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HomeMy WebLinkAbout1980-131 Mill Street 50, 002-1 RESOLUTION N0. Z,�-/c,3� 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 MILL STREET BUSINESS PARK, A GENERAL PARTNERSHIP; 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 • TIME AND PLACE FOR THE HOLDING OF • HEARING THEREON; ORDERING THE PUBLICATION OF A NOTICE OF HEARING IN THE FOR1 AND MANNER PROVIDED BY SAID ORDINANCE NO. 3815; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINA- TIONS 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 B15-9 (gl) 4/1/80 Mill Street 50 ,002-1 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, Mill Street Business Park, . a general partnership ("Mill Street" herein) , has submitted its 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 Mill Street multi-tenant industrial buildings which shall provide approximately 135 ,000 square feet of rentable space, to be located between Mill, I and J Streets 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- B15-10 (gl) 4/1/80 Mill Street 50,0-02-1 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, Mill Street, its successors and assigns, and the r 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- B15-11 (gl) 4/1/80 1 Section 3. That said Application and the Project and the 2 same are, hereby preliminarily approved, 3 Section 4. That in accordance with the provisions of Section, I 4 11 (C) of said Ordinance No. 3815 , a public hearing shall be held I 5 at the time and place and for the purpose set forth on the "Notice 6 of Hearing" form attached hereto as Exhibit A and incorporated 7 herein, which notice complies with the requirements of said Ordi- 8 nance. 9 Section 5. That the City Clerk is hereby directed to cause 10 said Notice of Hearing referred to in Section 4 hereof to be 11 published in a legal newspaper of the City in the time and manner 12 required by Section 6061 of the Government Code of the State of 13 California. 14 I HEREBY CERTIFY that the foregoing resolution was duly 15 adopted by the Mayor and Common Council of the City of San Ber- 16 nardino at a 9 .�,� �(J meeting thereof, held on the 17 day of 1980 , by the following vote , to-wit: 18 AYES : Councilmen ,jC` _ �% n 19 20 NAYS : 21 ABSENT: 22 23 City Clerk 24 The foregoing resolution is hereby approved t ,' ' day 25 of �✓ z F. 1980 . 26 Mayor of ty of S ernardino 27 Approv d,a.� to),,,f orm 28 - r `' City Attorney Mill Street 50,002-1 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 MILL STREET BUSINESS PARK, A GENERAL PARTNERSHIP NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino have accepted an application from a general partnership designated "Mill Street Business Park" consisting of: Westway - Mill Associates; Roger McKinnon; Jerrel Barto R 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 Mill Street Business Park, a General Partnership; 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 • Time and Place for the Holding of • Hearing Thereon; Ordering the B15-13 (gl) 4/1/80 Mill Street 50,002-1-1 Publication of a Notice of Hearing in the Form and Manner Provided by Said Ordinance No. 3815; and snaking Certain Other Findings and Determina- tions in Connection Therewith" all for the financing of multi-tenant industrial buildings of approximately 135,000 square feet in the aggregate, to be located at Mill, I and J Streets in said City (the "Project") and to issue approximately $4,138 ,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 21, 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, April 7, 1980 . Shauna Clark, City Clerk of the City of San Bernardino -2- B15-14 (gl) 4/1/80 Westway Investments, Inc. m April 1, 1980 �a U: d `- The Honorable W. R. Holcomb -T, City of San Bernardino 300 N. "D" Street San Bernardino, CA 92401 4,i VN Dear Mayor Holcomb: Enclosed herewith please find the application of Mill Street Business Park, a general partnership, pursuant to which part- nership wishes to enter into a Project Agreement for the financing of facilities under Ordinance No. 3815. Mr. Richard Boureston will be coordinating partnership's activities for this development. Mr. Boureston can be contacted at: Westway Investments, Inc. 25231 Paseo de Alicia Suite 201 Laguna Hills, CA 92653 Your consideration is appreciated. Very truly /7urs , r V Michael D. Todd MDT/cas Enclosure 25231 Paseo de Alicia Suite 201 Laguna Hills, California 92653 714/951 -3411 6 , ?� oiui •lnwror�lra wuiru rwrmrna '.mr rlwrr � al r i11M "pnl■ rOir�N 1 Occi Yf ; r il1ll� 'llirl� li Wr 1�M1 i�L 'ONI S1N3W183ANI AVMIS3M i --W %Ud300 w N0 NEMS30 '7VNOISS3a^ d I I ror lwiw.olinio lvirl�nawi n+iw .��1�1�1 r s 2 - 133tl18 771W iii i . � - mr 133tl16 M3N ` •�IV���e wt, ��� _ r 133tl18 ` VZNVtl3dS3 y APPLICATION FOR REVENUE BOND FINANCING PART I GENERAL AND BUSINESS INFORMATION 1. 1 Mill Street Business Park, a general partnership whose partners are: 1. 1.1 Westway - Mill Associates ; 1.1. 2 Roger McKinnon; 1. 1. 3 Jerrel Barto. 1. 2 Real estate development. 1. 3 Mr. Richard E. Boureston c/o Westway Investments , Inc. 25231 Paseo de Alicia Suite 201 Laguna Hills , CA 92653 1. 4 Applied for. 1. 5 Richard E. Boureston, Project Manager. 1. 6 (714) 951-3411. 1. 7 A partnership. 1 .7 .1 California. 1. 7. 2 Agreement to be signed February 15, 1980 . 1. 7. 3 Not applicable. 1. 8 Ownership - Schedule of Distribution and Allocation of Profits and Losses, to follow with partnership agreement. 1. 9 Partnership, not applicable. 1.10 Partnership, not applicable. 1.11 Not applicable. -2- 1. 12 1.12.1 Mr. Leo Connolly Sweek, Hislop & Connolly 1000 Quail Street Newport Beach, CA 1. 12 .2 Mr. David Grant Allen, Matkins, Leck, Gamble & Mallory 4590 MacArthur Blvd. Suite 500 Newport Beach, CA 1.12. 3 Mr. Dale K. Price Dale K. Price & Associates 1430 S. Village Way Suite Q Santa Ana, CA 92708 1. 13 Union Bank 201 S. Lake Avenue Pasadena, CA 91101 Attn: Mr. Jack Jordon 1.14 Proceeds from Industrial Bond. PART II BOND ISSUE 2.1 2.1. 1 Project Cost $3, 388 ,000 2. 1. 2 Legal, printing, and related fees 100 ,000 (approximate) 2. 1. 3 Financing cost and fees (approximate) 100 ,000 2 . 1. 4 Capitalized interest 400 ,000 2. 1.5 Other miscellaneous costs 150 ,000 $4 ,138 ,000 2.2 June 1980 . 2 . 3 100 days from approval of application. 2. 4 Private placement. -3- PART III FINANCIAL INFORMATION ATTACHED PART IV PROJECT INFORMATION 4 .1 4.1 . 1 The purpose of the proposed project is to purchase the Mill, I and J Streets property to improve the property for grading and install- ation of off-site improvements . The site will be subdivided into thirteen separate parcels . To develop the site with thirteen concrete tilt-up buildings in a business park atmosphere. 4 .1.2 The objective of this project is to develop a business park of 9 .65 acres. There will be approximately 3 .5 business entities whose busi- ness shall be of a nature of commercial and light industrial usage. 4 . 1. 3 The function of the business park will generally be as described above. 4 . 2 4 . 2 .1 Land at cost $615,000. Total site: 9 .65 acres ; 13 lots . 4 . 2.2 Total building costs $2, 483 ,000 . 4 . 2. 3 Not applicable. 4 . 2 .4 Engineering and architectural $90 ,000 . 4. 2. 5 Off-sites $200 ,000 . 4 . 3 4 . 3. 1 Schedule starting date June 1980 4 . 3 . 2 Schedule completion date February 1981 4 . 4 Dale K. Price & Associates, Inc. 1430 S. Village Way, Suite Q Santa Ana, CA 92705 4. 5 9.65 acres bordering on the south side of Mills Street; the west side of "I" Street; the east side of "J" Street; and the north side of Esperanza. -4- 4 .6 The project site is a new location for the applicant. 4 . 7 4. 7.1 There are two owners of the property. 4 . 7 .1. 1 William H. Sullivan Trust 4 .65 acres zoned CM 4 . 7.1 . 2 Ralph Steblay 5.0 acres of CM zoned land Both will close June 30 , 1980. 4. 7. 2 Not applicable. 4 . 8 4.8 .1 Site plan is included in package. 4 . 8. 2 To vary with business entity. 4. 9-4 .13 The project has received a Negative Declaration from the City of San Bernardino. PART V PUBLIC BENEFITS 5. 1 Listed below are the benefits that will be derived by the City of San Bernardino and its residents from the construc- tion of the proposed project. Also examined are the benefits achieved from the industrial development bonds versus con- ventional financing. 5.1.1 The City of San Bernardino is currently trying to attract businesses and industry into the city, and to keep existing business within the city. The proposed project will provide 135,000 + square feet that can be utilized to house these interests. There is currently a paucity of pro- fessional, industrial and related commercial facilities in the city. Of the proposed, 135,000 + square feet, 23,000 + square feet will service the needs of the industrial related retailing users; 20, 000 _+ square feet will provide facilities for the small industrial user who requires a minimum amount of space but who typically provides services for larger industrial users. Approximately 45% of their services are also utilized on a direct basis with the general public; the remaining 92 ,000 + square feet will be pure industrial user facilities which will integrate manufacturing and warehousing needs. -5- 5.1. 2 The number of jobs created for on-site personnel will approximate 300 jobs. The number of addi- tional firms with the new facilities will total approximately 150 jobs for an overall total of 450 new jobs for the city. The range of jobs created will cover a large spectrum from company presidents to clerical staffs depending on the particular tenant. The relevancy of these figures indicate a reduction in the city' s unemployment rate. 5. 1. 3 The city will also receive the benefit of the be- ginning of the rejuvenation of this particular area. Activity creates activity and once this project gets off the ground, a renewed interest is expected in this currently stagnant area. 5.1. 4 The assessed valuation will approximate $5. 1 million which will be added to the city's tax rolls . 5 .1.5 There will be additional sales revenues created but the exact amounts have not been estimated at this time. 5. 1.6 The city's industrial development bond is the only practical way to proceed with the development of the project on a timely basis. Conventional construction and take-out commitments are currently so exorbitant that the economic feasibility would be destroyed and plans to proceed with the develop- ment, at this particular time, would cease. Mar- ketability depends primarily on timing the product with the need. The needs of the city are now and the timing of the project to fill the needs should be dealt with as soon as possible. The availability of the industrial bonds enhances the coincidence of these needs . 5.2 It is our feeling that the proposed project is well within the purvue of Ordinance 3815 and should appropriately be funded through this vehicle. The following examples .are cited which rein- force this premise. 5.2. 1 The project will consist of high quality con- struction and materials with the intent of developer ownership leased to local business interests on long-term leases. Exteriors , land- scaping and other amenities have been designed in -6- excess of city requirements in an effort to maintain long-term values and to minimize physical and economic obsolescense. 5. 2.2 The project will create approximately 450 new jobs within the city which will span all economic levels. It will be upgrading a deteriorating area and serve as an example for future development with the area. It is our understanding that cer- tain design standards , taken from the proposed project, may be used by the city for future con- struction which is similar in nature. There will be no economic adverse affects imposed by the pro- ject on the city or its residents . 5. 2. 3 The project will pose no detrimental effects on the City of San Bernardino or the State of Cali- fornia. Design has taken place with all appro- priate agencies informed. Any imput received from the appropriate agencies has been implemented to mitigate all adverse effects. 5.2.4 The applicants involvement with the proposed pro- ject is for long-term business commitments both, with the City of San Bernardino and the tenants who lease the proposed facilities. Those tenants who are being sought are tenants who have a record of long and strong business commitments to the city. It is recognized that this type of tenant is more stable and less likely to move or ter- minate service in the short run. 5. 2. 5 Paragraph 5.1 outlines the benefits that the city should expect. In addition to tax revenues and increased employment, area revitalization should be considered as perhaps the major beneficial result from the proposed project. 5 . 2. 6 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, payable only from revenues generated by the project and that all fees and expenses incurred by the city in -7- connection with the project will be required to be paid by the applicant. -Indirect bene- fits such as the increase in the property tax base and increases in other taxes and user fees are anticipated to exceed any indirect detri- ments to the city such as increases in costs of police, fire and other municipal services. 5.2.7 The applicant will not take any action that will result in a violation of any applicable state standards relating to sewage disposal and will provide the city with a satisfactory plan for the disposal of any anticipated industrial wastes. 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 limit- ation, the making of any required application to a govern- mental department, for authorization, qualification or registration of the offer, issuance or sale of the bonds, and any amendments thereto, and any permit or other authori- zation of such governmental department, prior to the de- livery 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 pub- lished in connection with the issuance, offer and sale of bonds, prior to the deliver 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 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 The applicant agrees that any additional information, -8- 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 prescribes and shall be deemed supplements or amendments to this appli- cation. PART VII SIGNATURE 7.1 This. application is signed below by a senior official of the applicant with prime responsibility for the financing, who, by his signature below, represents and certifies that he has authority to bind the applicant to contract terms; that this application, to the best of his 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 that 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 will be paid to the city when the basic documents are requested. With the submittal of this application form, there is enclosed $500 payable to the city. If this applica- tion is accepted, applicant agrees that it will pay the city an additional fee of $10 ,000 for administrative costs . Applicant agrees that its commitments 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.