HomeMy WebLinkAbout1982-331!N
RESOLUTION NO. 82-331
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 PROVISIONS 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.
H.M.S. LIMITED, a CALIFORNIA LIMITED PARTNERSHIP
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 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 H.M.S. Limited , requesting the
issuance of industrial development bonds in the principal amount of, not to
exceed, $ 8, 905 , OO.Ofor the purpose of financing, on behalf of the Applicant,
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a certain Project to wit: Design and construct 72,000 s.f. of rent-
able restaurant, retail and commercial space to be located on the
southeast corner of Third Street and Waterman Avenue, San Bernardino,
California, including without limitation the acquisition of land,
construction and equipment therefor and off-street parking and all on
and off site improvements necessary therefor and appurtenances and
appurentant 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 hereinabove are true and correct
in all respects.
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 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.
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SECTION 7. The City hereby declares its intention 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 B. The bonds shall be payable from the revenues described in
said Ordinance 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 monies as provided in the
applicable laws, are secured by such revenues as are specified in the proceedings
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 described. The bonds are
not a debt of the City, the State of California, or any of its political sub-
divisions, and neither the City, the State, nor any of its political subdivisions
is liable thereon, nor, in any event, shall the bonds be payable out of any
funds or properties other than 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 personally 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, Underwriters, 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, including 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
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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 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 require-
ments 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 Regulations, the United States Tax laws, and any legisla-
tion 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.
SECTION 13. At the closing of the financing, there shall be paid to the
City the fee set forth in Resolution No. 81-108, as amended by Resolution No.
81-410, of the Mayor and Common Council, adopted September 24, 1981.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by
the Mayor and Common Council of the City of San Bernardino at a regular
Meeting thereof, held on the 2nd day of August 1981, by the
following vote, to wit:
AYES: COUNCIL MEMBERS: Castaneda Reilly On_i ,
Hobbs, Strickler
NAYS:
ABSENT:
None
The foregoing Resolution is hereby approved this oftZ day of
August , 1981.
APPROVED AS TO FORM:
CITY ATTORNEY
%I
NO
APPLICATION FOR
REVENUE BOND FINA14CING
PART I GENERAL AND BUSINESS INFORMATION
1.1 Legal name of the Applicant:
H.M.S. LIMITED, a California limited partnership
1.2 Line of Business:
Ccomercial and multi -tenant industrial development
1.3 Mailing Address and Headquarters Address:
17985 Sky Park Circle, Suite F
Irvine, California 92714
1.4 Employer I.D. Number:
95-3725156
1.5 Name and Title of General Contact:
Ronald P. Merickel, General Partner
1.6 Phone Number of 1.5:
(714) 957-2901
1.7 Type of Business Organization: Limited Partnership
1.7.1 Place of Organization: Orange, Riverside and San
Bernardino Counties
1.7.2 Date of Organization: March, 1982
1.7.3 Nature of Affiliation or Relationship: Partnership
1.8 Constitution of Ownership of the Company:
1.8.1 Merickel Development, a California corporation (25%),
General Partner
1.8.2 Patrick R. Smith d/b/a Rock Development, a California
corporation (25%), General Partner
1.8.3 Gilbert M. Wilson, an individual (5%), General Partner
1.8.4 Limited Partners (500) unspecified at this time
1.9 Names and Location of Key Officials:
1.9.1 Ronald P. Merickel
Patrick R. Smith
17985 Sky Park Circle, Suite F
Irvine, CA 92714
1.9.2 Directors: N/A
1.9.3 Principal Stockholders: N/A
1.10 Description of Other Business Affiliations of
General Partners of This Partnership:
1.10.1 Ronald P. Merickel is President of Merickel Development,
an Irvine based land development and general contracting
company, organized in 1975.
1.10.2 Patrick R. Smith is owner of Rock Development Company
and principal owner of American Associates, a commercial
real estate brokerage.
1.10.3 Gilbert M. Wilson is involved in oil and gas exploration
in the western United States.
1.11 Number of Employees in California:
Merickel Development is a Southern California real estate development
and construction company with projects in 5 counties.
1.11.1 Seven (7) employees work fulltime and many times more
as required on a subcontract basis.
1.11.2 Principal office is in Irvine with field offices as
required for specific projects.
1.12 Expert Services
1.12.1 Applicant's Accountant:
John Coyne
Coyne and Clark
234 East 17th Street, #102
Costa Mesa, CA 92627
1.12.2 Applicant's Attorney:
Kent Snyder, Attorney At Law
2212 Dupont Drive, Suite Q
Irvine, CA 92715
1.12.3 Applicant's Engineer:
Myron Browning
M.E. Browning and Associates
17922 Sky Park Circle, Suite N
Irvine, CA 92714
1.12.4 General Contractor:
Merickel Development
17985 Sky Park Circle, Suite F
Irvine, CA 92714
1.12.5 Architect: N/A
1.13 Principal Banks:
Bank of America - Jim Carnevale
Crocker National Bank - Lorilee Cedar
First Interstate Bank - Bruce King
1.14 Source of Funding for the Project:
Bond Issue and Partners Equity
PART 11 BOND ISSUE
2.1 Provide the Estimated Total Amount of the Financing With a
Tabulation of Proposed Use of Bond Proceeds:
2.1.1 Project Cost $ 8,125,000
2.1.2 Legal, Printing and Related Fees
(Included in 2.1.1) -
2.1.3 Financing Costs and Fees 243,750
2.1.4 Capitalized Interest (11%) 536,250
2.1.5 Other (included in 2.1.1) -
Total $ 8,905,000
2.2 Estimated Target Date of Financing:
February 1, 1983
2.3 Estimated Time of Financing:
30 Years
2.4 Type of Bond Sale:
Private Plant, Underwritten Offering
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PART III FINANCIAL INFORMATION
3.1 Financial statements including Balance Sheet, Income Statement,
and Analysis of Sources and Application of Funds submitted under
separate cover.
3.2 Applicant is a small business and is considered small to medium
sized within the building industry. No small business loan is
involved and no federal guarantee is to be used.
Attached is a brochure describing the experience and capabilities
of the Managing General Partner, Merickel Development.
PART IV
4.1
PR0.7F.Cr INFQRMP.TICN
Fro]ect:
The purpose of the proposed project (known as Phase A of
Waterman Business Park) is to design, build a
3.15 acre Fbodpark and a 4.19 acre retail -commercial center.
The objective of Phase A development is to complete the
offsite inprovements on Waterman and Third Streets and to
construct 72,000 sq. ft. of rentable restaurant, retail and
ooamercial space.
The project will enhance the Central City East Redevelopment
Area by providing a quality master planned project and will
upgrade a very busy intersection in the City on land that is
presently blighted.
4.2
Description of C riponents and Estimated Total Cost of the
Functional Parts of the Project:
4.2.1 Land $ 2,575,000
4.2.2 Buildings4, 350, 000
4.2.3 rVa
4.2.4 Engineering & Technical Services 100,000
4.2.5 Other (site improvements, 1,100,000
landscaping)
Total $ 8,125,000
4.3
Estimated Construction Period:
4.3.1 Scheduled Starting Date: Approximately February 1, 1983
4.3.2 Scheduled Completing Date: Approximately February 1, 1986
4.4
Name and Location of AMlicant's Supervising Contractor Responsible
For Design of the Project:
Donald Roberson
Merickel Development
17985 Sky Park Circle, Suite F
Irvine, CA 92714
4.5
The Location of Proposed Project:
The project is located at the southeast corner of Third Street
and Waterman Avenue.
4.6
Advise as to Whether Project Site is a New Location:
New Location
4.7
Name of Legal Owner of Location:
4.7.1 The property is presently owned by Ernest Gervay and Jack
O. Spencer. H.M.S. Limited is presently in escrow with the
owner and will purchase the entire parcel prior to start of
construction.
4.7.2 There will be no legal relationship for the development and
ownership between the applicant and the owner.
4.8
A Description of the Operations that are to be Conducted at the
Relationships of the Proposed Project, Including:
Up to 22 separate buildings on 12 separate parcels within the 21
acre development. The project is mixed use and will include
restaurant, retail/ccnuercial, multi -tenant industrial, and :uni-
warehouse operations.
4.8.1 An 82" x 11" map showing site plan and location of the
project.
4.8.2 The site plan is labeled for proposed uses only for convenience.
Enclosed is the Conceptual Development Plan for the project.
4.9 List the Enviornmental Quality Regulations, Standards or
Requirements which are to be Met Within This Project:
The applicant has previously suhrnitted the project for approval
by the City of San Bernardino. Prezoning to Ccmrercial Manufac-
turing (CM) was accomplished in April, 1982 and is consistent with
the City's General Plan.
Annexation proceedings were approved by the Focal Agency Formation
Commission and the City.
Tentative Parcel Map #7606 is currently before the City Planning
Commission. It is anticipated that the applicant will be required
to corrply with all environmental regulations normally conditioned
upon approval of subject map (water quality, air pollution, traffic
control, waste disposal measures).
4.10 A List and Conies of all Permits, Water Quality Enforcement Orders,
Air Pollution Permits and Variances or Evidence of Other Actions
Evidencing Need for Project:
See 4.9
4.11 Pollution Control Agencies Imposing Applicable Regulations,
Standards or Requirements for Operations or Disposal:
See 4.9
4.12 Regional County or Basin Plan to Which this Project is to Conform:
See 4.9
4.13 By Products or Residues of Project:
See 4.9
PART V PUBLIC BENEFITS
5.1 The Benefits that will Accrue to the City and it's Citizens as a
Result of the Installation of this Project and the Use of Revenue
Bond Financing vis-a-vis a Conventional Method include the
following:
5.1.1 The project will provide long term employment for a substantial
section of the locally unemployed. When the project is built
out and all f Icilities are operational, it is estimated that
an average of 500 jobs will be directly created. Approximately
�C U car the same amount of jobs will be indirectly created.
The categories of jobs to be provided include managerial,
skilled, semi -skilled and unskilled. The wages to be paid
by the businesses locating in the project 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) are anticipated to be satisfactory.
5.1.2 The City's involvement in the develognent of the project
will enable the City to have a greater amount of input
for the jobs anticipated to be created by this Project.
5.1.3 Additional benefits anticipated to be realized by the
reduction of unemployment and the general econcmic
revitalization in the Central City East RedeveloFrrent
Area, include the reduction of public assistance expen-
ditures, because this project will be supporting at no
unreimbursed cost to the City.
5.1.4 The construction and operation of the project planned on
this site is anticipated to create a development with an
approximate market value of $30,000,000 on the City tax
roles. Property tax revenue is estimated to be $300,000
annually versus present property tax of only $8,000.
5.1.5 An additional substantial amount of sales tax revenue will
be generated for the City.
5.1.6 The use of the method of financing provided for in
Ordinance #3815 of the City vis-a-vis the use of a conven-
tional method will permit the applicant to move forward with
the financing and construction of the project within an
accelerated time frame. Conventional interest rates are
at historical highs and many sources of conventional
financing do not have any funds available. The method
of financing provided in Ordinance #3815 will provide
lower tax exempt financing for the applicant.
PART VI COMMITMEN'T'S
6.1 The applicant hereby agrees and commits 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 registration of the offer, issuance
or sale of the Bonds, and any amendments thereto, and any permit
or 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 camut7mments 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 ao 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 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 supplements or amendments to this
Application.
PART VII SIGNATURE
7.1 This Application is signed below by senior officials of the agent
for applicant with prime responsibility for the financing, who,
by their signatures below, represent and certify that they have
authority to bind the applicant to contract terms; that their
Application, to the best of their 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 On acceptance and placement of the Bond, the Applicant agrees
that it will pay the City a fee of $10,000 for administrative
costs. Applicant agrees that its ccnmitments in Part VI above
are in addition to this fixed amount.
8.2 All fees of the City may be capitalized and included in the bond
issue, as acceptable to the bond purchaser.
8.3 The City derives it's entire support from the fees for it's services.
The total function of the City is conducted on a self-supporting
basis, and involves no state general revenues or expenditures
from taxes from the state or any of it's political subdivisions.
No indebtedness or taxing power of the City is involved. Project
revenues are the sole security for the bonds.
8.4 Pursuant to Resolution 81-108, as amended by Resolution 81-410,
one percent (1%) of the bond issue shall be deposited in the
City Treasury in the Industrial Bond Revenue Reserve and Develop-
ment Fund, which shall be used in such manner as the Mayor and
Common Council may direct from time to time.
DATED
H.M.S. LIMITED
A C,ALIFOBLIIA LIMITED PARTNERSHIP
M
MA
PATRICK R. SMITH
GENERAL PARTNER
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