HomeMy WebLinkAbout1981-106 San Bernardino
(Riverview)
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
(RIVERVIEW PROPERTIES)
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
165 .1 (sh)
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San Bernardino
Riverview
50, 002-1-3
WHEREAS, said Ordinance No. 3815, as amended, 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, there has been presented to this Mayor
and Common Council an Application by Riverview Properties
(the "Applicant") , requesting the issuance of industrial
development bonds in the principal amount of not to exceed
$4, 500, 000 for the purpose of financing, on behalf of the
Applicant, a certain Project, to wit: buildings thereon
located on certain sites at 1805, 1811 , 1817 and 1833
Riverview Drive, San Bernardino, California, including,
without limitation, the acquisition of the land necessary
therefor and the provision for off-street parking of 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. #165.1 (j sy)
3/2/81
(Riverview)
•50, 002-1-1
Section 2. The City of San 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 . 165 .1 (sh)
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San Bernardino
(Riverview)
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 . 165 .1 (sh)
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San Bernardino
(Riverview)
. 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
5. 165.1 (sh)
San Bernardino
(Riverview)
50 ,002-1-2
hereby directed to take such steps as shall be appropriate 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 con-
forms 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 this 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 Oolz meeting thereof, held on
the 50 day of , 1981, by the following vote,
to-wit:
AYES: Councilmen:
R
NAYS: 7
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day of �� , 1,9?.
Ole
0 o i o San rnardino
Approved as to form:
C ty Attorney
F�
COMMUNITY CONSULTANTS CORPORATION
2152 DUPONT DRIVE • SUITE 202 S - IRVINE,CA 92715
PHONE (714) 752-i252
It
February 19 , 1981 - ,7 . `1
Mr. Ralph Shadwell
Redevelopment Agency
300 North "D" Street •:" :�
City Hall
San Bernardino, CA. 92401
Dear Ralph :
I am enclosing herewith a completed application for
Industrial Revenue Bond Financing for Riverview Properties ,
Ltd . on its property located Within the Southeast
Industrial District of the City of San Bernardino .
The application is substantially in the form submitted for
Remic Building Partners , Ltd .
If you have any questions please don ' t hesitate to call .
Very truly yours
1
Russ E. Aatle
RER/cb
Enclosure
c.c. Mr. James Warren Beebe
B:BOND-FIN S:cb 1 .0
Application For
Revenue Bond Financing
PART I
GENERAL AND BUSINESS INFORMATION.
1 .1 Legal name of the applicant. Riverview Properties,
Ltd. , a California Limited Partnership.
1 .2 Line of business. Development of industrial land
and buildings for occupancy by various industries.
1 .3 Mailing address for purposes of application 1lason
and address of headquarters. 2152 Dupont Drive ,
Suite 203 , Irvine, Califorinia 92715.
1 .4 Employer I.D. #; 95-3477664
1 .5 Name and Title of Principal Contact: Russ F. Hatlp ,
President , Community Consultants Corporation .
1.6 Phone Number. Area Code 714/752-6252.
1 .7 Type of business organization . Limited Partnership;
1 .7 .1 Place of organization . San Bernardino ,
California.
1 .7 . 2 Date-of-organization . July 19 , 1979.
1 .7 .3 Nature of Legal Affiliation or Relation-
ship_with other_entities . Community
a
consul tnts Corporation is the sole
General Partner of Riverview Properties ,
Ltd .
1 .F Constitution of Ownership of the Company including
Percentage_of_Holdinys_bX_General -Pub Iic_
A. Community Consultants Corporation - 8.34',
B. Raphael Chaikin -33.331
C. Thomas Deemer -33.33°
D. Russ E. Hatle. -25.00`I
1 .9 Names and Locations of Key Officials;
1 .9.1 Principle Officer - Russ E. Hatle ,
President , Community Consultants Corp.
1 .9.2 Directors of Community Consultants Corp.
and addresses;
Russ E. and Lorraine Hatle , 421 Monarch
Bay , Laguna Niguel , CA . 92677 .
Peggy A . Tickner , 8881 Midbury ,
Huntington Beach, CA. 92646.
1 .9.3 Principle stock holder - Russ E. and
Lorraine Hatle.
1 .10 Description of other business affiliations and
rind le officers directors and principi e stock
holders;
1 . 10 . 1 Community Consultants Corporation;
A . General Partner of Remic Building
Partners, Ltd.
B:BOND-FIN 9.0 cb 2.0
PART I continued. . . Page Two
1 .10.1
B. General Partner of Commerce Environments,
a General Partnership.
C. General Partner of Southwest Business
Partners , Ltd .
D. General Partner of Southwest Investment
Partners, Ltd.
1 .10.2 Russ E. Hatle;
A. General Partner SCC, Ltd. ;
B. General Partner Hospitality Investors ,
Ltd.;
C. General Partner of Executive Office Park ,
Ltd.;
D. General Partner of Heritage Properties ,
Ltd.;
F. . Sole stock holder of St . Lorraine
Corporation , a Delaware Corporation ;
F. Principal stock holder Skyag Services ,
Inc.;
G. Sole stock holder of Community Consultants
Corporation;
Employees.
1 . 11 . 1 Number of Employees in California ;
Riverview Properties , Ltd . employs none .
Community Consultants Corporation employs
five.
1 .11 .2 Locations in California;
2152 Dupont Drive , Suite 203 , Irvine ,
California 92715.
1911 South Commercenter East , Suite 407 ,
San Bernardino , California 92408
1 .12 Expert Services.
1 . 12 .1 Principal Accountant - Robert Little ,
Little & Gray , 2152 Dupont Drive , Suite
101 , Irvine, California 92715.
1 .12 . 2 Principal Attorney - Robert Morrison ,
550 Newport Center Drive , Suite 955 ,
Newport Beach , California 92660 .
1 . 12 .3 Principal Architect - Gary Rierson ,
Professional Design Concepts , Inc . ,
145 West First Street , Tustin , California
92980.
Principal Engineer - Noel Christianson, C.G.
Engineering , 2627 South Waterman Avenue ,
Suite E, San Bernardino, California 92408.
B:BOND-FIN 8.0 cb 3.0
PART I continued. . . . Page Three
1 .12.3
Principal Soils Engineer - Action
Engineering Consultants , 5402-A Commercial
Drive , Huntington Beach, California 92640.
Principal Contractor - Steve Jacobson ,
Stewart Construction Company , P.O. Box 100 ,
Westminster, California 92683.
1 .13 Principal Bank Account for Riverview Properties,
Ltd . is Lloyds Bank California , 1622 North Main
Street, Santa Ana, California. 92701 .
Principle Officer handling the account is Robert A.
Grensted.
1 .14 Source of Funding for the Project. is as follows,
1 . Equity Capital contributed by Limited
Partners.
2 . Debt funding provided by Institutional
Investors.
PANT II
BOI;r) ISSUE.
2 . 1 The estimated total amount of the financing. is
X4 ,000 ,000 .00 with the following breakdown ;
2.1 .1 PROJECT COST T, 3 ,550,000
2.1 .2 LEGAL, PRINTING AND
RELATED FEES R 30,000
2.1 .3 FINANCING COSTS g FEES ? 120,000
2.1 .4 CAPITALIZED INTEREST S 270,000
2.1 .5 OTHER MISC. COSTS (ENGINEER,
ARCHITECT, & MISC.) $ 30,000
TOTAL $ 4,000,000
2.2 Estimated target date of financing. is June 1st ,
1981 .
2.3 Estimated times of financing; Permanent financing
to be recorded June 1st , 1981 .
2.4 Type of Sale, private placement.
PART III
FINANCIAL INFORMATION
3 . 1 Financial statement including balance sheet ,
income statement and analysis of sources and
application of funds submitted under separate
cover.
B:BOND-FIN 8:cb 4.0
PART III continued. . . Page Four
3 .2 Applicant is a small business and is considered
small within its industry. No small business loan
is involved and no federal guarantee is to be used.
PART TV
PROJECT INFORMATION
4 . 1 The project is being undertaken to provide a
140 ,560 sq . ft. multi-purpose industrial complex
for various industrial users. Captive Plastics ,
Inc . , Easterday Supply Co. , Inc . and National
Telecommunications, Inc . presently occupy portions
of the space . Other industrial users will be
attracted by the ready availability of the space
(as opposed to space yet to be constructed) and the
availability of custom tenant improvements designed
to at Tenant Operations.
4.2 A description of the components and the estimated
total cost of the functional parts of the project
follow:
4.2.1 LAND & BUILDINGS $ 3 ,200,000
4.2.2 CUSTOM TENANT IMPROVEMENTS
AND INTERIORS $ 350,000
4.2.3 EQUIPMENT $ -0-
4.2.4 ENGINEERING & TECHNICAL
SE.RVICE.S $ 30,000
4.2.5 OTHER & MISCELLANEOUS
A. LEGAL, PRINTING &
RELATED FEES S 30,000
B. FINANCING COSTS & FEES $ 120,0on
C. CAPITALIZED INTEREST $ 270,000
TOTAL $ 4,000,000
4.3 Estimated construction:
4.3 .1 Building shells , site work and interiors
of 53 ,000 square feet are complete .
Custom design Tenant Improvements to be
developed as property leased and occupied.
4.3.2 Scheduled completion date is January 30 ,
1982.
4 .4 Supervising engineer - Gary Rierson , Bill Handley
- Professional Design Concepts , 145 W . First
Street, Tustin, California 92680.
4 .5 The location of the project is 1805, 1811 , 1817 ,
and 1R33 Riverview Drive.
4.6 Project site is an existing location improved with
four structures totaling 190,560 square feet , of
which approximately 53 ,000 square feet is presently
occupied and 137 ,000 square feet has never been
occupied.
4.7 Legal owner of location is Riverview Properties ,
Ltd . a California limited partnership, Community
Consultants Corporation , its General Partner .
B:BOND-FIN 8:cb 5.0
PART IV continued... Page Five
4.8 operations to be conducted at the location include;
A. Plastic molding and extrusion by Captive
Plastics, Inc.
B. Telephone equipment repair and
manufacturing by National
Telecommunications, Inc.
C. Warehousing and distribution by Easterday
Supply, Inc.
D. Warehousing , distribution , research and
development , assembly and manufacture by
various occupants.
4 .8 .1 8-1 /2 by 11 map showing site location
attached as next page.
4.9 The only known environmental quality regulation to
be met within the project are the requirements of
the City of San Bernardino Environmental Review
Committee.
4 .10 No water quality enforcement orders, air pollution
permits or variances are known to be needed for
installation of this project.
4 . 11 No known pollution control agencies (local State
and Federal ) have applicable regulations or
requirements for the operations described .
4 . 12 No known regional county or basin plan is
established with which the proposed project must
conform.
4 .13 By products or residues of the proposed operations
are disposed of at available public disposal
facilities.
PART V
PUBLIC BENEFITS.
5.1 The benefits that will accrue to the city and its
citizens as a result of the installation of this
project and the use of tax exempt financing vis a
vis conventional method include the following;
5.1 .1 The project will provide long term
employment for a section of the locally
unemployed . Presently , 40 persons are
employed by the three companies occupying
the project . When fully leased and
operational the complex will provide jobs
for approximately 150 persons. According
to the San Bernardino Chamber of Commerce
these jobs are estimated to create within
the community;
. 539 more residents
150 more households
4 more retail establishments
. $343,000 more in bank deposits
. $1 ,065,000 more in personal annual
income
. $496,000 more in retail sales per
year
B:BOND-FIN B:cb 8.0
PART V continued . . . Page Six
The category of jobs to be provided
include managerial , skilled , semi -
skilled and unskilled . The wages to be
paid in the various job categories meet
local and regional standards and will
substain a satisfactory level financial
stability . The facility has been newly
constructed in accordance with all
applicable federal , state and local
laws and regulations , hence working
conditions are satisfactory.
5.1 .2 The city 's involvement in the expansion
and development of project will assist
the city in attracting the types of
businesses most deserved by the city ,
permit a greater amount of imput for each
of the fobs to be created.
5.1 .3. Additional benefits anticipated to be
realized by the reduction of unemploy-
ment and the under-employment
attributable to the installation of the
project and the general economic
revitalization resulting therefrom in-
clude the reduction of public assistance
expenditures because the project will be
self supporting at no unreimbursed cost
to the city.
5.1 .4 Construction of the project when complete
is anticipated to add a total of nearly
X4 ,200 ,000 of assessed valuation to the
tax rolls of the city. In addition it is
anticipated that the project will
generate additional sales tax and
business license revenues for the city .
5.1 .5 The useful method of financing provided
for in Ordinance No. 3815 of the city
vis a vis the use of the conventional
method will permit the applicant to move
forward with the financing and completion
of custom designed tenant improvements
for the project within an accelerated
time frame. As the city is well aware ,
conventional interest rates are at
historically 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 No. 3815
will provide new sources of financing
to the applicant and such financing will
be made available at lower tax exempt
interest rates.
5.2 The applicant belives that the installation of
the project and the financing thereof pursuant to
Ordiance No. 3815 of the city are in conformance
with the findings setforth in Section 1 of Ordiance
No. 3815. In particular;
B:BONO-FIN 8:cb 7.0
PART V continued.. . Page Seven
5.2.1 The project is anticipated to have a
beneficial inpact on the unemployment
problem in the city without imposing a
financial burden or adverse effects on
areas outside the boundaries of the city
or on transient residents of the state.
5.2.2 The project will not produce detrimental
effects on or conflict with or otherwise
restrain state efforts to solve problems
of legitimate state concern.
5.2.3 The applicant has legitimate long term
business reasons for constructing the
project including the long term profit
potential , labor pool access and other
economic factors in comparison to which
the financing of the project is not as
important. However , as described in part
5 .1 the financing of the project under
the method provided by Ordinance No. 3815
will provide additional financing sources
to the applicant at lower tax exempt
rates and will enable the time schedule
for completion of the project to be
accelerated.
5.2.4 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 the
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
take any more action than is neccessary
to consummate the financing . As
described in part 5.1 certain incidental
benefits will of course accrue to the
city as a result of the installation of
the project.
5.2.5 In part 5 .1 the applicant has outlined
the programs by which it is expected that
the applicants activity in the city will
increase long term employment of local
residents.
5.2.6 The city will receive a substantial
benefit (as described in paragraph 5.1 )
from installation of the project that
exceeds any detriment incurred by the
city . The project will be self
supporting . Ordinance No . 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
to finance the project payable only from
revenues generated by the project and
that all fees and expenses incurred by
B:BOND-FIN 8:cb 8.0
PART V continued. . . Page Eight
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 detriment to the city such as
increases in cost of police , fire and
other municipal services.
5 . 2 .7 The applicant will not take any action
that will result in a violation of any
applicable state standards relating to
sewage disposal .
PART VI
COMMITTMENTS.
6. 1 By execution hereof the applicant does hereby
commit itself to comply with and to assist the City
in complying with all State and Federal Laws in the
issuance of Bond Financing 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 and any permit or other authorization of
such Governmental Department prior to the delivery
by the City of such bonds.
6 . 2 By execution hereof the undersigned does hereby
commit to cause and /or 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 By execution hereof the undersigned does hereby
commit 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 The undersigned hereby agrees that any additional
information , aggreements and 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 suppliments or amendments to this
application.
B:BOND-FIN 8:cb 9.0
PART VII Page Nine
SIGNATURE.
7.1 The applicant by executing this document certifies
that he has authority to bind the partnership to
contract terms, that the application to the best of
his knowledge or belief contains no false or
Incorrect information or data and the application
including the exhibits and attachments is truly
descriptive of the project. The undersigned further
represents that the undersigned is familiar with
Ordinance number 3815.
DATED: z ) � ` I
RIVERVIEW PROPERTIES, LIMITED
BY: COMMUNITY CONSULTANTS CORPORATION
ITS' GENERAL PARTNER
Ruse, E. Hatlel President
Jr
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