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HomeMy WebLinkAbout1980-153 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO FINDING THAT AN APPLICATION FOR INDUSTRIAL DEVELOP- MENT BOND FINANCING HAS BEEN SUBMITTED PURSUANT TO THE PROVISIONS OF ORDINANCE NO. 3815 OF THE CITY ,BY HERE'S LIFE PUBLISHERS, INC. , A CALIFORNIA CORPORATION; 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 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 financing such projects; and 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, Here's Life Publishers Inc. , a California Corporation ("Here's Life" 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 Here's Life acquisition of seven (7) one story office buildings which provide 91 ,000 square feet of office space, located on the west side of Little Mountain Drive and north of 27th Jz�, Street in the City of San Bernardino, which buildings, including the land necessary therefore and for the providing of parking spaces for the use and convenience of the employees of and visitors of 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 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, Here's Life, its 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. 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 -2- 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 c�/ day of 1980, by the following vote, to wit: AYES: Councilmen NOES: ABSENT: City Clerk The foregoing resolution is hereby approved this day of , 1980. Ma r e City of San Bernar ino APPROVE AS T M: -Ciry"Att ttorneyL 1 -3- 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 HERE'S LIFE PUBLISHERS, INC, A CAIFORNIA CORPORATION NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino have accepted an application from a California corporation described "Here's Life Publishers, Inc. ," 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 HERE'S LIFE PUBLISHERS, INC. , A CALIFORNIA CORPORATION; FINDING THAT SAID APPLICATION COMPLIES WITH THE PROVISIONS AND REQUIREMENTS OF SAID ORDINANCE NO. 3815; PRELIM- INARILY APPROVING SAID APPLICATION AND THE PROJECT TO WHICH IT REFERS; FIXING A TIME AND PLACE FOR THE HOLDING OF A HEARING THEREON; ORDER- ING THE PUBLICATION OF A NOTICE OF HEARING IN THE FORM AND MANNER PROVIDED BY SAID ORDINANCE NO. 3815; AND MAKING CERTAIN OTHER FIND- INGS AND DETERMINATIONS IN CONNECTION THEREWITH" all for the acquisition and financing of seven (7) one story office buildings of approximately 91 ,000 square feet in the aggregate, located on the west side of Little Mountain Drive and north of 27th Street in said City (the "Project") and to issue approximately $5,000,000 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 purposed Project and its financing as follows: DATE: May 5, 1980 TIME: 2:00 P.M. PLACE: Council Chambers, City Hall 300 North "D" Street San Bernardino, CA 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 21 , 1980. hauna Clark, City Clerk of the City of San Bernardino -2- APPLICATION OF HERE'S LIFE PUBLISHERS, INC. FOR INDUSTRIAL DEVELOPMENT BONDS PART I GENERAL AND BUSINESS INFORMATION 1.1 Legal name of the applicant Here's Life Publishers, Inc. 1.2 Public Benefits 1.2.1 The Primary Economic Impacts of the 27th Street roject on the San Bernardino Area The Applicant is purchasing a building which through its tenants will provide added jobs for and revenue to the City of San Bernardino. The Applicant will use approximately 15 percent of the floor space of the 27th Street project. The remaining 85 percent will be leased to Campus Crusade for Christ, Inc. (CCC) , a nonprofit religious and educational organization. CCC relocated its International Headquarters to San Bernardino in 1961. In remaining to the present, CCC has exhibited a long-term commitment to the city. CCC is pleased with the services provided by the city of San Bernardino and is pleased with the overall environment of the San Bernardino area. It is the intention of CCC to remain in San Bernardino for reasons other than just the completion and financing of the project as described herein. Applicant's and lessee(s) ' payroll disbursements and expenditures for supplies, transportation, food, utilities and conference activities represent primary spending inputs into the local economy. These, in turn, produce multiple increases in employment, income and spending within the San Bernardino area. One of the major indicators of the increasing economic significance of the Campus Crusade for Christ International to the San Bernardino area is the historical trend in payroll disbursements. In 1951, six staff members each received a monthly salary of $100 for nine months of the year. By 1966, annual payroll disbursements amounted to $378,000. In 1977, payrolls totaled $5. 5 million, representing an average annual increase of over 27.0 percent since 1966. It is estimated that the annual primary payroll disbursements of Applicant and lessee will reach a level of $9.3 million in San Bernardino during 1980. - These payroll dollars are an important factor in the income stream of the San Bernardino area. CCC has experienced tremendous growth during the last five years. Over three years ago CCC was forced to consider expanding beyond its present facilities at Arrowhead Springs. When several alternatives in the San Bernardino area fell through, CCC seriously considered moving its Headquarters to another city and/or state. Two years ago a commitment was made to CCC concerning constructing a new Administration Center for this expansion. This commitment was a material inducement in CCC remaining in San Bernardino. 1.2.2 Secondary or Induced Economic Impacts of the 27th Street Project The economic effects of the activities of the business located at the 27th Street project are not limited solely to the primary spending and employment impacts described in the preceding section. The inherent economic character of the organizations are that of an export activity wherein revenues are generated outside the San Bernardino economy, but are spent on payrolls and operating expenditures within the local area. A multiplier effect, resulting in induced economic impacts, therefore, occurs as the primary spending works its way through the local economy. By way of illustration: An increase in the income of an employee at the project site will be spent on food, transportation, personal care, etc. , thereby increasing the income of retail establishments, service and financial institutions in the local area. In similar fashion, primary increases in employment at the new Administration Center produce additional' increases in employment in other lines of economic activity. This concept is the employment multiplier. -2- As shown, the Applicant's decision to locate and stay in San Bernardino has produced and will produce significant economic and public benefit to the local area. 1.3 Line of Business For-profit publishing and distributing business specializing in sale of literature and books throughout the world. 1.4 Mailing address for purposes of application raison and address of eadquarters Here's Life Publishers, Inc. Arrowhead Springs San Bernardino, CA 92414 1.5 Federal Employer I.D. Number 5-2883425 1. 6 Name and title of principal contact Mr. Stephen B. Douglass President 1.7 Phone number(s) (714) 886-5224 1. 8 Type of business organization 1. 8.1 Place of organization Originally organized in San Bernardino and incorporated in 1972. 1.8.2 Date of Organization Incorporated on May 9, 1972 1.8. 3 The nature of legal affiliation or relationship with other entities Applicant is the subsidiary corporation of Campus Crusade for Christ, Inc. and a "brother" corporation of the following affiliated organizations: Nonprofit Tax-Exempt Affiliates The Great Commission Foundation of Campus Crusade for Christ, Inc. -3- The Christian Embassy, Inc. International Christian Graduate University, Inc. For-Profit Wholly Owned Subsidiaries: United Providence, Inc. Athletes in Action Television Network, Inc. Arrowhead Springs Food Services, Inc. 1.9 Constitution of ownership of the company, includin percentage of of ings y general public The Applicant is a for-profit stock corporation. Applicant has a board of directors which is composed of six directors 1. 10 Names and locations of key officials 1.10.1 Principal officers President Stephen B. Douglass Secretary Thomas S. Brandon, Jr. Controller Beryl E. Tarbell 1.10.2 Directors Stephen B. Douglass Thomas S. Brandon, Jr. Lloyd Olson Beryl Tarbell Charles Younkman David Orris 1.10. 3 Principal stockholders 100 percent of the stock is owned by Campus Crusade for Christ, Inc. 1.11 Employees 1.11.1 Number of employees in California The Applicant currently employs 30 people, all located in San Bernardino. The lessee of the other building in the project has 1995 employees employed in California. Of that number, 1,057 are located in San Bernardino County, which is 53 percent of the total number of employees in California. -4- 1.11.2 Locations in California and other states The Applicant has only one location, that being in San Bernardino. However, it does maintain a network of jobbers, distributors and salesmen in California and at least 20 other states. 1.12 Expert Services 1.12.1 The applicant's accountant and principal contact at such irm The Applicant's accounting firm is Arthur Young & Co, located at 515 South Flower Street, Los Angeles, California, 90017. The contact is Mr. Ed Smith. 1.12.2 The applicant's attorneys and principal contact at such irm The Applicant's attorneys are Thomas S. Brandon, Jr. (in-house counsel) , Arrowhead Springs, San Bernardino, California, 92414, and Caldwell & Toms, Mr. Bob Toms, 611 West 6th Street, Los Angeles, California, 90017. 1.12.3 Any experts or firms of experts that will be involved and the principal contacts at eac irm The underwriters of the bond issue will be Miller & Schroeder of San Diego, California. 1.13 Principal bank of account and name of officers handling account The principal bank of Applicant is United California Bank, City Hall Plaza, San Bernardino, California. The one presently in charge of the account is the bank manager, Mr. John Zygowicz. 1.14 The source of funding for the project The source of funding for the project shall be the Applicant's equity in the project and the proceeds of the bond sale. -5- PART II BOND ISSUE 2.1 Provide the estimated total amount of the financing, w th a taE-ulation-of Prop ose use of on procee s 2.1.1 Project cost The project cost for the acquisition of the property is estimated at 5 million dollars, subject to a final appraisal. 2.1.2 Legal, printing and related fees The legal, printing and related fees are estimated to be $35,000. 2.1. 3 Financing costs and fees The financing costs and fees will be two percent of the loan of the face value of the bond issue. 2.1.4 Capitalized Interest Not applicable 2. 1.5 other Miscellaneous Costs None 2.1.6 Total Loan Required The total amount which is required is 75 percent of the final appraised value of the project (land and buildings) . 2.2 Estimated target date of financing The estimated target date of financing is 60 days from the date of the passage of the intent resolution by the City Council of San Bernardino. 2.3 Estimated times of financing The estimated times of financing is for a period of 25 years. 2.4 Type of bond sale The type of bond sale will be a private placement. PART III FINANCIAL INFORMATION 3.1 Financial statements certified or re erred by a CPA, rom t ree most recent sca years Attached hereto are the Annual Reports of the Applicant for the fiscal years 1977, 1978, and 1979. Also attached are the unaudited Financial Statements for the first six months of the fiscal year, which is December 31, 1979. 3.2 Advise as to whether a plicant is a small business, an a escri tion of t e Appli cant s ran ing an T7e ative size sma me ium large) n is industry. If a small business loan is involved, ease give details and if a federal uarantee is to be used, a certificate of financial disadvantage should e provided y e qualified sponsor. The Applicant is known as a small publishing organization in its field. The lessee of the remaining space has estimated that total revenues during the present fiscal year will be in excess of 63 million dollars by June 30, 1980. The lessee is known as the largest organization of its type in the world. Lessee recorded seven percent of funds spent on administrative expenses and nine percent on fund raising. PART IV PROJECT INFORMATION 4.1 A short summary of the ur ose, objective and unction of the proposed project The purpose of the project is to provide adequate administrative facilities for the ,Applicant. Lessee will also use the building for administration purposes. The facilities will be used to process mail, do normal accounting functions, operate the computer, serve as a warehouse and the distribution of materials and other normal administrative functions as required. 4.2 %. description of the components and the estimated total cost of the functional parts of-the Project The acquisition cost is estimated to be $5 million dollars (subject to a final appraisal) and covers the land and the buildings which are presently situated thereon. The property is located on the west side of Little Mountain Drive and north of 27th Street. The address is 2700 North Little Mountain Drive, San Bernardino, California. -7- 4.3 Advise as to whether pro ect site is a new location. : not escr e what expansion or aterat on will be made. The ject site is a new location consisting of 7.2 acres and over 91,000 square feet of office space. Applicant began occupying the premises as of November 15, 1979, under a lease from the present owner. 4.4 Name of legal owner of location 4.4.1 If not owned by ap2licantr advise terms and nature of occupancy. The premises will be owned by Applicant subsequent to the issuance of the said bonds. 4.5 A description of the operations that are or are to e conducted at the ocat ono the prol2o se ro ect an the scope, magnitude and procWss relationships of the proposed project 4.5.1 An 8-1/2" x 11" map showing facility site and location o the project • A map showing the site, together with pictures of the architectural drawings are attached hereto. - PART V COMMITMENTS 5.1 The application shall be supplemented with a Commitment by the applicant to com IV, an or to assist the CitX in complying with all state —an-T-Federal laws in the issuance or the Donds, including, without-limitation, the making o any required applicatJon to a governmental e artment or authorizationt qualificat on or registration o t e o er issuance or sale of the bonds# and any -amendments ereto, and any temit or other authorization or 7u—ch--governmental department, prior to e delivery by the city of such ons. The Applicant agrees 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 authorisation, qualification or registration of the offer, issuance or sale of the bonds, and any amendments thereto, and any .permit or other authorisation of such governmental department, prior to the delivery by the City of such bonds. .a_ 5.2 The application shall be supplemented with i s commitment by the applicant to cause and/or to ass st the City in causing- ausin —to—Fe rinte any prospectus or other written or Rrinted communication proposed to be p=shed in connection with the issuance, offer or tale of on s r or to t o a ry by e City o such bonds an e eme necessary y to City, following t e elivery of such on s. The Applicant hereby agrees 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. 5.3 All commitments by the applicant shall specifically rovide for the aEplicant to pay all expenses in connection with the issuance, offer or sale of the bonds, whether or not they are finally issued, to old the City armless from any and all expenses re ate t ereto an to a tems on an ongoing asis so that neither the City nor its advisors, attorne s, employees and the like will accumulate any claims against the City. Applicant agrees 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 accumulate any claims against the City. 5.4 Anx additional information agreements and undertakings as the City may require as a result of various conferences and negotiations shall e reproduced n written, printed or other tangible orm, s a a su e n as many copies as the Cit rescribes and shall be deemed supplements or amendments to the app ication. -9- G The Applicant agrees to provide any additional information, agreements and undertakings as the City may require as a result of various conferences and negotiations, shall reproduce in written, printed or other tangible form, and shall supply in as many copies as the City prescribes and shall be deemed supplements or amendments to the application. PART VI CERTIFICATION AND SIGNATURE I certify that I have the authority to bind the Applicant to contract terms; that the application, to the best of my knowledge or belief, contains no false or incorrect information or data, and the application, including exhibits and attachments, is truly descriptive of the project. I also represent that the applicant is familiar with Ordinance No. 3815. Respectfully submitted, HERE'S LIFE PUBLISHERS, INC. ,Jt, By; StepheA B. Douglass President -10-