HomeMy WebLinkAbout1980-223 URO MC
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RESOLUTION NO. gj la
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 URO-MC, A GENERAL PARTNER-
SHIP; 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
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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 , URO-MC, a general partnership ( "URO-MC"
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
three commercial buildings which provide 60 ,000 square feet
of commercial space, located on South "E" Street and Hospi-
tality Lane (proposed) in the City of San Bernardino, the
parking spaces for the use and convenience of the employees
of and visitors to said buildings , such financing to include
interest during construction, costs and expenses of issuing
said bonds, including bond discount, if any, all of which
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
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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, URO-MC, 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 .
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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 11 (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
California.
h
I HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Mayor and Common Council of the City of San Bernardino t a
meeting thereof, held on the �2 day of ,
1980 , by the following vote , to-wit:
AYES : Councilmen c
NAYS :
Absent: �y�
C ty ca _
The fOlregoing resolution is hereby approved thi;z day
of , 1980 . �?
a or�of the" Czty of S ernardino
Approved as to form:
t 1,
City Attorney
URO-MC
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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
URO-MC, 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
"URO-MC" , the partners of which are URO, a general partner-
ship, and Marie Callendar, Inc. , a corporation, and have
adopted its Resolution entitled :
"Resolution No. a,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
URO-MC, 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 Form and Manner Provided by
Said Ordinance No. 3815; and Making
Certain Other Findings and Determi-
nations in Connection Therewith"
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all for the acquisition and financing of three commercial
buildings of approximately 60 ,000 square feet in the aggregate,
located on South "E" Street and Hospitality Lane (proposed)
in said City (the "Project") and to issue approximately
$1, 700 ,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 16 , 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, June 2 , 1980 .
Shauna Clark, City Clerk of the
City of San Bernardino
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INDUSTRIAL DEVELOPMENT BOND
We herewith file application for $1 , 700, 000 Industrial
Development Bond financing to construct 58, 100 square feet
of commercial building space on 3 . 5 acres on South "E"
Street on the western edge of the commerce center in the
city of San Bernardino.
1. 1 Legal name of applicant
URO-MC, a general partnership
1. 2 Line of business
Property development and investment
1. 3 Mailing address
2102 Business Center Drive, Suite 200 Irvine , Calif. 92715
1. 4 Employer I .D. number
URO - 95-6511790
PIC - 95-6117414
1. 5 Name and title of principal contact
Harold E. Graham, partner
1. 6 Phone number
714/955-1690
1. 7 Type of business organization
1. 7. 1 Place of organization
California
1. 7. 2 Date of organization
June 18 , 1979
1. 7. 3 The nature of legal affiliation or relationship
with other entities
URO-MC is a general partnership made up of URO,
a separate general partnership, and Marie Callender
Pie Shops, Inc. a California Corporation .
URO-P1C has no other projects or business in San
Bernardino City.
URO has no other projects or business in San
Bernardino City
MC operates one restaurant under the Marie Callender
name within the city of San Bernardino.
1. 8 Constitution of ownership of the company, including
percentage of holdings by general public.
URO has a 600 ownership.
MC has a 400 ownership and a preferred position for return
of equity. Neither enity involves public ownership.
1. 9 Names and locations of key officials , including :
1 . 9 . 1 Principal officers
URO - Harold E. Graham, Managing partner
2102 Business Center Drive Suite 200
Irvine, Calif. 92715
James A. Brinton, M.D. partner
18700 Main Street, Huntington Beach, Calif.
Donald F. Williams, M. D. partner
18700 Main Street , Huntington Beach , Calif.
MC - Donald Callender, owner
Marie Callender Pie Shops , Inc.
1406 Obispo, Long Beach, Calif. 90804
Darryl Burrage, Controller
Marie Controller Pie Shops , Inc.
1406 Obispo, Long Beach , Calif. 90804
1. 9. 2 Directors , and
Included above
1 . 9 . 3 Principal Stockholders
No stockholders are involved, only the partners
shown above.
1 . 10 Description of other business affiliations of principal
officers , directors , and principal stockholders.
URO is a partnership created to develop property as
an investment holding for the benefit of the three
named partners.
MC is a partner in this venture and has been created
just for this project. The primary business of Marie
Callender is to develop and operate restaurants .
The Marie Callender Corporation is a general partner
and Don Callender is the controlling stockholder and
owner of the Corporation.
None of the partners or enities are involved in any
other new developments in San Bernardino City. Marie
Callender , Inc. owns and operates one restaurant within
the city limits.
1. 11 Employees
URO-MC has only two employees in addition to the partners.
All construction and development activities are accomplished
through sub-contractors.
1. 11. 1 Number of employees in California, and
Included in 1. 11 above
1. 11. 2 Locations in California
2102 Business Center Drive , Suite 200
Irvine, Calif. 92715
1. 12 Expert Services
1. 12. 1 The applicant ' s accountant and principal contact
at such firm,
Ron Williamson, CPA
Williamson and Glass Accountancy Firm
630 The City Drive
Orange, Calif. 92668 714/971-1957
1. 12. 2 The applicant 's attorneys and principal contact
at such firm, and
Harold Beral , Esq.
Demarco, Beral , Greenberg
550 Newport Center Drive
Newport Beach, Calif. 92660 714/644-4111
1. 12 . 3 Any experts or firms of experts that will be
involved and the principal contacts at each firm.
Miller and Schroeder Municipals , Inc.
1200 Prospect Ave.
La Jolla, Calif. 92037 714/459/2661
James E. Iverson
Consultants and Bond Underwriters
City of San Bernardino
James Warren Beebe , Esq.
611 West 6th Street
Los Angeles, Calif. 90017
Contact : James Warren Beebe, Esq.
Bond. Counselor, City San Bernardino
213/680-1406
1 . 13 Principal bank of account and name of officers handling
account.
Tokai Bank of California
534 W. 6th Street
Los Angeles , Calif. 90014
Contact: Tom Nakatchi 213/972-0218
Bank of America
15919 S. Paramount
Paramount, Calif. 90723
Contact : Richard Hoppe 213/630-5951
Bank of Newport
Coast Hwy at Avocado
Corona Del Mar, Calif. 92625
Contact: Ernie Casarez 714/645-3330
1. 14 The source of funding for the project.
Initial construction financing will be made by Tokai
Bank of California with other funding and support from
the banks shown. Permanent funding will come from bond
revenue underwriten by Miller and Schroeder Municipals , Inc.
PART II BOND ISSUE
2. 1 Provide the estimated total amount of the financing with
a tabulation of proposed use of bond proceeds, including :
2 . 1. 1 $1, 600 , 000
2 . 1. 2 $ 10 , 000
2 . 1. 3 $ 10 , 000
2. 1. 4 Inc 1 .
2 . 1. 5 Incl .
2. 2 Estimated target date of financing.
Construction financing shall be used to build the project
at an early date. Construction is expected to begin
in May 1980 and be completed in October. The permanent
bond underwriting is to be effected at the most promising
time following the May 1980 construction date. Information
and conditions should be evaluated to determine the exact
date.
2. 3 Estimated times of financing
See 2 . 2
2. 4 Type of bond sale (private placement , underwritten offering) .
To be determined by the conditions
PART III FINANCIAL INFOrUVffION
3 . 1 Financial statements certified or prepared by a CPA, from
three most recent fiscal years, including the following :
3 . 1. 1 Balance Sheet
Attached hereto
3. 1 . 2 Income (Profit and Loss) Statements, and
Attached hereto
3. 1. 3 Analysis of sources and application of funds.
Sources: Bond revenue, plus partnership equity
3 .1 . 3 (Continued)
Application: To finance the direct and indirect costs
to develope 3. 5 acres of previously
purchased commercial land known as
Parcel 2 of parcel maps no. 3448 as
per plot recorded in book 29 , page 99
of parcel maps , records of San Bernar-
dino County, State of California.
Development shall consist of three large
two-story free-standing buildings
divisible to be used for commercial
business operations.
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.
URO-MC is a partnership created to develope and own
this project. This partnership has no ranking and is
of relatively small size. The individuals making up this
partnership are actively involved in other successful
partnerships similar to this project in other cities .
No Small Business Administration loan funds or guarantees
are requested or involved with this project.
PART IV PROJECT INFORMATION
4 . 1 A short summary of the purpose, objective and function
of the proposed project.
The three buildings are designed to attract a maximum
of five large wholesale-retail oriented businesses .
This location and design affords such distributors
exposure and access to a broad market of consummers
and employees.
The project is being developed by the partnership to
lease to users on long-term arrangements. A majority
of the space has been pre-leased.
4 . 2 A description of the components and the estimated total
cost of the functional parts of the project, including:
4 . 2 . 1 Land
Said land was purchased by the partnership in May
1979 for the purpose set forth. The land value
has quickly improved due to the project plan and
due to the rapidly developing surrounding which
complement the project purpose and function.
4 . 2. 2 Buildings
57 ,726 Square Feet @ $22 . 00 = $1 , 267 ,000
4 . 2. 3 A tabulation of equipment
None
4 . 2 . 4 Engineering and technical services , and
$40 , 000
4 . 2 . 5 Other or miscellaneous
$ 10 , 550 Bond Expenses
$ 35 , 000 Off-Street Improvements
$ 30 , 000 So. Cal Edison Utility Adjustments
$150 , 000 Financing for construction and holdings
period
$ 90 , 000 Leasing fees and costs.
$ 60 , 000 Contingencies and other items
4 . 3 Estimated construction period.
4 . 3 . 1 Scheduled starting date, and
June 1 , 1980
4 . 3 . 2 Scheduled completion date.
December 1 , 1980
4 . 4 Name and location of the applicant ' s supervising or
consulting engineer responsible for design of the project.
Tyler and Woolley , Architecture
710 Wilshire Blvd. Suite 401
Santa Monica, Calif. 90401
Walden Engineering
4002 West Garry Ave. Suite B
Santa Ana, Calif. 92704
4 . 5 The location of proposed project . If duplicate installations
in several locations , list addresses of all.
The project location is on South "E" Street and lies between
"E" Street and the Freeway where "E" Street turns eastward
parallel the Redlands highway.
4. 6 Advise as to whether project site is a new locations. If
not, describe what expansion or alteration will be made.
The project is new construction and previously unde-
veloped land and area.
4 . 7 Name of legal owner of location.
4 . 7 . 1 If not owned by by applicant , advise terms and
nature of occupancy, and
Location is owned by applicant
4 . 7 . 2 If there is or will be a legal relationship between
the applicant and owner of the location , describe
the relationship.
Applicant/owner will continue to own and manage
the development property .
4 . 8 A description of the operations that are or are to be
conducted at the location of the proposed project, and
the scope, magnitude and process relationships of the
proposed project , including:
4 . 8 . 1 An 8-�" x 11" map showing plant site and location
of the project, and
See Exhibit "A"
4 . 8 . 2 A description of the plant process .
The project is being constructed as a speculative
development to meet the market demand for this type
product. The development, tenants , and products will
be a positive influence in the area. No detrimental
effects are expected.
4 . 9 List the environmental quality regulations, standards or
requirements which are to be met within this project.
All applicable environmental standards are met since the
operation intended fall within the current zoning. No
special permits or waviers are anticipated by the users
of the development. Strict standards of maintenance
and useage will be established and maintained.
4. 10 A list and copies of all permits , water quality enforce-
ment orders, air pollution permits and variances or
evidence of other actions evidencing need for installation
of this project.
All requirements included within the application for building
and planning permits .
4 . 11 List pollution control agencies (local , state and federal)
imposing the applicable regulations , standards or require-
ments for operations or disposal .
South Coast Air Quality Management Board, State and Federal
Water Quality Acts , and State of California Department
of Health.
4 . 12 Describe the regional county or basin plan to which this
project is to conform, and the manner in which it will
provide conformance.
The general plan for the city is consistent with the
zoning and uses established for the property.
4 . 13 Describe the by-products or residues of the project, and
where and how ultimate disposal will be accomplished. If
recycling or salvage is to be a function, advise as to
market opportunities.
The disposal concerns of this type of development is not
signficant.
PART V PUBLIC BENEIFTS.
5. 1 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 conventional method.
The financing sought will assist the developer to
proceed with the project so that the product and ensuming
benefits can be enjoyed at an earlier date than might
otherwise be possible. Jobs will be created through
the construction and operation. The site will be more
asetically pleasing after developed and the tenants of the
development will attract both consummers and other business
from in and outside of the city to the area which will have
a positive financial impact to the city.
5. 2 In particular, the application should address the findings
in Section 1 of the Ordinance, and should show that the
applicant is locating in the City for long-term business
reasons and not merely because of any financial inducement
offered by the Ordinance. Applicant should outline the
program by which it is expected that its activity in the
City will increase long-term employment of local residents
and that the City will receive a substantial benefit that
exceeds any detriment incurred.
Such development was planned originally under conventional
terms and such application assistance is only made in
order to accommodate the continued progress of the development
during a very disfavofable time for construction projects.
The project and partnership is designed for long-term
benefits and purposes. The set-up costs for both tenant
and owner are considerable and not undertaken unless it
is done so carefully and with confidence that the product
is needed and useful to the community for today and
tomorrow. There will be both a direct and indirect benefit
to the city and community due to this development.
PART VI COMMITMENTS
6 . 1 The application shall be supplemented with a commitment
by the applicant 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, qualification or registra-
tion of the offer, issuance or sale of the bonds , and any
amendments thereto, and any permit or other authorization
of such governmental department , prior to the delivery
by the City of such bonds.
6. 2 The application shall be supplemented with (i) a commitment
by the applicant 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.
6. 3 All commitments by the applicant shall specifically
provide for the applicant 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.
6.4 Any additional information, agreements and undertakings
as the City may require as a result of various confer-
ences 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 the application.
This application is submitted by URO-t!C as a general
partnership and the partners warrant that the application
contain no false or inaccurate information or data.
We have been counseled and are familiar with Ordinance
No. 3815 of the City of San Bernardino
URO-MC
Harold E. Graham, Partner
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