HomeMy WebLinkAbout1980-106 San Bernardino
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RESOLUTION NO. �
RESOLUTION OF THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO
FINDING THAT AN APPLICATION FOR
INDUSTRIAL DEVELOPMENT BOND FINANCING
HAS BEEN SUBMITTED PURSUANT TO THE
PROVISIONS OF ORDINANCE NO. 3815 OF
THE CITY BY ROBERT L. LANGSTON AND
WILTON K. NEWBY, A GENERAL PARTNERSHIP;
FINDING THAT SAID APPLICATION COMPLIES
WITH THE PROVISIONS AND REQUIREMENTS _
OF SAID ORDINANCE NO. 3815; PRELIMIN-
ARILY APPROVING SAID APPLICATION AND
THE PROJECT TO WHICH IT REFERS; FIXING
• TIME AND PLACE FOR THE HOLDING OF
• HEARING THEREON; ORDERING THE
PUBLICATION OF A NOTICE OF HEARING
IN THE FORM AND MANNER PROVIDED BY
SAID ORDINANCE NO. 3815; AND MAKING
CERTAIN OTHER FINDINGS AND DETERr2INA-
TIONS IN CONNECTION THEREWITH
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WHEREAS, the City of San Bernardino ("City"
herein) , is a "home rule city" duly organized and existing
under and pursuant to a Charter adopted under the provisions
of the Constitution of the State of California; and
WHEREAS, pursuant to its home rule powers, the
City duly and regularly enacted Ordinance No. 3815
( "Ordinance" herein) to finance various types of projects ,
as defined in the Ordinance, and to issue its special
revenue bonds for the purpose of paying the cost of financ-
ing such projects ; and
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_T7-4AJ ,2
B194-1 (gl)
3/10/80
San Bernardino
60,009-8-1
WHEREAS, said Ordinance No. 3815 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, Robert L. Langston and Wilton K. Newby,
as a general partnership ( "Langston/Newby" herein) , have
submitted their Application in the form and manner provided
in said Ordinance No. 3815 requesting the City to issue and
sell to Miller & Schroeder Municipals , Inc. ( "Underwriter"
herein) , its special revenue bonds as authorized by said
Ordinance for the purpose of financing for Langston/Newby
an office building of approximately 22,612 square feet, to
be located at 1265 East Highland Avenue in the City of San
Bernardino, which building, including the land necessary
therefor and for the providing of parking spaces for the
use and convenience of the tenants of and visitors to said
building, and the financing of same, including interest
during construction, costs and expenses of issuing said
bonds, including bond discount, if any, constitute a project
("Project" herein) as that term is used in said Ordinance
No. 3815; and
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WHEREAS, the Coordinator (being the Redevelopment
Agency of the City) , City Attorney, Redevelopment Agency
Counsel, Bond Counsel, the Underwriter and staff of both
the City and the Coordinator have reviewed the Application
and have found that the Project is within and complies with
the spirit, intent and provisions of the Ordinance, and
that the City should proceed with the financing; and
WHEREAS, the City finds that it is in the public
interest to authorize an issue of its special revenue bonds ,
for the purpose of paying the cost of financing the Project
upon such terms and conditions as may then be agreed upon
by the City, Langston/Newby, their successors and assigns ,
and the Underwriter;
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED
AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS :
Section 1. That the recitals set forth hereinabove
are true and correct in all respects .
Section 2. That said Application as referred to
in the recitals hereof complies with the provisions and
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requirements of said Ordinance No. 3815 .
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Section 3. That said Application and the Project
be, and the same are, hereby preliminarily approved.
Section 4 . That in accordance with the provisions
of Section ll (C) of said Ordinance No. 3815, a public hearing
shall be held at the time and place and for the purpose set
forth on the "Notice of Hearing" form attached hereto as
Exhibit A and incorporated herein, which notice complies
with the requirements of said Ordinance.
Section 5 . That the City Clerk is hereby directed
to cause said Notice of Hearing referred to in Section 4 hereof
to be published in a legal newspaper of the City in the time
and manner required by Section 6061 of the Government Code of
the State of California.
I HEREBY CERTIFY that the foregoing resolution was
duly adopted by the Mayor and Common Council of the City of
San Bernardino at a . . meeting thereof, held on the
day of `�Qy� _, 1980, by the following vote, to wit:
Ayes: Councilmen
NOES: mpg
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day of i'�,Ln � 1980.
--00'Xay6r e City o San Bernardino
Approved as to form: 7
City A orney
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{ San Bernardino
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60,009-8-2
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CITY OF SAN BERNARDINO
NOTICE. OF PUBLIC HEARING ON
APPLICATION FOR FINANCING OF A
PROJECT PURSUANT TO ORDINANCE
NO. 3815 OF THE CITY OF SAN
BERNARDINO FOR AND ON BEHALF OF
ROBERT L. LANGSTON AND WILTON K.
NEWBY, A GENERAL PARTNERSHIP
NOTICE IS HEREBY GIVEN that the Mayor and
Corivaon Council of the City of San Bernardino have accepted
an application: from a general partnership comprised of Robert
L. Langston and Wilton K. Newby and have adopted its Resolution
entitled:
"Resolution No. j 6_/06
"Resolution of the Mayor and Common
Council of the City of San Bernardino
Finding that an Application for
Industrial Development Bond Financing
Has Been Submitted Pursuant to the
Provisions of Ordinance No. 3815 of
the City by Robert L. Langston and
Wilton K. Newby, a General Partnership;
Finding that Said Application Complies
with the Provisions and Requirements
of Said Ordinance No. 3815; Prelimin-
arily Approving Said Application and
the Project to Which it Refers ; Fixing
a Time and Place for the Holding of
a Hearing Thereon; Ordering the
Publication of a Notice of Hearing
in the form ana Planner Provided by
Said Ordinance No. 3815; and Making _
Certain Other Findings and Determina-
tions in Connection Therewith"
B194-5 (jsy)
3/11/80
San Bernardino
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all for the financing of a commercial building of approxi-
mately 22, 612 square feet, to be located at 1265 East
Highland Avenue in said City (the "Project") and to issue
approximately $1, 250,000 of special revenue bonds therefor
pursuant to Ordinance No. 3815 .
NOTICE IS FURTHER GIVEN that the Mayor and
Common Council will hold a public hearing on the Application
and the proposed Project and its financing as follows :
Date: April 7 , 1980
Time: 2:00 P.M.
Place: Council Chambers
City Hall
300 North "D" Street
San Bernardino, California 92418
on which date, time and place any and all persons interested
may appear and be heard.
GIVEN by order of the Mayor and Common Council of
the City of San Bernardino, California, March 17, 1980 .
Shauna Clark, City Clerk of the
City of San Bernardino
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APPLICATION FOR
REVENUE BOND FINANCING
PART I GENERAL AND BUSINESS INFORMATION
1.1 Legal name of the applicant.
Robert L. Langston and Wilton K. Newby
1.2 Line of business.
Real estate development, ownership and management.
1.3 Mailing address for purposes of application liaison,
and address of headquarters.
P. 0. Box 3639, San Bernardino, CA 92413; 1110 East
Highland Avenue, San Bernardino, CA 92404
1.4 Employer I.D. No.
Robert L. Langston, 95-2905418
(I.D. No. applied for each project developed)
1.5 Name and Title of principal contact.
Robert L. Langston, Principal
1.6 Phone number(s).
(714) 882-2984 (714) 883-8651
1.7 Type of business organization:
The two principals are acting as individuals for the
purpose of this project.
1.7.1 Place of organization, n/a
1.7.2 Date of organization, and n/a
1.7.3 The nature of legal affiliation or relationship
with other entities (Parent-Subsidiary,division, I
common ownership, etc.). n/a
1.8 Constitution of ownership of the company, including
percentage of holdings by general public.
The principals are equal partners.
1.9 Names and locations of key officials, including:
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1.9.1 Principal officers, n/a j
1.9.2 Directors, and n/a
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1.9.3 Principal stockholders (over 10% ownership). n/a
The applicants are the key officials.
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1.10 Description of other business affiliations of principal
officers, directors, and principal stockholders.
Robert L. Langston is a real estate developer and broker
and his principal affiliation has been with Mr. Newby
during the past 7 years. W. K. Newby is a general
contractor and maintains his office at 4972 Rose Avenue,
Riverside, California 92505. During the past 7 years
his principal affiliation has been with Mr. Langston
in the development of real estate properties.
1.11 Employees
Mr. Langston employs 10 real estate sales licensee's
in his real estate operation. In the operation of
his construction company, Ke-New Builders, Inc., Mr.
Newby has 4 employees at Riverside, California. The
partnership consisting of Mr. Langston and Mr. Newby,
Langston-Newby Development Co. does not employee anyone
directly except during construction of projects when
the number of employees range as high as 25.
1.11.1 Number of employees in California
Varies with each project
1.11.2 Locations in California.
1110 East Highland Avenue, San Bernardino, CA. 92404.
4972 Rose Avenue, Riverside, CA. 92505.
1.12 Expert Services:
1.12.1 The applicant's accountant and principal
contact at such firm,
Branfors-White-Rogers & Co., 242 N. Arrowhead
Avenue, San Bernardino, CA. 92402. The principal
contact is Jay Zercher.
1.12.2 The applicant's attorneys and principal contact
at such firm,
Simpson and Simpson, 150 West Fifth Street, San
Bernardino, Ca. 92401. The principal contact
is Brian J. Simpson.
1.12.3 Any experts or firms of experts that will be
involved and the principal contacts at each firm.
The Armantrout Office, Architects, 380 New York
Street, Redlands, CA. 92373. The principal contact
is Leon Armantrout, AIA.
1.13 Principal bank of account and name of officers handling
account. s
The applicants maintain accounts with the following banks:
,Security Pacific National Bank, Ed Purmort, Manager
Bank of Redlands, Don Davis, Vice President
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1.14 The source of funding for the project.
Principals equity and proceeds from the Industrial
Development Bond.
PART II BOND ISSUE
2.1 Provide the estimated total amount of the financing with
a tabulation of proposed use of bond proceeds,
2.1.1 Project cost, $914,049.00
2.1.2 Legal, printing and related fees, included in 2.1.1
2.1.3 Financing costs and fees, $10,550.00
2.1.4 Capitalized interest, $83,333.00
2.1.5 Other miscellaneous costs, title fee, $6,500.00
2.2 Estimated target date of financing.
April 15, 1980
2.3 Estimated times of financing.
March 1, 1980 Plans and Specifications complete.
March 17,1980 Mayor and Common Council. Agency staff
to present application and Mayor and Common Council to
adopt resolution of intent and approve plans.
April 2j" 1,980 Sale of Bonds and begin construction.
2.4 Type of bond sale (private placement, underwritten offering).
PART III FINANCIAL INFORMATION
3.1 Financial statements certified or prepared by a CPA, from
three most recent fiscal years, including the following:
Financial statements have been submitted directly to:
Mr. Robert Spelman
Miller & Schroeder Municipals, Inc.
505 Lomas Santa Fe
Suite 200
Solano Beach, Ca. 92075 ,
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3.2 Applicants are considered a small business in the real
estate development and management industry.
There is no small business loan involved.
PART IV PROJECT INFORMATION
4.1 A short summary of the purpose, objective and function
of the proposed project.
The purpose of the proposed project is to construct a
commercial office building at 1255 East Highland Avenue,
San Bernardino, California.
4.2 A description of the components and the estimated total
cost of the functional parts of the project, including:
4.2.1 Land - The site is 200 feet X 260 feet, fronting
on the South side of Highland Avenue, East of the
interesection with Golden Avenue. The legal
description of the parcel is: Parcel 1 of Parcel
Map 4838 Book 46 of Parcel Maps, Page 31 Records
of San Bernardino County, California. The value
of the land is $260,000.00.
4.2.2 Buildings - The building to be constructed will
consist of two stories and have approximately
22,856 square feet of space with a cost of
$1,014,432.00.
4.2.3 A tabulation of equipment - The only equipment
anticipated for the project are structural com-
ponents of the building and the costs are
included in the building costs.
4.2.4 Engineering and technical services - The Architectural
work for the project has been provided by The
Armantrout Office Architects, (C-3628), 380 New
York Street, Redlands, California. The cost of
that service was $25,000.00
4.2.5 Other or miscellaneous items - Offsites and grading
included above in total construction costs.
4.3 Estimated construction period:
4.3.1 Scheduled starting date is April 23, 1980
4.3.2 Scheduled completion date is November 30, 1980.
4.4 Name and location of the applicant's supervising or
consulting engineer responsible for design of the project.
The project will be done under the supervision of the two
principals (Part 1.1) and the architects (Part 4.2.4):
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4.5 The location of proposed project. If duplicate installations
in several locations, list addresses of all.
The project will be located at 1255 East Highland Avenue,
San Bernardino, California.
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4.6 Advise as to whether project site is a new location. If
not, describe what expansion or alteration will be made.
The project site is a new location.
4.7 Name of legal owner of location:
4.7.1 If not owned by applicant, advise terms and
nature of occupancy, n/a
4.7.2 If there is or will be a legal relationship between
the applicant and owner of the location, describe
the relationship. n/a
The applicants are the legal owners of the location of
the project.
4.8 A description of the operations that are or are to be
conducted at the location of the proposed project, and
the scope, magnitude and process relationships of the
proposed project, including:
4.8.1 An A" X 11" map showing plant site and location
of the project is attached.
4.8.2 A description of the plant process. n/a
It is anticipated that typical business office operations
will be conducted when the project is completed. These
operations, it is. expected, will be conducted by some new
firms locating in the city as well as possible some firms
relocating within the city.
4.9 List the environmental quality regulations, standards or
requirements which are to be met within this project.
The applicant anticipates that a Declaration of Negative
Impact shall be filed.
4.10 A list and copies of all permits, water quality enforce-
ment orders, air pollution permits and variances or
evidence of other actions evidencing need for installation
of this project.
The project plans and specifications have been submitted
to the City of San Bernardino, Building and Safety Department
for the issuance of a building permit.
4.11 List Pollution control agencies (local, state and federal)
imposing the applicable regulations, standards or require-
ments for operations or disposal. N/A
4.12 Describe the regional county or basin plan to which this
project is to conform, and the manner in which it will
provide conformance. N/A
4.13 Describe the by-products or residues of the project, and
where and how ultimate disposal will be accomplished. If
recycling or salvage is to be a function, advise as to
market opportunities.
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PART V PUBLIC BENEFITS
5.1 Describe the benefits that will accrue to the City and
its citizens as a result of the installation of this
facility and the use of this method of financing, vis-a-vis
a conventional method.
The benefits that will accrue to the City and its citizens
as a result of the installation of the project and the use
of tax-exempt financing vis-a-vis a conventional method
include the following`.
1) The project will provide long-term employment for
a section of the locally unemployed. When construction
on the project site has been completed and the facility
is operational, it is estimated that there will be approxi-
mately 150 jobs directly created and approximately 75 jobs
indirectly created. The categories of jobs to be provided
are anticipated to include managerial, skilled, semiskilled
and unskilled. The wages to be paid by the enterprises
locating in the project for employees in various job
categories are anticipated to meet local and regional
standards and to sustain a satisfactory level of financial
stability. Working conditions in the facility (which will
be newly constructed are anticipated to be constructed in
accordance with all applicable federal, state and local
laws and regulations) are anticipated to be satisfactory.
2) The City's involvement in the planning and develop-
ment of the project will enable the city of attract the
types of businesses most deserved by the city and will
permit the city to have a greater amount of input for each
of the jobs anticipated to be created by the project.
3) Additional benefits anticipated to be realized by
the reduction of unemployment and underemployment attributable
to the installation of the project and the general economic
revitalization resulting therefrom include the reduction of
public assistance expenditures, all because the project will
be self-supporting, at no unreimbursed cost to the city.
In addition, -during the period of construction the project
is anticipated to employ an average of 35 construction
workers of various trades and skill levels which will
reduce unemployment in this sector of the labor market.
4) The construction of the project is anticipated to
add approximately $900,000.00 of assessed valuation to the
tax rolls of the city. In addition, it is anticipated that
the project will generate additional sales tax and business
license revenues for the city.
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5) The use of the method of financing provided for in
Ordinance No. 3815 of the city vis-a-vis the use of a con-
ventional method will permit the applicant to move forward
with the financing and construction of the project within
an accelerated time frame. As the city is well aware,
conventional interest rates are at historically high levels
and many sources of conventional financing do not currently
have funds available to loan at any interest rate. The
method of financing provided in Ordinance No. 3815 will
provide new sources of financing to the applicant and
such financing will be made available at lower, tax-exempt
interest rates.
5.2 In particular, the application should address the findings
in Section 1 of the Ordinance, and should show that the
applicant is locating in the city for long-term business
reasons and not merely because of any financial inducement
offered by the Ordinance. Applicant should outline the pro-
gram by which it is expected that its activity in the City
will increase long term employment of local residents and
that the City will receive a substantial benefit that
exceeds any detriment incurred.
The applicant believes that the installation of the Project
and the financing thereof pursuant to Ordinance No. 3815 of
the City are in conformance with tie findings set forth in
Section 1 of Ordinance No. 3815. In particular:
1) The Project is anticipated to have a beneficial
impact on the unemployment problem in the City without
imposing a financial burden or adverse effects on areas
outside the boundaries of the City or on transient residents
of the State.
2) The Project will not produce detrimental effects on,
conflict with, or otherwide restrain State efforts to solve
problems of legitimate State concern.
3) The applicant has legitimate, long-term business
reasons for installing the Project including the long-term
profit potential, labor pool access and other economic factors
(including the ability of the applicant to profit from the
leasing of Project space) in comparison to which the financing
of the Project is not as important. However, as described
above in Part 5.1, the financing of the Project under the
method provided by Ordinance No. 3815 will provide additional
financing sources to the applicant at lower tax-exempt rates
and will enable the time schedule for installation of the
Project to be accelerated.
The applicants long-term business in the City of San
Bernardino are well documented. Ovwr the past 7 years
the applicant has developed, constructed and continues
to own and operate commercial office building located in
the City of San Bernardino. All of these previous projects
have provided employment to construction trages during the
construction period and many new permanent jobs were created.
The tax base for the City has been significantly increased
due to these previous projects.
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4) The City will only provide a method a financing
the Project and will only be paid certain fees to reimburse
the City for costs incurred by the City in connection with
the financing of the Project. The City will not realize
a profit in such a manner as to compete with or rival private
firms and the applicant is not requesting the City to take
any more action than is necessary to consumate the financing.
As described in Part 5.1, certain incidental benefits will,
of course, accrue to the City as a result of the installa-
tion of the Project.
5) In Part 5.1, the Applicant has outlined the programs
by which it is expected that the applicant's activity in the
City will increase long-term employment of local residents.
6) The City will receive a substantial benefit (as
described in Part 5.1) from installation of the Project
that exceeds any detriment incurred by the City. The
Project will be self-supporting. Ordinance No. 3815 and
the documents pursuant to which any bonds issued by the
City to finance the Project provide or will provide that
such bonds are limited obligations of the City to finance
the Project provide or will provide that such bonds are
limited obligations of theCity, payable only from revenues
generated by the Project and that all fees and expenses
incurred by the City in connection with the Project will be
required to be paid by the applicant. Indirect benefits
such as the increase in the property tax base and increases
in other taxes and user fees are anticipated to exceed
any indirect detriments to the City such as increases in
costs of police, fire and other municipal services.
7) The applicant will not take any action that will
result in a violation of any applicable State standards
relating to sewage disposal.
PART vI COMMITMITTS
6.1 The application shall be supplemented with a commitment
by the applicant to comply, and/or to assist theCity
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, qualification or registra-
tion of the offer, issuance or sale of the bonds, and any
amendments thereto, and any permit or other authorization
of such governmental department, prior to the delivery
by the City of such bonds.
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 limita-
tion, the making of any required application to a governmental
department, for authorization, qualification or registration
of the offer, issuance or sale of the bonds, and any_ amen-
ments thereto, and any permit or other authorization of such
governmental department, prior tolhe delivery by the City
of the bonds.
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6.2 The application shall be supplemented with (i) a com-
mitment by the applicant 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 or sale of bonds,
prior to the delivery by the City of such bonds, and, if
deemed necessary by the City, following the delivery of
such bonds.
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 All commitments by the applicant shall specifically provide
for the applicant to pay all expenses in connection with
the issuance, offer or 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 accujulate any
claims against the City.
The applicant hereby warrants and covenants to pay all ex-
penses 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 theCity harmless
from any and all expenses related thereto and to pay items
on an ongoing basis so that neither the City, nor its ad-
visors, attorneys, employees and the like will accumulate
any claims against the City.
6.4 Any additional information, agreements and undertakings
as the City may require as a result of various confer-
ences and negotiations shall be reproduced in written,
printed or other tangible form, shall be supplied in
as many copies as the City prescribed and shall be
deemed supplements or amendments to the application.
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 prescribed
and shall be deemed supplements or amendments to this
Application.
PART VII SIGNATURE
7.1 The application must be signed by the senior official of
the applicant with prime responsibility for the financing,
who must certify that he has authority to bind the
applicant to contract terms; that the application,A6 the
best of his knowledge or belief, contains noifalse or
incorrect information or data, and thi application,
including exhibits and attachments, is truly descriptive
of the project. There must also be a represnetation that
the applicant is familiar with Ordinance No. 3815.
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This Application is signed below by the applicant as
shown in Part I.1 who, by their signatures below,
represent and certify that this Application, to the
best of their knowledge or belief, contains no false
or incorrect information or data, and this Application,
including exhibits and attachments, is truly descriptive of
the Project, and the Applicant is familiar with Ordinance
No. 3815.
PART VIII FEE SCHEDULE
8.1 The City requires a non-refundable application fee of
$50 for each project to be considered for eligibility, to
be paid when the basic documents are requested. With the
submittal of the application form, $500 is payable to the
City. If the application is accepted, an additional fee
of $10,000 is payable for administrative costs. Please
note, however, that the commitments in Part VI above are in
addition to these fixed amounts. Thus, in the event that
no closing occurs, the City shall be reimbursed for its
processing costs.
The Applicant agrees that, for the Project to be considered
for eligibility, a non-refundable application fee of $50
has been paid to the City when the basic documents were
received. With the submittal of this application form,
there is enclosed $500 payable to the City. If this
Application is accepted, Applicant agrees that it will pay
the City an additional fee of $10,000 for administrative
costs. Applicant agrees that its committments in Part VI
above are in addition to these fixed amounts. Thus, in the
event that no closing occurs, Applicant agrees that the
City shall be reimbursed for its processing costs.
It6bCrtfl'. Laos ton
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Wilton K. Newbyf
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