HomeMy WebLinkAboutR02-Redevelopment Agency
R
AGaCY..Q..ST FOR ~/COUNCIL A~ION
.
em: Glenda Saul, Executive Director
Dept: Redevelopment Agency
Subject: UDAG APPLICATION - STATE COLLEGE
PRO.JECT AREA
Date: .July 24, 1985
Synopsis of Previous Commission/Council ection:
7-15-85
Approval, in concept, of OPA with .Japanese firm.
Approval of preparation of UDAG application.
Setting of Public lIearings on UDAG for 7-26- 85 and 7-19-85
,
Recommended motion:
(MAYOR. AND COMMOR COUNCIL ACTIOlf)
C) Open Public Bearing
Close Public Hearing
RESOLUTION OF THE CITY OF SAN BElUWl.DINO AUTHOlUZING AND DIRECTING THE MAYOR TO
EXECUTE AND SUBMIT AN APPLICATION TO THE DEPA1l.TMENT OF HOUSING AND URBAN DEVELOPMENT
FOR. AN URBAN DEVELOPMENT ACTION GIlAHT FOR. THE PROPOSED PLASTIC FABlUCATING FACILITY
TO BE DEVELOPED IN STATE COLLEGE BUSINESS PARK
~~/~~
Sig ature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
RIA
Phone: 383-5081
Werd: 6
Project: SC
Date: .July 29, 1985
Supporting date attached:
YES
No edverse Impact on City:
C)nCil Notes:
, ".I:." TInT
Agenda Item No.
R~
CIR OF SAN BERNARDtio - REQU.9r FOR COUNCIL AC-RoN
o
.
o
75.0264
STAFF REPORT
In May, 1985, the Aaency was approached by representatives of a _jor Japanese
international corporatiOl1 in regards to the ava11ability of assistance for the
COl18truCtiOl1 of a new _ufacturing fac11ity in the State College Induatrial Park.
There vas, at that t1lae, stiff COllpetitiOl1 ..ong two other Southern Califom1a cities
to attract this firm. Based 011 the superiority of sites in the State College
Industrial Park and the incentives this Aaency is able to provide, this _jor firm has
decided to locate in San Bernardino.
They plan to bu11d a 130,000 sq. ft. _ufacturing plant in the State College
Induatr1al Park (see attached _p) for the _ufacturing of plastic cOI1tainers. The
plant will be valued at *8,000,000 and eaploy 80-100 persOl1S, I18DY of whOIl will be
entry level.
On July 15, 1985, the Commj,SsiOl1 approved, in cOl1cept, an Owner Participation
Aareellel1t with the fil'll, and instructed staff and legal cOUllsel to prepare the
docWlel1ts. Staff was also il18tructed to prepare a UDAG applicatiOl1, for which Public
Hearings were set 011 July 26 and 29, 1985. On Friday, July 26, 1985, staff held the
first of the Public Hearings. AlthollJh auch of the informatiOl1 has yet to be supplied
by the company, attached you will fina prelill1l1&ry inforll&tion regarding the UDAG
applicatiOl1.
This UDAG is necessary because the total capital expenditure by the company exceeds
the tlo II1llion limitation laposed 011 Industrial Develo)lllent BOI1d Fi1l&l1cing. The
cOllpany IlUSt receive IDB Financing in order for the project to be feasible. With the
granting of what KUD calls an -Industrial Revenue BOI1d Special- UDAG, that capital
e:Kpel1diture lill1tatiOl1 is ra18ed to *20 lI111ion. This 18 important to this project,
as the company intends to expand within two years, thus investing IIOre in the
co_un1ty.
In order to l18ke the October rOUlld of UDAG fUllding, the application IIUSt be delivered
to the Los Angeles office of KUD by, Wednesday, July 31, 1985. This creates several
problellS which lIust be addressed at the Colllll1ssiOl1 meeting of July 29, 1985:
1. The inducement resolution for the IDB fi1l&l1cing IlUst be
adopted. In order to allow tlae for review by the
Califom1a Industrial Developll8nt Fil18ncing Advisory
Co_ission (CIDFAC), the IDB application IlU8t be submitted
by July 31, 1985. This allows for State approval of the
IDB finanCing prior to the deadline of September 15,
1985. (The last possible date to submit supplemental
information to KUD.) More information on CIDFAC
requirements is fOUlld in Aaenda Item No.3.
2. The ResolutiOl1 authorizing the applicatiOl1 for UDAG
fUllding must be adopted. The UDAG application submitted
on July 31, 1985 must contain this information or it w11l
be rejected.
Staff is confident that, though we are faced with a very compressed t1me frame 1n
which to prepare the UDAG application, these tasks can be performed prior to the
deadlines imposed by KUD.
The Executive Director will make a brief oral presentation on UDAG financing.
l262J/OJ
7-29-85
o
o
4
5
6
7
8
9
10
11
12
13
o 14
15
16
17
18
19
20
21
22
23
24
25
26
27
c
o
o
o
RESOLUTION NO.
1
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
2 DIRECTING THE MAYOR TO EXECUTE AND SUBMIT AN APPLICATION TO THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR AN URBAN
3 DEVELOPMENT ACTION GRANT FOR THE PROPOSED PLASTIC PABRICATING
FACILITY TO BE DEVELOPED IN STATE COLLEGE BUSINESS PARK.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OP SAN BERNARDINO AS POLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is
authorized and directed to execute and submit an application to
the Department of Housing and Urban Development for an Urban
Development Action Grant for the proposed plastic fabricating
facility to be developed in the State College Business Park, and
the Mayor is authorized to execute all understandings and
assurances contained in or required for such application. The
proposed development is to take place on sites 50 and 51 of the
State College Business Park Development, and is situated in ,the
State College Redevelopment Project Area of the City of San
Bernardino.
A copy of the application is on file and available
for public inspection in the Office of the Executive Director of
the Redevelopment Agency of the City of San Bernardino.
SECTION 2. The Mayor of the City of San Bernardino is
authorized to act as the City's official representative in
connection with the Urban Development Action Grant application.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
day of
meeting thereof, held on the
, 1985, by the fOllowing vote, to
wit:
28 IIII
I I I I
11
12
"". Mayor of the City of San Bernardino
Approved as to form:
13
o
~~cV
15 City Attorney
14
16
17
18
19
20
2]
22
23
24
2ii i
2G
o 27'
2X
-2-
o
o
o
o
o
o
o
PB.OPOSED JAPANESE COMPANY UDAG
DBVBLOPBIS
A Japaneae pastica -.nufacturer
PB.OJBC'.l'
Construction of a 130,000 sq. ft.
plastics -.nufactur1D& facility.
LOCArIOlf
12.74 Acres in the State College
Industrial Park in the Northwest
section of San Bernardino.
mrAL aTIMATED DEVELOPMEIIT ClOST
*12,000,000
cost _..~
A. Manufactur1D& rac111ty
& Equlpaeut
B. Land Value
t!O,802,440
C. Total Deve10paeut
* 1,197,560
*12,000,000
FUNDING SOUB.CES
Land Acquisition (UDAG)
* 600,000
* 188,000
* 5,000,000
* 6,212,000
*12,000,000
Land Write-down fro. llDA
Cash Equity of Developer
IRB
Total
PURPOSE or UDAG BY CITY or SAN BEIlJWU)INO
UDAG funds of *600,000 rill be loaned to the developer to a..ist in the
acquls1tion of land. Loan rill be for 5 years at an interest rate
identical to the IDB rate. Developer rill advance acquisition costs to the
project and then be reillbursed by UDAG funds.
o
o
o
o
o
o
o
Proposed ,Japmleae eo.pmlY 1JDAG
Pale 2
.July 22, 1985
JOBS CUUED lIT PUlLIC DlYBSTHBKT
120 full t1ae poalt101ls
Cost per job. $5,000 ($600,000 - 120 full t1ae poalt101l . $5,000 Cost Per ,Job
LEVIlIlAGE
$11,500,000 - $600,000. $19.16
($19.16 of private .ooey for every $1.00 of public .ooey.)
0.J:ju:1247,J
o
l
~all.~
#)U<'
I ~A.
r Iii i
I
. zc l!
-~
~ i
i
t I f
t)"V i
'15 1
0 . B
, :0. I'ili I
i
I .- f
..
e!i It
I
. 0
..
. II
.! -!
I
. il
N_
I gSl
. n
Q) Ii
J!l
~ S.~ If
a! Ii
-
I
II Ii
.
II I
0 .""--.. u Ii
I I~ m
~!
----- -------
...........-;..--
d
-