCE AND SUCH O1'HI:R &ZCAL
IX>C'UMENTS AS IlAY .E NECESS.UY TO CAJUlY Ot.-.r
lAID PROJECT AND 'ROVIDE rOR THE JSSUANCE
or JtlDUSTRIAL DEVEL.OPPn:NT aEVEH1JE aotOS
7HLIlEFOR; ~ MAXINC CERTAIN OTHER rlNDINCS
AND DETERl'lINATIONS IN CONNECTION ftlEllEWITH
(SAN BERNARDINO HOTEL CORPORA nON)
VHEIlEAS. thr City of San .rrnardino C-City- berein),
1" a -hOI!l~ nlle city" duly organized and existing undrr and
pursuant to a Charter adopted under thr provisions of the
Const1tut1on of thr State of California; and
WHEREAS, puuuant ~ i u boIIe rule povers, the City
duly and reqularly enacted Ordinance .0. IllS C-Ordinance-
herein) ~ finance .arious types of projects, as defined in
.the Ordinance. and to issue its .pecial ~.v.nue ~nds for th~
pur,pose of paying the cost of financing .uch projecu, and bas
-.ended the .ue fro. U.r ~ U-; and
'1'2(bs)
'/IS/al
WHEREAS, said Ordinance No. 3815, as amended, is intended to
finance the development of industry and commerce and to thereby broaden the
employment opportunities for residents of the City and its tax and revenue base;
and
WHEREAS, there has been presented to this Mayor and Common
Council an Application by San Bernardino Hotel Corporation, requesting the issuance
of industrial development bonds in the principal amount of not to exceed $10,000,000
for the purpose of financing, on behalf of the Applicant, a certain Project, to
wit: a hotel with restaurants, meeting rooms and other usual hotel facilities,
including, without limitation, equipment and all off-site and on-site improvements
necessary therefor and appurtenances and appurtenant work (the "Project").
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED
AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
- 2 -
"eUOI'l ~. "'a~ tM l'eCit.ab ..~ forth "nin-
ebove an tn. aDd oonen b aU papecU.
,.eUon ~. I'be eitJ .f .an ..martiDO, CalUonUa,
aa a ~lclpal oorporatlon eulJ cr.ated. .atabliahed aDd
authorbed to tzanuet "uaine.. and ..ucbe it.. poven. ..11
Pdu and punuant \0 the eonaU tuUon aDd lews .r the .tate
of eal Uornh, and the CI t)' Charter .r the ei t)', and the
poven of th. Cit)' include the power \0 b.ue -.on4. for any
or ita oorponte purpo....
,ection 3. Pursuant to the Charter of the City
and Ordinance .0. J81~, es ..ended, of the Cit)', the City is
leg511y authorized to i.sue .pecial revenue bonds for the
pe~anent financing as described in the recitals bereof.
Section 4. This body constitutes ~ tovernin;
body of the City and is legal1)' authoriaed \0 provide for
the ia.uance or ouch .peclal revenu. bonds bJ the City.
~cUon S. !'be .roject refened \0 in the roci tab
bereo! constitutes a project which .ay be linanced by the
~o.uance or ouch .pecial revenue bonds by the elt)' and
located within the jurisdiction of the eit)'.
'192(bs)
UU/.l
I
.
,.eUon ~. I'be IppUceUOD "taned to in the
.-cit.l. "reot oo.plia. with \he ,roviaioDa aDd ~.;uira..nt.
.r eei' Or.iaa.nce 110. ,.15, .. ..ndad. en4 \he 'roject
bvolnd ill e\lcb appUceUOD h "rebJ approved and the
.,rovbiona .f '\ab.eeUon Cd) .f .ecUon 10 and '\ab.eeUe
Ce) .f teetion 11 .f a.i. Or'inance .0. ,.15 eh.ll DOt
1IFP1y.
feetion ,. 'lbe City berebJ deelara. it.. intention
to aaerei.e the authority rererred to in 'ection J bereor ~y
i..uin9 bonds or the City in auch ..ount. a. will be adequate
to l~)..ent the City finanein9 or the Project.
,eetion 8. the bonds ahall be payable from the
revenues described in .aid Ordinance Mo. 181~, a. ..ended.
,ection 9. the bonds Ihall be and are apeeia)
obli,aUon. or the City, and. a\abject to the d,ht or the
el ty to apply acney. e. provided in the appliCable lavs. are
..cured ~y auch revenue. e. are apecified in the proceedin95
lor the inuanee or auch bonds and funch and account. to be
beld ~y the trustee or ri.cal a,ent. and are payable a. to
~ ,dncipal. racSe.ption price, if any, and intere.t rroe the
1192(bs)
'/u/al
.
..".nu.. .f U. Cit)' .. tberein "acriM'. WIae INmdl. are
_t 8 "bt .f U. C1t)'. taw 'ute .f Califoraia .. ., .f
at. ~Utical aub~UvhioM, and ..St.har the CU,. .. 'teta,
.
_r aD, .f at. ~Utica1 aul>divhiou .. Uabl. thereon, _r
b MY event ahan the knds I>>f ,a,able eut .f ., fUlWb .r
.
,ro,pertiea other than 811 or anf ,art .f tbe ~.venuea,
_rtta,. 10ana, aDd funds and account.- .. an Ulh "aolution
eet forth. 'lbe bonds do DOt conatitute an iDdebtedne..
wi thin the ..aning of any conaU tuUonal or .tetutol"7 "bt.
UaiuUon or nat.ricUon. ..ither the penons ..rvin9 as
the Rayor and Co.aon Council nor any persona .xecutin9 the
bonds ahall be liable personally on the bonds or aubject t.o
any personal liabilit.y or account.abilit.y by reason of the
issuance thereof.
Section 10. The 'et.ails of aueh bonds, including
the est.ablishing of the aggregst.e face ..ount. of auch
Obli,at.ions, ahall be authori&ed by indent.ure, naolut.ion or
~esoluUona of tbe Cit.J' at. . ..eUng or ..eUnv. to h ..ld
for .uch purpoae. I'be ci t.y 'taff, aoad Counael. Voder--
writers, the Applicant.s and the agent.s and repre.ent.at.ives
of a..e are bereby authori&ed and 'irect.ed to prep.re or
cauae to be pr.par.d the nee....ry 1e,.1 'oeu.ent.., in-
Ilt2(bs)
'/U/.l
I
.1.dint u.. P..oj.ct Alr....Du. a..oluUou .f '..U&Dee. ~
euc:b .ther ~nu .. .ay .. aec...aq to .tf~ eaid
P..o~ect end u.. t..uane. .t tDdu.tzial "v.lop.ent ....nu.
~ th.r.for end to pr...nt .... to .aid ..,or end ~Dl ~n
Councu . lb. "YOI' .f th. ei t)' h "ral>)' .ut.hod." ad
~rected to ooordinat. th. .fforu .f all ooncerned r.1atiDg
to the b.uanc. and .al. .f the ~nda, and tM eit)' .uff,
eonaultant.., logal coun..l to th. eit)' and aond Coun..l are
"reby directed to ulte .uch .tep. a. .hall ~ appropriate
to ialpl..ent .uch .ale and deUv.r,. of the ~nd. iDCluding
working with per.ons who .ay acquire we.t.d rights a. the
...sult of .uch actions.
'ection 11. This aesolution conatitutes a proper
..ercise of the powers of this Mayor and Coaaon Council and
conforas to 'tate and local legal r.quir..ent. re1atiDg to
the i.suance of .uCh .pecial revenue bonds and other bonds
or debt obligations by . charter city in this lute.
fection 12. It i. iDtended that thi. aesolution
ahall conatitut.e .uch .official action- tovard the i..uance
of the boncSs within the _aning of the Unit.ed Itate. 7reuury
~9Ulation.. the United It.at.s 7a. Lavs, and any logi.lation
Il'2(bs)
'/U/ll
,
now or Mrelfter pending in the Congress of the United States which ..y
require off1c111 Ict10n in order for the bonds to be exempt f~ Federll
income taxlt1on.
Section 13. At the closing of the f1nlnc1ng, there shell be
paid to the City the fee set forth in Resolution No. 81-108, IS .-ended
by Resolution No. 81-410, of the Mayor Ind Common Council, Idopted September
24, 1981.
I HEREBY CERTIFY that the foregoing resolution was duly Idopted
by the Mayor Ind COIIIIIOn Council of the City of San Bernardino at all trl\OIl'I\~J tPJlt\<lV'
Meeti ng thereof, hel d on the \ ~-i. day of (H~'( , 1981, by the
following vote, to wit:
AYES:
COUNCIL MEMBERS:\!\i.\\y.. llM\.\
S\" ~('\-\<>r
~\\~,^'I\ \\{'\~~\
" I
NAYS:
ABSENT:
('(\lI"'~"\ \'t."p",,\rr..II',\ r(l~l'IpJQ \.\~'N\Q\'\dpL
J
'" M. <>
..$&~
CIT LERK
The foregoing Resolution is hereby approved this
lR~ II\,. , 1981.
1<t6
Approved IS to form:
~~~~
C TY HO NEY
PAGE 1
APPLl CATION FOR
REVENUE BOND FINANCING
PART 1. GENERAL AND BUSINESS INFORMATION
1.1 Legal Name of Applicant
San Bernardino Hotel Corporation
1.2 Line of Business
Hotel Operation/Development
1.3 Mailing and Headquarters Address
San Bernardino Hotel Corporation
c/o C.L. Vineyard
Pacific Federal Plaza Building
Suite 430
330 North "0" Street
San Bernardino. California 92401
1.4 Employer 1.0. Number
1.5 Name and Title of Principal Contact
C.L. Vineyard. Attorney
Officer of the Corporation
1.6 Phone Number
1.7 Type of Business Organization
California Corporation
1.8 Constitution of Ownership
100% Privately Owned
Application for
Revenue Bond Fin.
PAGE 2
1.9 Names and Locations of Key Officials
Wi 11 i am Leona rd
Jack Kelly
C.L. Vineyard
Pacific Federal Plaza Building
Suite 430
330 North "D" Street
San Bernardino, California 92401
1.10 Descriptions of Other Business Affiliations of Principal Officers
None.
1. 11 Employees
Information to follow.
1.12 Expert Services
1.12.1 Applicant's Accountant
Robert McKenzie
Sauer, Dudley, McKenzie and Bovee
1595 North Arrowhead
San Bernardino, California 92401
1.12.2 Applicant's Attorney
C.L. Vineyard
Paci fic Federal Pl aza Buil di ng
Suite 430
330 North "D" Street
San Bernardino, California 92401
1.12.3 Applicant's Underwriter
Miller & Schroeder Municipals, Inc.
505 Lomas Santa Fe Drive
Suite 200
Solana Beach, California 92075
1.12.4 Applicant's Architect
Information to follow.
Application for
Revenue Bond Fin.
PAGE 3
1.13 Principal Bank and Officer
Bank of California
293 North "0" Street
San Bernardino, California 92401
PART 2. BOND ISSUE
2.1 Provide the estimated total amount of the financing with a
tabulation of proposed use of Bond Proceeds:
2.1.1 Use of Loan Proceeds (estimates subject to future change)
Project Cost: Land (Est.)
Hotel, Restaurant, and Parking
Development Costs (including legal,
architectural, appraisal fees)
$ 500,000
$7,400,000
$ 250,000
$8,150,000
Funded interest (1 yr. @ estimated
interest rate of 12%)
Cost of Issuance (including under-
writers discount)
AMOUNT OF BONDS
$ 900,000
$ 450,000
$9,500,000
2.2 Estimated Target Date of Construction Financing
February I, 1982 (Contingent upon site selection)
2.3 Estimated Time of Construction Financing
Eight (8) Months
2.4 Type of Bond Sale
Floating rate commercial development revenue bond; public
or private placement.
PART 3. FINANCIAL INFORMATION
Application for
Revenue Bond Fin.
PAGE 4
3.1 GENERAL: Security for the industrial revenue bonds may include a
first mortgage of the hotel facility, and the guarantee of San
Bernardino Hotel Corporation. The annual audit report for San
Bernardino Hotel Corporation does not apply, as this is a newly-
formed corporation.
PART 4. PROJECT INFORMATION
4.1 Summary of Purpose, Objective and Function of the Proposed Project
The purpose of this project is to design, build and operate a multi-
story hotel structure which is intended to contain approximately
250 rooms and a restaurant.
4.2 Description of Components and Estimated Total Cost of the Functional
Parts of the Project (Estimates subject to future change)
USES OF FUNDS: Land
Buildin9
City fees
Professional fees
Bond Issue Costs
Constr. Interest
Interest Reserve
TOTAL USES:
SOURCES OF FUNDS:
Bond Proceeds
Interest Income
TOTAL SOURCES:
4.3 Estimated Construction Period
Eight (8) Months.
$ 500,000
$7,400,000
$ 120,000
$ 130,000
$ 450,000
$ 450,000
$ 900,000
$9,950,000
$9,950,000
$ 450,000
$9,950,000
4.4 Name and Location of Applicant's Supervisin9 Architect
Responsible for Desi9n of the Project
Application for
Revenue Bond Fin.
PAGE 5
PART 5. PUBLIC BENEFITS
The Hotel project will provide long-term employment for a substantial
section of the locally unemployed. The project will employ approximately
60 persons upon completion, and during the construction phase
approximately 100 workers will be employed by the contractor and sub-
contractors.
San Bernardino Hotel Corporation will provide accommodations at modest
prices for patrons who will support tourist and commercial facilities
in the City of San Bernardino.
PART 6. COMMITMENTS
6.1 The Applicant hereby agrees and commits to comply, and/or to assist
the City in complying, with all state and federal laws in the issuance
of the Bonds, including, without limitation, the making of any required
application to a governmental department, for authorization, qualifi-
cation or registration of the offer, issuance or sale of the Bonds, and
any amendments thereto, and any permit or delivery by the City of the
Bonds.
6.2 The Applicant hereby agrees and commits to cause and/or 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 and sale of Bonds prior to the delivery by the City of the Bonds,
and, if deemed necessary by the City, following the delivery of the
Bonds.
6.3 The Applicant hereby warrants and covenants to pay all expenses in
connection with its commitments set forth above and with the issuance,
offer and sale of the Bonds, whether or not they are finally issued, to
hold the City harmless from any and all expenses related thereto and 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.
6.4 The Applicant agrees that any additional information, agreements, and
undertakings as the City may require as a result of various conferences
and negotiations shall be reproduced in written, printed or other tangible
form, shall be supplied in as many copies as the City prescribes and
shall be deemed supplements or amendments to this Application.
Application for
Reyenue Bond Fin.
PAGE 6
PART 7. SIGNATURE
This Application is signed below by C.L. Vineyard, the attorney
representing the Applicant. Additional signatures to follow upon
adoption and execution.
PART 8. FEE SCHEDULE
8.1 On acceptance and placement of the Bond, the Applicant agrees that
it will pay the City a fee of $10,ODO.OD for administrative costs.
Applicant agrees that its commitments in Part 6 above are in addition
to these fixed amounts.
8.2 All fees of the City may be capitalized and included in the Bond
Issue, as acceptable to the Bond Purchaser.
8.3 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 sub-divisions. No
indebtedness or taxing power of the City is involved. Project revenues
are the sole security for its Bonds. The federal guarantees, if any,
enhance these revenues and income and the security for the Bonds.
8.4 Pursuant to Resolution No. 81-108, As Amended by Resolution 81-410,
one percent (1%) 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.
DATE:~r~//f7 d
j/ (
BY:
C.L.
~~
VINEYARD, Attorn fo
