HomeMy WebLinkAbout1981-107 San Bernardino
(Inland Plaza)
50, 002-1-1
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 FOR A CERTAIN PROJECT, FINDING
THAT SAID APPLICATION COMPLIES WITH THE PRO-
VISIONS AND REQUIREMENTS OF SAID ORDINANCE
NO. 3815; APPROVING SAID APPLICATION AND
THE PROJECT TO WHICH IT REFERS; DIRECTING
THE PREPARATION OF A PROJECT AGREEMENT, A
RESOLUTION OF ISSUANCE AND SUCH 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 DETERMINATIONS IN CONNECTION THEREWITH
(INLAND PLAZA)
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 has
amended the same from time to time; and
WHEREAS, said Ordinance No. 3815, as amended, is
intended to finance the development of industry and commerce
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and to thereby broaden the employment opportunities for
residents of the City and its tax and revenue base; and
WHEREAS, there has been presented to this Mayor
and Common Council an Application by Inland Plaza (the
"Applicant") , requesting the issuance of industrial develop-
ment bonds in the principal amount of not to exceed $4 , 000 , 000
for the purpose of financing, on behalf of the Applicant, a
certain Project, to wit: a building or buildings providing
approximately 42, 000 square feet of new retail space on a
certain site located on the east side of South E Street
between Mill Street and Orange Show Road, San Bernardino,
California, including, without limitation, equipment therefor
and off-street parking for motor vehicles and all off-site
and on-site improvements necessary therefor and appurtenances
and appurtenant work (the "Project") ;
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 herein-
above are true and correct in all respects.
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. (Inland Plaza)
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Section 2. The City of Sar, Bernardino, California ,
is a municipal corporation duly created, established and
authorized to transact business and exercise its powers, all
under and pursuant to the Constitution and laws of the State
of California , and the City Charter of the City, and the
powers of the City include the power to issue bonds for any of
its corporate purposes.
Section 3. Pursuant to the Charter of the City and
Ordinance No. 3815 , as amended, of the City, the City is
legally authorized to issue special revenue bonds for the
permanent financing as described in the recitals hereof.
Section 4 . This body constitutes the governing
body of the City and is legally authorized to provide for
the issuance of such special revenue bonds by the City.
Section 5. The Project referred to in the recitals
hereof constitutes a project which may be financed by the
issuance of such special revenue bonds by the City and located
within the jurisdiction of the City.
Section 6 . The Application referred to in the
recitals hereof complies with the provisions and requirements
of said Ordinance No. 3815, as amended, and the Project involved
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in such application is hereby approved and the provisions
of Subsection (d) of Section 10 and Subsection (a) of
Section 11 of said Ordinance No. 3815 shall not apply.
Section 7 . The City hereby declares its inten-
tion to exercise the authority referred to in Section 3
hereof by issuing bonds of the City in such amounts as will
be adequate to implement the City financing of the Project.
Section 8 . The bonds shall be payable from the
revenues described in said Ordinance No. 3815, as amended.
Section 9 . The bonds shall be and are special
obligations of the City, and, subject to the right of the
City to apply moneys as provided in the applicable laws,
are secured by such revenues as are specified in the pro-
ceedings for the issuance of such bonds and funds and
accounts to be held by the trustee or fiscal agent, and are
payable as to principal , redemption price, if any, and
interest from the revenues of the City as therein des-
cribed. The bonds are not a debt of the City, the State of
California or any of its political subdivisions, and
neither the City, the State, nor any of its political
subdivisions is liable thereon, nor in any event shall the
bonds by payable out of any funds or properties other than
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all or any part of the revenues, mortgage loans, and funds
and accounts as in this Resolution set forth. The bonds do
not constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction.
Neither the persons serving as the Mayor and Common Council
nor any persons executing the bonds shall be liable per-
sonally on the bonds or subject to any personal liability
or accountability by reason of the issuance thereof.
Section 10 . The details of such bonds, including
the establishing of the aggregate face amount of such
obligations, shall be authorized by indenture, resolution or
resolutions of the City at a meeting or meetings to be held
for such purpose. The City Staff, Bond Counsel , Under-
writers, the Applicants and the agents and representatives
of same are hereby authorized and directed to prepare or
cause to be prepared the necessary legal documents, in-
cluding the Project Agreements, Resolutions 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. The Mayor of the City is hereby authorized and
directed to coordinate the efforts of all concerned relating
to the issuance and sale of the bonds, and the City staff,
consultants, legal counsel to the City and Bond Counsel are
hereby directed to take such steps as shall be appropriate
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to implement such sale and delivery of the bonds including
working with persons who may acquire vested rights as the result
of such actions.
Section 11. This resolution constitutes a proper
exercise of the powers of this Mayor and Common Council and
conforms to State and local legal requirements relating to the
issuance of such special revenue bonds and other bonds or debt
obligations by a charter city in this State.
Section 12 . It is intended that his Resolution shall
constitute such "official action" toward the issuance of the
bonds within the meaning of the United States Treasury Regula-
tions, the United States Tax Laws, and any legislation now or
hereafter pending in the Congress of the United States which may
require official action in order for the bonds to be exempt from
Federal income taxation.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at an meeting thereof, held on
the day of 1981, by the following vote,
to-wit:
AYES: Councilmen:
NAYS:
ABSENT: 9G�i IClr��
City Clerk
The foregoing resolution is hereby approved this
day of 1981.
ayor o f C ty o S Bernar ino
Approved as to form:
Oe
City A torney
WATSON
7. February 25, 1981
i
Honorable W. R. "Bob" Holcomb
Mayor of the City of San Bernardino
City Hall
300 North "D" Street
San Bernardino , California 93418
Dear Mayor Holcomb:
By this letter we would like to express our interest
in entering into a Project Agreement for the financing
of Facilities under Ordinance No . 3815 . The Cities
comments should be addressed to :
Mr . Sam M. Watson
Inland Plaza
1585 Sunland Lane
Costa Mesa, California 92626
(714) 556-1387
This notice is given this 25th day of February , 1981
Pursuant To Ordiance No . 3815
Sincerely;
am M. 'atson
SMW:mrh
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APPLICATION FOR
REVENUE BOND FINANCING
PART I GENERAL AND BUSINESS INFORMATION
i
1.1 Legal name of the Applicant :
Inland Plaza
1. 2 Line of Business :
Shupping Center
1 . 3 Mailing Address and Headquarters Address :
1585 Sunland L :e
Costa Mesa , Ca_ifornia 92626
1 .4 Employer I .D . Numh,(,- :
95-3529879
1 . 5 Name and Title of General Contact :
Sam M. Watson - Partner
1 . 6 Phone Number of 1 . 5 :
(714 ) 556-1387
1 . 7 Type of Business Organization : neneral Partnership
1 . 7 . 1 Place of Oreanization : San Bernardino & Orange County
1 . 7 . 2 Date of Organization : October 1980
1 . 7 . 3 Nature of Lecal Affiliation or Relationship: Partnership
1 . 8 Constitution of Ownership of the Company :
Watson-Chamberlain & Company
Lawrence M. Campeau & David W. Myhre
1. 9 Name and Location of Key Officials :
1 . 9 . 1 Principal Officia ' s :
Rod S . Chamberlain & Sam M. Watson
1585 Sunland Lane
Costa Mesa , California 92626
1 . 9. 2 Directors : N/A
1 . 9 . 3 Principal Stockholders : N/A
1 .10 Description of Other Business Affiliations of Principals :
Watson-Chamberlain & Company - Partner
C & R Electric , Inc . - Principal Stockholder and Officer
C & R Construction , Inc . - Principal Stockholdet and Officer
Old Towne Shops - Partner
} Crown Investments - Partner
Montclair Center Ltd . - General Partner
Lincoln-Watson-Browne - Partner
Watson-Cl --mberlain Managment - Principal Stockholder and Officer
1 . 11 Employe ,7
1 . 11 . 1 Number of Employees in California : None
1 . 11 . 2 " -,cations in California : One
1 .12 Expert Services :
1 . 12 . 1 Anclicant ' s Accountart :
xr . ",:_cc_,,, K . Cris+-
2172 Dupor.'_ Drive , Suite 0207
Irvine , Ca___ 927; 5
1 . 12 . 2 Applicant ' s At'_orney :
Ruta.n. 6 Tucker
Mr . Dick Sims
610 Newport Center Drive , Suite #900
Newport Beach , California 92660
1 . 12 . 3 Architect :
N/A
General Contractor :
N/A
1.13 Principal Banks of Account and Name of Officers Handling Account :
Bank of America - Mr . Tom Kester
Manufacturers Bank
1 .14 The Source of Funding for the Project :
Tax Exempt Mortgage
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 ,J19 , 500
2. 1 . 2 Underwriting , legal , printing
and related fees - N/A
2 . 1 . 3 Fina:icing costs and fees (included in 2.1 .1)
2. 1 . 4 Capitalized interest (included in 2 . 1 .1)
2 . 1 . 5 Other miscellaneous costs (included in 2.1 .1)
2. 2 Estimates'. Target Date Of Financing :
May 20 , 1981
2 . 3 Estimated Time of ''inancino :
30 Years
2 . 4 Type of Bond Sale :
N/A
PART III FINANCIAL INFORY-A"_'10N :
3. 1 Financial StateTents
Uu nfidentia_ Financ_,,l Infcrmation Provided
3 . 2 Income (Profi± & Loss ) Statement :
Same as 3 . 1
3 . 3 Analysis Of Sources and Aaalication of Funds :
Source - Tax Exempt nortgage
PART IV PROJECT INFORMATION
4 .1 Short Summary of Purpose , Objective & Function
The proposed project will provide approximately 42 , 000 square
feet of new retail space . The c --n*_er will service the commercial
needs of the immediate area while substantially upgrading the
existing allowable use .
4 . 2 Description of Components and Estimated Total Cost of Functional
Parts of Project :
4 . 2.1 Land - $ 977 , 500 Not Financed
4 . 2. 2 Buildings , $1 , 782 , 050 -
e
4 . 2. 3 Engineering s
Technical Serv . $ 173 ,950
4 . 2 . 4 !Iisc(-llaneous
Financing Chrg . $ 144 , 000
4 . 2 . 5 Common Reserve &
City Fees $ 42 , 000
4 . 2 . 6 Total Project
Cost : $3 ,119 , 500
4 . 3 Estimatr�c' Construction Period : 6 Months
4 . 3. 1 Scheduled Starting Date: May 20, 1981
4 . 3 . 2 Scheduled Completion Date : October 1981
4 . 4 ha*ne and Loca` ; on of Sinervis; ng or Consulting Engineer Who
r-
�si nct_ Proc}
gave Kramer
451 E1 Ca, no Peal
Tustin , C,_ifo--nia 92680
4 . 5 Location of Propose2 Projec-
T'-St side of South L Street Between Mill Street and Orange
:ow Road
4 . 6 Xlvise As To Whether Project Site is a New Location:
w Location
4 .7 Nij:ne Of Legal Owner Of ?.Pcation
Inland Plaza
4 . 7 . 1 Terms and Nature Of Occupancy : N/A
4 .7 . 2 Is There Or Wil' There Be A Legal Relationship Between
Applicant And Owner Of Location And Nature Of
Relationship : N/A
4. 8 Description Of Operation To Be Conducted At Project :
Multi-Tenant Shopping Center
4 . 8 .1 8� 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 :
A negative declaration has been issued by the San Bernardino
City Environmental Review Committee .
4.10 List and Copies of all Permits , Water Quality Enforcement
Orders Air Pollution Permits and Variances or Evidence
of Other Actions Evidencing Need For Project:
N/A
4.11 Pollution Control A enc� es Imposing Applicable De ulations ,
Standards Or Rug uiremc•a_s or Operations or Disposal:
N/A
4.12 Regional County or Basin Plan to Which This Project is to
Confo: �i:
N/A
4 . 13 By Prod,_,cts or Residues of Project :
N/A
PART V PUBLIC BENEFITS
5. 1 The benefits that will accrue to the City and its citizens
a_ a result of t-e inr'tallation of the project and the use
cs tax exempt firancing vis-a-vis a conventional method
include the following :
(1 ) The project provides long-term employment for a sub-
stantial sect :-on of the local- v unemployed . When
construction on the project site has been completed
and faci-lities on the site are operational , it is
estimate(! that an average of approxir,ately 100 jobs
will be created . The categories of jobs to be provided
are anticipated to include manaqerial , skilled , labor ,
and service . 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) The current use of the property is less than the highest
and best use . The proposed project will greatly enhance
the immediate area . The addition of the new retail space
will provide goods and services in a pleasant enviorment.
(3) 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.
(4) The operation of the Project on this site, will add
buildings whose approximate market value will be to the
city tax rolls .
(5) The use of the method of financing provided for in
Ordinance #3815 of the City vis-a-vis the t&e of a con-
ventional method will permit the applicant to move for-
ward 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 #3P15 will provide new sources of financing
to t= e ac- ' -- cant and such financing will be available
at _ . wer _,t r-exempt interest rates .
5. 2 The applicant believes that the acquisition and operation of
this Project and the Financing thereof pursuant to Ordinance
03815 of the Cit•: ?re in conformance with the findings set
forth in Section. 1 of Ordinance #3815 . In particular :
A. It is the applicants intent to own and operate the center
in keeping with their profession , rather than develope
for re-sale .
B . The project is anticipated to have a significant impact
on the unemployment problem of the City without imposing
a financial burden on the City.
C . The Project will not produce detrimental effects on, or
conflict with , or otherwise restrain State efforts to
solve problems of legitimate State concern.
D. 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 03815 will provide additional financing
sources to the applicants at lower tax-exempt rates .
E. 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.
F. 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. 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 othet municipal
serv-ces .
G . The applicant will not take any action that will result
ii 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 COMMITMENTS
6.1 The Applicant he_eby agrees and ccrimits to comply, and/or
to assist the City in complying, with all state and federal
. �-ws in the issuance of the tax exempt mortgage .
6 . 2 The Applicant agrees that any additional information, acgree-
ments and undcrta-:ings as the City may require as a result
of various con,"ere-•.ces and negotiations shall be reproduced
in written , printer: or other t ..n,7ible form, shall be supplied
as many copies as the City prescribes and shall be deemed
supplements or amendme--s to this Application.
PART VIZ SIGNA72RE
7 . 1 This Application is signed below by the Applicant with prime
responsibility for the financing , who, by his signature below,
represents an certifi— that he has authority to bind the
Applicant to contract terms ; thr ,_ his Application, to the
best of his knowledge or belief , contains no false or in-
correct information or data , and this application, including
exhibits and attachments , is truly descrip`.ive of the Project,
and that the Applicant is f�.miliar with Ordinance #3815.
PART VIII l -E SCHEDULE
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 wil- 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 .
INLAND PLAZA BY
SAM M. WATSON
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