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REDEVELOPMENT AGENCY-REQUEST FOR COMMISSION/COUNCIL ACTION
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Dept:
Glenda Saul, Executive Director
Redevelopment Agency
Subject:
INDUCEMENT RESOLUTION FOR IDB -
COMMERCIAL PROJECT - INLAND EMPIRE
PROPERTIES, LTD PROJECT.
Dste: September 3, 1985
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Synopsis of Previous Commission/Council action:
12-7-81 Adopted Resolution 81-619 approving the application for IDB
Recommended motion:
(MAYOR AND COMMON COUNCIL)
,-. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING
ITS INTENTION TO ISSUE ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS, DIRECTING THE
PREPARATION OF CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER FINDINGS AND
DETERMINATIONS IN CONNECTION THEREWITH (INLAND EMPIRE PROPERTIES, LTD. PROJECT)
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,/ Signature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
1
Ward:
Project: M/CC
Date: September 9, 1985
Supporting data attached:
YES
No adverse Impact on City:
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b....ncil Notes:
01317.J/EB/hb
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CITY OF SAN BERNARDINO -
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REQUEST FOR COUNCIL ACTION
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STAFF REPORT
Inland Empire Properties, LTD. is requesting a new inducement Resolution for lDB
financing. The project was originally induced in 1981.
The reason for the new inducement is because the project has been sc~ed down since
its inception in 1981. The original inducement Mr. Tallman received was for a 10
story office building in the amount of $9.4 million.
The project is currently under construction and is a three-story office complex. The
amount of financing has been reduced to $4 million.
Below is a recap of the current project.
APPLICANT:
Inland Empire Properties, Ltd.
PRINCIPAL:
Erven Tallman
PROJECT:
Acquisition of land and the construction of -a 3
story office plaza consisting of approximately
40,024 square feet on a 1.1 acre site.
LOCATION:
NE corner of Second Street and "D" Street
AMOUNT OF FINANCING:
$4,000,000
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TARGET DATE OF FINANCING:
Last quarter, 1985
CONSTRUCTION SCHEDULE:
Currently under construction
INCREASE IN TAX INCREMENT:
1% x 3,010,000 - $30,100
1% of $4,000,000 - $40,000
RESERVE AND DEVELOPMENT FEE:
JOBS:
Approximately 200
This is a commercial project and not subject to CIDFAC approval.
Bond Counsel will be available to answer any questions you may have.
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9-3-85
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PART I
1.1
1.2
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l,020-68/0923S/rg
08/26/85
APPLICATION OF INLAND EMPIRE PROPERTIES, LTD,
FOR INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING
CITY OF SAN BERNARDINO, CALIFORNIA
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GENERAL AND BUSINESS INFORMATION
The legal name of the Applicant is Inland Empire Properties,
Ltd" a California limited partnership,
The Applicant is a California limited partnership and shall be
engaged in the development, leasing and ownership of a certain
three (3) story office complex located on the northeast corner
of Second Street and "0" Street in the City of San Bernardino,
California (the "Project"). The Applicant is the owner of the
property necessary for the proposed Project (the "Property") and
shall develop said Property and construct the Project thereon,
1.3 The mailing address and the address of the Applicant is as
follows:
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1.4
1.5
1.6
1.7
Inland Empire Properties, Ltd,
c/o Tallman Development Inc.
365 W, Victoria Street
Compton, California 90220
Employee Tax 10 No. is 12-666868 -Cf5-;;''>>]/I.l!&S-
Mr. Erven Tallman is the principal contact for the Applicant.
Telephone Number (213) 636-1176.
The Applicant is a California limited partnership.
1. 7 ,1
The Applicant shall own property and
in the City of San Bernardino,
"City"), State of California,
conduct business
California (the
1. 7.2
The Applicant began doing business on November 10,
1981.
1. 7,3
The Applicant is not related to any other legal entity.
1.8 The general partner of the Applicant is Mr. Erven Tallmall (the
"General Partner"). The limited partners of the Applicant are
Mr, Andrew Tallman, Mses, Beatrice Tallman, Susan Behar and Judy
Schneider (the "Limited Partners").
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Mr. Erven Tallman shall be
responsibility for conducting
respect to the Project,
the individual who will have primary
the business of the Applicant with
The General Partner has the following other business affiliations:
Chairman, Norfco Industries, Inc.; President, Tallman Development,
Inc,; President, E, B. Tall, Inc.; and Director, Aztec Resources
Inc,; General Partner Tallman New Mexico Properties, Ltd.
The General Partner has functioned as a general operating entity in
the construction, development, investment and management of various
industrial, commercial and land development projects. The General
Partner and the Limited Partners have previously entered into other
partnership agreeements during the past fifteen years for other real
estate development projects.
1.11 Employees
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1.12
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1.11.1
The Applicant currently has four (4) employees. Although
the principal objective of the Project is to provide 40,024
square feet of office space within the City, the~
construction and operation of the Project will create
certain employment opportunities within the City, The
Project shall create approximately two hundred (200)
employment opportunities.
1.11.2
The Applicant has offices at the above listed address, The
Applicant also anticipates having an office at the Project
site.
Professional services will be provided by the following:
1.12,1
Morton Koffman, of Koffman,
Wilshire Boulevard, Suite 422,
92010, is the accountant for the
Schiff & Anderson, 9171
Beverly Hills, California
Applicant.
1.12,2
Benjamin J. Goodman, of DeCas tro, Wes t, Chodorow & Burns,
Inc., 10960 Wilshire Boulevard, Suite 1800, Los Angeles,
California is the attorney for the Applicant,
1.12.3
The law offices of Sabo & Gondek,
Corporation, shall serve as Bond Counsel
regard to the tax-exempt financing for the
a Professional
to the City with
Project.
1.12.4
Principal Architect - Michael J. Murphy & Associates, 2601
Del Rosa, San Bernardino, California 92404.
1.12.5
Principal Civil and Structural Engineer - Robert Colson of
Colson-Hoffman, 7801 Orangethorpe Avenue, Buena Park,
California 90620.
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1.12.6
General Contractor - J. D. Diffenbaugh, Inc., 2375 Chicago
Avenue, Riverside, California 92507.
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1.13
The principal banking accounts of the Applicant shall be held by
Wells Fargo Bank, N.A., corporate office in Los Angeles, main branch,
and the officer at said bank responsible for such account is Linda
Beaven or Roger Cherniss,
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1.14 The source of funding for the Project is anticipated to be derived
from a variety of sources including the private p~cement of a
tax-exempt bond or other obligation with a lender to be obtained
hereafter or a letter of credit backed financing, The Project is
located in the Meadowbrook - Central City Redevelopment Project and
the Applicant also intends to seek certain tax increment financing
assistance for certain public improvements which shall be required in
connection with the Project.
PART II BOND ISSUE
2.1 The estimated total amount of the financing package and the proposed
use of bond proceeds is as follows:
2.1.1
Project cost - $3,210,000
2.1.2
Legal, printing and related fees - $100,000
2,1.3
Financing costs and fees - $20,000
2.1.4
Capitalized interest - $345,000
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2,1.5
Other miscellaneous costs - $200,000
2,1.6
Land acquisition - $125,000
Total:
$4,000,000
2.2 The estimated target date for the financing is presently anticipated
in the final quarter of 1985, with construction to conunence as soon
as possible after the financing package is completed and the Project
shall be completed in three (3) construction phases which shall take
between twelve (12) and eighteen (18) months to complete,
2.3 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 will 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
cOllUllercial bank or other such lender through a private placement or
that there be a public offering of such securities.
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PART III FINANCIAL INFORMATION
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3.1 The financial statements of the Applicant are included as Exhibit "A"
attached hereto,
3.2 The Applicant shall be doing business as a limited partnership
pursuant to the laws of the State of California and .the Applicant
would be considered a small business with regard to its relative size
in comparison with other such businesses undertaking projects of this
type. No federal small business loan guarantees are proposed in
connection with the proposed financing as contemplated by this
Application.
PART IV PROJECT INFORMATION
4.1
The Project as proposed by the Applicant shall include acquisition of
land and the construction thereon of a three (3) story office plaza
consisting of approximately 40,024 square feet of office space on a
portion of an approximately one and one-tenths (1.1) acre site
located on the northeast corner of Second Street and "D" Street in
the City, The Project is located within the Redevelopment Project
Area of the Redevelopment Agency of the City of San Bernardino known
as the Meadowbrook - Central City Redevelopment Project and shall
include such onsite parking as required by the City and appurtenant
landscaping and other improvements. The Project shall be located on
land more particularly described and included as Exhibit "B" hereto,
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The Project shall be leased at a proposed gross rental rate
of $1,37 per square ,foot,
4.2 The components and the estimated total cost of the functional parts
of the Project are as follows:
4,1.1
4,2.1
Land - $125.000
4.2.2
Building construction - $2,735.000
4,2.3
Site Preparation - $150,000
4.2.4
Engineering and technical services - $150,000
Total:
$3,160.000
4.2.6
Miscellaneous items -
a.
b.
c.
d.
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Three percent (3%) construction contingency - $120,000
Applicant's development overhead costs
and profit - $175,000
Interest during construction - $345,000
Real Estate Brokerage/Leasing Commission - $125,000
Other miscellaneous costs - $75,000
Total: $4,000,000
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4,3 The estimated construction period for the Project is as follows:
4.3.1
Construction of the Project would commence ~ as soon as
possible after issuance of the tax-exempt obligations.
4.3.2
The planned construction shall occur in three (3) phases
and be completed within twelve (12) to eighteln (18) months
from the date of commencement,
4,4 The superv1S1ng architect responsible for the design of the Project
on behalf of the Applicant shall be Michael J. Murphy,
4.5 The Project shall be known as "Tallman Office Plaza",
4.6 The Project is the development of a new office complex 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. In
addition to this Application for tax-exempt financing, the Applicant
intends to seek tax increment financing in connection with obtaining
the total financing package for the Project,
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4.8
4,9
4.10
4.11
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The Property on which the Project is proposed to be located is
currently owned by the Applicant.
The Project will
leaseable office
tenants,
provide approximately 40,024 square feet of gross
space within the City to be leased to various
4,8,1
Attached as Exhibit "C" 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 process - not applicable.
A negative declaration pursuant to the provisions of the California
Environmental Quality Act of 1970, as amended, would in all
probability be satisfactory for the Project as proposed by the
Applicant. However, the Project shall comply with all applicable
provisions of said Act.
There are no permits, water quality enforcement orders, air pollution
permits or variances or other evidence of actions necessary in
connection with this Project, A sewer permit for the construction of
the Project shall be obtained.
There are no local, state or federal pollution control agencies which
impose regulations, standards or requirements with regard to the
operations of the proposed ptoject to be undertaken by the Applicant.
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PART V
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The proposed Project shall comply with all applicable City, 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 Pro~ct 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
The City 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. Due to the fact that conventional
interest rates for construction and permanent financing for office
projects as contemplated by the Applicant are at significantly higher
levels on conventionally borrowed funds than for tax-exempt financed
projects, neither the Applicant nor any other persons or legal
entities are able to provide the type of modern and attractive office
complex that is needed within the City. Additionally, the City, its
inhabitants and the Redevelopment Agency of the City of San
Bernardino (the "Redevelopment Agency"), will benefit from the
increased assessed valuation of property within the Redevelopment
Project Area known as the Meadowbrook-Central City Redevelopment
Project which will occur as a result of the completion of the
Project. This increase in the assessed valuation of the property
included in the Project will assure that the Redevelopment Agency of
the City will have a more viable means of undertaking its
redevelopment activities within said Project Area. In addition, it
is estimated that the Project will generate additional sales tax
revenues for the City upon its completion. The City likewise would
benefit by obtaining quality office structures which will, when
placed into use, provide full time employment and part time
employment opportunities, Other businesses will be encouraged to
locate or relocate within the City and thus create an upward
spiraling effect on the economy of the City as a result of the
Project,
5,1.1
The Project will provide long term employment opportunities
for the inhabitants of the City. When fully leased and
operational the Project will provide employment
opportunities for a substantial nwnber of persons, The
category of jobs to be provided in the Projec't after its
construction include managerial, skilled, semi-skilled and
unskilled. The wages to be paid in the various job
categories meet local and regional standards and will
sustain a satisfactory level of financial stability,
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PART VI
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5.1.2
Construction of the Project is anticipated to add
approximately $3,500,000 to $4,000,000 of assessed
valuation to the tax rolls of the City. In addition, it is
anticipated that the Project will generate additional sales
tax and business license revenues for the City.
5.1.3
The useful method of financing provi8ed for in
Ordinance No. 3815 of the City vis-a-vis the use of the
conventional method will permit the Applicant to complete
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, in that needed office
space will be generated by the proposed Project and the clearance of
an underutilized and blighted area will be implemented, 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 and the
Redevelopment Agency will receive substantial benefits through
increases in assessed valuation of property, the redevelopment
related goals to be served by the Project, plus the increased
long-term employment opportunities that will be available to local
residents of the City.
COMMITMENTS
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,
The Applicant further commits to cause and/or to assist 'the City in
causing to be printed any prospectus or other written or printed
communication proposed to be published in connection with the
issuance, offer 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,
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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. .
6.4 The Applicant will supply any additional information, agreements and
undertakings as the Ci ty may require as a resul t 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.
6.5
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The Applicant acknowledges and recognizes that acceptance of this
application 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 of the City of San Bernardino, California
(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 Applicant acknowledges and
recognizes that the Mayor and Common Council reserve their right to
evaluate any future administrative procedures and appeals based
solely on the information available at the time of consideration,
including any actions or recommendations by or appeals from the
Development Review Committee and the Planning Commission. The
Applicant acknowledges and recognizes that nothing herein shall be
construed as advance conunitment or approval as to any such matter,
and the Applicant hereby acknowledges and recognizes 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.
PART VII FEE SCHEDULE
7,1 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.
7.2. All fees of the City may be capitalized and included in the bond
issue as acceptable to the bond purchaser,
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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
C. ·
1ty
7.4 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 Conunon Council may direct
from time to time,
PART VIII SIGNATURE
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The undersigned, as the 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.
"APPLICANT"
INLAND EMPIRE PROPERTIES, LTD.,
a California limited partnership
By:
Erven Tallman
General Partner
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Exhibit "A"
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(financial statements of Applicant)
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Exhibit "B"
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(legal description of site location of
the proposed Project)
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DESCRIPTIO:.!:
THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE STATE OF
CALIFORtllA, COUNTY OF SAN BERNARDINO, AND IS DESCRIBED AS FOLLO~IS:
.PARCEL 110. 1:
THAT PORTION OF LOTS 2 AND 3, BLOC~ 1~, CITY OF SAN BEP~IARDI~~,
IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO,' STATE
OF CALIFORNIA, AS PER ~AP RECORDED IN BOOK 7, PAGE I~F ~APS, IN
THE OFFICE OF THE COUtlTY RECORDER OF 'SAID COUNTY, DESCRIBED AS
FOLLo\'/S:
BEGIHNING AT THE SOUTHWEST CORNER OF SAID LOT 2; THENCE SOUTH
890 57' 32" EAST ALONG THE SOUTH LitlE OF SAID BLOCK I~, A DISTANCE
OF 1~8.50 FEET; THENCE NORTH' 00 00' 16" WEST PARALLEL lilTH THE
WEST LINE OF SAID BLOCK 14, A DISTANCE OF 110.50 FEET TO A LINE
PARALLEL ~IITH AND DISTANT llO.50 FEET ~IORTHERLY MEASURED AT
RIGHT AIIGLES, FROM SAID SOUTH LINES; THENCE SOUTH 890 57' 32"
EAST ALONG SAID PARALLEL LINE 8.50 FEET TO A LINE PARALLEL WITH
AND DISTAtlT 157.00 FEET EASTERLY tlEASURED AT RIGHT ANGLES, FROM
SAID WEST LINE; THENCE NORTH 00 00' 16" I'/EST ALONG SAID PARALLEL LitlE
17.00 FEET TO A LINE PARALLEL ~IJTH AND DISTANT 127.50 FEET, NORTHERLY
MEASURED AT 'PIGHT ANGLES FROM SAID SOUTH LINE; THENCE SOUTH 890
57' 32" EAST ALONG SAID PARALLEL LINE I~.OO FEET TO A LINE PARALLEL
WITH AND DISTANT 171.00 FEET EASTERLY, MEASURED AT RIGHT ANGLES,
FROM SAID WEST LINE; THENCE NORTH 00 00' 16" WEST ALONG SAID PARALLEL
LINE 39.50 FEET TO A LINE PARALLEL WlTH AND DISTANT 167.00 FEET
NORTHERLY, MEASURED AT RIGHT ANGLES FROM SAID SOUTH LItlE; THENcE
SOUTH 8go 57' 32" EAST ALONG SAID PARALLEL LINE 77.50 FEET TO A
LitlE PARALLEL WITH AND DISTANT 2~8.50 FEET EASTERLY MEASURED ALONG
SAID SOUTH LINE FROM SAID WEST LINE; THENCE NORTH 00 00 I 16" WEST
20.00 FEET TO A LINE PARALLEL WITH AND DISTANT 187.00 FEET .
NORTHERLY, .MEASURED AT RIGllT ANGLES FROM .SAID SOUTH LINE; THENCE
NORTH 890 57' 32" WEST ALONG SAID PARALLEL LINE 2~8. 50 FEET TO
S[<ID I'IEST LINE; THENCE SOUTH 00 00' 16'" EAST 187.00 FEET TO THE
POI NT OF IlEGINNING.
PARCEL I'D. 2:
THAT PORTION OF LOTS 2 AND 3, BLOCK 1~, CITY OF SAN BERNARDINO,
IN TilE cITY OF SAN BERNARDIND, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 7, PAGE 1 OF MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINtIING AT A POINT ON THE SOUTH LINE OF SAID BLOCK 1~ THAT
IS SOUTH 890 57' 32" EAST 1~8.50 FEET FROt., THE SOUTH\iEST CORNER
OF SAID LOT 2; THENCE NORTH 00 00' 16" ~IEST PARALLEL WITH THE
WEST LINE OF SAID BLOCK 1'/ A DISTANCE OF llO.50 FEET TO A
. LINE PARALLEL WITH AIID DISTANT llO.50 FEET NORTHERLY, MEASURED
AT RIGHT ANGLES, FROM SAID SOUTH LINE; THENCE SOUTH 890 57' 32"
EAST ALONG SAID PARALLEL LINE 8.50 FEET TO A LINE PARALLEL ~IITH
AND DISTANT 157.00 FEET EASTERLY, ~EASURED AT RIGHT ANGLES,
FROr< SAID I'/EST LINE; THENCE NORTH 00 00 I 16" WEST ALONG SAID
PARALLEL LINE 17.00 FEET TO A LINE PARALLEL WITH AND DISTANT
127.50 FEET NORTHERLY, I-IEASURED AT RIGIIT ANGLES, FROM SAID SDUTH
LINE; THENCE SOUTH 890 57' 32" EAST ALONG SAID PARALLEL LINE
1~.00 FEET TO A LINE PARALLEL WITH AND DISTA'lT 171.00 FEET EASTERLY
MEASURED AT RIGHT ANGLES, FROr~ SAID WEST LINE; THENCE NORTH,
00 00' 16" WEST ALONG SAID PARALLEL LitlE 39.50 FEET TO,A LINE
PARALLEL IHTH AND DISTANT 107.00 FEET NORTHERLY, MEASURED AT
RIGHT ANGLES, FROM SAID SOUTH LINE; THENcE SOUTH 890 57' 32"
EAST ALar:G SAID PARALLEL LINE 77.50 FEET TO A LINE PARALLEL
~IITH AllD DISTANT 2~8.50 FEE.T EASTERLY ~'EASURED ALONG, SAID
SOUTH LINE FROH SAID WEST LINE, THEtlCE SOUTH 00 00' 16" EAST
. 187.00 FEET TO THE SOUTH LWEOF BLOCK 1~; THENCE NORTH 890
57' 32" liEST 100.00 FEET TO THE POINT OF BEGINNING.
EXH.IBIT -A-
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1,020-70/0932S/rg
08/28/85
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING lIS
INTENTION TO ISSUE ITS INDUSTRIAL DEVELOPMENT
REVENUE BONDS; DIRECTING THE PREPARATION OF
CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER
FINDINGS AND DETERMINATIONS IN CONNECTION
THEREWITH (INLAND EMPIRE PROPERTIES, LTD. 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
r and regularly enacted Ordinance No. 3815 (the "Ordinance"), to
'-
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 office facilities for residents of the City and to
broaden the tax and revenue base of the City without any liability
to the City whatsoever; and
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WHEREAS, the City has previously declared its intent to
provide
financing
assistance
tax-exempt
to Erven Tallman,
an
individual, in connection with the development and improvement of a
certain commercial facility on a certain site loca~ed at the
northeast corner of Second Street and "D" Street in the City as more
fully described in Resolution No. 81-619 of the Mayor and Common
Council of the City of San Bernardino, California (the "Mayor and
Common Council"), dated December 7, 1981, entitled:
"Resolution of the Mayor and Common Council of
the City of San Bernardino Approving an
Application for Industrial Development Bond
Financing; Di recting the Preparation of Certain
Documents; and Making Certain Other Findings and
Determinations in Connection Therewith (Tallman)"
; and
WHEREAS, subsequent to the date of adoption of Resolution
No. 81-619, Erven Tallman has indicated an interest in making
certain
revisions
and
modifications
the
application
to
of
Erven Tallman for tax-exempt financing assistance as previously
submitted to the City; and
WHEREAS, there has been presented to the Mayor and Common
Council a certain revised Application, attached hereto as Exhibit
"A"
incorporated herein by
and
reference,
by
Inland
Empire
Properties,
California
Ltd. ,
limited partnership,
and
its
a
successors or assigns (the "Applicant"), as submitted by its general
partner,
Erven Tallman,
requesting
the
issuance of
industrial
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development revenue bonds in the principal amount not to exceed four
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million six hundred thousand dollars ($4,600,000) for the purpose of
providing financing, on behalf of the Applicant, for a certain
Project, to wit:
the acquisition of land, and the <>>onstruction
thereon of an approximately 40,204 square foot, three (3) story
office complex on an approximately one and one-tenths (1.1) acre
site located on the northeast corner of Second Street and "D" Street
in the City.
The Project is located within the Redevelopment
Project
Area
of
the Redevelopment Agency of
the City of
San Bernardino
(the
"Redevelopment
Agency" ) ,
known
as
the
Meadowbrook-Central City Redevelopment Project and shall include
on-si te vehicle parking spaces as requi red by the City, appurtenant
landscaping and other improvements; and
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WHEREAS, it is appropriate for the City to take certain
action at this time regarding the request of the Applicant for the
issuance of industrial development revenue bonds by the City for the
Project.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:
Section 1,
That the recitals set forth hereiJ:labove are
true and correct in all respects,
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Section 2.
The City of San Bernardino, California, is a
municipal corporation duly created, established and authorized to
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transact business and exercise its powers, all under and pursuant to
the Constitution and laws of the State of California, and the City
Charter of the City, and the powers of the City include the power to
issue bonds for any of its corporate purposes.
.
Section 3.
Pursuant to the Charter of the City and
Ordinance No. 3815, as amended, of the City, the City is legally
authorized to issue special revenue bonds for the construction and
permanent financing of the Project as more fUlly described in the
recitals hereof and in the application for industrial development
revenue bond financing of the Applicant, as on file with the City.
Section 4.
This body constitutes the governing body of
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such special revenue bonds by the City.
Section 5.
The Project referred to in the recitals
hereof constitutes a project for which the City may provide
tax-exempt financing through the issuance of such special revenue
bonds by the City and located within the jurisdiction of the City.
Section 6.
The Mayor and Common Council does hereby
declare its intention to issue industrial development revenue bonds
of the City to provide tax-exempt financing to the Applicant for the
acquisition of land and the construction, equipping and permanent
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financing of the Project under and in accordance with the Ordinance,
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in amounts sufficient to pay the costs of financing the Project and
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of paying the costs of issuance for the industrial development
""-' revenue bonds and for the establishment of the necessary reserve
funds to provide for the financing of said Project. Said Project is
presently identified as the Tallman Office Plaza Project. Any
.
agreement for such financing shall specify that the City's general
funds shall not be liable for repayment of the bonds.
Section 7.
The City hereby acknowledges and approves of
the undertaking of the Project by the Applicant and the City hereby
accepts the Applicant as the successor to Erven Tallman as the
beneficiary of Resolution No. 81-619 and the City hereby approves
and accepts the Application submitted herewith in place of the
application submitted with Resolution No. 81-619.
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Section 8.
The City hereby declares' its intention to
exercise the authority referred to in Section 3 hereof by issuing
bonds of the City in such amounts as will be adequate to implement
the City financing of the Project.
Section 9.
The bonds shall be payable from the revenues
described in said Ordinance No. 3815, as amended.
Section 10.
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
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fiscal agent, and are payable as to principal, 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 "either 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
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accountability by reason of the issuance thereof.
Section 11.
The details of such bonds, including the
establishing of the aggregate face amount of such obligations, shall
be authorized by indenture, resolution or resolutions of the City at
a meeting or meetings to be held for such purpose.
The City Staff,
Sabo & Gondek, a Professional Corporation, as Bond Counsel to the
City, Underwriters, the Applicant and the agents and representatives
of same are hereby authorized and directed to prepare or cause to be
prepared the necessary legal documents,
including the Project
Agreement, Resolution of Issuance, and such other documents as may
be necessary to effect said Project and the issuance of industrial
development revenue bonds therefor and to present same to said Mayor
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and Common Council.
The Mayor of the City is hereby authorized and
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directed to coordinate the efforts of all concerned relating to the
issuance and sale of the bonds, and the City Staff, consultants,
legal counsel to the City and Bond Counsel as referenced above are
hereby directed to take such steps
as
sha 11 be
. .
appropnate to
implement such sale and delivery of the bonds including working with
persons who may acquire vested rights as the result of such actions.
Section 12.
The
issuance
of
industrial
development
revenue bonds may be authorized by appropriate resolution or
resolutions of the City at a meeting or meetings to be held for such
purpose, sUbject to the execution of appropriate agreements by the
Applicant and the City as required by the Ordinance and the
industrial development bond financing program of the City; provided,
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upon the Applicant complying with the industrial development bond
financing program of the City.
Section 13.
It is intended that this Resolution shall
constitute such "official action" toward the issuance of the bonds
within the meaning of the United States Treasury Regulations, the
united States Tax Laws, and any legislation now or hereafter pending
in the Congress of the United States which may require official
action in order for the bonds to be exempt from Federal income
taxation.
Section 14.
At the closing of the financing there shall
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be paid to the City the fee set forth in Resolution No. 81-108 of
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the Mayor and Common Council, adopted March 13, 1981, as amended by
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Resolution No. 81-410, of the Mayor and Common Council, adopted
September 24, 1981.
.
Section 15.
Acceptance of the Application 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 its right to
evaluate any future administrative procedures and appeals based
solely on the information available at the time of consideration,
including any actions or recommendations by or appeals from the
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Development Review Committee and the Planning Commission.
Nothing
herein shall be construed as advance commitment or approval as to
any such matter and normal planning processing shall be required, in
accordance with the standard procedures of the City and the
Applicant will be required to comply with all applicable laws and
ordinances of the City, State and federal government.
Section 16.
This
Resolution
shall
take effect
upon
adoption.
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I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof, held on the
day of
, 1985, by the following vote, to wit:
.
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day
of
, 1985.
Mayor of the City of
San Bernardino
Approved as to form:
~;tff~
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) 55.
CITY OF SAN BERNARDINO )
I, SHAUNA CLARK, City Clerk
Bernardino, DO HEREBY CERTIFY that the
of San Bernardino City Resolution No.
correct copy of that now on file in this
in and for
foregoing
is
the City of San
and atttached copy
a full, true and
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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