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HomeMy WebLinkAbout1980-197 Ir.L-1 .LT_Ie5 50,002-1-1 w 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 A PROJECT AGREEMENT, RESOLUTION OF ISSUANCE AND OTHER LEGAL DOCUMENTS AS MAY BE NECES- SARY TO CARRY OUT SAID PROJECT AND PROVIDE FOR THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS THEREFOR; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH WHEREAS, there has been presented to this Mayor and Common Council an Application by Tri-Cities Investment Co. , a general partnership, requesting the issuance of industrial development revenue bonds in the principal amount of $4, 520 ,000 for the purpose of financing commercial and office buildings to be located on West Hospitality Lane 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 buildings; and WHEREAS, said Mayor and Common Council preliminarily reviewed said Application, and, on the 5th day of May, 1980 , adopted a Resolution entitled: B177-7 (gl) 5/6/80 50 ,002-1-1 "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 TRI-CITIES INVESTMENT CO. , 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 A TIME AND PLACE FOR THE HOLDING OF A HEARING TH�:IZEON; ORDERING THE PUBLICATION OF A NOTICE OF HEARING IN THE FORM AND MANNER PROVIDED BY SAID ORDINANCE NO. 3815; AND WAKING CERTAIN OTHER FINDINGS AND DETERMINA- TIONS IN CONNECTION THEREWITH" and i 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- B177-8 (gl) 5/6/80 Tri-Cities 50,002-1-1 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 Project Agreement, Resolution of Issuance, and such other documents as may be nec�. ; t_y 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- B177-9 (gl) 5/6/80 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 —T day of 1980 , by the following vote, to-wit: AYES : Councilmen i NAYS : d ABSENT: - City Clerk The foregoing resolution is hereby approved this o day of llis , 1980 . ayor f h 7 ty of SavfBernardino Approved as to form: d City At rney APPLICATION FOR REVENUE BOND FINANCING PART I GENERAL AND BUSINESS INFORMATION 1.1 Leal Name of the Applicant: TRI-CITIES INVESTMENT CO. , A GENERAL PARTNERSHIP _ 1.2 Line of Business: Real Estate Development 1.3 MailingAddress and Headquarters Address: 19752 MacArthur Blvd. , Suite 250 Irvine , CA 92715 1.4 Employer I.D. Number: 95-3325120 1.5 Name and Title of General Contact: Charles Henderson, Financial Consultant , Sterling Homes Corp. 1.6 Phone Number of 1.5: (714) 752-8200 1.7 Type of Business Organization: Partnership 1.7.1 Place of Organization: Irvine , California 1.7.2 Date of Organization: 9/13/79 1.7.3 Nature of Legal Affiliation or Relationship: N/A 1.8 Constitution of Ownership of the Company: TRI-CITIES INVESTMENT CO. , A GENERAL PARTNERSHIP 1.9 Nape and Location of Key Officials : 1.9.1 Principal Officials: Quail Run - Northwood, A Ltd. Partnership 19752 Mac Arthur Blvd. , Suite 250 Irvine, CA 92715 Bayshore Oil Co. , Inc. 3591 Long Beach Blvd. , Long Beach, CA 90807 _ M. F. Salta Co. , Inc. 3141 E. Broadway Long Beach, CA 90803 1.9.2 Directors: N/A 1.9.3 Principal Stockholders : N/A 1.10 Description of other business affiliations of principal officer: , directors , and principal stockholders: /A 1.11 Employees: 1.11.1 Number of Employees in California: N/A 1.11.2 Location in California: one 1.12 Expert Services: _ -- 1.12.1 Applicant 's Accountant: Diehl, Evans & Co. 1910 N. Bush Street Santa Ana, CA 92706 1.12.2 Applicant's Attorney: t:r. Norman Rasmussen Ramsey & Rasmussen 444 W. Ocean Blvd. , Suite 1703 Long Beach, CA 90804 1.12.3 Architect: Kermit Dorius, A.I.A. 3161 Second Avenue Corona Del Mar, CA 92625 General Contractor: :;one-0,.-ner/Builder - Tri-Cities Investment Co. 19752 MacArthur Blvd. , Suite 250 Irvine, CA 92715 1.13 Principal Banks of Account and Name of Officers Handling Account : Bank of A.__erica - Wally Neilsen, V.P.-14anarer 500 Newport Center Drive Newport Beach, CA 92660 PART II BOND ISS= 2.1 Provide The Estimated Total Amount Of The Financing ;ith A Tabulation Of Proposed Use Of Bond Proceeds , Inclu inE. Office rld_ Corm ^lk-. 2.1.1 Froject Cost X2,05 ,0 !• 2.1.2 tinder-vriting, legal printing X24 and related fees - 61 ,682, 55,- 2.1.3 :inancinZ- costs and fees -0- -0 2.1.4 CaYitalized interest -O- -C- 2.1.5 :'iscellaneous costs -0- -0- 2.2 - Estimated TarE;et Date Of Financing: June 5, 1930 2.3 Estimated Time Of Financing: 30 years 2.4 Type Of _cnd Sale: Private Placement PART III FINANCIAL INFORMATION 3.1 Tri-Cities Investment Co. - Balance Sheet dated December 31, 1979• Quail Run - Northwood - Balance Sheets dated December 31, 1977,78979• Bayshore Oil Company, Inc. - Balance Sheets dated June 30, 1977,78,79. M. F. Salta Co. , Inc. - Balance Sheets dated August 31, 1977,78,79• 3.2 Income (Profit & Loss) Statement: Quail Run - Northwood - Federal Tax Return from January 1, 1977 to December 31, 1977, January 1, 1978 to December 31, 1978, January 1, 1979 to December 31, 1979 Bayshore Oil Co. , Inc. - Federal Tax Return from July 1, 1976 to June 30, 1977, July 1, 1977 to June 30, 1978, July 1, 1978 to June 30, 1979• M. F. Salta Co. , Inc. - Federal Tax Return from September 1, 1976 to August 31, 1977, September 1, 1977 to August 31, 1978, September 1, 1978 to August 31, 1979• 3.3 Analysis Of Sources And Application Of Funds: Source - Bond Proceeds plus Owners Equity. Application - Construction of project and cost of issuance. PART IV PROJECT INFOF1 ATION 4.1 Sumsrary Of purpose, Objective And Function Of Proposed Project: The purpose of this project is to design and construct a modern, attractive 34,564 square foot office building and a 44 ,282 square foot commercial multi-tenant building. 4.2 Description of Components And Estimated Total Cost Of Functional Farts Of Project: Office Bldg. Co=r . B1d7. 4.2.1 Land $ 266,085. $ 414 ,615. 4.2.2.1 Building 1,352,975• 1 ,182,008. 4.2.2.2 Tenant Improvements 359,650• 175,000. 4.2.3 Equipment -0- -0- 4.2.4 En€ineerin, & technical serives 77,377. 65,873. 4.2.5 Miscellaneous iter-s -0- -0- Total Project Costs $2,056,087. $1 ,837 ,496• 4.3 Estimated Construction Period: - Seven (7) 14onths 4.3.1 Scheduled startin- date - April 1 , 1980. 4.3.2 Scheduled ccmpletion date - November, 1980. 4.4 Nacre And Location 01 Supervisin:' Or Consulting' Enginner Who Designed Project: Stan C. 14orris En`. , Inc. 17621 Irvine Blvd. , Suite 212 Tustin, CA 92680 4.5 Location Of Proposed Project: South of Hospitality Lane, between Hunts Lane and Waterman Avenue, San Bernardino, California 4.6 Advise As To Whether Project Site Is A New Location: s New location - 4.7 Nare Of Legal Owner Of Location: Tri-Cities Investment Co. , A General Partnership _ 4.7.1 Terms and Nature of Occupancy: N/A 4.7.2 Is There Or Will There Be A Legal Relationship Between Applicant And O-w-ner Of Location And Nature Of Relationship: N/A 4.8 Description Of Operation To Be Conducted At Project: Office Building and Commercial Building 4.8.1 812 x 11 Map Showing Site: Attached 4.8.2 Description Of Plant Process: N/A 4.9 List Of Environmental Quality Regulations, Standards Or Requirements To Be Met Within Project: Negative Declaration Issued By City. 4.10 List And Copies Of All Permits, pater Quality Enforcement Orders , Air Pollution Permits And Variances Or Evidence Of Other Actions Evidencing Need For Project : N/A 4.11 Pollution Control A;encies Imresing Ar licable Regulations Standards Or Requirements For Operations Or Disposal: N/A. 4.12 Regional County Or Basin Plan To Which This Project Is To Conform:: N/A 4.13 By Products Or Residues Of Project: 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 the project and the use of tax exempt financing vis-a-vis a conventional method include the following: (1) The project will provide long-term employment for a -substantial section of the locally unemployed. When construction on the project site has been completed and facilities on the site are operational, it is estimated that art average of approximately 175 jobs will be created. The categories of jobs to be provided are anticipated to include managerial, skilled, unskilled, and office-professional. The wages to be paid by the enterprises locating in subject Project for the 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 facilities (all of which will be newly constructed and are anticipated to be constructed in accordance with all applicable federal, state and local laws and regulations) are anticipated to be satisfactory. (2) Additional benefits anticipated to be attributable to the con- struction of said Project and the general economic revitalization resulting therefrom in the financial district of the City of San Bernardino, include the reduction of public assistance expenditures, all because this Project will be self supporting at no unreimbursed cost to the City. (3) The construction and operation of the Project anticipated on tis site, are two buildingswhose approximate market values will be added to the City tax rolls. (4) The use of the method of financial provided for in Ordinance #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, conventional interest rates are at a historical high level 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 #3815 will provide new sources of financing to the applicant and such financing will be available at lower tax-exempt interest rates. 5.2 The applicant believes that the construction and operation of this Project and the financing thereof pursuant to Ordinance #,3815 of the City are in ccnfor-ance with the findings set forth in Section 1 of Ordinance #31'15• In particular: (1) 7-he Project is anticipated to have a significant impact on the _ ur_er:ployrient problem of the City without imposing a financial burden on the City. (2) The Project will not produce detrimental effects on, or conflict with, or otherwise restrain State efforts to solve problems of legitimate State concern. (3) The applicant has legitimate, long-term business reasons for construction and operation of said Project including the long-term profit potential from said operation. The financing of said Project under the method provided by Ordinance #3815 will provide additional financing sources to the applicants at lower tax-exempt rates and will enable the time schedule for construction of said Project to be accelerated. (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 said 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 consurinate the financing. As described in Part 5.1, certain incidental benefits will, of course , accrue to the City as a result of the construction of said Project. (5) The City will receive a substantial benefit from construction of said Project that exceeds any detriment incurred by the City. The Project will be absolutely self-supporting. Ordinance #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 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. (6) 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 wastes. PART VI C0'•2dIT',�E :TS 6.1 The Applicant hereby agrees and co:.:mits 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, qualifica- tion or registration of the offer, issuance or sale of the Bonds , and any amendments thereto, any permit or other authorization of such governmental department , prior to the delivery by the City of the Bonds. 6.2 The Applicant hereby a,rees and cor.mits 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 Bon,ls , and, if deemed necessary by the City , following the delivery of the c'=ds• 6.3 The Applicant hereby warrants and covenants to pay all expenses in connection with its cornitments 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, 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 a-mendments to this Application. PART VII SIGNATURE 7.1 This Application is signed below by the Applicant with prime responsibil- ity for the financing, who, by his signature below,represents and cer- tifies that he has authority to bind the Applicant to contract terms; that his 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 1/3815• PART VIII FEE SCHEDULE 8.1 The Applicant agrees that, for the Project to be considered for eligi- bility, 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 Application 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 Fart 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. TRI-CITIES IIIVEST;:EiNT CO. BY: QUAIL RUN-NORTHWOOD, M. J. SALTA CO?:Fr_ Y, INC. A LIMITED PARTNERSHIP BY: STERLING HO',= CORP, BY: GENERAL PARTI,ER 14. F. Salta, President BY: Robert H. Lintz, President ames Smith, Secretary; BAYSHORE OIL COITANY, INC. BY: D. S. Dunlap, President BY - Foster Hooper, Secretary 0 to w WQacu Wv FZ Dom W 9g W Z Is oa J i m c Um � o &fig, Y �� tC �(�__ m G ? ¢ } r J T u Z Q g -12 fL su �" w i N W � �= s q� Hu.9i �i ." 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A- I 3 alI il— mlil— � I —III— n to I f U!J F STATUS REPORT: CITY OF SAN BERNARDINO INDUSTRIAL DEVELOPMENT FINANCING PROJECT: Commercial Condominium Project APPLICANT: Tri-Cities Investment Company TYPE OF PROJECT: 44,282 SF Commercial Multi-Tenant Building and 34,564 Office Building PROJECT LOCATION: Hospitality Lane and Hunts Lane REQUESTED AMOUNT: $4,520,000 STATUS OF APPLICATION: Preliminary approval COMMENTS: RECOMMENDATIONS: Recommend approval •\N IIL Tr Mllnr M EDEPELOPMENT IGEICY Of THE CITY Of SRO HUM E, MEMBERS CITY HALL W R "BOB" HOLCOMB, CHAIRMAN 300 NORTH "D'" STREET EDWARD WHEELER. VICE.CHAIRMAN SAN BERNARDINO, CALIFORNIA ROBERT A CASTANEDA 92401 RICHARD F. GERWIG PHONE 47141 383-5081 LIONEL HUDSON P O DRAWER 392 JOHN 0 HOBBS JACK STRICKLER RALPH HERNANDEZ May 6, 1980 RALPH E SHADWELL JR EXEC UTIVE DIRECTOR SECRETARY TREASURER Mr. Charles Henderson Sterling Homes Corporation 19752 MacArthur Blvd. Suite 250 Irvine, CA 92715 Re: Industrial Development Bond Financing Dear Mr. Henderson: The Mayor and Common Council of the City of San Bernardino, at their regular meeting of May 5, 1980, approved the Resolution of Intent to authorize an Industrial Development Bond Issue in support of your industrial development, located on Hospitality Lane in the City of San Bernardino, California. The Public Hearing relative to this issue was set for 2:00 p.m., May 19, 1980, in the City of San Bernardino, City Hall Council Chambers. Please plan to attend the meeting to respond to any questions relative to your development which may be asked. At the successful conclusion of the Public Hearing on May 19, 1980, a fee payment of $10,000.00 is due in accordance with City Ordinance No. 3815. Please call me, or Glenda Saul, if you have any questions. Very truly yours, R. E. Shadwell, Jr. Executive Director RES/mf CC: Hon. Mayor and Common Council James Warren Beebe James Iverson, Miller & Schroeder Municpals, Inc. MOMENTUM MAKES THE DIFFERENCE