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HomeMy WebLinkAboutR13-Redevelopment Agency >> "'-' -/ REDEVELOPMENT AGENCY-REQUEST FOR COMMISSION/COUNCIL ACTION m: - Dept: Glenda Saul, Executive Director Redevelopment Agency Subject: INDUCEMENT RESOLUTION FOR IDB - COMMERCIAL PROJECT - INLAND EMPIRE PROPERTIES, LTD PROJECT. Dste: September 3, 1985 . 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) #~U ,/ 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: - b....ncil Notes: 01317.J/EB/hb ^___~_ ,'-_ .,_k/3 . - CITY OF SAN BERNARDINO - '-' REQUEST FOR COUNCIL ACTION "- 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 -- 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. 13l7J/EB/hb 9-3-85 ,-- '- 7<;.n?l'i4 - PART I 1.1 1.2 " 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 . 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: "- 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"). -- '-' '. - 1 - 1.9 - 1.10 ....~ j 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 '-" 1.12 '-' 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. ,~ 1.12.6 General Contractor - J. D. Diffenbaugh, Inc., 2375 Chicago Avenue, Riverside, California 92507. - 2 - !"'""~ ,', -.J "'-' 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, -- 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 -- 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. - '-" - 3 - /,'", ) v PART III FINANCIAL INFORMATION - 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, ,,- '-' 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. -~ e. ~ 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 - 4 - .""'''''- v " -" - 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, 4,7 f- ........ 4.8 4,9 4.10 4.11 ..,,,,,,~. ........ 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. - 5 - ....- 4.12 '-" 4.13 PART V 5.1 - '-' ,.- '-- ,".., l....- ,........ '""J' 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, " - 6 - '- 5.2 -- '- PART VI 6.1 6,2 -- ......... ,.....'. '-'" .....~ 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, - 7 - ,,-. '- 6,3 ,"". ~./ ", ",j 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 -, ''- 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, -- '- " - 8 - ,,-..... '- 7.3 c " ..~ 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 8.1 -"- - '. "- 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 - 9 - /- '- ~'(... r. ~~. '\.. 'I :- . '-:'I.: .. \U.\\..lLb. '.<" '\.'\J)u \IIU ....- '-' /''''''''''' '-' 1''' V Exhibit "A" r.... ....,# (financial statements of Applicant) .-.,-'" ''\ 1\ ::-'. __ r-, .-.. ~,-I ,lC-< F \ ~, - \' . ~~ \,..'" 'I' --. W"': l..':..J t,; --:.-' L..---.... '. - 10 - - . - '-' - '- ,-<,."""" - - ......./ Exhibit "B" ...... - - r"-, ',,-~ (legal description of site location of the proposed Project) '. - 11 - ,,,) . - I ,- t I ","~~,..., -- ,~ , . .. . .- .'- ..-. '- , . ~ - - .-- "'-"''''\ -'q.. I _./ ,_. ,-,. -...."I , 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. 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'~..u';,.:, ~7~..'.~' ."~'I" \~~t: ?;':"'{';'.; .~ ';.P.c'i~~i..~~~fl~r' ~" U~k~~ -'.~_ -~. ..a-III :loA .., ~ " ~- :,:~ , j;J>~y "'~"r;~:f'.l;' ..",:. ,:,;':I'+.,..,..!. './ I .jtr,l1~':"- " ./...... , ' , , , / I""" '-' -"-, _..J ,,) -- Exhibit "e" (map of the proposed Project) . r-- '-' '. "-' - 12 - -- - I ~ m - I- U - 0:: ~ - o (!) z - ~ 0:: ~ z 3: 12 z ~ o o z o 0:: <( Z 0:: W ,_om ~ ."..: ...... .. ch .. . . .1- C> I a: :;) o u r ,~ 0; I ' ".'-'-i .J> . ~ _! ~ ~ ,!I 11 . I' . . '-n_ lI'f~ -~ ,~ . -"'!!. ~ .' . ;;"f~7 ':. . ..~. 'No.... r ' ~ M_ ,. , ,-: ". ~, . ;"Or (: \,_.' ,'i; .. ;:: ("\,:f;~;~2~~:;i~'~:~:";";' : /" ,--' ~ .(IN .... ~ t! ~ ,;l ~~ ~ ~~ .. \tq.: I ::;~ I ~~ ll~ ..:t I ~~ h It ~t I ~\:i i iii I n'~- . 'I ~ 'I I i :. , ' '~'Clli .~..:~ l.. t. · ~ ;I! S J · I ~. a I i ..J. " Ii. .p " It).." t -.: r....-I : l~;; en.. l Iii!'" i . .. I . I I I . ~: ... I .r ... . I . I I I I , , 1 -, <iXD n. 'CDCi) .. 06 -,,- n ~,..;;;.... IJ;S / . ~ ---.-.-~ .' --y - G> ;" , 0< G)- (!) &\I .. ~ . is i - iell . .. .1 ~ 1 1 ~IH ...c:s~'l: .. -...-- era> ' _,_u____ <<m ...-.:--- ~~.....--- - . - (I) . -... i -;r'..;...u .J.. .- . I ]!)1fd 335 .--1+ ~ <i> '1: or ~ en h It:': ~ :,t~ ~ / o .-., -...."I ~) 1,020-70/0932S/rg 08/28/85 '-' 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 -- '- - 1 - . ........ -- '-' - "'- - \.~J ,..., :J '-' ,..." -...I 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 - 2 - ...~ " l.# c ,""" -.-J ::; development revenue bonds in the principal amount not to exceed four '-' 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 ,,,........... '-' 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, '- Section 2. The City of San Bernardino, California, is a municipal corporation duly created, established and authorized to - 3 - l, /"..'... c'-... } ......, -...J ..,,--," '-' 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 - ,;' """'" the City and is legally authorized to provide for the issuance of such special revenue bonds by the City. Section 5. The Project referred to in the recitals hereof constitutes a project 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 ,"""'" financing of the Project under and in accordance with the Ordinance, '-' in amounts sufficient to pay the costs of financing the Project and - 4 - ~- c /.....\ V ,....., v ", .J ,..",.",~, 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. - '- 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 /'""""' '- such bonds and funds and accounts to be held by the trustee or - 5 - ... r c r" '-" o ) ,-,--=..., fiscal agent, and are payable as to principal, redemption price, if '-' any, and interest from the revenues of the City as therein described. The bonds are not a debt of the 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 ,-. '-' 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 '-' and Common Council. The Mayor of the City is hereby authorized and - 6 - '!-' I " L (' -...,; /'''''. '...,; -- 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, -- '-' further, that this Resolution shall be sUbject to and conditioned 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 '- be paid to the City the fee set forth in Resolution No. 81-108 of - 7 - ;.- , \...... c ~" '... """~ the Mayor and Common Council, adopted March 13, 1981, as amended by -- 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 ,,.,....... '-' 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. ".- '-' - 8 - ...- , l......, /"- ~- , -- v .."".... ) .'<""'.'- '-' r- '-' ,,"-'" -- 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 - 9 - ";.- - - - - , ~"",,, '- r ~ """'. -.'" j v -...."I r'-' \.- 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 ,-- '-' ,....""-"- '-' - 10 - T_,