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HomeMy WebLinkAbout1980-111 Millcreek 50 ,002-1-1 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 MILLCREEK, A GENERAL PARTNERSHIP; 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 B50-7 (gl) 3/12/80 Millcreek 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, Millcreek, a general partnership, consisting of W. K. Davis and Charles L. Buchanan ( "Millcreek" 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 Millcreek two buildings to be used as a multi-industrial park of approximately 54 ,000 square feet, to be located at 708 West Mill Street in the City of San Bernardino, which buildings , 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 buildings , 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 -2- B50-8 (gl) 3/12/80 Millcreek 50 ,002-1-1 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, Millcreek, 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 . -3- B50-9 (gl) 3/12/80 Millcreek 50, 002-1-1 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 NZ , 1980 , by the following vote, to wit: 8Q ,, AYES : Councilmen NOES: ABSENT : \ IskI k' K City Cle The foregoing resolution is hereby pr this _ day of s: � � ��, 1980. Ma of t C ty of S Bernardino Approved as to form: 1 002 -,t.00,0,L,)A)441 Joeolll- z I';�g City Attorney - 4 - B50-10 (gl) 3/12/80 Millcreek 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 MILLCREEK, A GENERAL PARTNERSHIP NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino have accepted an application from Millcreek, a general partnership, con- sisting of W. K. Davis and Charles L. Buchanan, 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 Millcreek, a general partnership; 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" -1- B50-11 (gl) 3/12/80 Millcreek 50,002-1-1 all for the financing of two buildings to be used as a multi-industrial park of approximately 54 ,000 square feet, to be located at 708 West Mill Street in said City (the "Project") and to issue approximately $1,700 ,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- B50-12 (gl) 3/12/80 50;002-1-1 i 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 MILLCREEK, A GENERAL PARTNERSHIP; 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 7?r,�rM #IF B50-7 (gl) 3/12/80 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 , Millcreek, a general partnership, consisting of W. K. Davis and Charles L. Buchanan ("Millcreek" 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 Millcreek two buildings to be used as a multi-industrial park of approximately 54,000 square feet, to be located at 708 West Mill Street in the City of San Bernardino, which buildings , 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 buildings, 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 -2- B50-8 (gl) 3/12/80 Millcreek 50,002-1-1 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, Millcreek, 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. -3- B50-9 (gl) 3/12/80 501.002-1-1 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 -4- B50-10 (gl) 3/12/80 millcreex 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 MILLCREEK, A GENERAL PARTNERSHIP NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino have accepted an application from Millcreek, a general partnership, con- sisting of W. K. Davis and Charles L. Buchanan, 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 Millcreek, a general partnership; 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" -1- B50-11 (gl) 3/12/80 50,002-1-1 all for the financing of two buildings to be used as a multi-industrial park of approximately 54 ,000 square feet, to be located at 708 West Mill Street in said City (the "Project") and to issue approximately $1,700,000 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- B50-12 (gl) 3/12/80 APPLICATION FOR REVENUE BOND FINANCING PART I GENERAL AND BUSINESS INFORMATION 1 .1 Mill Creek, a limited partnership. 1.2 Real estate development, ownership and management. 1.3 Davis Developments 1400 Bristol Street North, Suite 245 Newport Beach, CA 92660 1.4 I.D. #95-3426530 1.5 Charles L. Buchanan, General Partner. 1.6 1-752-2066 1.7 A partnership 1.7.1 California 1.7.2 July 16, 1979 1.7.3 N/A 1.8 Ownership - William K. Davis and Charles L. Buchanan, General Partners; Guy A. Biagiotti , Trustee VDT limited partner. 1.9 Name and location of key officials including: (not a corporation) 1.9.1 N/A 1.9.2 N/A 1.9.3 N/A 1.10 William K. Davis is sole owner of Davis Developments, a real estate developer. He is also a partner in several real estate partnerships. Charles L. Buchanan is a partner in several real estate projects. Guy A. Biagiotti , Trustee VDT, a medical doctor. -1- 1 .11 Five employees - No activities outside of California. 1 .11 .1 N/A 1 .11 .2 1400 Bristol Street North, Newport Beach, Calif. 1.12 Expert services 1 .12.1 Charles Corp. Fox & Company 611 W. 6th Street, Suite 2990 Los Angeles, CA 90017 1.12.2 Michael T. Collins, Attorney at Law Collins & Kogler 1400 Bristol Street North, Ste 245 Newport Beach, CA 92660 1.13 Mr. Tim Peralta, Senior Vice President Manufacturers Bank 1201 Dove Street Newport Beach, CA 92660 714/752-0600 Mr. Don Grant, Vice President Real Estate Industries Group Wells Fargo Bank 660 Newport Center Drive Newport Beach, CA 92660 714/640-6900 1.14 Bank loans and partners equity. PART II BOND ISSUE 2.1 2.1.1 $1 ,365,000 2.1.2 Included in 2.1.1 2.1.3 $10,550 2.1.4 $135,000 2.1.5 Included in 2.1.1 2.2 April 17, 1980 2.3 April 17, 1980 2.4 Either private placement, underwritten offering. PART III FINANCIAL INFORMATION 3.1 Certified financial statements forwarded to Miller & Schroeder, Municipals 505 Lemas Santa Fe Suite 200 Solana Beach, CA 92705 -2- 3.2 Applicant would be considered a small business. No small business loan is involved. PART IV PROJECT INFORMATION 4.1 The purpose of the project is to construct a multi- industrial park to offer industrial space to small industrial users. 4.2 Description 4.2.1 Land - The site consists of 122,400 square feet at a cost of $165,000. 4.2.2 Consists of two buildings totaling 51 ,678 square feet with a cost of $1 ,185,000. 4.2.3 N/A 4.2.4 The architect for the project is: Ken Hines, Architect & Assoc. , Inc. 119 E. Alton St. , Suite D Santa Ana, CA Costs $15,000. 4.2.5 Offsites and grading included in building costs. 4.3 Estimated construction date 4.3.1 February 15, 1980 4.3.2 August 15, 1980 4.4 Williamson and Schmid 17782 Skypark Blvd. Irvine, CA 92714 4.5 708 Mill Street San Bernardino, Calif. 4.6 The project site is a new location. 4.7 Owned by applicant. 4.8 N/A 4.8.1 82" x 11" map attached 4.8.2 N/A 4.9 Declaration of Negative Impact has been filed. 4.10 N/A 4.11 N/A 4.12 N/A -3- 4.13 N/A PART V PUBLIC BENEFITS 5.1 The benefits that will accrue to the city and its citizens as a result of the installation of this project and the use of tax exempt financing, vis- a-vis a conventional method include the following: . 1 ) The project will provide long-tern employment for a section of the locally unemployed. When construc- tion on the project site has been completed and the fac- ility is operational , it is estemated that there will be approximately 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 development of the project will enable the city to 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 attri- butable 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 $1 ,400,000 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. 5) The use of the method of financing provided for in Ordinance No. 3815 of the city vis-a-vis the use of a conventional 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, -4- 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 The applicant believes that the installation of the Project and the financing thereof pursrant 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 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 otherwise restrain State efforts to solve problems of legitimate State concern. 3) The applicant has legitimate, long-tern business reasons for installing the Project including the long-tern profit potential , labor pool access and other economic factors (including the ability of the applicant to profit from the leasing of Project space) in comparasion 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 project will provide industrial space for small and new industrial firms wanting to start or continue to do business within 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 expeced 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 inst&lation of the Project that exceeds any detriment incurred by the City. The Project will be self-supporitng. Ordinance No. 3815 and the documents pursuant to which any bonds issued by the -9;- 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 olbigation 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 Porject 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 anitcipated 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 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, qualificaiton, 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 to the delivery by the City of the bonds. 6.2 The applicant hereby agrees and commits to cause and/or to assist the City in causing to be printed any prospectus or other written or printed communication proposed to be published in connection with the issuance, , offer and sale of Bonds, prior to the delivery by the City of the Bonds, and, if deemed necessary by the City, following the delivery of the Bonds. 6.3 The applicant hereby warrants and covenants to pay all 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 the City harmless from any and all expenses related thereto and to pay items on an ongoing basis so that neither the City, not its ad- visors, attorneys, employees and the like will accumulate any claims against the City. 6.4 The applicant agrees that any additional information, agreements and undertakings as the City may require as a result of various conferences and negotiations shall be reproduced in written, printed or other tangible form, shall be supplied in as many copies as the City prescribed and shall be deemed suppliments or amendments to this Application. -6- PART VII SIGNATURE 7.1 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 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 comnittments 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. /"I ­ Z_Zgezw4o� Charles L. Buchanan William K. Davis -7- CA v 2 \ 'a �y;% w ® !ate ♦ . 7 a Q L ` 31 rte► 14 S.as ,I•K rsI 16 Ito GJ s0 O N O CD u► O 8 \ _ 30 1 ° moo a s ` n M M ` O • M- m p iin A A r 1 .GAG O �, M O (1)m N C O p N k :1 ° N � /1320' O ` �0 m s _N @ QQ \ on JO' III f' ji� I MILL lk �»� , 141 �:�oo• ' �- �,Z aaa �