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HomeMy WebLinkAbout1980-251 vanir 60,009-13-1 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 CITY BY WORLD SAVINGS PLAZA, A LIMITED 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 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 DETER- MINATIONS 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 B69-8 (gl) 6/11/80 r T�� Z V 6t1111 60,009-13-1 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, World Savings Plaza, a limited partnership, ("Applicant" 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 acquisition and construction of a commercial shopping center to be located at East Highland Avenue and Del Rosa Street in the City of San Bernardino, which buildings comprising such shopping center, 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 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 -2- B69-9 (gl) 6/11/80 .-- 60r009-1-3-1 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, Applicant, their 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- B69-10 (gl) 6/11/80 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 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 require- ments 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 Ber- nar a meeting thereof held on the /Z day of 1980 , by the following vote, to-wit: i AYES : Coucilmen NAYS : ABSENT: ��,� i✓ ��/ City Clerk Th foregoing resolution is hereby approved this day of 1980 . a or of he ty of San ernardino Approved as to form: ��G�yGGG� City Attorney 60,Ot79-13-1 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 WORLD SAVINGS PLAZA, A LIMITED PARTNERSHIP NOTICE IS HEREBY GIVEN that the Mayor and Common Council of the City of San Bernardino have accepted an application from World Savings Plaza, a limited partnership, 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 City by World Savings Plaza, a limited 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 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 Deter- minations in Connection Therewith" B69-12 (gl) 6/11/80 60,009-13-1 all for the financing of a shopping center to be located at East highland Avenue and Del Rosa Street in said City (the "Project") and to issue not to exceed $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 proposed Project and its financing as follows : Date : July 7 , 1980 Time : 4 . 00 P .M. Place : Council Chambers City Hall 300 North "D" Street Sari 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 16 , 1980. Shauna Clark, City Clerk of the City of San Bernardino -2- B69-13 (gl) 6/11/80 D1669' VANIR RESEARCH COMPANY COMMERCIAL/INDUSTRIAL DEVELOPERS • REAL ESTATE BROKERS P O BOX 300• VANIR TOWER . CITY HALL PLAZA • SAN BERNARDINO.CA 92402 • 774/884.9477 June 12, 1980 Mr. Ralph E. Shadwell, Jr. Executive Director Redevelopment Agency of the City of San Bernardino P.O. Drawer 392 San Bernardino, California 92401 Re: Shopping Center Highland and Del Rosa IDB Application Dear Mr. Shadwell : Enclosed is an application for Industrial Development Bond financing to be submitted to the Mayor and Common Counsel of the City of San Bernardino for their review and if approved, issuance of a resolution of intent to authorize an Industrial Development Bond issue in support of this application. Very truly yours, VANIR RESEARCH COMPANY K DOMINGUEZ HFD/dlf Enclosure: Application for Revenue Bond Financing APPLICATION FOR REVENUE BOND FINANCING PART I GENERAL AND BUSINESS INFORMATION 1.1 Legal name of the Applicant: World Savings Plaza, a limited partnership 1.2 Line of Business: Shopping Center 1.3 Mailing Address and Headquarters Address: P.O. Box 310, San Bernardino, California 92402 Vanir Tower, City Hall Plaza 290 North "D" Street, Suite 900 San Bernardino, California 92401 1.4 Employer I.D. Number: Applied for 1.5 Name and Title of General Contact: H. Frank Dominguez - Partner 1.6 Phone Number of 1.5: (714) 884-9477 1.7 Type of Business Organization: Partnership 1.7.1 Place of Organization: San Bernardino, California 1.7.2 Date of Organization: June 1980 1.7.3 Nature of Legal Affiliation or Relationship: Partnership 1.8 Constitution of Ownership of the Company: H. Frank Dominguez and David D. Miller 1.9 Name and Location of Key Officials: 1.9. 1 Principal Officials: H. Frank Dominguez and David D. Miller Vanir Tower, City Hall Plaza 290 North "D" Street, Suite 900 San Bernardino, California 92401 1.9.2 Directors: N/A 1.9,3 Principal stockholders: N/A 1.10 Description of Other Business Affiliations of Principals: Vanir Development Company - Principal Stockholder and Officer Vanir Tower Company - Principal Stockholder and Officer Vanir Construction Company - Principal Stockholder and Officer Vanir Properties - Principal Stockholder and Officer Colton Development Company - Principal Stockholder and Officer Pail of Chicken Company - Principal Stockholder and Officer Buena Vista Telecommunications Company - Principal Stockholder and Officer Hub Distributing Company - Principal Stockholder and Officer Woodhaven Developers - Principal Stockholder and Officer 1.11 Employees: 1.11.1 Number of Employees in California: None 1.11.2 Locations in California: One 1.12 Expert Services: 1.12.1 Applicant's Accountant: Herb Hinkle Vanir Tower 290 North "D" Street Suite 900 San Bernardino, California 92401 1.12.2 Applicant's Attorney: D. David Stringer Vanir Tower 290 North "D" Street Suite 900 San Bernardino, California 92401 1.12.3 Architect: N/A General Contractor: N/A 1.13 Principal Banks of Account and Name of Officers Handling Account: Security Pacific National Bank - Richard Bissell Crocker National Bank - Rick Koon 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 Project Cost - $3,000.000.00 2.1.2 Underwriting, legal, printing and related fees - 87,000.00 2.1.3 Financing costs and fees (included in 2.1.2) 2.1.4 Capitalized interest (included in 2.1.2) 2.1.5 Miscellaneous .Costs (included in 2.1.2) 2.2 Estimated Target Date of Financing: July 1, 1980 2.3 Estimated Time of Financing: 30 years 2.4 Type of Bond Sale: Private Placement, underwritten offering PART III FINANCIAL INFORMATION: 3.1 Financial Statements: Financial information provided to the Redevelopment Agency Bond Counsel for inclusion in loan package. 3.2 Income (Profit $ Loss) Statement: Same as 3.1 3.3 Analysis of Sources and Application of Funds: Source - Bond Issue Application - Construction of project PART IV PROJECT INFORMATION 4.1 Description of Components and Estimated Total Cost of Functional Parts of Project: 4.2.1 Land - N/A 4.2.2.1 Building - N/A Purchase Price $3,000,000.00 Total Project Cost $3,000,000.00 4.2 Estimated Construction Period: N/A 4.3 Name and Location of Supervising or Consulting Engineer Who Designed Project: N/A 4.4 Location of Proposed Project: 1555 East Highland Avenue San Bernardino, California 4�5 Advise As To Whether Project Site is a New Location: New Location 4.6 Name Of Legal Owner Of Location: World Savings $ Loan Association, a California Corporation 4. 6.1 Terms and Nature of Occupancy: Long term land lease of 84 years, 6 months and 15 days. With option to purchase for $181,000 4.6.2 Is There Or Will There Be A Legal Relationship Between Applicant And Owner Of Location And Nature of Relationship: Lessor - Lessee relationship 4.7 Description of Operation to be Conducted at Project: Commercial banking facility, commercial retail stores 4.7.1 8h x 11 Map showing site: Attached 4.7.2 Description of Plant Process: N/A 4.8 List of Environmental Quality Regulations, Standards or Requirements To Be Met Within Project: Not applicable at this time. 4.9 List and Copies of all Permits, W.-ter Quality Enforcement Orders, Air Pollution Permits and VarianccS or Evidence of Other Actions Evidencing Need for Project: N/A 4.10 Pollution Control Agencies Imposing A licable Regulations, Standards Or Requirements for Operations or Disposal: N/A 4.11 Regional County or Basin Plan to Which This Project is to Conform: N/A 4.12 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 provides 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 an average of approximately 200 jobs will be created. The categories of jobs to be provided are anticipated to include managerial, skilled, 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 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 operation of the Project on this site, is anticipated to add buildings whose approximate market value will be to the city tax rolls. (4) The use of the method of financing 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 historical high levels 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 acquisition and operation of this Project and the financing thereof pursuant to Ordinance #3815 of the City are in conformance with the findings set forth in Section 1 of Ordinance #3815. In particular: (1) The project is anticipated to have a significant impact on the unemployment 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 acquisition 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. (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 consummate the financing. As described in Part 5.1, certain incidental benefits will, of course, accrue to the City as a result of said Project. (5) The City will receive a substantial benefit from 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 COMMMITMENTS 6.1 The Applicant hereby agrees and commits to comply, the City in complying, with all state and fedeal laws/in the issuance of the Bonds, including, without limitation, the making of any required application to a governmental department, for authorization, qualification 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 agrees and commits 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 Bonds, and, if deemed necessary by the City, following the delivery of the Bonds. 6.3 The Applicant hereby warrants and covenants to pay all expenses in connection with its commitments 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 -nd 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 amendments to this Application. E PART VII SIGNATURE 7.1 This Application is signed below by the Applicant with prime responsibility for the financing, who, by his signature below, represents and certifies 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 #3815, PART VIII FEE SCHEDULE 8.1 The Applicant agrees that, for the Project to be considered for eligibility, 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 Part 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. 1. LD INGS LAZA BY FRANK DOMINGUEZ all tt • # • 1 I ; I I I � I • ' w S L .,.. . z I y Ili Uji z � •at i r ' '=•_• ��_ VAINIR DEVELOPParTt,rr rnnrr-rin