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(NOTE: COMPANION RESOLUTION J-55)
RESOLUTION NO. 2010-271
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE FINANCING OF THE
PROJECTS DESIGNATED BY THE CITY OF SAN BERNARDINO WITHIN
THE CITY'S ECONOMIC RECOVERY ZONE AND DECLARING ITS
INTENTION PURSUANT TO TREASURY REGULATION 1.150-2 TO USE
FUNDS FOR SAID PROJECTS WHICH SHALL BE REIMBURSED WITH
BOND PROCEEDS
WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation
and charter city, duly organized and existing pursuant to the provisions of the constitution of the
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State of California; and
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WHEREAS, the Community Development Commission of the City of San Bernardino is the
governing body of the Redevelopment Agency of the City of San Bernardino (the "Agency"), a
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public body, corporate and politic, established by the City and organized and existing pursuant to
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the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.)
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(the "CRL"); and
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WHEREAS, the City and the Agency have heretofore entered into a Joint Exercise of
Powers Agreement establishing the San Bernardino Joint Powers Financing Authority (the
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"Authority") for the purpose of issuing bonds, the proceeds of which may be loaned to any of its
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members to finance public capital improvements; and
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WHEREAS, Congress passed the American Recovery and Reinvestment Act of 2009 (the
"Act") which amends the Internal Revenue Code of 1986 (the "Code") to authorize a city to
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designate a "recovery zone" for the purpose of issuing Recovery Zone Economic Development
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Bonds under Section l400U-2 of the Code, and Recovery Zone Facility Bonds under Section
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l400U-3 ofthe Code to promote economic recovery within the country; and
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WHEREAS, pursuant to Resolution No. 2009-328 entitled the "Resolution of the Mayor and
Common Council of the City of San Bernardino Designating the City of San Bernardino as a
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Recovery Zone for Purposes of Sections l400U-l, l400U-2 and l400U-3 of the Internal Revenue
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Code of 1986," adopted on September 21, 2009, the City designated the entire geographical area of
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2010-271
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE FINANCING OF THE
PROJECTS DESIGNATED BY THE CITY OF SAN BERNARDINO WITHIN
THE CITY'S ECONOMIC RECOVERY ZONE AND DECLARING ITS
INTENTION PURSUANT TO TREASURY REGULATION 1.150-2 TO USE
FUNDS FOR SAID PROJECTS WHICH SHALL BE REIMBURSED WITH
BOND PROCEEDS
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a joint regular
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meeting thereof,
held on the 2nd day of August
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Council Members: Aves
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MARQUEZ X
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DESJARDINS --1L
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BRINKER X
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SHORETT X
13 KELLEY
X
14 JOHNSON
X
IS MC CAMMACK
-1L
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, 2010, by the following vote to wit:
Navs
Abstain
Absent
Q~..Lf h_~
RaclM G. Clark, City Clerk
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19 The foregoing Resolution is hereby approved this 1/7N day of August
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,2010.
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Pa c J~Morris,
y of San Bernardino
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Approved as to Form:
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ames F. Penman, City Attorney
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1 the City a "recovery zone," and the City has received an allocation from the State of California in
2 the amount of $7,068,000 for Recovery Zone Economic Development Bonds and $10,602,000 for
3 Recovery Zone Facility Bonds; and
4 WHEREAS, no later than December 31,2010, at the City's request, the Authority intends to
5 use $7,068,000 of the City's allocation for Recovery Zone Economic Development Bonds and
6 $10,602,000 of the City's allocation for Recovery Zone Facility Bonds to issue obligations
7 (collectively the "Bonds") to finance the eligible City Projects described in Exhibit "A" (the
8 "Projects"); and
9 WHEREAS, the City expects to incur certain expenditures relating to the Projects (the
10 "Reimbursement Expenditures") from the City's money on hand, and pay for such expenditures
11 prior to the issuance of the Bonds.
12 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
13 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
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15 Section 1. The Recitals contained hereinabove are true and correct and are incorporated
16 herein by this reference.
17 Section 2. The City hereby approves the financing of the Projects as set forth on
18 Exhibit "A" hereto.
19 Section 3. The City hereby declares its official intent, subject to further approval of the
20 Mayor and Common Council, to use the proceeds of the Bonds to reimburse itself for the
21 Reimbursement Expenditures with respect to the Projects. It is intended that this Resolution shall
22 constitute a declaration of "official intent" within the meaning of Section 1.150-2 of the Treasury
23 Regulations promulgated under Section 150 of the Internal Revenue Code of 1986.
24 Section 4. The adoption of this Resolution shall not bind the City to proceed with the
25 execution and delivery of the Bonds until and unless all other necessary actions and approvals are
26 taken or received in accordance with all applicable laws.
27 Section 5. All actions heretofore taken by the officers, or their respective designees,
28 and the employees and agents of the City in connection with the financing of the Projects are
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P:\Agendas\Resolutiolls\Resolutions\2010l0S.02-10 Recovery Zone MeC Final Reso
1 hereby ratified and confirmed. The officers and their designees, the employees and agents of the
2 City are hereby authorized to take any and all actions in connection with the financing of the
3 Projects and as may be necessary and consistent with the purposes of this Resolution.
4 Section 6. This Resolution shall take effect upon its adoption and execution in the
5 manner as required by the City Charter.
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2010-271
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EXHIBIT "A"
Descriptions of Projects to be Financed
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2010-271
EXHIBIT "A1"
RECOVERY ZONE FACILITY BOND PROGRAM $10.602.000
Plan of Issuance
DescriptIon of Projects, Programs and Schedule
{Inland Center r,'Jalll
Prolect DescrlpOon:
Financing of the tenant improvements for the renovation and reuse of a former 3-story major
department store at the Inland Center Mall in the City of San Bernardino The upper 2 floors
consist of approximately 110,000 square feet In total area and will be renovated by the owner
of the Inland Center Mall, Macerich and Company, In preparetion for the relocation to this site
of a nationally recognized major retailer seeking to regain entry into the San Bemardlno retail
market after having closed Its former store In 2003 as was previously located at the San
Bernardino Carousel Mall. The proposed financing will Include the Inland Center Mall owner
as the obligated party to the bond financing secured by the real property and a long-term
tenant lease with the nationally recognized major retailer who will thus become an additional
major anchor store at the Inland Center Mall.
Start of ConstructIon:
August 1, 2010
ConstructIon CompletIon:
November 1, 2010
Issulna Entltv:
San Bernardino Joint Powers Financing Authority comprised of the City of San Bernardino
and the Redevelopment Agency of the City of San Bernardino.
Date of Inducement ResolutlonlTEFRA Hearlna:
Scheduled for a Council meeting during the month of April, 2010.
Date of Bond Issuance:
Late July, 2010
Anticipated Dollar Amount of Bond Flnanclna:
$5,220,000
Local Approvals Obtained to Date:
None required; proposed tenant Improvements and building renovation complies with existing
zoning and General Plan.
Sponsor Contact Information:
Emil A. Marzullo, Executive Director
City of San Bernardino Economic Development Agency
201 North "E" Street, Suite #301
San Bernardino, CA 92401
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2010-271
EXHIBIT "A2"
RECOVERY ZONE FACILITY BOND PROGRAM l10.602,OOO
Plan of Issuance
DescriptIon of Projects, Programs and Schedule
(Theater District Restaurants)
Prolect DescrlDtlon:
The Redevelopment Agency of the City of San Bernardino has commissioned a master plan
for the Downtown Area of the City of San Bemardlno as located in the Central City and the
Central City North Redevelopment Project Areas. The Agency owns a 20-plex cinema facility
and the historical 1,760 seat California Theater constructed In 1928. To compliment these
current ownerships. plus the land and parking structure owned by the Agency at the Carousel
Mall located directly to the south of this Intended project site, the Agency consultants have
proposed that the Agency embark upon a strategic plan to Induce restaurant operators to
enter the downtown market with a focus on the theater venues that have been established by
the Agency at the focal point located at the intersection of 4th Street and "E" Street in
downtown San Bernardino. One or more loans will be made through the proceeds of the
bond financing to construct and fumlsh the restaurant facilities for lease to major nationally
recognized restaurant operators. The Agency will become the obligated party pursuant to the
bond financing and will secure the bonds with the real property and Improvement and an
assignment of the tenant leases.
Start of Construction:
Construction of building improvements will commence as of October 1, 2010
ConstructIon ComDletlon:
February 1, 2011
Issulna Entitv:
San Bernardino Joint Powers Financing Authority comprised of the City of San Bemardino
and the Redevelopment Agency of the City of San Bernardino
Date of Inducement Resolutlon/TEFRA Hearlna:
Scheduled for a Council meeting during the month of April, 2010
Date of Bond Issuance:
September, 2010
AntlciDated Dollar Amount of Bond Flnanclna:
$1,565,000
Local APDrovals Obtained to Date:
None required; proposed tenant Improvements and building renovation complies with existing
zoning and General Plan.
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2010-271
SDon.or Contact Information:
Emil A. Marzullo. Executive Director
City of San Bernardino Economic Development Agency
201 North "E" Street. Suite #301
San Bernardino. CA 92401
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2010-271
EXHIBIT "A3"
RECOVERY ZONE FACILITY BOND PROGRAM $10.602.000
Plan of Issuance
Description of Projects, Programs and Schedule
("E" Street CommerclallRetalll
Prolect Description:
The Redevelopment Agency of the City of San Bernardino has selected two (2) suitable
locations on the former commercial corridor located on "E" Street extending southerly from
the Downtown area to the Hospitality Lane area of the City. The Agency will be acquiring
several properties fronting on the west side of "E" Street north of Mill Street to be combined
with the residual land that will be deeded back to the Agency pursuant to the prior disposition
and development agreement. The Agency has also acquired a former governmental entity
office structure also on the west side of "E" Street south of Orange Show Road and intends to
acquire additional properties from abandoned car dealership to the south of this location.
The land assembly will then allow the Agency to prepare sites and to entitle both of these
project sites for new commerclaVretall development. The Agency would be the obligated
party pursuant to the proposed bond financing and would utilize the bond proceeds to acquire
and prepare sites for future development. It is expected that the Agency would then transfer
the prepared sites to a developer who would then assume the debt service payments with the
Agency remaining contingently liable on the financing to provide a form of credit
enhancement In an effort to encourage the redevelopment of these selected properties.
Start of Construction:
Construction of site acquisitions, demolition and site preparation will commence as of
October 1, 2010
Construction ComDletlon:
Site preparation and all entitlement work will be completed as of February 1, 2011
Issuing Entltv:
San Bernardino Joint Powers Financing Authority comprised of the City of San Bernardino
and the Redevelopment Agency of the City of San Bernardino
Date of Inducement Resolutlon/TEFRA Hearina:
Scheduled for a Council meeting during the month of April, 2010
Date of Bond Issuance:
September, 2010
AnticlDated Dollar Amount of Bond Flnanclna:
$3,817,000
Local ApDrovals Obtained to Date:
None required; proposed tenant Improvements and building renovation complies with existing
zoning and General Plan.
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2010-271
Sponsor Contact Information:
Emil A. Marzullo, Executive Director
City of San Bernardino Economic Development Agency
201 North "E" Street, Suite #301
San Bernardino, CA 92401
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2010-271
EXHIBIT "B1"
RECOVERY ZONE ECONOMIC DEVELOPMENT BOND PROGRAM $7.068,000
Plan of Issuance
Description of Projects, Programs and Schedule
(UE" Street Corridorl
Proiect Description:
The Redevelopment Agency of the City of San Bernardino has included the "E" Street
corridor primarily in the Central City South Redevelopment Project Area although portions are
also located in the Central City Redevelopment Project Area. This intended street-scape
enhancement project will extend from the fringe areas of the Downtown at Rialto Avenue
southerly to Hospitality Lane. It is intended that the Agency will combine the reconstruction of
the "E" Street right-of-way through the SBx Bus Rapid Transit construction along this
roadway to additionally install other decorative features and enhancements to the corridor
including, sidewalks, landscaping, cobblestone intersections, pedestrian walkways and bike-
paths, shaded rest areas, signage, enhanced street lighting all with the intent to create a new
motif for this former vibrant commercial/retail area of the City.
Start of Construction:
Preparation of all construction drawings, award of construction contracts will be completed to
allow the actual commencement of construction by November 1, 2010
Construction Completion:
February 1, 2011
Issulna Entltv:
San Bernardino Joint Powers Financing Authority comprised of the City of San Bernardino
and the Redevelopment Agency of the City of San Bernardino
Date of Inducement ResolutlonlTEFRA Hearlna:
Scheduled for a Council meeting during the month of April, 2010
Date of Bond Issuance:
October, 2010
Anticipated Dollar Amount of Bond Financlna:
$3,518,000
Local Approvals Obtained to Date:
None required; proposed tenant improvements and building renovation complies with existing
zoning and General Plan.
Sponsor Contact Information:
Emil A. Marzullo, Executive Director
City of San Bernardino Economic Development Agency
201 North "E" Street, Suite #301
San Bernardino, CA 92401
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2010-271
EXHIBIT "B2"
RECOVERY ZONE ECONOMIC DEVELOPMENT BOND PROGRAM $7.068.000
Plan of Issuance
Description of Projects, Programs and Schedule
(4th Street CorrIdor)
Project DescrIption:
The 4U1 Street Corridor In Downtown San Bernardino from "E" Street westerly to "H" Street
was formerly the major access route to the 1-215 Freeway. As a result of the current Freeway
construction and the reconflguration of on- and off-remps to the 1-215 Freeway, the 4th Street
remps have already been closed due to this Freeway widening project by Caltrans thus
allowing the Agency the opportunity to alter the traffic patterns for this former Freeway access
corridor. The Agency proposes based upon consultant master plans for this area to limit 4th
Street to 2 travel lanes with pedestrian friendly walking areas and limited vehicular access
due to the re-deslgnation of this portion of 4th Street. The Agency proposes to alter the width
of the streets to remove 2 travel lanes plus the current curb-side parking and install
decorative paving stones and other amenities that will denote this area at the "Theater
District". The "Theater District" is anchored by the historic 1,760 seat California Theater
constructed in 1928 and the Agency owned 20-plex theater facility. Together with the Agency
plans to construct a restaurant row to provide entertainment for the theater patrons, the
Agency Intends to take advantage of the reconflguration of the traffic pattems caused by the
Freeway widening and make this 3 biock area pedestrian friendly with limited vehicular
access In a similar manner as other Southern California cities have already accomplished.
Start of Construction:
Preparation of all construction drawings and award of construction contracts will be
completed to allow the actual commencement of construction by November 1, 2010
Construction Completion:
February 1, 2011
Issulna Entltv:
San Bernardino Joint Powers Financing Authority comprised of the City of San Bernardino
and the Redevelopment Agency of the City of San Bernardino
Date of Inducement Resolutlon/TEFRA Hearlna:
Scheduled for a Council meeting during the month of April, 2010
Date of Bond Issuance:
October, 2010
AntIcipated Dollar Amount of Bond Flnanclna:
$3,550,000
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2010-271
Local Approvals ObtaIned to Date:
None required; proposed tenant improvements and building'renovation complies with existing
zoning and General Plan.
Sponsor Contact InformatIon:
Emil A. Marzullo, Executive Director
City of San Bernardino Economic Development Agency
201 North "E" Street, Suite #301
San Bernardino, CA 92401
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