HomeMy WebLinkAbout1980-172 Here's. Life
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO APPROVING AN
APPLICATION FOR THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS OF THE CITY AND
THE PROJECT REFERRED TO THEREIN; FINDING
THAT THERE WAS NO EVIDENCE PRESENTED AT A
PUBLIC HEARING HELD ON SAID APPLICATION IN
OPPOSITION TO SAID APPLICATION OR SAID
PROJECT; DIRECTING THE PREPARATION OF AN
ACQUISITION AGREEMENT, RESOLUTION OF ISSU-
ANCE AND OTHER LEGAL DOCUMENTS AS MAY BE
NECESSARY TO CARRY OUT SAID PROJECT AND
PROVIDE FOR THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS THEREFOR; AND
MAKING CERTAIN OTHER FINDINGS AND DETER-
MINATIONS IN CONNECTION THEREWITH
WHEREAS, there has been presented to this Mayor
and Common Council an Application by Here ' s Life Publishers ,
Inc. , requesting the issuance of industrial development
revenue bonds in the principal amount of $5,000 ,000 for the
purpose of financing, on behalf of Here 's Life Publishers ,
Inc. , a building to be used as a commercial office building
to be located on the west side of Little Mountain Drive and
north of 27th Street in the City of San Bernardino, including
the land necessary therefor and for the providing of parking
spaces for the use and convenience of the tenants of and
visitors to said building; and
WHEREAS, said Mayor and Common Council preliminarily
reviewed said Application, and, on the 21st day of April, 1980 ,
adopted a Resolution entitled:
B125-7 (gl)
4/29/80
Here' s Life
"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 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"
and
WHEREAS, pursuant to said Resolution following a
notice duly published in the time and manner of said Ordinance
No. 3815, said Mayor and Common Council conducted a Public
Hearing on said Application and said Project, in the manner
required by said Ordinance No. 3815; and
WHEREAS, at said Public Hearing there was no
evidence presented, either written or oral, in opposition
to said Application or said Project;
-2- B125-8 (gl)
4/29/80
Here's Life
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO DO HEREBY FIND, RESOLVE, DETER-
MINE AND ORDER AS FOLLOWS :
Section 1. That the recitals set forth herein-
above are true and correct in all respects .
Section 2 . That said Application and the Project
to which it refers are hereby approved.
Section 3 . That the City Staff, Bond Counsel,
Underwriters, the Applicants and the Agents and Representa-
tives of same are hereby authorized and directed to prepare
or cause to be prepared the necessary legal documents,
including the Acquisition Agreement, Resolution of Issuance,
and such other documents as may be necessary to effect
said Project and the issuance of industrial development
revenue bonds therefor and to present same to said Mayor
and Common Council.
Section 4 . That the City Clerk is hereby authorized
and directed to mail a certified copy of this Resolution to
the Applicants at their address as shown on said Application.
-3- B125-9 (gl)
4/29/80
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 L1
1980 , by, the following vote, to-wit:
AYES : Councilmen
NOES : L�neJ
ABSENT:
City Clerk
The foregoing resolution is hereby approved this day
of , 1980 .
r
J
of h C ty of 'n Bernardino
Approved as to form:
/�/ZV4� A4t4P1_x.14x
C ty A orne
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
Project 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 tie 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 $376,000.
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 69.3 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
rimar spending and employment impacts
escribed in the preceding section.
The inherent economic character of the
organizations are that of an export
activity wherein revenues are generated
outside the Ban 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.
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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 purgoses of application
liaison and address of eadquarters
Here's Life Publishers, Inc.
Arrowhead Springs
San Bernardino, CA 92414
1.5 Federal Employer I.D. Number
95-2883425
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 organisations:
Nonprofit Tax-Exempt Affiliates
The Great Commission Foundation of
Campus Crusade for Christ, Inc.
-3-
The Christian Embassy, Inc.
International Christian Graduate University, Inc.
ror-Profit Wholly Owned Subsidiaries:
United Providence, Inc.
Athletes in Action Television Network, Inc.
Arrowhead Springs Food Services, Inc.
1.9 Constitution of ownershi of the company, includin
percentage of o ings by 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.
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 firm
The Applicant's accounting firm is
Arthur Young i 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 i Toms, Mr. Bob Toms, 611
West 6th Street, Los Angeles, California, 90017.
1.12.3 Any experts or firms of experts that
will e involved and the principal
contacts at each rm
The underwriters of the bond issue will
be Miller i 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
nancin , w th a tab--ulation-of Pro5FsM
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.
-6-
PART III FINANCIAL INFORMATION
3.1 Financial statements certified or prepared by
j7CPA, from t ree most recent fiscal 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,
and a description of t e Applicant's ran in an
fe at ve size—(-s-mall, me ium ar e n is
industry. If a small usiness loan s involved,
ease give details and if a federal guarantee
-47c to he used a certificate of financial disadvantage
shoulT-kw-provided by the qua 5d 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 jeurpose, objective and
unction of e 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 A description of the components and the estimated
total cost of the unct ona parts of We- project
The acquisition cost is estimated to e $5 million
dollars (subject to a fins appraisal)
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 proJect site is a new location.
if not escr a what expansion or aterat on w
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 same of legal owner of location
4.4.1 If not owned by apElicantr advise
terms and nature of occupancy.
The premises will be owned by Applicant
subsequent to the issuance of the said bonds.
4.5 Aedconructeonatfttee locatio n t
�or that a t
ropose proect
and the scope, ma n to a ana process relationships
ol the Proposea proiect
4.5.1 An 8-1/2" x 11" map show in facility site
and location of-the project
• A map showing the site, together with
pictures of the architectural drawings
are attached hereto. -
pAn V COMMITMENTS
5.1 The application shall be sup.plemented with a
Comm tment by the `app can to com ivi -an or
o assist the it n com n with a state
an a era lawn m e issuance o the n s,
nc u in w t out ' tat on a ma n of
any required cat on to a governmental
e artment or authorization, qua cat on
or registvAtion o the offer, issuance or
Sale of the Sonds, and any endments ereto,
ind any permit or other out or zat on of
such governmental a artment r or o Ehe
aeliveryby the city of such on s.
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.
-B-
5.2 The application shall be supplemented with
i s commitment by the applicant to cause
an or to assist the City in causing to e
rinte anv iDrospectus or other written or
Printed communication propose to e p ubllshed
in connection w th the issuancec offer or
sale of bonds, rortothe delivery
e City of such onds and, if deemed
necessary bx the City, following the delivery
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 provide for the applicant
to a all expenses -in connection with the
issuance, offer or sale of the bonds,
whether or not they are finally is sued to
old the City armless from any and all expenses
related thereto and to pay items on an on oin
as s so -that neither the Cit nor its a visors,
attornexsl 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 informationr agreements and
undertakings as the City may require as a
result of various conferences and negotiations
shall e reproduced in written,, rinte or
other ta ble forml, s all a su e n as
many copies as the city -prescribes and shall be
deemed supplements or amendments to a app cation.
-9-
. a
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.
Ely:
FtepheA B. Douglass
President
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