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HomeMy WebLinkAboutR03-Redevelopment Agency ", c o o o REDEYELOPI€NT AGENCY OF THE CITY OF SAN BERNARDINO - REQUEST FOR AGENDA ITEM ACTION DEPARTI€NT: REDEYELOPI€NT AGENCY FROM: GLENDA SAUL, EXECUTIVE DIRECTOR SUBJECT: CONSIDER ADOPTION OF RESOLUTION OF INDUCEMENT FOR MULTIFAMILY MORTGAGE REVENUE BOND FOR THE WOODLANDS PROJECT DATE: JANUARY 21, 1985 SYNOPSIS OF PREVIOUS ClIlMISSION/COUNCIL ACTION: Ordinance 3815 providing for the Issuance of Multifamily Mortgage Revenue Bond. RECOMMENDED MOTION: (MYOR AND COIIlllN COUNCIL) RESOLUTION Of THE MAYOR AND COMMON COUNCIL Of THE CITY Of SAN BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO ISSUE ITS MULTIFAMILY MORTGAGE REVENUE BONDS; DIRECTING THE PREPARATION OF CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (THE WOODLANDS PROJECT) --/~~<;7 -- ./- ,-~ GLENDA SAUL - Executive Director CONTACT PERSON: Glenda Saul PHONE: 5081 SUPPORTING DATA ATTACHED: YES lIARD : 5 FUNDING REQUIREMENTS: AIlOUNT $ N/A PROJECT: SC *NO ADVERSE I"'ACT ON CITY: COUNCIL NOTES: AGENDA ITEM NO. ~ DATE 1-28-85 721J ,1 c o o o REDEYELOPIlENT AGENCY OF THE CITY OF SAN BERNARDINO - REQUEST FOR AGENDA ITEM ACTION STAFF REPORT Below Is a recap of the Meyers Ranch application: APPLICANT: Block Group Developments, a California Corporatl on PRINCIPALS: Block Group Developments FINANCING: $2B,OOO,OOO PURPOSE: The construction of a 560 unit IIIlltlfamlly rental housing development. LOCATION: Approxll1ately 2B acre parcel located on the south side of Kendall Drive approximately two .11es east on Little Mountain Dr. TARGET DATE OF FINANCING: 19B6 CONSTRUCTION SCHEDULE: As soon as poss 1 bl e after issuance of the bonds, and shall be completed within six IIOnths JOBS: During construction only. INCREASE IN TAX INCREIENT: $lB,51B.000 x IS . $185,180 RESERVE AND DEVELOPIENT FEE: 2B,ooO,OOO x IS . $28,000 Bond Counsel will be present to answer any questions. 721J 1-28-85 c PARI' I 1.1 1.2 , o o o APl'LICATTrN .Q! RTllnr r.1llTI1> (l"AT.nnRII1T1>.) .1m: D TNITI_uJ. 1lR\71lY1R BalD PINJlHCIlr. .an .Q! _ RRANmmDill. C'AT.T1lI'lIlNA GJH:RAL JlND BUSINESS INPORMM'KN '!be legal Jl!lIIIe of the ARllicant is "Block Group Developnents (California) INC.- '!be aaiJ,icant is a California oorporatien which sba11 engage in the developoent, leasing, and CIIfIleJ:ship of lIRXoximately 560apartment units located off of ltenda11 Drive in the City of San Bernardino, California. '!be reel. property wbere the apartments will be constructed is owned ~ Block Bros. Indlstries (USA) Inc. '!be mailing address of the ARllicant is: Block Group DevelOJ:ouelits (California) Inc. c/o Marlborough Developnent Corporatien 2029 Century Park East 11550 IDs Angeles, Q\ 90067 1.4. 8Irpl~er 'lU I.D. NO. - NA 1.3. 1.5 Mr. Dorian A. Johnsen, A.I.A. is the principal contact for the ARllicant. 1.6 '!be tel~ IllJIlber for the ARllicant is (213) 553-5131. 1.7 '!be ARllicant is a California Corporatien. 1.7.1 '!be ARllicant shall own property and oonduct business in the County of San Bernardino, state of California. 1.7.2 '!be applicant is not related to ~ other legal entity. 1.8 Business ventures of the general pu-tners of the ARllicant: A. Block Group Developoents (California) ,Inc. has extensive land holdings in the state of California and includes the 600 acre master pllll1 deI7e10p0ent known as Shandin Hills located in the City of San Bernardino. Block Bros. Industries (USA) Inc. is a wholly-owned subsidary of Olyupia 'York, Inc. 1.9 8Irpl~ees '!be aaiJ,icant wrrently has zero empl~ees. Howe'ler, oonstructien and OCIIlplet.ien of the Project ~ the ARllicant will ultimately provide llIJIIerOUS employment opportunities in the City of San Bernardino. '!be ARllicant plans to locate in San Bernardino COunty. '!be ARllicant currently has offices at c/o MarlborOUljl. Developnent Corporatien. 2029 Century Park East, SUite 1550, IDS Angeles, Q\ 90067. O' ~ i I o o o 1.10 Professional services will be p:ovided as follows: 10.1 steres, Alpert, Carne shall serve as the aCClOUlltant for the Applicant and the contact person with said fi11ll is Gary Carne, tel~ lIIIIiler 619/292-3200. 10.2 ibe law fi11ll of Greshlln, Varner, Savage, Nolan ,Tilden. 398 West Fourth Street, San Bernardino, Ol 92401. is the attorney for the Applicant. 1.11 1.12 PART II 2.1 10.3 ibe law offices of Timothy J. Sabo shall serve as Bond Counsel to the City with regard to the tax-exeDq?t financing for the p:oject. 10.4 ibe p:inciIBl civil engineer sbal1 be PsaDas/Barris , Assoc. 3901 IJ.me st. Riverside, Ol 92501. 10.5 ibe princiIBl architect shall be Dorian A. Johnson, A.I.A. 2029 Century Park East, SUite 1550, Los Angeles, Ol 90067. ibe p:inciIBl banking accounts of the Applicant shall be at Security Pacific National Bank, San Bernardino, and opened upon financing becaning available. ibe source of funding for the Project is anticipeted to be derived fran a variety of sources including the private placement of a tax-exeDq?t bcx1d or other obligaticn wiht a lender to be obtained her_ter. BCtID ISSUE ibe estimated total oost of the financing peckage and the p:opoaed use of bond proceeds is as follows: 2.1.1 Olnstructicn costs $18,518,000 2.1.2 Legal, p:inting and related fees 100,000 2.1.3 Financing costs and fees 3,800,000 2.1.4 Capitalized interest 3,862,000 2.1.5 Land aCIIuisiticn (has been aCIIuired) Total $26,280,000 2.2 ibe estimated target date for the financing is p:esent1.y anticipeted in 1986 with oonstructicn to c-....-'1Oe as soon as possible after the financing peckage is cxmplete and oonstructicn to be oanpleted in 30 months. _' I, o o o o 2.3 It is proposed that the f1nllncing be in the fom of a oonstruction loan during the oonstruction period whidl would have the traditional oonstruction loan provisions in that drawdowns would be prElllitted as oonstruction proceeds upon sul::mission of requisitions vouchers. ' ~ OCIIIpl.etion of construction of the Project and certification that all improvements have been OCIIIpl.eted, the lender will then pemit an interest rate adjustment and a principll lIIlOUI1t increase, as warranted, and convert the construction loan to a permanent f1nllncing. 2.4. '!he present proposal for the financing of the Project anticipates that the tax exempt bonds or other obligations will be sold to a carmercial blink or other such lender through a pdvate plaf'MnAl'lt or that there be a pJblic offering of said securities. PART nI FINANCIAL ~ 3.1 '!he Applicant shall be a lIIlall business doing business as a corporation pursuant to the 1... of the state of California, and the Applicant would be considered a lIIlall business with regard to its relative size in ~rison with other such businesses Indertaking projects of this type. Although the Applicant is a IIIIBll business, no federal IIIIBll business loan guarantees were proposed in connection with the proposed financing as contemplated ~ this Application. PART N PRlJECl' ~ 4.1. '!he Project ss proposed ~ the Applicant shall include the constructioo of awroximately 560 llJ;Utment lnits in the WOOdlands section of the 600 master plan developnent known as Shandin Hills. '!he awroximate 560 units shall be constructed in three ~. '!he awroximate 560 units shall be constructed over a 6 IIIa1th period. '!he amenities in the llJ;Utment project shall include a adlll1ling pool, recreation center, and barbeque areas. '!he Project is located within ,the Redevelopnent Project Area of the Redeve10pnent .llgency of the City of san Bernardino. '!he proposed Project shall be located upon land which is III)re particularly described in Exhibit -A- attached hereto. '!he Project is a business venture that would increase the ""'~ssed valuation of currently Inderutilized land and generate significant EIIIployment opportunities within the city. 4.2 '!he oanponents of the estimated total cost of the functional parts of the Project are as follows: 4.2.1 4.2.2 4.2.3 Land $ 3,360,000 17,395,000 200,000 Building construction Engineering & technical services I.. Q o o o 4.2.4 Miscellaneous itEms a. 5% cxmstruction oont:i.ngerq b. Interest Iilring axlStruction c. Real estate brokerage <YII'IIli ....ion do other miscellaneous costs 723,000 3,862,000 -0- 200.000 $25,740,000 Total 4.3 '!he est1mated amstruction period for the Project is as follows: 4.3.1 Construction of the Project would .........e..oe as soon as possible after issuance of the tax-exempt obligations. 4.3.2 '!he plarmed ooostruction shall be OClIIpleted within 6 DK;nths fran the date of CXJIIIlI!IlCEDlt. 4.4 '!he supervising civil engineer responsible for the desi9'l of the Project on behalf of the Applicant shall be PBanas/Barris, 2901 Lime st. Riverside, CA 92501. 4.5 '!he Project shall be known as -'!he WOodlands-. 4.6 '!he Project site is the develqment of apartment units and is mt an expansion or an alteration of an existing facility. '!he neoesSllIy infrastructure itEms and other pJblic !mprovements must be installed on the Project site and the Applicant desires to obtain a below mrket rate tax-exempt construction and peImanent financing of the improvements to be placed thereon fran a oanbination of sources. 4.7 '!he property on which the Project is proposed to be located is currently owned ~ Block Bros. InWstries (USA) Inc. 4.8 '!he Project will provide approximately 560 rental units to be leased to various tenants. 4.8.1 Attached as Exhibit "B- is an 8-1/2 x 11 inch map showing the site location of the proposed Project. 4.8.2 A description of the plant prooess-not aWlicable. 4.9 A negative declaration plrsuant to the prOl7isions of the California Enviranental Quality Jlct of 1970, as lIIIeIlded, would in all probability be satisfactoty for the Project as proposed ~ the Applicant. However, the Project shall OClIIply with all aWlicab1.e provisions of said Jlct. 4.10 '!here are m pecnits, water quality enforcement orders, air pollution pecnits or variances or other evidence of actions neoesSllIy in connection with this Project. 4.11 '!here are m local, state or federal pollution control agencies which intx>se regulations, standards or requirements wiht regard to the qlera- tions of the proposed Project to be mdertaken ~ the Applicant. , ' o o o o 4.12 ibe proposed Project shall canply with all llRiLicable City of San Bernardino, CDunty of San Bernardino, and other regional, OOtmty or basin plans to which this Project shall conform and the l1g?ropriate waste water and air quality Iequirements which shall be in confomity with all of the above jurisdictioos. 4.13 It is presently anticiptted that the proposed Project will not produce ~ tmlroducts or residues which would involve the ultimate dispoeal or the need for a plan to alYY'fllI\lish SIIIIe. Recycling or salvage will not be a function of the proposed Project nor will there be ~ market opportuni- ties generated with regard to SIIIIe. 4.14 ibe Project shall consist of awroximately five hundred sixty (560) apartment units in fifty (SO bto stoty I:W.lding located on an approx- imately twenty ei~t (28) acre site in the "Woodlandsw section of the 600 acre IIIIUIter planned deve1qment known as Sbandin Hills, on the SOuth side of Kendall Drive, and approximately bto (2) miles east of Little Ib1ntain )the wProjectW). ibe Project shall include approx- imately 1000 on-site vehicle parking spaces, three (3) _iDming pools, lanc:lFaJ?ing and recreation center. ibere is projected to be one- hlndred sixty eight (168) one bedroan, one I:II.th l.Ili.ts renting for $410 per nmth, one hlndred sixty ei~t (168) bto bedroan, one bath units renting for $465 per nmth, and bto hlndred twenty four (224) two bedroan, bto bath l.Ili.ts renting for $520 per IOOI1th. PART V l'UBLIC BIIIISf".L'1~ 5.1 ibe City of San Bernardino will receive significant benefits by the initiation of this Project as proposed by the 1(lplicant and particularly through the utilitization of the financing method as 18 available IIlder OrdilllU1Ce No. 3815, as snended, of the City of San Bernardino. Due to the fact that conventional interest rates for construction and peIIIlllllent financing for the type of Project contemplated by the 1(lplicant are at such an extrEllle level. on conventionally borrowed funds, if available at all, neither the 1(lplicant nor any other persons or legal entities are able to prcwide the type of m::ldem and attractive aplrtIIlent I:W.ldings needed within the City of san Bernardino. Additionally, the City of San Bernardino, its inhabitants and the Redevelqment Jlgency of the City of san Bernardino will benefit fran the increased assessed valuation of the property within the Redevelopnent Project Area. said increased assesement will occur as the result of the canpletion of the Project. '!his increase in the assessed valuatic:n of the property included in the Project will assure that the Redevelq:b.ent Jlgency of the City of San Bernardino will have a mre viable means of undertaking its redevelop- ment activities within said Project Area. ibe City likewise would benefit by obtaining quality housing for the citizens of San Bernardino. Other businesses will be enoouraged to locate or relocate within the City of San Bernardino and thus create an Iprard spiraling effect on the eoonany of the City as a result of the Project. o . 5.1.1 5.1.2 5.1.3. , ~ o o o Project will provide lc:ng teen 8IIp1oyment opportunities for the inhabitants of the City of SlIn Bernardino. When fully ocnstructed leased the Project will provide 8IIp1oyment oppor- tlnities for a substantial llIJIIber of persons. '!be categoIy jobs tD be provided in the Project after its canpletioo include IIBMgerial, skilled, semi-skilled, and Ull8Wled. '!be wages tD be IBid in the various job categories meet loca 1 and regiCXllll. standards and will sustain a satisfactoIy level of financial stability. Constructioo of the Project is anticipated tD aai awroximately $25,760,000 assessed valuatioo tD the tax rolls of the City. '!be useful method of financing provided for in Ordinance No. 3815 of the City vis-a-vis the use of the conventiCXllll. method will permit the Aa1licant to canplete the financing and ocnstructioo of the Project within an accelerated time frame. '!be method of financing provided in Ordinance No. 3815 will provide new sources of financing to the Aa1licant and such financing will be nede at lower tax1XelDpt interest rates. 5.2 '!be City will benefit, as am be demoostrated plrsuant tD sectioo 1 of Ordinance 3815, as amended, of the City of SlIn Bernardino, in that 8IIp1~t opportunities will be generated ~ the proposed Project both during the oonstructioo IiJase and after said Project is constructed and leased. '!be Aa1licant is mt: atfollllllpting tD construct said proposed Project nerely for the financial induocIIlent that is offered plrsuant tD the Ordinance, but rather due to the lcng-term business reasons that are significant due to the locatioo of the proposed Project and the real eoonanic benefits available tD the cxmnunity. '!bere are no detriments that am be incurred ~ the City with regard to this type of financing for this Project, and the City of SlIn Bernardino and the Redeve10p0ent Agency of the City of SlIn Bernardino will receive substantial benefits through increases in assessed Valuatioo of property within a rec1evelopoent Project area, plus the increased lc:ng-t.erm 8IIp1~t qlpOrtunities that will be available to the local residents of the City. PART VI <XHn'JH:NTS 6.1 '!be Aa1licant ~ the subnissioo of this Aa1licatioo agrees tD canply and! or tD assist the City in oanplying with all state and federal laws in the issuance of the bonds or other such tax-exempt obligatialS tD finance the Project, including, without limitatioo, making of any required aallicatioo to a goverrmental department, for authorization, qualifi- cation or registration of the offer, issuance or sale of the bonds or other tax-exempt obligatialS, and any adnendnents thereto, and any permit or other authorizatioo of such govermental department, prior to the delivery ~ the City of Ill.ICh bonds or other tax-exempt obligatialS. _. 1- o o o o . 6.2 '!he l\Rllicant further oamdts to cause and/or to assist the City in causing to be pdnted arttl prospectus or other written or printed cxmnun- ication proposed to be PJblisbed in ocnnection with issuance, offer or sale of bonds or other tu~ obligations, prior to the deliveIy ~ the City of such bonds or other tu-uempt obligations, and, to the extent de e~ necessary ~ the City, following delivery of such bonds or other t:ax~ obligations. 6.3 '!he l\Rllicant also oamdts to pay all expenses in ocnnection with the issuance, offer or sale of the bonds or other tax-exempt obligations, whether or not such bonds or other tax..........~ obligations are f1nal1y issued, and to bold the City blumless fran arttl and all upenses related thereto, to pay items on an ongoing basis so that neither the City, nor its advisors, attorneys, enployees and the like will aOClJllUlate arttl claims against the City. 6.4 '!he l\Rllicant will SUWlY arttl additional information, agreements, and mdertakings as the City may require as the result of conferences and negotiations will be reproduced and SUWlied to the City and shall be ~ as SURilElllell.ts or anendoents to this ~ication. PART VII SIGNMURE 7.1 '!he lndersigned as authorized principals of the l\Rllicant as noted below, hold the prime respons1b11ity for the f1nancing to be taken for the proposed Project, and certify that the undersigned have the authority to bind the l\Rllicant to contract terms; that this ~icat1on to the best knowledge or belief of the mdersigned, contains no false or incorrect information or data, and this l\Rllication , including exhibits and att-"<+--tts hereto, is truly descriptive of the proposed Project. '!he tmdersigned also represent ~ the ezecut10n of this ~icat1on familiarity with ordinance No. 3815, as lIIIeI'lded, of the City of San Bernardino. PART VIII FEE samxJLE 8.1 '!he l\Rllicant acknowledges that the City requires anon-refundable awJ,ication fee of $50.00 for each Project to be considered for eligibility to be paid when the basic ~1IIeI1ts are requested. With the subnittal of the l\Rllication, $500.00 is payable to the City. If this ~ication is accepted, an additional fee of $10,000 is payable for Mninistrative costs. ibe l\Rllicant acknowledges that the oamdbDents in Part VI abcwe are in addition to these fixed 2IIIOUI1ts. !lhus, in the event that no closing ocx:urs, the City shall be reiDtlursed for its process- costs. 8.2 All Pees of the City may be captalized and included in the bond issue as acceptable to the bond p.u:chaser. , ..1 Q o o o . J I '!he l\Rllicant acknowledges that the City derives its entire su:fP)rt fran the fees for its services. ibe total funct1en of the City is oonducted en a self-supporting basis, and involves no state general revenues or expenditures fran taxes fran the state or arttl of its political sub- divisions. No indebte&less or taxing power of the City is involved. Project revenues are the sole security for bonds of the City. ibe federal guarantees, if alrJ, enhance these revenues and incane and the security of the bonds. 8.4 Pursuant to Resolution No. 81-108 of the City, as amended ~ Resolutien No. 81-410 of the City, ale percent (1\) of the pdncipallllllOUDt of the bond issue shall be deposited in the City Treasury in the Industrial Revenue Bond Reserve and Developnent Fund, which shall be used in sudl IIllUlIler as the Mayor and Canoon Council may direct fran time to time. 8.3 APH.ICANT BIDCX GIaJP ~ (CALIFORNIA) ,INC. . < . ... - ,Q - ~ )( ... ~' i J _ o o -0 , .. co . ~ ... .~ -..... ,Q .~ . \ ~. .1<' - ... .. ~ cP. .. 2- .. -Ii @ . @ v @f! I: Ii: .. . ') ~ @ '. '. . . . . - - - ! .... ~\ ~., \ - "l, ~ . -. # ta ':e d:S ..~, ~ c: ~ cD " . - ~ ~ n " 1" .. -:''''I(l" , ;.1.1.. o o "'1-- ... . - ~,. ~: 0'.......' ~, l,oao-a,/oa.../ob 01/25/15 0.... " ". ",\ >' : ~ , U80LU'l'lorI 110. U8OLU'1'lorI or 'ftII MYOa AlP CCIIDf CCIUIICIL or 'l'II!: CI'fY or 8AR IlDUDIIIO, CALlI'OIIrIA, -r.....UIG 1ft 1.'&Ml'rIorI '1'0 IISUB 1'1'1 JItJL'l'IrMILY ~ DVaUI IOIIDI; DIUC'l'IIIG 'I'HI nDAIlA'l'XorI or CD'l'AI_ DOCtJJIa'l'I; AlII) ILUIR CD'l'AIR 0'1'h.. rIBX" AID blilwlftlDTlon I_ OOIlMZC'l'IOR THDEWI'l'H ('l'HB IIOOJ)IMI)8 no:IC!) .~ IGIDBAI, the City of .an lernal41M. CaUfornia ("et ty") , tl a "baBe rule city" duly or,aniaed and ..iltio; UDd.r and purluant to a Cbart.r adopted UDder the proviliODa of the eonltitutiOG of the It.te of California; and ., 1IHIUU, punuant to i tl home rule >>OWn, the City duly and reqularly enacted Ordinanc. Ro. .115 (the "Or4illaDO.") to finaDOe v.riou. type. of pro,ect., a. d.fined in the Ordinance, and to illu.. itl lpecia1 reveue bcmd. for the purpol. of ,.yil\9 the COlt of financ1n9 luch project., and baa amended the .... from time- to t iIIIe; and i . I WHEIEAS, ..id Ordinanoe _0. 3115, .. ...ftdI4, it intended to finance the development bro.den the employment of 1Ddu.try and c~roe and to ther.by opportUDitie. and to incr.... the .vail.bility of moderately priced rental unit. for r.lid.nta of the City &ad to broaden the tax aDd rev.nue bal. of the City; and I.". .,: "1 . " ~ ~l, ..I. '4; . "( ... I ;. , . - 1 - 3~ .' : ".' I'.! /t j / , l' ..i.l XEROX TELECOP I ER 295; 1-25-85: 1: 27 PM; 8187040195 + 7148889413 ; # 2 o o o I I WHDBA8. there h.. been pre.ented to the M.yor and CoaDOII. COUDaU an Applia.tion, .tt.ched her.to .. Exhibit "A" aIl4 iDGorpor.tld b.rein ~ reference b.1 Block Group Development. (Californi.), Inc.. a C.UfoZ:ODia oorpor.tion (tbe "Applicant"). and it. .uca...on or ..81gn. requ..UnCJ the i..uanc. of 1IU1tifuily IDOrtg.p revenue bond. in th. priftClipal lIIlOunt not to exaeed t28,000,000 for tbe purpo.e of finanoing, on beh.lf of the Applioant, . certain Project, to wit: the ccn.tructicn aIl4 finanainq 1n one or Mr. ph.... of . five hundred and lixty (SlO) UDit lIIUltihmlly rental housing developnent which .h.ll be con.tructedon an approximately twenty-eight (21) .cr. parc.l of land loc.ted on the .outh IicSe of Kendall Driv. .pproximat.ly two (2) mU.. ...t on Little Mountain Drive within the m..ter planned community known a. 8handin Hl1l. and a. IDOr. fully d..cribed in the Applic.tion. !he Project .h.ll ccn.l.t of approximately one bundz:oed .ixty-eight (161) on.-bedroom, on.-b.th rent.l unit. and one hundred sixty-eight (111) two-bedroom, two-b.th rent.l unit., two hundred tWftty-four (226) two-bedroom, two-b.th r.ntal UDit., on-lite vehiole parkinq .p.ce., laundry and recr..tion.l room., appurtenant land.caping .nd other illlprovement.. IIOW, THDlFOU, 1'1' IS HBUBY IEBOLVBJ), DB'1'DMIDIl AD ORDBREJ) BY THI: MAYOR AND COMMON COUNCIL OF '1'HE CITY OP 8M IDRAJl)INO, CALIFOJUfIA, AS FOLLOWS: - 2 - o~, "" ~'" ';' ~( j-' i ~ .1( .J ., . 'f ; . i . C J , . , . ~ . i. i " , i i . .j...., . . " ,. I " 1 XEROX TELECOP I ER 296: o 1-25-86: 1:27 PM: o 8187040195 + o 7148889413 : (I 3:> . l. :.1' .ectton 1, That the recita1a .et forth hereinabove are true and correct in all re.pect.. I. I~tion 2. The City of I.n ..rnardino, California, i. a llUDicipal corporation duly ar.ated, ..ta!llhhed and authorhed to tran.aat bu. in... &ad ...rai.. it. power., all under and pur.uant to the eoo.titution and. laWII of the State of California, and. the City Charter of the City, and the pawn of the City include the power to illue bond. for any of It, oorponte purpo.... ., i \ , aeotioD 3. ~.uant to the Chatter of the City and Ordlnance .0, 3815, a. amende4, of the City, the City 11 189&11y author1ze4 to 1I1ue 'peloid revenue bond. for the oonltruction &ad permanent finanoinq of th. 'roject a. IDOr. fully de.cdbed in the recital. hereof, . ..; Section.. '1'hh body conatitutel the 9O".rnin9 body of the City and. 11 legally author1ze4 to provide for the illuenae of .uch .peoia1 revenue bond. by th. City, Section 5. . The 'roject referred to in the recital. hereof eon.titute. a project which may be Unance4 by the i..uanae of .uah lpeeia! rev.nue bond. by the City and 100ated within the j~ildiation of the City. l801;1oD ,. intention to illue The Council doe. hereby declare II1UlUfamily mort9age revenue bond. of the it. City - :I _ 1 ~ 1._ XEROX TELECOP I ER 295; C' 1-25-85; 1 :28 PM; o 8187040195 . o 7148888413 ; # ~ lot the aOflUldt1on ot land and the oOll.tru.ct:l.OD. ~ippinf aDd penuUlent flnanclng ot the 'roject under aDd in aooordanc~ with the Ordinance. 1n amount. .ufficient to pay the Gatta of financing the 'roject in one or more aerl.. of finanolnga and of p.ying the oo.t. of 1..u&nCe for the multlfamily mortgage revenue bond. aDd for the e.tabU.bment of the nec....ry re.erve fund. to provlde for the tlnanolnq of a.id Project. Said 'roject 1. pre.ent1y identified .. !he lfoodl&Ddl 'roject. 1 ~ . i. . ~ ,ectiOD 7. 'lbe City hereby declares it. lntenUOD to ..robe the authority referred to ln Seotlon 3 hereof by bsuing bond. Of the City in .uoh amounts .. wl11 be ad.~at. to iarpl..nt the City finanolng of the Project. .eotion I, The bondl .h.n be payable frOlll the rwenue. described in ..1d Ordinanoe Ko. 3115, a. ..-a4ed. ,ection ,. The bond. .hall be and are special oblig.tion. of the City. and. .ubjeet to the dfht of the City to apply IDODeyII a. provided in the appliCable law., are .eoured by .uah revenue. .. .re .paoified in the prooeed1nl11 for the ia.uanae of .uClh bond. and fund. anc! account. to be held by the tru.tee or fl.cal .gent, and .re payable a. to prln01pal, redemption priae, lf any, and lntere.t from the revenue. of the Clty a. there1n de.cdbed. 'lbe bond. are not a debt of the City. the Itate of CaUfornla or any of it. peUtiaal .ubdlvia10n., and neither the City, the Itate, nor any of It. pellUCId .ubdiviaion. it liable . I " XEROX TELECOP I ER 295: C 1-25-85: 1:29 PM: o 81850195 + 7148889413 : # ~ fl.oal ageDt, and are parable a. to principal, r~ion prio., if aay, and intere.t from the rev.nue. of the City a. ther.in de.adbed, !be bonds are not a d.bt of tbe Ci tl". th. Stat. ot CaUfornia or any of its political .ubdivisions, and n.ither the City, tb. Stat., nor any of itt politioal .ubdivi.ion. is liabl. thereon, nor in any eveDt .ball the bolld. be payable out of th. fund. or properti.. oth.r than all or anr part of the revenue" mortga,e loan., and fund. and aacoWlt. a. in 'thll ".olution ..t fortb. !b. bond. do not con.titute an iDdebtedD... witbin the ..aning of any con.titutional or .tatutory debt limitation or re.triction. ..i tb.r th. penon. ..rving a. the Mayor and COIIIllOn COuncU nor any penon. executing th. bolld. Iball be liabl. penonaUy on the bond. or lubject to any penonal liability or aocountability by rea.on of th. i..uanae thereof. S.ation 10. !b. detaUI of luch bolld., inaludiDi the ..tablilhing of the aggregate fac. amoUDt of luoh Obli,ation., Ihall be autborise4 by indentur., r..olution or r'lolution. of tb. City at · ...ting or _.Unc;. to b. b.ld for IUch purpo... 'the City Staff, Timothy J. Sabo, a Profe..ional Corpor.tion, .. Iond COUD..l to the City, Uh4e~it.r., the Applia.nt and the .,.nt. and repre.ent.tiv.. of .... are h.r.by authoriae4 and directe4 to prepare or a.u.. to be pr'pared th. nec....ry lec;al document., inoluding the Project Ac;reement, "lolu.Uon of IlIuanc., and luab otb.r docUlllltDtl AI III&Y b. D.c....ry to .ffect ..id Project and the i..uana. of indu.tdal. developnent rev.nu. bond. th.r.for and to pre.ent .... to laid Mayor and COIIIlOn Council. '!'h. "ror of the City 11 h.r.by authori..d and - .. - , ~ I . , . ~ ~ ; , " XEROX TELECOPIER 295; 1-26-85; 1:29 PM; 8187040195 + o 0 o 7148889413 ; , 6 O.! ilDpl-.nt .uch ..Ie cIS lSelivery of the bond. iDOlud1DlJ wartiDg with penon. who .ay aCllUlre ve.teeS right. a. the re.ult of .uch action.. ~, The i..uanae of III\IltU..Uy IIOrt9age revenue bond. ..y be authorized by appropriate re.olution or re.olutlon. of the City at a ....tini or ....Ung. to be held for .uch purpo.e, .ubject to th~ execution of appropriate a;reement. by the Appllcct and. the City a. required by the ~diDanae IDd the indu.trial developll8Dt bond flnanainlJ prOium of the City. ,ecUon 12. It 11 1nte4ed that this ",oludoD oall con.titute .uch "official acUon" toward the 1..uanae of the bond. w1th1n the _anini of the United ltat.. Tre..ury Jlevulation., the ODited at ate. Tax Law., and cy legi.lation now or hereafter pending 1n the COnire.. of the united Itlte. whicb ..y require official action in order for the bond. to be 'XlIIllpt from .ecseul iDoOlN taxation. ~ . .1 .ecUon 13. At the clodng of the f:l.nanciDi there Ihan b. paid to the C1ty the fe. ..t forth in a..olution 80. 11-101 of tbe Mayor and Common Council, adopted March 13. 1911, a. amended by ".olution 80. 11-UO, of the Mayor and ~o-on Council, adopted 'eptember 24, 1111, lection U. adoption . 'l'hb a..olution .hall tat. .ffect upon - , - .. .1 XEROX TELECOPIER 295: 1-25-85: 1:30 PM; O' 0 8187040195 + o 7148889413 : , 7 o I ., ,ecUon U. adoption. Thi. ".olution .hall take effeot upon i t; I J:I_RRY CERTIFY that the adopted by the Mayor and COIlIIIon Bernudino at a day of , nl' , torevoiD9 re.olution wa. dull' COWlC2il of the City of Ian IDHUft9 thereof, held OIl. the by the followiD9 vote, to wit: I; AYES: COuncil ICIaIben RAYS: AllIII1'1' I aty cmk ."i I i of The foreCJolD9 re.olution h hereby approved thh , 191'. day Mayor 01 tb. C1t:r of Ian Bernardino Approved at to form: City Attorney - 7 - j".i.l, XCC TELECOP I ER 295: 1-25-85; 1 'OPI4; 8187'0195 + 7148889413 ; '80 ! .' '1'ATB OF CALtl'OJUltA ) 0XDI'1"i 01' 8AIII -lllMUDtNO) 88 Ctft or 8AIII 8DRAIJ)IRO ) .r' I, IJWDTA CLARk, City Clerk in aDd for the City of Ian Bernardino, no fI1f8YP.11Y CDTU'Y that the for19oin9 aDd attached COllY of Ian ..rnareSino City ".olution Ho. ~ 11 a 1\111, true ana correct copy of that now on file in th1. O~E~C.. tH WI'l'IIU' WHDBOF, I have hereunto ..t my hand aDd affixed the official .eal of the City of 'an .ernar4ino th1l 4ay of , 1"5. eI'ty Clert , f. .; '." , . . .[ , : ,.1. , .~ - 8 - c PART I 1.1 1.2 o o o APl'LlCA'l'Tl'N gf RT~ ~I"'l' II!:\1E[~ (l"AT,TllnRNTAl .K D nmt_T&T. JR1IRlE JIlJlI2 P1'IUNM1ir. a1'I gf _ ft_nn. nt.T.TllnINA GIImRAL JlND BUSINmS ~ ibe legal ~ of the l\Rllicant is "Block Group Developnents (California) INC. · ibe applicant is a California corporation wbid1 lIba11 engage in the developnent, leasing, and ownership of ~oz1mtely 560aparbDent tmits located off of I{endalJ. Drive in the City of San Berllllrdino, California. ibe real pcoperty where the apartments will be constructed is owned ~ Block Bras. Industries (USA) Inc. ibe .uing address of the l\Rllicant is: Block Group Devel_.Ls (California) Inc. c/o Marlborough Developnent Corporatien 2029 Qlntury Park Bast .1550 IDs Angeles, CA 90067 1.4. BDployer '.Dlx I.D. No. - NA 1.3. 1.5 Mr. Dorian A. Johnsen, A.I.A. is the pdncipal contact for the ~icant. 1.6 ibe tele(i1cne ruDber for the l\Rllicant is (213) 553-5131. 1.7 ibe ~icant is a California Corporation. 1.7.1 ibe l\Rllicant sball own ~operty and ccnduct business in the Cotmty of San Bernardino, State of California. 1.7.2 ibe applicant is not related to arttl other legal entity. 1.8 Business ventures of the general partners of the l\Rllicant: A. Block Group Developnents (California) ,Inc. bas extensive land holdings in the State of California and includes the 600 acre master plan deve1~oent known as Shandin Bills located in the City of San Bernardino. Block Bros. Industries (USA) Inc. is a wholly-owned IdlsidaIy of Olynpia , York, Inc. 1.9 BDployees ibe applicant currently bas zero lI11ployees. Bal..a.~, CXln8truct1on and canplet10n of the Project ~ the Applicant will ultbnately provide DllllerOUS enplO:flll!Dt apporttmities in the City of San Berllllrdino. ibe Applicant plans to locate in San Bernardino Colnty. !lhe l\Rllicant currently bas offices at c/o Marlborough DevelOto....ut Corporatien. 2029 Qlntury Park East, QUte 1550, IDs Angeles, CA 90067. ~_ _ J J I _ ,J o o o o 1.10 Professional services will be p:ovided as follows: 10.1 &teres, Alpert, Carne llball .rve as the IICXlOQ1tant for the l\Rllicant and the contac:t person with said firm is Guy Carne, telep.one JUIlber 619/292-3200. 10.2 ibe 1lW firm of Gresbllm, varner, Savage, Nolan ,Tilden. 398 West Fourth Street, san Bernardino, a. 92401. is the attorney for the ~icant. 10.3 ibe 1lW offices of '.l'1mothy J. SlIbo llball serve as Bond Counsel to the City with regard to the tu.....~ financing for the pcoject. 10.4 '!be pcinc1pal civil mg1neer sbal1 be Psaaas/Barris , Assoc. 3901 Lime st. Riverside, a. 92501. 10.5 ibe pc1ncipal ardlitect llball be Dorian A. Johnson, A.I.A. 2029 Century Park Bast, SUite 1550, Los Angeles, a. 90067. l.ll ibe pc1ncipal banking aCClOtmts of the l\Rllicant shall be at security Pacific National Bank, san Bernardino, and qlelIed upon f1nancing becaning available. 1.12 ibe source of flllld1ng for the Project is anticipated to be derived fran a variety of sources including the private p1~iL of a tu.............,A.. bond or other obligation wibt a lender to be cbt.a1ned hereafter. PART II BCII) ISQlE 2.1 ibe estimated total cost of the f1nancing package and the p:oposed use of bond p:oceeds is as follows: 2.1.1 Olnstruction costs $18,518,000 2.1.2 Legal, pc1nt1ng and related fees 100,000 2.1.3 financing costs and fees 3,800,000 2.1.4 Cllpitalized interest 3,862,000 2.1.5 Land aQluisitien (has been quired) 'lbtal $26,280,000 2.2 ibe esti.mted target date for the f1nancing is pcesently anticipated in 1986 with construction to O.......1Ce as 8001'I as possible after the f1nancing package is axnplete and constructien to be axnpleted in 30 menths. 'Q o o o 2.3 It is pr.opcaed that the finllncing be in the fOOl of a amstruct1en loan during the construction period wbid1 would have the traditional construction loan provisions in that drwdowns would be prllllitted as construction prot'uds ~ 8Ulaission of requisitions 9OI"il1"n. ~ CXIIIp1.et1on of construction of the Project and certification that all Dp'CW8lll!llLs have been CXIIlp1eted, the lender will then pem1t an interest rate adjustment and a principal lIIIlOUDt increase, as warranted, and alnVert the construction loan to a permanent f1nancing. 2.4. ibe present proposal for the f1nancing of the Project anticipates that the tax .--''1(, bonds or other obligations will be sold to a <nnno\rcial bulk or other sucb lender through a private pl~t or that there be a PJblic offering of said securities. PART nI PINANaAL ~ 3.1 ibe l\Rllicant ablIll be a IIIIall business doing business as a corporation p.u:suant to the lIIf8 of the State of California, and the l\Rllicant would be considered a IIIIall business with mgard to its relative size in nroqpor1son with other sucb busines..., II1dertaking projects of this type. Although the l\Rllicant is a IIIIall business, no federal IIIIall business loan 9Jllrantees were prcpsed in axmect:ion with the pr09:.sed f1nancing as cont8llplated ~ this ~ication. PART 'N PlnJBCl' IN!aVIM'ICIt 4.1. '!be Project as propzsed ~ the l\Rllicant shall include the construction of awrox1mately 560 ~ tmits in the WOodlands section of the 600 master plan developnent known as SIIarXIin Bills. ibe awrox1mate 560 tmits shall be constructed in three 1iWIes. ibe awrox1mate 560 units 8ball be constructed over a 6 IIlOI1th period. ibe lIIl8Dities in the apartment project IIba1l include a 81filming pool, recreation center, and barbeque areas. ibe Project is located within the RedlrI,elopnent Project Area of the RedlrI,eloa;u-at. Agency of the City of San Bernardino. '!be proposed Project shall be located upon land which is more particularly described in Exhibit wAw attacbed hereto. ibe Project is a business venture that would increase the a&sessed valuation of currently tmderut1lized land and generate n!J\ificant enpl~ cpporttmities within the city. 4.2 ibe .....'k"ll.ei1ts of the est1mated total cost of the functional puts of the Project are as follows: 4.2.1 Land 4.2.2 Building construction 4.2.3 !hg1neering , technical services $ 3,360,000 17,395,000 200,000 'jilJ Q o o o 4.2.4 Miscellaneous items a. 5t construction ccnt1ngency b. Interest ciJring constructien c. Jeal. estate Ixakerage lYWNIIi -ion d. Other miscellaneous costs 723,000 3,862,000 -0- 200.000 Total $25,740,000 4.3 ibe estimated construction period for the Project is as follows: 4.3.1 Olnstruction of the Project would ............ace as soan as possible after issuance of the tax-exempt obligations. 4.3.2 ibe planned construction sba11 be ampleted within 6 IIICI1ths fran the date of ....,II,,.lC8Dent. 4.4 !lhe supervising civil engineer responsible for the desi!J1 of the Project on behalf of the l\Rllicant shall be Psanas/Barris, 2901 Lime st. Riverside, CA 92501. 4.5 ibe Project sba11 be known as -'!he Woodlands-. 4.6 ibe Project site is the developnent of lqEbDent mite and is not an expension or an alteration of an existing facility. ibe necessary infrastructure items and other PJblic .0ITEIIIeII.ls mat be installed em the Project site and the ~icant desires to cbtain a below mrket rate tax...._.....~ construction and permanent f1nancing of the UlpcovElllell.ts to be placed thereon fran a tnnhi.nation of sources. 4.7 ibe property on wbich the Project is propcse/l to be located is currently owned ~ Block Bros. IndIstries (USA) Inc. 4.8 ibe Project will provide approximately 560 rental units to be leased to various tenants. 4.8.1 Attached as Exhibit "8- is an 8-1/2 x 11 inch IIIlp showing the site locatien of the proposed Project. 4.8.2 A description of the plant process-not awJ,icab1e. 4.9 A negative declaration p.u:suant to the proviSions of the California Enviranental Quality Act of 1970, as 1IIIeI'lded, would in all prCltllbility be satisfactory for the Project as propcsed ~ the Applicant. Bcwever, the Project shall canp1.y with all awJ.icab1e provisions of said Act. 4.10 ibere are no pecnits, water quality enforcement orders, air pollution pemdts or variances or other evidence of actions necessary in connection with this Project. 4.11 ibere are no local, state or federal pollution control agencies wbich iDtJose regulations, standards or requirElllell.ts wiht regard to the opera- tions of the proposed Project to be tmdertaken ~ the ~icant. ~ jilJ . .'0' o o o 4.12 '!be pcoposed Project shall oanply with all applicable City of San Bernardino, Colnty of San Bernardino, and other regional, OOtmty or basin plans to "bid! this Project shall conform and the aJIllI-op..iate waste water and air quality nguir&aents wbid! IIball be in conformity with all of the abcwe jurisdictions. 4.13 It is pcesently anticipated that the proposed Project will not pcoduoe aqy l::!fpcocl1cts or residues whid! would involve the ultimate di'f?OSal or the need for a plan to a~l ish SlIIIe. Recycling or salvage will not be a ftmct10n of the pcopcsed Project nor will there be arttl market opportuni- ties generated with mgard to SEe. 4.14 ibe Project shall consist of aa>rozimately five blmdred sixty (560) apartment lmits in fifty (50 two stoty building located on an appcox- imateJ.y twenty ei!iPt (28) acre Bite in the "Woodlands- section of the 600 acre IUter planned deve10pnent known as SbluIdin Bills, on the South side of ltendall Drive, and appcoximateJ.y two (2) miles east of Little Motmta!n )the -Project-). ibe Project shall include appcox- imateJ.y 1000 on-Bite ftbicle parking spaces, three (3) _1m1ng pools, landscaping and EeCreIltion center. 'Jbere is pcojected to be one- bLndred sixty eight (168) ale bedroan, one lath tmits renting for $410 per month, one bImdred sixty ei!iPt (168) two bedroan, ale lath tmits renting for $465 per month; and two bmdred t.elILl' four (224) two bedroan, two lath tmits rent1ng for $520 per month. PART V I'OBLIC B1hSr-.l:J.ll 5.1 ibe City of San Bernardino will receive significant benefits ~ the initiation of this Project as pl'opoeed ~ the l\Rllicant and particularly through the utilitization ol the f1nancing method as is anilable tmder ordinance No. 3815, as -ad, of the City of San Bernardino. Due to the fact that CXlIM!I1tional interest rates for construction and pemanent f1nancing for the type of Project CCIlt:slplated ~ the lWlicant are at such an extr_ level en ccnventicnally borrOlled funds, if anilable at all, neither the l\Rllicant nor aqy other perscns or legal entities are able to pcovide the type of IIIOdem and attractive apartment buildings needed within the City of San Bernardino. Mditicnally, the City of San Bernardino, its inhabitants and the RedeIr.elopaent Agency of the City of San Bernardino will benefit fran the increased .nessed valuatien of the pcoperty within the Redeve10paent Project Area. said increased assessment will ocx:ur as the result of the canp1.et1on of the Project. tis increase in the ....~ssed valuation of the property included in the Project will assure that the Redevelq;u.&.IL Agency of the City of San Bernardino will bave a more viable means of tmdertakiDg its redeve1~ ment activities within said Project Area. '!be City likMr1se would benefit ~ obtaining quality housing for the citizens of San Bernardino. Other businesses will be encouraged to locate or relocate within the City of San Bernardino and thus create an lpard spiraling effect en the econaay of the City as a result of the Project. '0' 5.1.1 5.1.2 5.1.3. 11- o o o Project will pcovide long teEm empl~t QHlOrtlmities for the iJiIab1tants of the City of san Bernardino. When fully constructed leased the Project will ~cwide employ.nt QHlOr- ttmities for a 8Ubstant1a1 JllMIhIlr of persons. '!he category jobs to be ~orided in the Project after its ~et1on include mnagerial, 8ki1led, smi-skilled, and IIIl8ki1led. ibe wages to be paid in the various job categories I8et loca 1 and regional atandards and will sustain a satisfactory level of financial stability. Qlnstruction of the Project is anticipated to add awroximately $25,760,000 fill_Seed valuation to the tax rolls of the City. ibe useful Ietbod of f1nancing ~ for in ordinance No. 3815 of the City vis-a-Yis the 18! of the cUllvenUonal method will pemit the l\Rllicant to ~ete the f1nancing and construction of the Project within an accelerated time frllllle. '!he Ietbod of financing lEorided in Ordinance No. 3815 will ~oride new sources of f1nancing to the l\Rllicant and II1ch financing will be IIBde at lower tax~ interest rates. 5.2 ibe City will benefit, as can be delllcnstrated pursuant to Section 1 of ord1nllnce 3815, as llIIleDded, of the City of san Bernardino, in that enpl~t QHlOrttmities will be generated ~ the pc01>~sld Project both during the ccnstruction p.se and after said Project is constructed and ] -~# ibe ~icant is not att--v.ing to construct aid propose.1 Project lIIIrely for the f1nanc1al in&.c..,.....at that is offered pursuant to the Ordinance, but rather _ to the long-teJ:m businesa nascns that are significant _ to the location of the ~oposed Project and the real econan1c benefits available to the tnnn1l'1ity. '1bere are lID detriments that can be incurred ~ the City with regard to this ~ of financing for this Project, and the City of san Bernardino and the RedevelClpllll1t 1qeu;y of the City of san Bernardino will receive substant1a1 benefits through increases in ..sessed valuation of property within a I"'el~d. Project area, plus the increased long-teDn enpl~t QHlOrtuni ties that will be available to the local residents of the City. PART VI aJIII'DEN'.lS 6.1 ibe ~icant ~ the subnission of this ~ication agrees to ~y ancV or to assist the City in a:.mplying with all state and federal laIfS in the issuance of the bonds or other sucb tax---''1>l obligations to finance the Project, including, without limitation, D8k1ng of III\Y required aWlication to . governaental department, for authorization, qualifi- cation or registration of the offer, issuance or sale of the bonds or other tax-veoqpt- obligations, and arttl aan.nanents thereto, and arttl permit or other authorization of such governnental department, ~ior to the deliveIy ~ the City of such bonds or other tax-exempt obligations. iI. ill o o o o 6.4 6.2 ibe l\Rllicant further oamdts to cause and/or to assist the City in causing to be pdnted arttl prospectus or other written ClC printed nrmNDl- icat10n ptopa..iI to be PJbl1sbed in acnnect:ion with t-JIUIOe, offer or sale of bonds or other t.u-- '1.4.. obligations, prior to the deliveIy ~ the City of axil bonds or other tu--.v obligations, 8Dd, to the extent ,ilellll14ld necesar:y ~ the City, following delivery of axil bonds or other ~ ''1(. obligations. 6.3 ibe l\Rllicant also CXIIIIIits to pay all expenses in acnnect:ion with the teeuance, offer or Bale of the bonds or other tD--....,'t'l obligations, wbether or not 8UCb bonds or other tu"'ti-"l4. obligations are f1nal1y is8ued, and to hold the City blumless fran arttl and all expenses related thereto, to pay iams on an ongoing basis so that neither the City, nor its adriBors, attorneys, lIIIp1.oyees and the like will .""'-'Ilate arttl clw. against the City. !lhe l\Rllicant will lIUJiPly arttl additional infomation, agreements, and tmdertakings as the City I8y nquire as the re&ul.t of conferences and negotiations will be ~oCloced and supplied to the City 8Dd sba11 be t'e emed as SURilElllell.ts or 8IIeIlChenls to this ~icatien. . PART VII SIGNMURE 7.1 ibe tmdersigned as authorized principals of the Applicant as noted below, hold the pr_ respcn111b11ity for the f1nancing to be taken for the proposed Project, and certify that the tmdersigned have the authority to bind the l\Rllicant to contract terms, that this Application to the best knowledge cr: belief of the tmderBigned, contains no false cr: incorrect information or data, and this ~ication , including exhibits and att"rt--lts hereto, is truly descriptive of the pr"'l" nil Project. !lhe mdersigned alBO ~ ~ the execution of this l\Rllication fEiliarity with ordinance No. 3815, as 1IIIl!Dded, of the City of San Bernardino. PART VIII FEE l:iI M"",!.E 8.1 ibe Applicant acknowledges that the City requires a non-reftmdable awJ.icat1en fee of $50.00 for ad! Project to be considered for eligibility to be paid when the basic (Ioolllel1ts are nquested. With the subnittal of the Application, $500.00 is payable to the City. If this ~1cation is accepted, an additional fee of $10,000 is payable for Alhinistrative costs. !lhe l\Rllicant acknowledges that the oamdtments in Part VI abcwe are in addition to tbe8e fill8d lIIIlOUDts. !lhus, in the event that no closing ocx:urs, the City shall be reiDtlursed for its process- costs. 8.2 All Pees of the City my be c:apta1ized and included in the bond issue .... ..~_...., _ ~ .a..1.._ 1...-.3 ___~____ ,'ill Q' o o o 8.3 ibe l\Rllicant acknowledges that the City derives its entire SURlOrt fran the fees fOJ: its services. ibe total ftmct1en of the City is CIClIlIlJcted en a self-supporting basis, and involves no state general mvenues or upenditures fran taxes fran the state or arttl of its political sub- divisions. Ib ~eci1ess or taxing power of the City is involved. Project EeVenUes are the sole security for bonds of the City. ibe federal guarantees, if arttl, enhance these revenues and incane and the security of the bonds. 8.4 Pursuant to Resolution No. 81-108 of the City, as amended ~ Resolutien No. 81-410 of the City, ale percent (It) of the pdncipal lIIIlOUDt of the bend issue IIba11 be deposited in the City Treasury in the Industrial Revenue Bond Reserve and Devel.opnent Fund, whid! sball be used in sud! IIIlUlIler as the Mayor and C'nmIrwt ColncilllllY direct fran time to time. APH.ICANT BIDCX GlUJP ~ (CALlF(RUA),me. 'II . < . ... - ,Q - ~ )( ... O' . .~ .. '0 : .!'., .~ ...r: .- .- .... ~ ') ~ '. - ':e d:S ~~ n " o 011 ~ ...::::: w ~~ <1>: ~ .. ~ .. @f! t: .. @ .... ." ,". # ...., . 1 0lf ;l I; , ta ~ cD ~ ~~ : j I :0 _. ---- . ~ €. t . I .. . @ = .. . @ ...- '. co . ~ \ cP. 2- ... - ,Q - ~. .1<' ... j ~\ ~I .. ~..,..". 1" , -:''''Ic''"