HomeMy WebLinkAboutR06-Redevelopment Agency
RIE&VELOPMENT AGENCY -Fb,QUEST FOR UMMISSION/COUNCIL Ac..:::loN
From: Glenda Saul. Executive Director
"....t: Redevelopment Agency
Subject:
TEFRA PUBLIC HEARING MULTIFAMILY
MORTGAGE REVENUE BOND - CASTLEBAR
PROJECT
Date: August 29, 1985
Synopsis of Previous Commission/Council action:
Ordinance 3815 providing for the issuance of Industrial Development Bonds,
1-28-85
Adopted Resolution 85-38, inducing the project.
8-5-85
Adopted Resolution 85-294. setting the TEFRA Public Hearing.
Recommended motion:
MAYOR AND COMMON COUNCIL)
Open Public Hearing
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Close Public Hearing
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO. CALIFORNIA,
MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON THE
ISSUANCE OF APPROXIMATELY $22,000.000 PRINCIPAL AMOUNT OF MULTIFAMILY MORTGAGE
REFVENUE BONDS (CASTLE PARK PROJECT)
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Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
5
Ward:
Project : N/A
Date: September 9, 1985
Supporting data sttached:
YES
No adverse Impact on City:
c:-- ncil Notes:
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1309J/EB
Agenda Item No.
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CIU OF SAN BERNARD(.,.O - REQU~ JT FOR COUNCIL AC.':>>N
STAFF REPORT
~- January 21, 1985 the Mayor and Common council adopted Resolution 85-38 directing the
preparation of certain documents, inducing the Castlebar Project.
The applicant is ready to pursue financing and the Resolution before you today is
reguired by the TEFRA (Tax Equity and Fiscal Responsibility Act).
The project does include a density bonus which was approved in December of 1984. this
approval was prior to the current policy established by the council of the "in lieu
of" nature for bond financing.
The item went before the Redevelopment Copmmittee on July 23, 1985 and the Committee
recommended the project go forward with both the density bonus and bond financing
since the developer received approval of the density bonus and induced the project
prior to the current policy.
On August 5, 1985 the Mayor and common Council approved the Notice setting today's
Public Hearing.
The developer has redone the numbers on the project and requested an additional
$1,000,000 for financing. The amount of financing is increased to $22,000,000.
Attached to the Staff Report is a letter from Mr. Robert Staniec, the developer,
explaining why he believes the project would not be feasible without bond financing.
Mr. Staniec will be present at the meeting to answer any questions you may have.
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APPLICANT:
Mr. Robert Staniec
AMOUNT OF FINANCING:
$22,000,000
PROJECT:
Construction of a 508 unit multifamily rental
housing development.
LOCATION:
Near the southwest corner of the intersection of
College Ave. and Varsity Drive bounded on the
southwest by the Interstate l5E Freeway.
TARGET DATE FOR FINANCING:
Last quarter, 1985
CONSTRUCTION SCHEDULE:
As soon as possible after financing package is
completed and to be completed in three (3)
construction phases which will take between 12
and 24 months to complete.
RESERVE & DEVELOPMENT FEE:
1% of $22,000,000 - $220,000
INCREASE IN JOBS:
During construction only.
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RENT SCHEDULE:
1 Bedroom - 1 Bath
2 Bedroom - 2 Bath
2 Bedroom - 2 Bath
$395
$495
$595
(20%) - $380
(20%) - $475
(20%) - $520
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1309J/EB
8-29-85
75-0264
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Castlebar, Inc.
417 South Hill Street, Suite 500
Los Angeles, CA 90013
Telephone: 213 625 2545
July 17, 1985
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Castlebar
Honorable Mayor
and Common Council
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Dear Honorable Mayor and Common Council:
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This is a letter explaining the situation concerning the Castle
Park Apartment Community's ability to obtain Mortgage Revenue
Bond Financing. This problem was created by the City Council's
new policy of considering the financial assistance of a density
bonus "in lieu of" bond financing. Tentative approval of the
project was granted December 4, 1984 and we were told at that
time the project met all criterion for bond financing. This
financing is an absolute nessesity for the development of the
project as planned.
Castle Park was planned from the start as a high quality apart-
ment community that will appeal to quality tenants. Much time and
effort was put into the design of the units, buildings, and site
plan to make this a special place. The project was designed to
condominium standards, double wall construction, 5/8 sheet rock
and concrete floors are used for sound attenuation and privacy
between the units. A most complete ammenity package with some-
thing for everyone from tennis courts and swimming pools to
barbeques and shuffle board is planned. An extensive landscape
plan including trees, meandering walks and berms along with tile
roofs, decorative block walls and trellised retreats add up to
make this a place residents will be proud to call home.
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The development is located on a 29 acre parcel in the College
Park area of the city. The parcel is irregularly shaped and has
over 2000 lineal feet of frontage along the 215 freeway. Condi-
tions for approval of the tentative maps were a 2000 fopt long,
18 foot high combination berm and block sound attenuation wall
along the freeway and a 36 inch storm drain in college avenue
from the northeast corner of the property to Varsity Drive, then
a 48" drain to University Parkway - a total of about seventeen
hundred feet. The berm and sound wall benefits Castle Park and the
community as a whole, while the storm drain benefits the property
little since most of the site is down slope from the drain.
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In order to achieve the high level of quality in construction and
design as well as overcome the extra ordinary costs mentioned
above in developing this site, a 25% density bonus was applied
for and received, along with an inducement resolution from the
City to facilitate obtaining bond financing. Both of these plans
come with the stipulation that 20% of the units remain affordable
to families with 80% of the median income. This stipulation
remains in effect for 10 to 16 years, depending on the term of
the bond. While it is not desirable to encumber the project with
such a long term restriction, the lower interest rate obtainable
by bond financing and the extra income generated by the addi-
tional units are required to make the development economically
feasible.
Castlebar has represented itself from the start as an
owner/builder. We have owned the majority of this property since
1981. We have worked very closely for the past year and one half
with staff planning to create a project that the city wants and
that in most areas exceeds the City's standards for development.
This project has been extensively reviewed by Mr. Jim Urada of
the University, as well as the board of the Scottish Rite Temple,
and neighborhood groups. Everyone likes the project and recog-
nizes this is the type of quality development that the neighbor-
hood needs.
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The city is getting in Castlepark a project that has a higher
standard of design and construction and a more complete ammenity
package than any project existing or planned in the entire area.
We are building a project that at 17.5 units per acre covers only
20% of the site with residential structure, that is roughly
equivalent to a single family subdivision on 7200 square foot
lots. From the beginning and throughout the approval process we
have been up front and acted in good faith with the City. We have
designed and intend to build a first class project, one that will
be a lasting asset to the community and a lasting investment for
us.
Since tentative approval was received for the project on December
4, 1984, Castlebar has gone ahead with working engineering draw-
ings, working structure drawings, and loan processing as rapidly
as possible.
Working engineering drawings were completed and submitted to the
City Engineering office for plan check in February 1985. Recom-
mended revisions have been made and the plans are now ready for
final approval. Castlebar is making a major contribution to the
off-site infrastructure in the area with the construction of the
College Ave storm drain. We are not only paying for the storm
drain ; we are also responsible for the engineering of the drain
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and culvert structures and their construction. Contributions are
also being made to the signalization of COllege Ave/University
Parkway and Morgan Ave/University Parkway intersections.
Structural working drawings were completed and submitted on May
6, 1985 to Building & Safety; recommended changes have been
completed and the plans are now ready for final approval.
Loan Processing is well underway. In December 1984, Klein Finan-
cial was retained to assist in loan procurement. The city of San
Bernardino induced the project on January 21, 1985. California
First Bank is processing our application and it is anticipated
that a joint venture of Stone & Yongberg and Bankers' Trust will
underwrite the bond issue. Sabo & Gondeck have been retained as
bond counsel. Market and feasibility studies are complete and an
MAl appraisal from Landaur and Associates is complete.
In addition to the aformentioned extra ordinary items involved in
developing this site, Castlebar will be paying the City over one
million dollars in fees during construction. The anticipated
annual property tax is $380,000 to $400,000 - a healthy contri-
bution to the city tax base.
A brief recap of events to date and anticipated schedule to the
TEFRA hearing is as follows:
'- January 1984: The concept of a quality apartment complex made
financially feasible by using bond financing and the State of
California Density Bonus Statute was presented to Frank Shuma and
Planning Staff. We ,were told that the concept met City planning
requirements, and we were within our rights to pursue bond finan-
cing and a density bonus.
August 1984: $134,000 was paid to the City as a deposit on sewer
capacity rights in sufficient number to complete the project.
November 7, 1984: The project was presented to the Planning
Commission Public Meeting and all issues were addressed and
answered. The Commission continued the item one month to obtain a
legal opinion on the Density Bonus Provision from the City
Attorney.
December 4, 1984: The City Attorney's legal opinion was that
Castlebar was entitled to the Density Bonus and the project was
approved unanimously.
January 1985: Mayor Holcomb appealed the Planning Commission
decision. However, after reviewing the project and recognizing
its merits, he withdrew his appeal.
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January 21, 1985: The City of San Bernardino Mayor and. Common
Council passed Inducement Resolution 85-38 for the inducement of
bond financing for the project.
February 1985: Working engineering plans were submitted to the
City Engineering office for approval.
February 1985: Mayor Holcomb proposed a building moratorium in
the College Park area affecting all development of mUlti-family
housing. After reviewing this project once again and seeing its
merits, he agreed to support exempting our project from the
moratorium. The idea of a building moratorium was subsequently
dropped altogether.
March 6, 1985: $20,000 plan check fee and structure working
drawings were submitted to Building & Safety for approval.
May 1985: $10,000 fee was paid to the City Engineer to process
engineering drawings.
July 16, 1985: Meeting to present the project to City Council
Redevelopment Committee and Redevelopment Agency for final
approval.
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August 5, 1985: Meeting of the Mayor and Common Council for final
approval of the city's participation in bond financing for the
project.
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August 19, 1985: Tax Equity and Fiscal Responsibility Act (TEFRA)
Hearing.
Simply stated, the lower interest rate made possible by bond
financing, makes this project economically feasible and able to
be built. Back in our earlier meetings with planning staff when
our concept was first presented, we were told it met the
requirements for density bonus and bond financing programs. We
therefore proceeded to create a development of a quality not
possible without the assistance of these programs.
I hope this letter explains our situtation clearly, we have
worked long and hard to create a quality development and look
foward to the Mayor and Common Council recognizing its merits and
allowing its timley completion.
wa~~.
Robert A. Staniec
Executive Vice President
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PART I
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1,020-23/0331S/ jv< )
01/15/85
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APPLICATION OF CASTLEBAR. INC.
FOR MULTIFAMILY MORTGAGE REVENUE BOND FINANCING
CITY OF SAN BERNARDINO. CALIFORNIA
GENERAL AND BUSINESS INFORMATION
1.1 The legal name of the Applicant is "CastleBar, Inc., a California
corporation" .
1.2
1.3
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1.4
1.5
1.6
1.7
The Applicant is a California corporation which shall be engaged in
the development, construction, leasing and ownership of a five
hundred and eight (508) unit multifamily rental housing development
located near the southwest corner of the intersection of College
Avenue and Varsity Drive bounded on the southwest by the
Interstate l5E Freeway in the City of San Bernardino, California (the
"Project"). The Applicant owns the property necessary for the
proposed multifamily rental housing development (the "Project") and
shall develop said property and construct the Project thereon.
The mailing address and the address of the Applicant is as follows:
CastleBar, Inc.
c/o Robert Staniec
417 South Hill Street, Suite 500
Los Angeles, California 90013
Employer Tax I.D. No. shall be submitted under separate transmittal.
Mr, Robert Staniec is the principal contact for the Applicant,
Telephone Number (213) 649-3060.
The Applicant is a California corporation and shall own property and
conduct business in the County of San Bernardino, State of California.
1.8 Mr. Robert Staniec, one of the principals and corporate officers of
CastleBar, Inc., will have primary responsibility for conducting the
business of the Applicant,
1.9 Business ventures of the Applicant.
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1.9.1
CastleBar,
ventures.
Inc, has interests in several
See attached Exhibit "A".
other
business
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1.10 Employees
1.10.1
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1.10.2
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Although the principal objective of the Project is to
provide affordable rental housing to the citizens of the
City of San Bernardino, the construction and ~operation of
the Project will create certain employment opportunities
within the City.
The business offices of Applicant are located at 417 South
Bill Street, Suite 500, Los Angeles, California 92660.
1.11 Professional services will be provided by the following:
1.11.1
1.11.2
1.11.3
1.11.4
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1.12
Janet Davidson, Esq., of Paul, Bastings, Janofsky
555 South Flower Street, 22nd Floor, Los
California 90071 is the attorney for the Applicant.
& Walker,
Angeles,
The Law Offices of Timothy J. Sabo, a Professional
Corporation, shall serve as Bond Counsel to the City with
regard to the tax-exempt financing for the Project.
Principal Civil Engineer - Concept Environmental Sciences,
2150 N. Arrowhead Avenue, San Bernardino, California 92402.
Principal Architect - Kermit Dorius, FAIA, Architects and
Associates, 1550 Bayside Drive, Corona Del Mar, California
92625.
The source of funding for the Project is anticipated to be derived
from a variety of sources including the private placement of a
taxexempt bond or other obligation with a lender to be obtained
hereafte r ,
PART II BOND ISSUE
2.1 The estimated total amount of the financing package and the proposed
use of bond proceeds is as follows:
The eatimated target date for the financing is presently anticipated
in the first half of 1985, with construction to coamence as soon as
possible after the financing package is completed and to be completed
in three (3) construction phases which shall take between twelve (12)
and twenty-four (24) months to complete.
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.2
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Project cost - $17,493,381
Legal, printing and related fees - $114,000
Financing costs and fees - $775,035
Capitalized interest - $1,007,536
Other miscellaneous costs - $1,280,031
Total:
$20,669,983
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It is proposed that the financing be in the form of a construction
loan during the construction period which would have the traditional
construction loan provisions in that drawdowns would be permitted as
construction proceeds upon submission of requisition vouchers, Upon
the completion of construction of the Project and the certification
that all improvements have been completed, the lender may then permit
an interest rate adjustment and a principal amount increase, as
warranted, and convert the construction loan to a permanent financing.
2.4 The present proposal for the financing of the Project anticipates
that the tax-exempt bonds or other obligations will be sold to a
cOlllDercial bank or other such lender through a private placement or
that there be a public offering of such securities.
PART III FINANCIAL INFORMATION
3.1 The financial statement of the Applicant is included within Exhibit
"A" hereto.
PART IV PROJECT INFORMATION
4.1
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The Project as proposed by the Applicant shall include the
construction and operation of a five hundred and eight (508) unit
multifamily rental housing development on a portion of a twenty-nine
(29) acre site located on the southwest corner of the intersection of
College Avenue and Varsity Drive bounded on the southwest by the
Interstate l5E Freeway in the City of San Bernardino. The Project
shall include one hundred and sixteen (1l6) one-bedrooml one-bath
units, two hundred and twenty (220) two-bedroom/one-bath units, one
hundred and seventy-two (172) two-bedroom/two-bath units, on-site
vehicle parking spaces for approximately nine hundred and seventy
(970) spaces, laundry and recreational rooms, appurtenant landscaping
and other improvements. The Project shall be located on land more
particularly described in Exhibit "A" hereto.
4.1.1
The five hundred and eight (508) unit multifamily rental
housing development shall have the following proposed rent
schedule:
Unit Description
Proposed Rent/month
1 bedroom - 1 bath
2 bedroom - 1 bath
2 bedroom - 2 bath
3S0
'115
f;; 0
$395
$495
$535
4.2 The components and the estimated total cost of the functional parts
of the Project are as follows:
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4.2.1
Land - (already acquired)
4.2.2
Building construction
contingency - $12,534,588
51
including
construction
4.2.3
Site preparation - $1,840,000
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4.2.4
4.2.5
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4.2.6
4.2.7
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Engineering and technical services - $120,000
City fees - $1,108,793
Total:
$15,603,381
Miscellaneous items -
a. Developer's overhead and profit - $1,890,000
b. Interest during construction - $1,007,536
c. Other miscellaneous costs - $1,280,031
Total: $4,177,567
Project total: $19,780,948
4.3 The estimated construction period for the Project is as follows:
4.3.1
4.3.2
Construction of the Project would commence as soon as
possible after issuance of the tax-exempt obligations.
The planned construction shall occur in three (3) phases
and be completed within twelve (12) to twenty-four (24)
months from the date of commencement.
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The supervising architect responsible for the
on behalf of the Applicant shall be Mr.
Architects and Associates, Inc.
design of the Project
Kermit Darius, FAIA,
4.4
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4.5 The Project shall be known as "Castle Park".
4.6 The Project is the development of a multifamily rental housing
development and is not an expansion or an alteration of an existing
facility. The necessary infrastructure items and other public
improvements must be installed on the Project site and the Applicant
desires to obtain a below market rate tax-exempt construction and
permanent financing of the improvements to be placed thereon from a
combination of sources.
4.7 The property on which the Project is proposed to be located is
currently owned by the Applicant,
The Project will
affordable rental
San Bernardino,
4.8
4.8.1
4.8.2
provide five
housing to
(508 )
the
uni ts
City
of
of
hundred and eight
the citizens of
Included within Exhibit "A" is an 8-1/2 x ,11 inch map
showing the site location of the proposed Project,
A description of the plant process - not applicable,
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CastleBar, Inc., has completed an Environmental Impact Report
pursuant to the provisions of the California Environmental Quality
Act of 1970, as amended. A Preliminary Noise ABIlessment and Noise
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4.9
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4.10
4.11
4.12
4.13
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PART V
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Control Report concerning the Project, as submitted by
J.J. Van Routen and Associates, Inc., 1784 West Lincoln Avenue,
Suite D, Anaheim, California 92801, (714) 635-9520, indicated that
certain noise abatement measures are appropriate for -the Project.
The Project shall comply with said report's noise mitigation
recolllllendations.
There are no permits, water quality enforcement orders,
permits or variances or other evidence of actions
connection with this Project.
air pollution
necessary in
There are no local, state or federal pollution control agencies which
impose regulations, standards or requirements with regard to the
operations of the proposed Project to be undertaken by the Applicant.
The proposed Project shall comply with all applicable City of San
Bernardino, County of San Bernardino, and other regional, county or
basin plans to which this Project shall conform and the appropriate
waste water and air quality requirements which shall be in conformity
with all of the above jurisdictions.
It is presently anticipated that the proposed Project will not
produce any by-products or residues which would involve the ultimate
disposal or the need for a plan to accomplish same. Recycling or
salvage will not be a function of the proposed Project nor will there
be any market opportunities generated with regard to same.
PUBLIC BENEFITS
5.1 The City of San Bernardino will receive significant benefits by the
initiation of this Project as proposed by the Applicant and
particularly through the utilization of the financing method as is
available under Ordinance No. 3815, as amended, of the City of San
Bernardino. Due to the fact that conventional interest rates for
construction and permanent financing for the type of multifamily
rental housing construction contemplated by the Applicant are at such
an extremely high level on conventionally borrowed funds, if
available at all, neither the Applicant nor any other persons or
legal entities are able to provide the type of modern and attractive
affordable rental housing that is needed within the City of San
Bernardino.
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5.1.1
The Project will provide long term affordable rental
housing opportunities for the inhabitants of the City of
San Bernardino.
5.1.2
Construction of the Project is anticipated
approximately $20,000,000 to $21,000,000 of
valuation to the tax rolls of the City.
to add
assessed
5.1.3
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 complete
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the financing and construction of the Project within an
accelerated time frame. 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.
The City will benefit, as can be demonstrated pursuant to Section 1
of Ordinance No. 3815, as amended, of the City of San Bernardino, in
that affordable rental housing opportunities will be generated by the
proposed Project, The Applicant is not attempting to construct said
proposed Project merely for the financial inducement that is offered
pursuant to the Ordinance, but rather due to the long-term business
reasons that are significant due to the location of the proposed
Project and the real economic benefits available to the community.
There are no detriments that can be incurred by the City with regard
to this type of financing for this Project, and the City of San
Bernardino will receive .ubstantial benefits through increases in
assessed valuation of property, plus the increased long-term
affordable housing opportunities that will be available to the local
residents of the City.
PART VI COMMITMENTS
6.1
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The Applicant by the submission of this Application agrees to comply
and/or to assist the City in complying with all state and federal
laws in the issuance of the bonds or other such tax-exempt
obligations to finance the Project, including, without limitation,
making of any required application to a governmental department, for
authorization, qualification or registration of the offer, issuance
or sale of the bonds or other tax-exempt obligations, and any
amendments thereto, and any permit or other authorization of such
governmental department, prior to the delivery by the City of such
bonds or other tax-exempt obligations.
6.2 The Applicant further CODlllitS 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 or sale of bonds or other tax-exempt obligations,
prior to the delivery by the City of such bonds or other tax-exempt
obligations, and, to the extent deemed necessary by the City,
following delivery of such bonds or other tax-exempt obligations,
6.3 The Applicant also commits to pay all expenses in connection with the
issuance, offer or sale of the bonds or other tax-exempt obligations,
whether or not such bonds or other tax-exempt obligations are finally
issued, and to hold the City harmless from any and all expenses
related thereto, 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.
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The Applicant will .upply any additional information, agreements and
undertakings as the City may require as a re.ult of conferences and
negotiations and copies of such additional information shall be
forwarded to the City by the Applicant and shall be deemed to be
supplements or amendments to this Application.
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PART VII SIGNATURE
7.1
The undersigned as an authorized principal of the Applicant as noted
below, holds the prime responsibility for the financing to be taken
for the proposed Project, and certifies that the undersigned has the
authority to bind the Applicant to contract terms; that this
Application to the best knowledge or belief of the undersigned,
contains no false or incorrect information or data, and this
Application, including exhibits and attachments hereto, is truly
descriptive of the proposed Project. The undersigned also represents
by the execution of this Application familiarity with Ordinance No.
3815, as amended, of the City of San Bernardino.
PART VIII FEE SCHEDULE
8.1 The Applicant acknowledges that the City requires a non-refundable
application fee of $50 for each Project to be considered for
eligibility, to be paid when the basic documents are requested. With
the submittal of this Application, $500 is payable to the City. If
this Application is accepted, an additional fee of $10,000 is payable
for administrative costs. The Applicant acknowledges that the
commitments in Part VI above are in addition to these fixed amounts.
Thus, in the event that no closing occurs, the City shall be
reimbursed for its processing costs.
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 Applicant acknowledges that the City derives its entire support
from the fees for its 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 its
political subdivisions, No indebtedness or taxing power of the City
is involved, Project revenues are the sole security for bonds of the
Ci ty. The federal guarantees, if any, enhance these revenues and
income and the security of the bonds.
8.4 Pursuant to Resolution No. 81-108 of the City, as amended by
Resolution No, 81-410 of the City, one percent (1%) of the principal
amount of the bond issue shall be deposited in the City Treasury in
the Industrial Revenue Bond Reserve and Development Fund, which shall
be used in such manner as the Mayor and Common Council may direct
from time to time.
"APPLICANT"
CASTLEBAR, INC"
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Robert Staniec, Executive Vice-President
of CastleBar, Inc.
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Exhibit "A"
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1,020-72/0937S/rg
08/28/85
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, MAKING
CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION
WITH A PUBLIC HEARING ON THE ISSUANCE OF
APPROXIMATELY $22,000,000 PRINCIPAL AMOUNT OF
MULTIFAMILY MORTGAGE REVENUE BONDS (CASTLE PARK
PROJECT)
WHEREAS, the City of San Bernardino, California ("City"),
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
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and regularly enacted Ordinance No, 3815 (the "Ordinance"), to
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finance various types of projects, as defined in the Ordinance, and
to issue its special revenue bonds for the purpose of enabling
various developers to finance the cost of 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
and
to
increase
the
availability of moderately priced rental units for residents of the
City and to broaden the tax and revenue base of the City without any
liability to the City; and
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WHEREAS. CastleBar, Inc., a California corporation. or its
'-' successors or assigns (the "Applicant"), has previously submitted a
certain application (the "Application"), to the Mayor and Common
Council of the City of San Bernardino. California (the "Mayor and
Common Council"). for tax-exempt financing for a certain multifamily
rental housing development pursuant to Ordinance 3815, as amended.
as more fully described in said Application (the "Project"); and
WHEREAS. the Project consists of the construction and
financing of a five hundred and eight (508) unit multifamily rental
housing development on an approximatelY twenty-nine (29) acre site
located on the southwest corner of the intersection of College
Avenue
and
Varsity
Drive
bounded
on
the
southwest
by the
r- Interstate 15E Freeway in the City as more fUlly described in the
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Application and shall consist on one hundred and sixteen (116)
one-bedroom. one-bath rental uni ts.. two hundred and twenty (220)
two-bedroom. one-bath rental units and one hundred and seventy-two
(172) two-bedroom, two-bath renta 1 uni ts, on-site vehic Ie parking
spaces, laundry and recreat iona 1 rooms. appurtenant landscaping and
other improvements; and
WHEREAS, pursuant to a duly adopted Resolution of the Mayor
and Common Council, said Mayor and Common Council has previoUSly
declared its intent to issue multifamily mortgage revenue bonds in
an aggregate principal amount not to exceed $21,000,000 for the
purpose of financing the Project; and
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Section l03(k). does hereby find and determine that the purposes and
intent of the Ordinance, as amended, will be furthe~ed by the
issuance of multifamily mortgage revenue bonds for the express
purpose of providing financing to assist the Applicant to develop
the Project. The total principal amount of the multifamily mortgage
revenue bonds which shall be issued to assist the Applicant to
develop the Project shall not exceed $22.000,000.
The multifamily
mortgage revenue bonds shall be issued upon such terms and
conditions as shall be set forth in one or more Project Agreements
by and among the City and the Applicant or such other documents
prepared in connection with the issuance and delivery of the
multifamily mortgage revenue bonds, and shall be issued solely for
the Project but in any event said Agreements shall clearly state
that the funds of the City are not liable, nor shall be pledged, for
repayment of the multifamily mortgage revenue bonds.
Section 3,
The Mayor and Common Council hereby find and
determine that the public purposes and public benefits as set forth
in the Ordinance. as amended, will be furthered by the issuance of
the multifamily mortgage revenue bonds; specifically, that the
multifamily mortgage revenue bonds will provide for financing to
assist the Applicant to develop an approximately five hundred eight
(508) unit apartment development on the property as described in the
recitals hereof, that such financing will thus make the, Project a
financially viable and productive project and thereby increase the
availability of moderately priced rental units for residents of the
'-- City and provide employment opportunities within the City.
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Section 4,
The Mayor of the City is hereby appointed as
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the elected official to approve the issuance of the multifamily
mortgage revenue bonds pursuant to Internal Revenue Code Section
103(k) at such time as the Commission shall have approved the other
appropriate multifamily mortgage revenue bond financing documents as
referenced in Section 2 of this Resolution.
Section 5,
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 proceedings for the issuance of
such bonds and funds and accounts to be held by the trustee or
fisca I agent. and are payable as to principa I, redemption price, if
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any, and interest from the revenues of the City as therein
described.
The bonds are not a debt of the Ci ty, 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 be payable out of the
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.
Nei ther 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,
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Section 6.
The Applicant
sha 11
provide
appropri ate
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covenants in the tax-exempt financing documents as may hereinafter
be submitted to the City for consideration and approval in a form
acceptable to the City Attorney and Bond Counsel and to assure that
not less than twenty percent (20%) of the multifamily rental housing
units included in the Project are to be occupied or reserved for
occupancy by the individuals of low and moderate income as provided
in the Code.
Section 7.
Based
upon
certain
factors
and
considerations which are applicable to the Project of the Applicant.
the Mayor and Common Council. by adoption of its Resolution
No, 95-294 on August 5, 1985. deemed it appropriate to waive the
,-.. requirement that the Applicant provide for the recordation of a
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covenant running with the land in a form approved by the City
Attorney of the City whereunder the Applicant waive any claim under
state law to a density bonus, as defined by Government Code
Sections 65915 and 65915,5, for the property on which the Project is
to be constructed.
Section 8.
Adoption of this Resolution shall not be
construed as approval of the plans or concept of the proposed
development. nor as an indication that the Mayor and Common Council
will hereafter take any particular action toward granting any
planning,
zoning,
or other approval
relating to a plan of
development,
The Mayor and Common Council reserve their right to
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solely on the information available at the time of consideration.
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including any actions or recommendations by or appeals from the
Development Review Committee and the Planning Commission.
Nothing
herein shall be construed as advance commitment or approval as to
any such matter. and the Applicant is hereby notified that normal
planning processing shall be required, in accordance with the
standard procedures of the City and that Applicant will be required
to comply with all applicable laws and ordinances of the City, State
and federal government.
Section 9.
This
Resolution
shall take effect upon
adoption.
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I HEREBY
adopted by the
San Bernardino at
day of
CERTIFY that the foregoing resolution was dUly
Mayor and Common Council of the City of
a meeting thereof. held on the
. 1985, by the fOllowing vote. to wit:
.........,
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
of
The foregoing resolution is hereby approved this
, 1985.
day
Mayor of the City of
San Bernardino
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Approved as to form:
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City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) SS
CITY OF SAN BERNARDINO )
I, SHAUNA CLARK. City Clerk in and for the City of San
Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy
of San Bernardino City Resolution No. is a full, true and
correct copy of that now on file in this office,
IN WITNESS WHEREOF. I have hereunto set my hand and affixed
the official seal of the City of San Bernardino this day of
, 1985.
City Clerk
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