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HomeMy WebLinkAboutR29- Economic Development CITY OF SAN BERNARDINO ORIGINAL ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzallo SUBJECT: Approve the financing of projects designated Interim Executive Director by the City within the City's Economic Recovery Zone and declare intention to issue Recovery Zone Economic Development Bonds DATE: July26,2010 and Recovery Zone Facility Bonds for the Projects designated Synopsis of Previous Commission/Council/Committee Action(s): On August 20,2009,Redevelopment Committee Members Johnson,Baxter,and Brinker unanimously voted to recommend that the Mayor and Common Council consider designating the City of San Bernardino as a Recovery Zone under the American Recovery and Reinvestment Act of 2009. On September 21, 2009, the Mayor and Common Council designated the City of San Bernardino as a Recovery Zone for the purposes of Section 1400U-1, 1400U-2,and 140OU-3 of the Internal Revenue Code of 1986. On July 22,2010, Redevelopment Committee Members Johnson, Marquez, and Brinker unanimously voted to recommend that the Mayor and Common Council and the Joint Powers Financing Authority adopt the required Resolutions to approve the financing of projects designated by the City of San Bernardino, within the City's Economic Recovery Zone, and declare the intention to issue Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds for the projects designated. Recommended Motionfs): ----- ---- (Mayor and Common Council) A: 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 (Joint Powers Financing Authority) B: Resolution of the San Bernardino Joint Powers Financing Authority Declaring its Intention to Issue Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds for the Projects Designated by the City of San Bernardino within the City of San Bernardino Recovery Zone Contact Person(s): Kathleen Robles Phone (909)663-1044 ProjectArea(s): All Ward(s): All Supporting Data Attached: Z Staff Report H Resolution(s)O Agreement(s)/Contract(s)O Map(s)❑ Letter(s) Funding Requirements: Amount: $ -0- Source: N/A Budget Authority: N/A Signature: Fiscal Review: wzl Emil A.Marzullo,Interim Executive Director Lori TA mini five Services Director Commission/Council Notes: Bards P:UVm 3� 0=O CQm "i ainey RWDC 201""2-10 RZO Fi S&d= COMMISSION MEETING AGENDA Meeting Date: 08/02/2010 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT APPROVE THE FINANCING OF PROJECTS DESIGNATED BY THE CITY WITHIN THE CITY'S ECONOMIC RECOVERY ZONE AND DECLARE INTENTION TO ISSUE RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS AND RECOVERY ZONE FACILITY BONDS FOR THE PROJECTS DESIGNATED BACKGROUND: On February 17, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 (the "Act") which provides for the issuance of Recovery Zone Economic Development Bonds ("RZEDBs") and Recovery Zone Facility Bonds ("RZFBs") by states, counties and large municipalities between 2009 to January 1, 2011. Based upon review of the Act, the City of San Bernardino (the "City") is eligible to issue bonds under the Act if it declares itself a"recovery zone"within the meaning of the Act. On September 21, 2009, the Mayor and Common Council approved Resolution No. 2009-328, designating the City as a "recovery zone" which will allow the issuance of bonds for various projects throughout the City. On January 29, 2010, the Redevelopment Agency of the City of San Bernardino (the "Agency") submitted to the California Debt Limit Allocation Committee ("CDLAC"), the Agency's Plan of Issuance for the RZFBs and the RZEDBs. CDLAC has traditionally administered tax-exempt private activity bond allocations that are made available annually for the State of California. Additionally, through the adoption of Assembly Bill 1009 CDLAC has been tasked with the reallocation of waived Recovery Zone Bond authority on behalf of the State of California for those issuers granted an allocation but either declined to issue bonds or where unable to timely provide for such bond issuance. On March 16, 2010, CDLAC approved a Plan of Issuance with the requirement that additional information be submitted to CDLAC by local issuers no later than August 15, 2010. CURRENT ISSUE: In response to CDLAC's requirement for additional information in order to continue to pursue RZFB and RZED bond issuance, the Agency has prepared, for the approval of the Mayor and Common Council and the San Bernardino Joint Powers Financing Authority (the "JPA"), appropriate inducement resolutions which also approve the proposed projects to be financed. Pursuant to Treasury regulations, the Mayor and Common Council and/or the JPA must pre-approve any reimbursement of expenditures for project costs which are incurred prior to the issuance of bonds. ENVIRONMENTAL IMPACT: The prior action of creating a "recovery zone" did not meet the definition of a "project" under Section 15378 of the California Environmental Quality Act("CEQA")nor does the action proposed to be taken to approve the attached resolutions constitute a"project"under CEQA. P NvCc i wTM 201=88 40 R. znm B.W.Fi-I snd.0 COMMISSION MEETING AGENDA Meeting Date: 08/02/2010 Agenda Item Number: Economic Development Agency Staff Report Recovery Zone Bonds Page 2 FISCAL IMPACT: There is no adverse fiscal impact to the General Fund by the creation of a "recovery zone." Upon the issuance of various series of bonds, any impact upon the City's General Fund will be determined at that time. Account Budgeted Amount: $0.00 Balance as of July 27, 2010: $0.00 Balance after approval of this item: $0.00 RECOMMENDATION: That the Mayor and Common Council and the Joint Powers Financing Authority adopt the attached Resolutions. 1KAF' Emil A.Marzullo,Interim Executive Director ewVa Tomm�camm nTM 201=8-m10 a«oa,mm eooa.Final SR COMMISSION MEETING AGENDA Meeting Date: 08/02/2010 Agenda Item Number: s 1 RESOLUTION NO. O G� 2 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE FINANCING OF THE 4 PROJECTS DESIGNATED BY THE CITY OF SAN BERNARDINO WITHIN THE CITY'S ECONOMIC RECOVERY ZONE AND DECLARING ITS 5 INTENTION PURSUANT TO TREASURY REGULATION 1.150-2 TO USE FUNDS FOR SAID PROJECTS WHICH SHALL BE REIMBURSED WITH 6 BOND PROCEEDS 7 8 WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation 9 and charter city, duly organized and existing pursuant to the provisions of the constitution of the 10 State of California; and 11 WHEREAS, the Community Development Commission of the City of San Bernardino is the 12 governing body of the Redevelopment Agency of the City of San Bernardino (the "Agency"), a 13 public body, corporate and politic, established by the City and organized and existing pursuant to 14 the California Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) 15 (the"CRL"); and 16 WHEREAS, the City and the Agency have heretofore entered into a Joint Exercise of 17 Powers Agreement establishing the San Bernardino Joint Powers Financing Authority (the 18 "Authority") for the purpose of issuing bonds, the proceeds of which may be loaned to any of its 19 members to finance public capital improvements; and 20 WHEREAS, Congress passed the American Recovery and Reinvestment Act of 2009 (the 21 "Act") which amends the Internal Revenue Code of 1986 (the "Code") to authorize a city to 22 designate a "recovery zone" for the purpose of issuing Recovery Zone Economic Development Bonds under Section 1400U-2 of the Code, and Recovery Zone Facility Bonds under Section 23 24 1400U-3 of the Code to promote economic recovery within the country; and 25 WHEREAS,pursuant to Resolution No. 2009-328 entitled the"Resolution of the Mayor and 26 Common Council of the City of San Bernardino Designating the City of San Bernardino as a 27 Recovery Zone for Purposes of Sections 1400U-1, 1400U-2 and 1400U-3 of the Internal Revenue 28 Code of 1986,"adopted on September 21, 2009, the City designated the entire geographical area of I 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 14 FOLLOWS: 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 IS 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 2 V I 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. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 /1/ 27 28 3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY t. 1 OF SAN BERNARDINO APPROVING THE FINANCING OF THE 2 PROJECTS DESIGNATED BY THE CITY OF SAN BERNARDINO WITHIN THE CITY'S ECONOMIC RECOVERY ZONE AND DECLARING ITS 3 INTENTION PURSUANT TO TREASURY REGULATION 1.150-2 TO USE FUNDS FOR SAID PROJECTS WHICH SHALL BE REIMBURSED WITH 4 BOND PROCEEDS 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a meeting thereof, 7 8 held on the day of 2010, by the following vote to wit: Council Members: Ayes Nays Abstain Absent 9 MARQUEZ — 10 DESJARDINS — 11 BRINKER — 12 SHORETT — 13 KELLEY — 14 JOHNSON — 15 MC CAMMACK — 16 17 Rachel G. Clark, City Clerk 18 19 The foregoing Resolution is hereby approved this day of 12010. 20 21 22 Patrick J.Morris,Mayor City of San Bernardino 23 24 Approved as to Form: 25 26 By ames F. Penman City Attorney 27 28 4 1 EXHIBIT "A" 2 Descriptions of Projects to be Financed 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 EXHIBIT "All" RECOVERY ZONE FACILITY BOND PROGRAM $10,602000 Plan of Issuance Description of Projects, Programs and Schedule (Inland Center Mall) Prolect Description: 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 preparation for the relocation to this site of a nationally recognized major retailer seeking to regain entry into the San Bemardino retail market after having closed its former store in 2003 as was previously located at the San Bernardino Carousel Mali. 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 Issuing Entity: 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 Resolution(TEFRA Hearing: Scheduled for a Council meeting during the month of April, 2010. Date of Bond Issuance: Late July, 2010 Anticipated Dollar Amount of Bond Financing: $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 T1Ck.iwl Senicc+PyhSFn�e�B,ini WW1UO IM W24&10k W7ry FK""YB Pmpn I EXHIBIT "A2" RECOVERY ZONE FACILITY BOND PROGRAM $10.602.000 Plan of Issuance Description of Projects, Programs and Schedule (Theater District Restaurants) Project Description: The Redevelopment Agency of the City of San Bernardino has commissioned a master plan for the Downtown Area of the City of San Bernardino 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 4' 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 furnish 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 Completion: February 1, 2011 Issuing Entity: 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 ResolutionREFRA Hearina: Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: September, 2010 Anticipated Dollar Amount of Bond Financing: $1,565,000 Local Approvals Obtained to Date: None required; proposed tenant improvements and building renovation complies with existing zoning and General Plan. ee�ms..�..u,y,�sn",.ew.,,ww�uoiww�ax-m.�aua.mr�rnar eemr�ex l 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 P1del®ISen1m DeglSeeree�&lan'e xm ,Mmn 2- jofUmvery Tme Fury Bond PtWel Ea 2 EXHIBIT "A3" RECOVERY ZONE FACILITY BOND PROGRAM 510.602,000 Plan of Issuance Description of Projects, Programs and Schedule ("E" Street Commercial/Retail) Protect 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 commercial/retail 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 Completion: Site preparation and all entitlement work will be completed as of February 1, 2011 Issuing Entity: San Bernardino Joint Powers Financing Authority comprised of the City of San Bernardino and the Redevelopment Agency of the City of San Bernardino Data of Inducement ResolutionlTEFRA Hearing: Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: September, 2010 Anticipated Dollar Amount of Bond Financing: $3,817,000 Local Approvals Obtained to Date: None required; proposed tenant improvements and building renovation complies with existing zoning and General Plan. P.1Cki"1Smialpryh5yeeHh,nY WokWIOVeme`Ol-]610 ArcarcryStM AcIOry LOGE PoycmAic 1 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 p.'. BFMO pop0Mw m wagt010Vans'M�10 fta taeFOdBhBondPmps" - 2 EXHIBIT 3B1" RECOVERY ZONE ECONOMIC DEVELOPMENT BOND PROGRAM $7,068,000 Plan of Issuance Description of Projects, Programs and Schedule ("E" Street Corridor) Protect 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 commerciallretail 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 Issuing Entity: 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 ResolutionlTEFRA Hearing: Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: October, 2010 Anticipated Dollar Amount of Bond Financing: $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 P WWml Smites Mptt Mftcwn.n's WMMWk,m,'U3-le-lo Rao�'try Zaoe E�womi.It,el^Pmem BOM ROy✓^a« t EXHIBIT "132" RECOVERY ZONE ECONOMIC DEVELOPMENT BOND PROGRAM $7,068,000 Plan of Issuance Description of Projects, Programs and Schedule (4th Street Corridor) Protect Description: The 4 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 reconfiguration of on- and off-ramps to the 1-215 Freeway, the 4'h Street ramps 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 4t' Street to 2 travel lanes with pedestrian friendly walking areas and limited vehicular access due to the re-designation of this portion of 4m 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 reconfiguration of the traffic patterns caused by the Freeway widening and make this 3 block 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 Issuing Entity: 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 ResolutionrrEFRA Hearing: Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: October, 2010 Anticipated Dollar Amount of Bond Financing: $3,550,000 F1CYrial Smim IkyllSAnnWriae:WpkU010VammW]-tbl4 RKO,ay]arc¢mmoea Osvebpmnn Bod rmpn,dm t 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 82401 R.1CYAuI Stnioctlkpt\SAertslBriu.t lVpkU01NMm`OI)Sf0 RmM tore P`crum`c Deebpvnt BeM Piq.wAOc 2 00 PQ NO. 2 RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY DECLARING ITS INTENTION TO ISSUE RECOVERY ZONE 3 ECONOMIC DEVELOPMENT BONDS AND RECOVERY ZONE FACILITY 4 BONDS FOR THE PROJECTS DESIGNATED BY THE CITY OF SAN BERNARDINO WITHIN THE CITY OF SAN BERNARDINO RECOVERY 5 ZONE 6 WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation 7 and charter city, duly organized and existing pursuant to the provisions of the constitution of the 8 State of California; and 9 WHEREAS, the Community Development Commission of the City of San Bernardino (the 10 "Commission") is the governing body of the Redevelopment Agency of the City of San Bernardino 11 (the "Agency"), a public body, corporate and politic, established by the City and organized and 12 existing pursuant to the California Community Redevelopment Law (Health and Safety Code 13 Section 33000,et seq.)(the"CRL"); and 4014 WHEREAS, the City and the Agency have heretofore entered into a Joint Exercise of 15 Powers Agreement establishing the San Bernardino Joint Powers Financing Authority (the 16 "Authority") for the purpose of issuing bonds, the proceeds of which may be loaned to any of its 17 members to finance public capital improvements; and 18 WHEREAS, Congress passed the American Recovery and Reinvestment Act of 2009 (the 19 "Act') which amends the Internal Revenue Code of 1986 (the "Code") to authorize a city to 20 designate a "recovery zone" for the purpose of issuing Recovery Zone Economic Development 21 Bonds under Section 1400U-2 of the Code, and Recovery Zone Facility Bonds under Section 22 1400U-3 of the Code to promote economic recovery within the country; and 23 WHEREAS,pursuant to Resolution No. 2009-328 entitled the "Resolution of the Mayor and 24 Common Council of the City of San Bernardino Designating the City of San Bernardino as a 25 Recovery Zone for Purposes of Sections 1400U-1, 1400U-2 and 1400U-3 of the Internal Revenue 26 Code of 1986," adopted on September 21, 2009, the City designated the entire geographical area of 27 the City a "recovery zone," and the City has received an allocation from the State of California in 28 the amount of$7,068,000 for Recovery Zone Economic Development Bonds and $10,602,000 for I r2j (� I Recovery Zone Facility Bonds; and 2 WHEREAS, the allocation shall expire on December 31, 2010, and the Authority now 3 desires to declare its intention to issue bonds pursuant to the Act in order to provide for the proposed 4 public improvements within the City of San Bernardino Recovery Zone as described in Exhibit "A" 5 hereto (attached and incorporated herein by this reference) and other qualified development 6 purposes(the"Projects"); and 7 WHEREAS, no later than December 31, 2010, the Authority intends to use $7,068,000 0 8 the City's allocation for Recovery Zone Economic Development Bonds and $10,602,000 of the 9 City's allocation for Recovery Zone Facility Bonds to issue obligations(collectively the"Bonds")to 10 finance the eligible City Projects described in Exhibit"A"; and 11 WHEREAS, the City expects to incur certain expenditures relating to the Projects (the 12 "Reimbursement Expenditures") from the City's money on hand, and pay for such expenditures 13 prior to the issuance of the Bonds; and 14 WHEREAS, the Authority and the City reasonably expect to use a portion of the proceeds of 15 the Bonds to reimburse the City for the Reimbursement Expenditures. 16 NOW, THEREFORE, THE SAN BERNARDINO JOINT POWERS FINANCING 17 AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: 18 Section 1. The above Recitals are true and correct in all respects and are incorporated herein 19 by reference. 20 Section 2. It is the intention of the Authority to issue not to exceed $7,068,000 of Recovery 21 Zone Economic Development Bonds and not to exceed $10,602,000 of Recovery Zone Facility 22 Bonds (the "Bonds")prior to December 31, 2010. The Authority intends to issue the Bonds for the 23 purposes of financing the eligible Projects as described in Exhibit "A" hereto attached and 24 incorporated herein by this reference and other "qualified development purposes" as defined in the 25 Act. C26 Section 3. The proceeds of the Bonds shall be applied by the Authority in part to reimburse 27 the City for the Reimbursement Expenditures with respect to the Projects. 28 Section 4. This Resolution shall take effect upon adoption. 2 © I RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY DECLARING ITS INTENTION TO ISSUE RECOVERY ZONE 2 ECONOMIC DEVELOPMENT BONDS AND RECOVERY ZONE FACILITY BONDS FOR THE PROJECTS DESIGNATED BY THE CITY OF SAN 3 BERNARDINO WITHIN THE CITY OF SAN BERNARDINO RECOVERY ZONE 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the San 6 Bernardino Joint Powers Financing Authority at a meeting thereof held on the 7 day of 2010, by the following vote,to wit: 8 9 Authority Members: Aves Nays Abstain Absent 10 MARQUEZ 11 DESJARDINS 12 BRINKER 13 SHORETT 14 KELLEY 15 JOHNSON i 16 MC CAMMACK i j 17 18 Rachel G. Clark, Secretary 19 20 The foregoing Resolution is hereby approved this day of 2010. 21 22 Patrick J. Moms, Chairperson 23 San Bernardino Joint Powers Financing 24 Authority 25 Approved as to Form: !� A l 26 G��� a_�i( 27 By' /- Agency Couns 1 28 3 1 EXHIBIT"A" 2 Descriptions of Projects to be Financed 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 EXHIBIT "A7" RECOVERY ZONE FACILITY BOND PROGRAM $10,602,000 Plan of Issuance Description of Projects, Programs and Schedule (Inland Center Mail) Protect Description: 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 preparation for the relocation to this site of a nationally recognized major retailer seeking to regain entry into the San Bernardino 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 issuing Entity: 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 Resolution/TEFRA Hearina: Scheduled for a Council meeting during the month of April, 2010. Date of Bond Issuance: Late July, 2010 Anticipated Dollar Amount of Bond Financing: $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 P1CkrimlSmK�UeglSMSS� wg WO VDIW COI-2&10 my�ne FcilnYBwtl legm,dee EXHIBIT "A2" RECOVERY ZONE FACILITY BOND PROGRAM $10,602,000 Plan of Issuance Description of Projects, Programs and Schedule (Theater District Restaurants) Protect Description: The Redevelopment Agency of the City of San Bernardino has commissioned a master plan for the Downtown Area of the City of San Bernardino 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 4s' 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 furnish 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 Completion: February 1, 2011 Issuing Entity: 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 Resolution/TEFRA Hearina• Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: September, 2010 Anticipated Dollar Amount of Bond Financing: $1,565,000 Local Approvals Obtained to Date: None required; proposed tenant improvements and building renovation complies with existing zoning and General Plan. P^L M' I<m,iryl Fw RyY Fqn I Sponsor Contact Information: Emil A. Marzullo, Executive Director City of San Bernardino Economic Development Agency 201 North "E" Street, Suite#301 San Bernardino, CA 92401 P?fAelofl$PINIP�DepBB eWsn's xoMZB10VO Z2-2618 Remve'y Zone Fs&ty Bon!PlpprOVd= 2 EXHIBIT "A3" RECOVERY ZONE FACILITY BOND PROGRAM $10,602,000 Plan of Issuance Description of Projects, Programs and Schedule ("E" Street Commercial/Retail) Protect 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 commercial/retail 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 Completion: Site preparation and all entitlement work will be completed as of February 1, 2011 Issulna Entity: 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 Resolution/TEFRA Hearing: Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: September, 2010 Anticipated $3,81 7,000 Dollar Amount of Bond Financing Local Approvals Obtained to Date: None required; proposed tenant improvements and building renovation complies with existing zoning and General Plan. P.ICkrMxl Sella,Ikp�SSeeABrW',►VOA IOAn W2&10 wcM"ry FM1iry2 W� I SSPonsor Contact Information: Emil A. Marzullo, Executive Director City of San Bernardino Economic Development Agency 201 North "E"Street, Suite#301 San Bernardino, CA 92401 P:Vi�A�S¢Mcee DepllS�ueelBMniwk�t010Vtm6'g2-]610 RecovsylplB Fo6Bye0M ROpram9.EOc 2 EXHIBIT "B1" RECOVERY ZONE ECONOMIC DEVELOPMENT BOND PROGRAM $7,068,000 Plan of Issuance Description of Projects, Programs and Schedule ('E" Street Corridor) Protect 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 Issuing Entity: 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 Resolution/TEFRA Hearing: Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: October, 2010 Anticipated Dollar Amount of Bond Financing: $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 P\elmol senius UµlShrtel6,nn',Wok�S01P6,m,'M-ib-10 W.ro.try ZOeeEromie Ue.'elnommt Bog ftv�dw 1 EXHIBIT "B2" RECOVERY ZONE ECONOMIC DEVELOPMENT BOND PROGRAM $7,068.00 Plan of Issuance Description of Projects, Programs and Schedule (4th Street Corridor) Protect Descrigt'on: The 4 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 reconfiguration of on- and off-ramps to the 1-215 Freeway, the 4th Street ramps 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-designation 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 reconfiguration of the traffic patterns caused by the Freeway widening and make this 3 block 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 Entity: 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 Resolution/TEFRA Hearing: Scheduled for a Council meeting during the month of April, 2010 Date of Bond Issuance: October, 2010 Anticipated Dollar Amount of Bond Financing: $3,550,0)0 I:Y4nn16mim ArylSFe"eWnav i WekU010UOm"bt-t61t RttaW]nM Qtaeoirvcpsvebpmem Rey ropy,i� i Local Approvals Obtained to Date• None required; proposed tenant improvements and building renovation complies with existing zoning and General Plan. 4ponsor Contact information: Emil A. 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