HomeMy WebLinkAbout1980-110 De Groot
50,002-1-1
RESOLUTION NO. ffl
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 THEDFORD 0. AND JACQUELINE
M. DE GROOT, FINDING THAT SAID APPLI-
CATION COMPLIES WITH THE PROVISIONS AND
REQUIREMENTS OF SAID ORDINANCE NO.
3815; PRELIMINARILY 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 AND MANNER
PROVIDED BY SAID ORDINANCE NO. 3815 ;
AND MAKING CERTAIN OTHER FINDINGS
AND DETERMINATIONS IN CONNECTION
THEREWITH
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
B148-1 (gl)
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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, Thedford 0. and Jacqueline M. De Groot
("De Groot" 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 De Groot a building to be used as a regional
distribution center and the corporate headquarters of Audio
Graphics Systems, Inc. , and telephone and computer equipment
therefor of approximately 20 ,000 square feet, to be located
at 1900 East Riverview Drive in the City of San Bernardino,
which building, including the land necessary therefor and
for the providing of parking spaces for the use and conven-
ience 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, De Groot, 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
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 %nNtAft, meeting thereof, held on the
day of 1980, by the following vote, to wit :
AYES : Councilmen
y i h ll ,C �� OIVL
NOES:
AB SENT : AQtA���� .�. M..a �, j�
City C k
The foregoing resolution is hereby appro this
r
day of `-� , 1980.
M40-e, t of Sa Bernardino
Approv as to form:
City Attorney
4 - B148-4 (gl)
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De Groot
50, 002-1-1
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
THEDFORD 0. AND JACQUELINE M.
DE GROOT
NOTICE IS HEREBY GIVEN that the Mayor and
Common Council of the City of San Bernardino have accepted
an application from Thedford 0. and Jacqueline M. De Groot,
and have adopted its Resolution entitled:
"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 Thedford 0. and Jacqueline
M. De Groot; Finding that Said Application
Complies with the Provisions and
Requirements of Said Ordinance No.
3815; Preliminarily 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
and Manner Provided by Said Ordinance
No. 3815; and Making Certain Other
Findings and Determinations in
Connection Therewith"
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De Groot
50,002-1-1
all for the financing of a building to be used as a regional
distribution center and the corporate headquarters of Audio
Graphics Systems, Inc. , and telephone and computer equipment
therefor, of approximately 20,000 square feet, to be located
at 1900 East Riverview Drive in said City (the "Project")
and to issue approximately $750 ,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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De Groot
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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 THEDFORD 0. AND JACQUELINE
M. DE GROOT, FINDING THAT SAID APPLI-
CATION COMPLIES WITH THE PROVISIONS AND
REQUIREMENTS OF SAID ORDINANCE NO .
3815; PRELIMINARILY 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 HEAPING IN THE FORM AND MANNER
PROVIDED BY SAID ORDINANCE NO. 3815 ;
AND MAKING CERTAIN OTHER FINDINGS
AND DETERMINATIONS IN CONNECTION
THEREWITH
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
B148-1 (gl)
3/12/80
De Groot
50,002-1-1
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, Thedford 0. and Jacqueline M. De Groot
("De Groot" 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 De Groot a building to be used as a regional
distribution center and the corporate headquarters of Audio
Graphics Systems, Inc. , and telephone and computer equipment
therefor of approximately 20 ,000 square feet, to be located
at 1900 East Riverview Drive in the City of San Bernardino,
which building, including the land necessary therefor and
for the providing of parking spaces for the use and conven-
ience 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, De Groot, their successors and assigns, and the
Underwriter;
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED
AND ORDERED BY THE MAYOR AND CO ZION 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
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 provi-
sions 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 Govern-
ment Code of the State of California.
PASSED AND APPROVED this day of ,
19
Mayor, City of San Bernardino
[SEAL]
ATTEST:
City Clerk, City of San
Bernardino
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De Groot
50,002-1-1
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
THEDFORD 0. AND JACQUELINE M.
DE GROOT
NOTICE IS HEREBY GIVEN that the Mayor and
Common Council of the City of San Bernardino have accepted
an application from Thedford 0. and Jacqueline M. De Groot,
and have adopted its Resolution entitled:
"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 Thedford 0. and Jacqueline
M. De Groot; Finding that Said Application
Complies with the Provisions and
Requirements of Said Ordinance No.
3815; Preliminarily 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
and Manner Provided by Said Ordinance
No. 3815; and Making Certain Other
Findings and Determinations in
Connection Therewith"
-1- B148-5 (gl)
3/12/80
De Groot
50,002-1-1
all for the financing of a building to be used as a regional
distribution center and the corporate headquarters of Audio
Graphics Systems, Inc. , and telephone and computer equipment
therefor, of approximately 20 ,000 square feet, to be located
at 1900 East Riverview Drive in said City (the "Project")
and to issue approximately $750 ,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
-2- B148-6 (gl)
3/12/80
APPLICATION FOR
REVENUE BOND FINANCING
PART I GENERAL AND BUSINESS INFORMATION
1 . 1 Legal name of the applicant .
Thedford 0. and Jacqueline M. DeGroot
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.O. Box 1060 , San Bernardino , CA 92402 ; 810 North
Waterman Avenue , San Bernardino , CA 92410
1 . 4 Employer I .D. No .
Audio Graphic Systems , Inc. (Tenant) , 95-2538238
1 . 5 Name and title of principal contact .
Thedford (Ted) DeGroot , CEO
1 . 6 Phone number (s) .
(714) 888 1395
1 . 7 Type of business organization
The two principals are acting as husband and wife in
the development 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,
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 :
1 . 9. 1 Principal officers , n/a
1 . 9. 2 Directors , and n/a
_ - 1 -
1 . 9. 3 Principal stockholders (over 10% ownership) . n/a
The applicants are key officials
1 . 10 Description of other business affiliations of principal
officers , directors , and principal stockholders .
Mr. DeGroot is the C.E .O. and 1000 owner of Audio Graphic
Systems , Inc. , a national Distributor of audio visual
equipment. He has been with them since 1965 .
1 . 11 Employees
Audio Graphic Systems , Inc . employs 130 full time people .
1 . 11 . 1 Number of employees in California
80
1 . 11 . 2 Locations in California
810 North Waterman (Corporate Headquarters)
San Bernardino , CA 92410
4130 Park Boulevard (Branch office)
San Diego , CA 92103
15207 Marquardt Avenue (Branch office)
Santa Fe Springs , CA 90670
290 E. Grand Avenue (Branch office)
South San Francisco , CA 94080
1 . 12 Expert Services :
1 . 12 . 1 The applicant ' s accountant and principal contact
at such firm,
Skeen $ Co . , 1 Redlands Plaza , St . 203 , Redlands ,
CA 92373 . Principal contact is Evan S . Skeen.
1 . 12 . 2 The applicant ' s attorneys and principal contact
at such firm,
Surr and Hellyer , 599 Arrowhead, San Bernardino ,
Mr. John MacElearney.
1 . 12 . 3 Any experts or firms of experts that will be in-
volved and the principal contacts at each firm.
Penco Builders , Inc . , 122 S . Arrowhead,
San Bernardino , CA
Mr. Jim Pence
1 . 13 Principal bank of account and name of officers handling
account .
2 -
The applicants maintain an account with the Wells Fargo
Bank, 334 W. Third Street , San Bernardino , CA 92401
Mr. Fred Scarsella as well as United California Bank,
Redlands , CA, Mr. Dick Granillo , Manager .
1 . 14 The source of funding for the project .
Principals equity and proceeds from the Industrial De-
velopment 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 , $650 , 000 . 00
2 . 1 . 2 Legal , printing and related fees , included in 2 . 1 . 1
2 . 1 . 3 Financing costs and fees , $22 ,000
2. 1 . 4 Capitalized interest , 35 ,000
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 21 , 1980 Sale of Bonds and begin construction.
2 . 4 Type of bond sale (private placement , underwritten offering) .
Private Placement
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
Solana Beach, CA 92075
-3-
idered a small business
in the real
3. 2
Applicants are cons development and management industry -
estate involved.
There is no small business loan
PART IV PROJECT INFORMATION
of the prop the purpose , objective and function of
4 . 1 A short summary project.
'Pro ect is to construct a
ro osed P orate Headquarters
The pure°Se of the P Center and Corp San Bernar-
Regional Distribution Riverview Drive ,
building at 1900 East
office total
dino , California. estimated
of the componenof the project , including:
4 . 2 A description arts
cost of the functional P feet fronting on
The site is 113 .79 View , and East of
4 . 2 . 1 Land West of Mt ' is 852 . 78 feet and the
Riverview Dr - 2 West border The legal description
Tippacanoe. 80 feet . 4608
is 128 ' parcel 3 of Parcel Map
East border
of the parcel is : Ma s , Pages 73-75 records of
Book 42 of Parcel Maps ,
The purchase
and was $20 ,000 . purchased from the
San ofathenl County
Price ment Agency •
Re-develop constructed will
to be of space with
- The building square feet
4 . 2 . 2 Buildingsoximately 20 ,000 sq 000 . ee
have aPP 500 ,
a cost of approximately $ equipment
ui ment - The extra witch-
4 . 2 . 3 A tabulation of the pproject are telephone. h The
ated for computer peripherals •Computer
anticipate 000 . -
board and addit] e : Telephone $559
cost of these are :
$359000 . - The Architec-
ineering and technical services en provided by
4 . 2 . 4 Eng work for the project has of that service
tural professionals .
The cost
was $7s 500 . 00
- Offsites and grading
4 . 2 . 5 Other or miscellaneous
items costs .
included above in total construction
Estimated construction period:
4 . 3 April 23 , 1980
date is AP
4 . 3.1 Scheduled starting 1980
d completion date is September 30 ,
4. 3. 2 Schedule supervising or
applicant' s the project .
location of the design of
4 . 4 Name and engineer responsible for
consulting eng supervision
of the two
project will be d°andthercontra por -
The P . als (Part 1. 1)
contractor -
principals
4 -
4. 5 The location of proposed project . If duplicate instal -
lations in several locations , list addresses of all .
The project will be located at 1900 East Riverview Dr . ,
San Bernardino , California.
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 con-
ducted at the location of the proposed project , and the
scope , magnitude and process relationships of the proposed
project , including :
4 . 8 . 1 An 82" 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 and warehouse
operations will be conducted when the project is completed.
These operations will be conducted by Audio Graphic Systems ,
Inc.
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 will be 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
- 5 -
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 . N/A
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 save 40 jobs in the City of San
Bernardino because the tenant , Audio Graphic Systems , Inc .
will relocate within the city rather than moving to a more
centrally located (for its business) facility. This is
also the corporate headquarters where all of the admini-
stration is located. We are a home town business , beginning
in June of 1961 with 3 employees and growing into a national
concern having 16 offices in various states with anticipated
1980 sales of $15 ,000 , 000. 00 . These funds are all deposited
here in San Bernardino. Within the next five years , 15
additional jobs will be added at this proposed facility.
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 re-
duce unemployment in this sector of the labor market .
2) The construction of the project is anticipated to
add approximately $600 , 000. 00 of assessed valuation to the
tax rolls of the city.
3) 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 pro-
vide new sources of financing to the applicant and such
financing will be made available at lower, tax-exempt in-
terest rates .
5. 2 In particular, the application should address the findings
in Section 1 of the Ordinance , and should show that the
- 6 -
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 i.ts activity in the City
will increase long term employment of local residents and
that the City will receive a substantial benefit that ex-
ceeds 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 the 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 because
the tenant has grown considerably and has expanded its work
force at this location, and will continue to do so without
imposing a financial burden or adverse effects on areas
outside the boundaries of the City or on transient residents
of the State.
Z) The Project will not produce detrimental effects on ,
conflict with, or otherwise 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 finan-
cing 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 is well documented. Over the past 19 years the
applicant continues to own and operate Audio Graphic Systems ,
Inc. located in the City of San Bernardino .
4) The City will only provide a method of 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 .
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I
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 the City, 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 COMMITMENTS
6 . 1 The application shall be supplemented with a commitment
by the applicant 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, qualification or registration 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 amend-
ments thereto , and any permit or other authorization of such
governmental department , prior to the delivery by the City
of the bonds .
6. 2 The application shall be supplemented with (i) a commitment
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 de-
livery by the City of such bonds , and, if deemed necessary
by the City, following the delivery of the 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 ,
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if deedmed necessary by the City, following the delivery of
such bonds .
-6. 3 All commitments by the applicant shall specifically provide
for the applicant to pay all expenses in connection with
the issuance , offer of 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.
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 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 of
amendments to the application.
The applicant agrees that any additional information, agree-
ments 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 SIGNATURES
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, to the best of
his knowledge or belief, contains no false or incorrect
information or data, and the application, including exhibits
and attachments , is truly descriptive of the project .
There must also be a representation that the applicant is
familiar with Ordinance No . 3815.
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This Application is signed below by the applicant
shown in Part I . 1 who by their signatures below,
as
represent and certify that this Application,
best of their knowledge or belief, cot n to the
or incorrect information or data , �and nthissApplication
false
including exhibits and attachments , is truly de ,
the Project , and the Applicant is familiar ithsOrdptive of
No. 3815 .
Ordinance
PART VIII FEE SCHEDULE
8. 1 The City requires a non-refundable application
for each project to be considered for eligibility, to e
paid when the basic documents are requested. With to
submittal of the application form,
City- If tie application is accepted00 is payable to the
Payable for administrativencostsitional fee
note, however, that the commitments in Part VI abPlease
in addition t ' these fixed amounts .
t
are
hat no closing occurs , the City shallh be �reimbursed event fo
its processing costs . for
The Applicant agrees that , for the Project to be cons '
for eligibility, a non-refundable application considered
has been paid to the City when the sic documents ow $50
received. With the submittal of this a
there is enclosed ere
$500 payable to the Cpplication form,
Application is accepted, Applicant agreesythatfithwill
Pay the City an additional fee of
tive costs . Applicant agrees that$i�s000 for adminiinra-
Part VI above are in addition to these fixed amounts .
Thus , in the event that no closing occurs
that the City shall be reimbursed for its processing costs .
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