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HomeMy WebLinkAbout1980-217 Salter 50,002-1-1 RESOLUTION NO. 2Q-a 17 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 DANIEL JAY SALTER, A SINGLE MAN, DBA D. SALTER AND COMPANY; FINDING THAT SAID APPLICATION COMPLIES WITH THE PROVISIONS AND REQUIREMENTS OF SAID ORDINANCE NO. 3815 ; PRELIMIN- ARILY 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 HEAPING IN THE FORM AND MANNER PROVIDED BY SAID ORDINANCE NO. 3815; AND MAKING CERTAIN OTHER FINDINGS AND DETERA4INA- 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. B36a-4 (gl) 5/13/80 -*— :Oz 4---1 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, D. Salter and Company ( "Salter" 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 Salter a shopping center which shall provide approximately 16 , 300 square feet of rentable space, to be located at the northeast corner of Adell Avenue and Inland Center Drive, in the City of San Bernardino, including land, buildings, depreciable improve- ments and financing costs , 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 -2- B36a-5 (gl) 5/13/80 50,•002-1-1 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, Salter, 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 . -3- B36a-6 (gl) 5/13/80 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 i California. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Ber- nardino at a meeting thereof, held on the day of 1980 , by the following vote, to-wit : AYES : Councilmen IL Ile- NAYS : ABSENT: City Clerk The foregoing resolution is hereby approved this day of 1980 . a o e City of n Bernardino Approved as to form: City A orney Salter 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 DANIEL JAY SALTER, A SINGLE MAN, DBA D. SALTER AND COMPANY NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino have accepted an application from Daniel Jay Salter, a single man, dba D. Salter and Company and have adopted its Resolution. entitled: "Resolution No. 4a j7 "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 Daniel Jay Salter, a Single Man, dba D. Salter and Company; 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 Form and Manner Provided by Said Ordinance No. 3815 ; and Making Certain Other Findings and Determina- tions in Connection Therewith" B36a-8 (gl) 5/13/80 5a.iter 50 ,002-1-1 all for the financing of a shopping center of approximately 16, 300 square feet in the aggregate , to be located at the northeast corner of Adell Avenue and Inland Center Drive in said City (the "Project") and to issue approximately $1, 150, 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 : June 2, 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, May 19 , 1980 . Shauna Clark, City Clerk of the City of San Bernardino -2- B36a-9 (gl) 5/13/80 INDUSTRIAL DEVELOPMENT BOND I herewith make application for $1 , 150 ,000 . 00 Industrial Development Bond financing to construct a 16 , 300 square foot (net rentable) shopping center on a . 85 acre CM zoned site at the northeast corner of Adell Avenue and Inland Center Drive in the city of San Bernardino , consistent with the following application responses to the Industrial Development Bond Application : 1 . 1 Legal name of applicant Daniel Jay Salter , a single man 1 . 2 Line of Business Owner of a real estate development and investment company , D. Salter and Company (DBA) 1 . 3 Mailing address for purposes of application liaison , and address of headquarters . 1054 South Robertson Boulevard , Suite 202 Los Angeles , California 90035 1 . 4 Employer I . D . Number Daniel Jay Salter - Social Security No . 556-80-7551 D. Salter and Company - I .D. No . 95-3233055 1 . 5 Name and title of principal contact . Daniel Jay Salter 1 . 6 Phone number (213) 659-7960 1 . 7 Type of business organization : Sole Proprietorship 1 . 7 . 1 Place of organization : Los Angeles , California 1 . 7 . 2 Date of organization , and November 1 , 1976 1 . 7 . 3 The nature of legal affiliation or relationship with other entities (Parent - subsidiary , division , common ownership , etc . ) . None Industrial Development Bond Application Page Two 1. 8 Constitution of ownership of the company , including percent- age of holding by general public . D. Salter and Company - 100% ownership Daniel Jay Salter 1 . 9 Names and locations of key officials , including : 1 . 9 . 1 Principal officers , Daniel Jay Salter 1 . 9 . 2 Directors , and Not Applicable 1 . 9 . 3 Principal Stockholders (over 10% ownership) Not Applicable 1 . 10 Description of other business affiliations of principal officers , directors , and principal stockholders . Daniel Jay Salter : Westwood Village Limited Partnership , Phase I - 1977 , General Partner S and T Development Co . , General Partner No . 304 White Sands Village , General Partner 1 . 11 Employees 1 . 11 . 1 Number of employees in California , and Three 1 . 11 . 2 Locations in California : One 1054 South Robertson Boulevard, Suite 202 Los Angeles , California 90035 1. 12 Expert Services : 1 . 12 . 1 The applicant' s accountant and principal contact at such firm, Industrial Development Bond Application Page Three 1 . 12 . 1 (Continued) Nanas , Stern , Biers and Company 9454 Wilshire Boulevard , Suite 405 Beverly Hills , California 90210 Contact : Mr . Jack Neinstein (213) 273-2501 1 . 12 . 2 The applicant ' s attorney and principal contact at such firm, and Tom Byrne , Attorney -At Law 425 South Beverly Drive Beverly Hills , California 90211 Contact : Mr . Tom Byrne (213) 553-8580 1 . 12 . 3 Any experts or firms of experts that will be involved and the principal c6ntacts at each firm. Miller and Schroeder Municipals , Inc . 505 Lomas Santa Fe Drive , Suite 200 Solana Beach California 92075 (714) .481-5844 Consultants and Bond Underwriters , City of San Bernardino James Warren Beebe , Esq . 611 West 6th Street Los Angeles , California 90017 (213) 680-1406 Bond Counselor , City of San Bernardino 1 . 13 Principal bank of account and name of officers handling account . Crocker National Bank Beverly Hills Main Office 9570 Wilshire Boulevard Beverly Hills , California 90212 (213) 350-2852 1. 14 The source of funding for the project . Industrial Development Bonds issued by the City of San Bernardino 1. 15 Describe the benefits that will accrue to the City and its citizens as a result of the installation of this facility and the use of this method of financing , vis-a-vis a con- ventional method. Industrial Development Bond Application Page Four 1 . 16 In particular , the application should address the findings the in Section 1 of the Ordnn�hee�ityand forshould longstermtbusiness applicant is locating reasons and not merely because la should ofanyfinancial outline ducement offered by the Ordinance . APP in the program by which it etemployment its ofclocalvresidents City will increase long-term and that the City will receive a substantial benefit that exceeds any detriment The development of- thCnrofrSanoBernardinol dThectly benefit the city and itizes development will supply approximately one full time new job per each 500 square feet of rental space or approx- imately 33 new jobs . It will establish a new real estate tax base of approximately one million dollars and an in- crease in local taxes from sales of goods and services . With the development , the access street , advlicantnue will be widened an additional ten feet . P. responsible for all which include e utilities . Asa second- sidewalks and relocat P be safer to travel over ary thoroughfare , Adell Avenue will and provide safe on street parking and pedestrian right of way . In particular , the new development will create a greater draw for stores on Inland Center Drive and the Inland Center Mal] . With a trade anta vdo additionalrshopping pin from all over the county will market area. With additional stores in the trade area , it will encourage city residents to do more business in this area rather than traveling elsewhere . Without the use of Industrial Development Bonds , this pro- ject would probably not be built in a timely manner . Currently , institutfoTaledssuch have astSaneBernatdinog conventional funds projects ect to be built and Plaza. These bonds enable the p ro provide jobs for local building tradesman today . The issues of employment and increased tax revenue also star today . Th project , though speculative in nature , will be applicant on a long term basis . The app ing other development pronet h City he area onatl gong term basis . and anticipates working 1 dino By developing the San Beheaadditionaof�primec commercial d city will benefit from t improvement of stores in the central business district , imp vacant land, increased tax traven es , otherjobs and residents to the City , and business Industrial Development Bond Application Page Five 1 . 15/1 . 16 (Continued) This project will be an asset to the "All American City" of San Bernardino . PART II BOND ISSUE 2 . 1 Provide the estimated total amount of the financing with a tabulation of proposed use of bond proceeds , including : $1 , 150 ,000 . 00 - Total amount of Bond financing 2 . 1 . 1 Project cost , $1 , 181 , 180 . 00 - (Att Development achedhereto -CExhibit A)v 2 . 1 . 2 Legal ,' printing and related fees , $ 11 , 150 . 00 - Legal $ 20 ,000 . 00 - Printing and Related Fees 2 . 1 . 3 Financing costs and fees , $ 10 , 550 . 00 - City ond Administration ino $ 46 , 500 . 00 - Bond Underwriting 2 . 1 .4 Capitalized interest , and $ 138 ,000 . 00 - Construction Interest $ 17 ,250 . 00 - Interest Reserves (For payment of interest to Bond Holders during the first eighteen months-l% Per Annum Negative Carry) 2 . 1. 5 Other miscellaneous costs . (Attached hereto - Exhibit A) 2. 2 . Estimated target date of financing. September , 1980 for final underwriting of the $1 , 150 . 000 .00 bond issue . Construction begin ,There�islaneallowanceoofd be completed within nine months eighteen months of construction for initial lease-up and carrying cost of the project . Industrial Development Bond Application Page Six 2 . 3 Estimated times of financing . (See 2 . 2) 2 . 4 Type of bond sale (private placement , underwritten offering) . Underwritten Offer PART III FINANCIAL INFORMATION 3 . 1 statements following : three Balance Sheet (Submitted to James Warren Beebe , Esq . and Miller and Schroeder Municipals , Inc . ) 3 . 1 . 2 Income (Profit and Loss) Statement , and (Submitted to James Warren Beebe , Esq . and ?filler and Schroeder Municipals , Inc . ) 3 . 1 . 3 Analysis of sources and application of funds . Source : City of San Bernardino Industrial Development Bonds through Underwritten Offering plus owner equity . Application : Purchase of approximately . 85 acre of CM zoned land in the City of San Ber- nardino , known as Parcel 1 and Parcel 2 , as per map recorded in Book 3 , Page 54 of Parcel Maps in the Office of the County Recorder of the County. of San Bernardino , state of California and construction of a 18 ,000 square foot (gross space) or 16 , 300 (net rentable) square foot shopping center , together with financing fees and costs , bond un- derwriting, engineering fees , leasing fees and overhead costs . 3 . 2 Advise as to whether applicant is a small business , and a description of the applicant ' s ranking and relative size in its industry . A small business unranked in its industry No Small Business Administration loan funds or guarantees are requested or will be issued in connection with this bond underwriting. Industrial Development Bond Application Page Seven PART IV PROJECT INFORMATION of the purpose , objective and function 4 . 1 A short summary of the proposed project . San Bernardino Plaza will Berriabuilt to serve the commesscdas- needs of the City of San trict . Being at the main entrcente�fprovidesa18 ,000tsquare Shopping Mall , this shopping regional and feet of new rental store space for national , re local businesses . Exposure at this locaiiht metaleexteriorwpanels , and ex- glass store front , bright visibility . As a quality cellent freeway and highway project , this ��development will oe an asset to the "All American City of San Ber 4. 2 . 1 through 4 . 2 . 5 (Statement attached hereto - Exhibit A) 4 . 3 Estimated construction period : 4. 3 . 1 Scheduled starting date , and September , 1980 4 . 3 . 2 Scheduled completion date . No later than March , 1981 4 . 4 Name and location of the applicant' s supervising or ect . consulting engineer responsible for design of the p ro� Albert/Wurzburger and Associates , A . I .A. 5979 West 3rd Street , Suite 206 Los Angeles , California 90036 (213) 935-5002 The location of the proposed project . If duplicate installa- 4. 5 tions in several locations , list addresses of al (Attached hereto - Exhibit B) 4. 6 Advise as to whether project ortalterations location . be made . not , describe what expansion The project site is the first CiandofcBansition Bernardino develop- ment by the applicant in the Y Currently the site is undeveloped. Industrial Development Bond Application Page Eight 4, 7 Name and legal owner of location : 4 . 7 . 1 The applicant is in escrow to purchase the site from the legal owners , Levitz Furniture Company of the Pacific , Inc . The purchase price is $128 ,000 . 00 baid plus title insurance and clEscrowcistdueo to e close by the applicant (buyer) . August 10 , 1980 - 4 , 7 . 2 If there is or legal locationshdescribeen the applicant an the relationship . None 4 . 8 A description of the operations protect, and athe tscope , magnie at the location of the prop( project ,proposed project , tude and process relationships of the P including: nclu 1/2" X 11" map showing plant site and location An 8 of the project , and (Attached hereto - Exhibit C) 4 , 8. 2 A description of the p lant P rocess . The project is being built as a speculative develop- ment , to be leased and completion. has the flexibility retail store space . The project ight tenents as an easily divisible of serving one to e building,. An active leasing program is underway and pre-leasing prior to completion of construction should be easily obtained. List the environmental quality regulations , standards or re- 4. 9 project . re- quirements which are to be met within this p J The City of San Bernardino Planning applicable a negative declaration for the P environmental quality standards and regulations will be ad- hered to . 4. 10 A list and copies of all permits , water quality enforcement orders , air pollution permits and variances or evidence of other actions evidencing need for installation of this pro- ject . (See 4. 9) Industrial Development Bond Application Page Nine , state 4. 11 List pollution control agenulationscastandardsaor require) imposing the applicable g ments for operations or disposal . South Coast Air Quality MagofeCal BforniaSDepartmenteofral Water Quality Acts and State Health . 4 . 12 Describe the regional candtthermanner in plan which which willthis project is to conform, provide conformance-. The development is con dsestablished uses Cfor s the property . dino' s master plan and of the project , and 4 . 13 Describe the by-products or re where and how ultimate disposal will be accomplished . If recycling or salvage is to be market opportunities . Sewage hook-up is availabarewnot withinaanylcapaci1tysrange . Current treatment plants the City of San Non-recyclable collected by Y Bernardino Refuse PART V PUBLIC BENEFITS (See Section 1 . 15 and 1 . 16) PART VI COMMITMENTS 6 . 1 through 6 . 4 The applicant herby agrees to comply with and/or assist the city in complying with and to provide staff additional information and supplemental schedules , plans and documents o of whatever nature so as required by the city in order and comply with all provisions of 6 . 4 of the Industr ial Industrial Development Bond Application Page Ten PART VII SIGNATURE 7 1 This application is submitted by Daniel Jay Salter , a single man , who is responsible for the financing as presented in this application and to the best of my knowledge and belief it contains no false or inaccurate information or data and is totally descriptive of the project . I have beeof counsled tydofnSanmBernardinowith Ordinance No . 38 1 May 9 1980 Date Daniel Jay Salter 'Exhibit A' May 1 , 1980 DEVELOPMENT COST STIMARY PROJECT : SAN BERNARDINO PLAZA 18,000 Gross Square Feet 16 , 300 Net Rentable Square Feet Project Cost $ 130 , 000 A. Land B. Construction Cost 1 . Building Shell (HVAC , Storefront , Finished Electrical . $ 537 ,900 Plumbing , A/C Paving) 2 . Tenent Improvements (Interior Partition , Ceiling , Lighting 83 , 350 and Ducts) 59 , 430 3 . Site Improvements (Per Statement) 5 ,000 685 ,680 4. Landscape (Allowance) 17 , 500 C . Contingency D. Fees and Services 1 . Architecture/Engineering $ 30 ,000 2 , 500 2 . Civil Engineering 3 . Landscape Architecture (With D-1 . ) -0- 4. Soils Testing/Surveys 1 , 000 5 . Plan Check/Permits 1 , 500 6 . City Fees 5 , 200 7 . Insurance/Bonds (Allowance) 4 ,000 8 . Project Legal (Allowance) 2 ,000 9 . Development Management (By Owner) -0- 10 . Bond Legal 11 , 500 11 . Bond/Printing/Miscellaneous (Allowance) 20 ,000 79 , 700 12 . Blueprint Reproduction/Miscellaneous 2 ,000 E. Sales $ 25 ,000 1 . Leasing Commissions 3 , 500 2 . Advertising/Brochures 3 . Interest Reserves 17 , 250 45 , 750 (18 Month Negative Carry/Bond Holders) F. Financing 138 ,000 1 . Construction Interest $ 23 ,000 2 . Construction Loan Fees (2 Points) 3 . Bond Administration 10 , 550 (City of San Bernardino) 46 ,000 4. Bond Underwriting Fees (4 Points) 1 , 500 5 . Taxes (Real Estate) 3 ,500 222 , 550 6 . Escrow/Title Insurance TOTAL PROJECT COST $1 , 181 , 180 (BOND AMOUNT $1 , 150 ,000) SAN BERNARDINO PLAZA PROFORMA OPERATING STATEMENT TOTAL INCOME - NNN(1) $ 176 , 040 16 , 300 Square Feet @ $10 . 80/PSF ( 8 , 802) LESS : 5011� Vacancy Factor EFFECTIVE GROSS INCOME - NNN $ 167 , 238 LESS : OPERATING EXPENSES $ 5 ,017 Management (3%) ( 5 ,995) Reserveg ($ • 06/PSF) 978 $ 161 , 243 PRE-DEBT OPERATING INCOME LESS : Debt Service (Available for Debt) ( 128 ,994) (1 . 25 Debt Service Ratio) $ 32 ,249 NET ANNUAL OPERATING INCOME LOAN SUPPORT RATIO: 128 ,994 Cash available for Debt Service Divided by Loan Constant . 1098 (10 . 50%/30 Year AmortizanLevel $1 ,174,809 Equals Minimum Loan Support All Leases are on a complete triple net , insurance , (l) a their pro rata share of taxes , tenents Pay total common area maintenance . SAN BERNARDINO PLAZA OFFSITE IMPROVEMENTS (1) Paving (Means Cost Estimator) $ 1 , 300 . 00 333 . 33 Square Yards @ $3 . 90/PSF (2) Curbs abd Gutters (Means Cost Estimator) 2 , 800 . 00 300 . 00 Feet @ $9 . 25 Per Foot (3) Sidewalks (Means Cost s Estimator) 1 ,700 . 00 1 , 200 Square Feet @ $ (4) Edison (Electricity) (Estimated) Move Poles and Wiring to Transformer/New System 30 ,000 . 00 (5) General Telephone Company (Estimated) 2 , 500 . 00 Move Poles and Wiring Southern California Gas Co . (Estimated) 14 ,000 .00 Remove Existing Meters (7) City of San Bernardino Water District (Water) 2 , 630 .00 (Actual Cost) New Meter Installed (1 ) 1 , 500 -00 (8) Demolition (Allowance) (9) Civil Engineering (Actual Cost) 1 , 500 . 00 Street Improvement Plan (10) Improvement Bonds (Estimated) 1 , 500 . 00 Total $ 591430 . 00 tAl ®r 4th �. +r 'j. � ,� N r•f 7 i• �,� �`: ,` ,tip � • � 1 l� 1t1 i. f•' ` I' � � 1'' �' •, • • I 7. 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