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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 Z7 FNI � #166 .1 (sh) 3/1/81 San Bernardino (Inland Plaza) 50, 002-1-2 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. 2• #166.1 (jsy) 3/2/81 San Bernardino . (Inland Plaza) 50, 002-1-1 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 3 . #166 .1 (sh) 3/1/81 San Bernardino (Inland Plaza) 50, 002-1-1 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 4 . #166.1 (sh) 3/1/81 San Bernardino (Inland Plaza) 50, 002-1-1 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 5_ fii Ar, i rc-),l San Bernardino (Inland Plaza) 50 , 002-1-2 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 �.1� . �'JN.�� �� v� • ��1;T:. �CJ.� ��y' �' _Il�w:�' �! .� I�IF� F'1�.��V� ���4� J5 J- D 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 t. 1, Z :R ��► � J ' I ' i - •fit• `• I ff r • • _ - - � I { wit 1 L t II•• . i� 1 1 )) nor Ih N dt N .REAGAN & KRAMER BUILDING - A 6. B �• BTRUfTUHAL E1461NlGkiNG SITE PLAN