HomeMy WebLinkAboutR06-Redevelopment Agency
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. REC;VELOPMENT AGENCY-UuEST FOR U_ISSION/COUNCIL A~ION
. From: Glenda Saul, Executive Director
Subject: INDUCEMENT RESOLUTION - IDB -
S. P. COMMERCIAL DEVELOPMENT PROJECT
,_"t: Redevelopment Agency
Date: October 3, 1985
Synopsis of Previous Commission/Council action:
Ordinance 3815 provided for the issuance of Industrial Development Bonds.
Recommended motion:
(MAYOR AND COMMON COUNCIL)
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
DECLARING ITS INTENTION TO ISSUE ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS; DIRECTING
THE PREPARATION OF CERTAIN DOCUMENTS; SETTING A PUBLIC HEARING; AND MAKING CERTAIN
OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (S.P. COMMERCIAL
DEVELOPMENT PROJECT)
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Signature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
3
Ward:
Project: SV
Date: October 7, 1985
Supporting data sttached:
YES
No adverse Impact on City:
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~ncil Notes:
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Agenda Item No. _"" CO
1426J/EB
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Clk OF SAN BERNARDh;b - REQU~ FOR COUNCIL AC-tiON
STAFF REPORT
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Ordinance 3815 provides for the issuance of Industrial Development Bonds. Staff has
received an application from S.P. Commercial Development. The application is for a
commercial project and, therefore, is not subject to CIDFAC approval.
Below is a recap of the application:
APPLICANT:
S.P. Commercial Development,
a California Limited Partnership
PRINCIPALS:
Merv Simchowitz - 50%
Pearson Land Ltd. - 50%
AMOUNT OF FINANCING:
$1. 4 Million
PROJECT:
Construction of 62,000 sq. ft.
public storage facility
LOCATION:
3 acre site located at
155 W. Caroline Street
TARGET DATE OF FINANCING:
Final Quarter, 198
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CONSTRUCTION SCHEDULE:
1 phase completed within 4-6
months from date of commencement
INCREASE IN TAX INCREMENT:
$l,025,OOO x 1% - $10,250
$l,400,OOO x 1% - $14,000
RESERVE AND DEVELOPMENT FEE:
JOBS:
6, after construction
The developer is proposing a public storage facility for this site because of its
location on an earthquake fault. The developer believes the only projects suited for
the site would be a storage facility or a parking lot.
Both the developer and bond counsel will be present to answer any questions you may
have.
At the present time, staff has been informed that the Food Resources project may not
be able to close its bond in 1985. They have not yet been able to secure the
required Letter of Credit. This would leave sufficient allocation to assign to this
project.
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l426J/EB
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10/01/85
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING ITS
INTENTION TO ISSUE ITS INDUSTRIAL DEVELOPMENT
REVENUE BONDS; DIRECTING THE PREPARATION OF
CERTAIN DOCUMENTS; SETTING A PUBLIC HEARING; AND
MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS
IN CONNECTION THEREWITH (S.P. COMMERCIAL
DEVELOPMENT 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
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. 38l5, 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, there has been presented to the Mayor and Common
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Common Council"), an Application, attached hereto as Exhibit "A" and
incorporated herein by reference, by S.P. Commercial Development, a
California limi ted partnership, or its successors or assigns, (the
"Applicant"), requesting the issuance of industrial development
revenue bonds in the principal amount not to exceed one million four
hundred thousand dollars ($1,400,000) for the purpose of providing
financing, on behalf of the Applicant, for a certain Project, to
wit:
the acquisition of land and the construction thereon of an
approximately 62,000 square foot public storage facility on an
approximately three (3) acre site located at l55 West Caroline
Street in the City and the Project shall consist of said facility,
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on-site vehicle parking spaces as required by the City, appurtenant
landscaping and other improvements; and
WHEREAS, the certain amendments to Section 103 of the
Internal Revenue Code of 1954, as amended (the "Code"), as enacted
by Congress under the Tax Equity and Fiscal Responsibility Act of
1982 ("T.E.F.R.A."), require that a public hearing be held in
connection with the authorization and issuance of any industrial
development bonds including such bonds issued for the purpose of
enabling the Applicant to finance the cost of the Project; and
WHEREAS, the City has been requested to hold a public
hearing pursuant to the Code, as amended by T.E.F.R.A., for the
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issuance and sale of special revenue bonds by the City to provide
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of the Project to be located within the City; and
WHEREAS, it is appropriate for the City to take certain
action at this time regarding the requests of the Applicant.
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 hereinabove are
true and correct in all respects.
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Section 2.
The City is a municipal corporation duly
created,
established and authorized to 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
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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
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declare its intention to issue industrial development revenue bonds
of the City to provide tax-exempt financing to the Applicant for 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 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 "S.P. Commercial Development Project".
Any agreement for such
financing shall specify that the general funds of the City shall not
be liable for repayment of the bonds.
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''-" exercise the authority referred to in Section 3 hereof by issuing
Section 7.
The City hereby declares its intention to
bonds of the City in such amounts as will be adequate to implement
the City financing of the Project.
Section 8.
The bonds shall be payable from the revenues
described in said Ordinance No. 38l5, as amended.
Section 9.
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
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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 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
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~ accountability by reason of the issuance thereof.
personally on the bonds or be subject to any personal liability or
Section lO.
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,
the 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, the Resolution of Issuance, and
such other documents as may be necessary to effect said Project and
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the issuance of industrial development revenue bonds therefor and to
present same to said Mayor and COllUllon Counci 1.
The Mayor of the
City is hereby authorized and 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 shall be appropriate 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 ll.
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
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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 12.
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
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Section 13.
At the closing of the financing there shall
be paid to the City the fee set forth in Resolution No. 8l-l08 of
the Mayor and Common Council, adopted March 13, 1981, as amended by
Resolution No. 8l-410, of the Mayor and Common Council, adopted
September 24, 1981.
Section l4.
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
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development.
The Mayor and Common Council reserves its right to
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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 lS.
Pursuant
to
the
requirements
of
Code
Section l03(k), the City hereby authorizes the public hearing in
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connection with the Project referred to in the recitals hereof to be
held in accordance with said Code Section l03(k) on November 4,
1985, at the hour of ll:OO A.M., in the Council Chambers, San
Bernardino City Hall, for the purpose of considering the public
benefits and pUblic purposes to be furthered by the financing or
financings contemplated by the action of the City pursuant to this
Resolution for the issuance of industrial development revenue bonds
by the City for the Project pursuant to Ordinance No. 38lS, as
amended. A public hearing shall be held at the hour and on the date
herein provided for the Proj ect.
The City hereby authorizes and
directs the City Clerk of the City to publish by at least two (2)
insertions, one of which shall be not less than fourteen (14) days
prior to said hearing, in The Sun a notice of public hearing
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substantially in the form of the notice attached hereto as
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Exhibit "B" and incorporated herein by reference and made a part
hereof for the Project referred to in the recitals hereof.
Section 16.
The
public
hearing
as
authorized
by
Section 15 of this Resolution may also consider the adoption of an
appropriate indenture or resolution or resolutions of the City, as
referred to in Section 10 and Section 11 herein, for the issue of
industrial development revenue bonds for the Project.
Section l7.
This
Resolution
shall take effect upon
adoption.
-.~ I HEREBY CERTIFY that the foregoing resolution was duly
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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
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The foregoing resolution is hereby approved this day
of
Approved as to form:
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City Attorney
, 1985.
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Mayor of the City of
San Bernardino
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss.
CITY OF SAN BERNARDINO )
I, SHAUNA CLARK, Ci ty 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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EXHIBIT "B"
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NOTICE OF HEARING BY THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ON A
CERTAIN INDUSTRIAL DEVELOPMENT BOND FINANCING
(S.P. COMMERCIAL DEVELOPMENT PROJECT)
NOTICE IS HEREBY GIVEN that a public hearing shall be
conducted by the Mayor and Common Council of the City of
San Bernardino, California (the "City"), and shall be held on
Monday, November 4, 198~, at the hour of ll:OO A.M., in the Council
Chambers,
City Ha 11,
300 North "D"
Street,
San Berna rdino,
California 92418, for the purpose as hereinafter set forth.
The purpose of said public hearing is to consider a
proposal by S.P. Commercial Development,
a California limited
partnership, or its successors or assigns (the "Applicant"), in
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~ accordance with Section 103(k) of the Internal Revenue Code of 1954,
as amended (the "Code"), for industrial development bond financing
for the "S.P. Commercial Development Project". Said Project shall
include the acquisition of land and the construction thereon of an
approximately 62,000 square foot public storage facility on an
approximately three (3) acre site located at l55 West Caroline
Street in the City.
The Project shall consist of said facility,
on-site vehicle parking spaces as required by the City, appurtenant
landscaping and other improvements.
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The City intends to issue its industrial development
~ revenue bonds pursuant to Ordinance No. 3815, as amended (the
"Ordinance"), for said Project in an amount not to exceed one
million
four
hundred
thousand dollars
($1,400,000)
for
the
construction and permanent financing thereof wi thout any liabi li ty
to the City whatsoever.
All persons interested in the sUbject matter and the public
purposes and public benefits and the issuance of the industrial
development revenue bonds in an estimated principal amount not to
exceed one mi llion four hundred thousand dollars ($l, 400,000) in
connection with said Project may attend such hearing and/or file
their written objections or comments thereto, or may otherwise
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pursuant to the Ordinance.
NOTICE GIVEN as of this
day of
, 1985.
I~il SMu.uA Ct,.{'tR..\.t..
City Clerk of the City of
San Bernardino, California
To be published in The Sun on 10/21/85 and lO/28/85
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CITY OF SAN RF.RNl>.lmTNO
, CALIFORNIA
AGENDA
~RRR 7
, 1985
Resolution Authorizin~ Publication of Notice of Hearin~
Title of Resolution: RESOUJI'ICN DEl:1ARING INl'ENI' ro ISSUE INDUSTRIAL
DE.VEWFMENr RE.VENUE OONDS (S.P. a::M>IERCIAL
DE.VEWFMENr P~)
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Send Exhibit .. B
OCTOBER l6. 1985
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of the
to:
attached
Resolution
not
later
than
Newspaper:
THE SUN
To Be Published On:
October 2l. 1985 and October 28. 1985
Please return certified copy of affidavit of publication to Sabo & Gondek.
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10/01/85
APPLICATlON OF S.P. COMMERCIAL DEVELOPMENT
FOR INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING
CITY OF SAN BERNARDINO, CALIFORNIA
PART I
GENERAL AND BUSINESS INFORMATION
1.1
The legal name of the Applicant is S.P. Commercial Development,
a California limited partnership.
1.2
The Applicant is a California limited partnership and shall be
engaged in the development, leasing and ownership of a public
storage facility located on an approximately three (3) acre site
at 155 West Caroline Street in the City of San Bernardino,
California (the "Project"). The Applicant currently owns an
option to acquire 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:
S.P. Commercial Development
1950 South Southwest Lane
Suite 102
San Bernardino, California 92408
1.4 Employee Tax ID No. is 33-0032113,
1.5 Mr. Rod Shain is the principal contact for the Applicant.
1.6 Telephone number - (714) 381-4381.
1.7 The Applicant is a California limited partnership.
1. 7.1
The Applicant shall own property and conduct business
in the City of San Bernardino, State of California.
1. 7.2
The Applicant began doing business on September 20,
1983.
1.7.3
The Applicant is not related to any other legal entity.
1.8
Mervyn Simchowitz owns a fifty percent (50%.) interest therein
and is the general partner of the Applicant (the "General
Partner"). Pearson Land Ltd., a California limited partnership,
owns a fifty percent (50%.) interest therein and is the limited
partner of the Appl icant (the "Limited Partner").
EXHIBIT "A"
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1.9
Mr. Mervyn Simchowitz shall be the individual who will have primary
responsibility for conducting the business of the Applicant with
respect to the Project.
1.10 The partners of the Applicant are currently engaged in the
development of cOlmnercial, industrial and residential property in
California. Mervyn Simchowitz is a principal in the Simchowitz
Corporation, which corporation has its resume attached hereto as
Exhibi t "A". William A. Pearson is the principal in Pearson Land
Ltd., which company has its resume attached hereto as Exhibit "B".
1.11 Employees
1.11.1
The Applicant ,currently has two (2) employees. Although
the principal objective of the Project is to provide an
approximate 62,000 square foot public storage facility
within the City, the construction and operation of the
Project will create certain employment opportunities within
the City. The public storage facility will create
approximately one (1) full time and five (5) part-time
employment opportunities.
1.11.2
The Applicant has offices at the above listed address.
1.12 Professional services will be provided by the following:
1.12.1
Dennis Grant of Weil, Higashi, Hallal & Ettinger, 233
Wilshire Boulevard, Suite 600, Santa Monica, California
90401, is the accountant for the Applicant.
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1.12.2
Robert H. Morrison, Esq., of 25201 Paseo De Laicio, Suite
101, Laguna Hills, California 92673, 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 - Bessey-Brown-Hoffman, 6809
Avenue, Suite 203, Riverside, California
(714) 683-2310.
Magnolia
92506,
1.12.5
Principal Civil Engineer John
Engineering, 2627 South Waterman
San Bernardino, California 92408, (714)
Starner
Avenue,
824-1819.
of C.G.
Suite E,
1.12.6
Project Administrator Patricia Green, 1950 South
Southwest Lane, Suite 102, San Bernardino, California 92408.
1.13
The principal banking accounts of the Applicant shall be held by
El Dorado Bank, 250 North "6" Street, San Bernardino, California
9240l, and the officer at said bank responsible for such account is
Peggy Merryman.
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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 placement of a
tax-exempt bond or other obligation with a lender to be obtained
hereafter or a letter of credit backed financing.
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 - $1,025,000
2.1.2
Legal, printing and related fees - $30,000
2.1.3
Financing costs and fees - $56,000
2.1.4
Capitalized interest - $215,000
2.1.5
Other miscellaneous costs - $74,000
Total:
$1,400,000
2.2
The estimated target date for the financing is presently anticipated
in the final quarter of 1985, with construction to connnence as soon
as possible after the financing package is completed and the Project
shall be completed in one (1) construction phase which shall take
between four (4) and six (6) months to complete.
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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
connnercial 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 statements of the Applicant are included as Exhibit "c"
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
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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 the
construction of an approximately 62,000 square foot public storage
facility on a portion of a three (3.0) acre site located at 155 West
Caroline Street in the City 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 "D" hereto.
4.1.1
The public storage facilities shall be leased at a proposed
gross rental rate of $0.42 - $0.43 per square foot.
4.2 The components and the estimated total cost of the functional parts
of the Project are as follows:
4.2.1
Building construction - $980,000
4.2.2
Site Preparation - $22,000
4.2.3
Engineering and technical services - $23,000
Total:
$1,025,000
4.2.4
Miscellaneous items -
a. Construction contingency - $82,000
b. Interest during construction - $132,000
c. Real Estate Brokerage Commission - $9,000
d. Other miscellaneous costs - $74,000
Total: $1,400,000
4.3 The estimated construction period for the Project is as follows:
4.3.l
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 one (1) phase and
be completed within four (4) to six (6) months from the
date of commencement.
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4.4
The superv1s1ng architect responsible for the design of the Project
on behalf of the Applicant shall be Bessey-Brown-Hoffman.
4.5 The Project shall be known as the "S.P. Conunercia1 Development
Project".
4.6 The public storage facility is the development of a new 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.
4.7 The Property Oft which the Project is proposed to be located is
currently owned by the Applicant.
4.8 The Project will provide approximately 62,000 square feet of gross
leaseable public storage space within the City to be leased to the
public.
4.8.1
Attached as Exhibit "E" 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.
4.9
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.
4.10
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.
4.11
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.
4.12
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.
4.13
It is presently anticipated that the public storage facility 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 public storage facility nor
will there be any market opportunities generated with regard to same.
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PART V
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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 public
storage 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 complex
that is needed within the City. In addition, it is estimated that
the Project will generate approximately $1,000 in sales tax revenues
for the City up9n its completion. The City likewise would benefit by
obtaining quality 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.
The public storage project will be located on a site that has an
earthquake fault running through it. The result of this is that the
site has only two (2) possible uses: a parking lot or a storage
facility as the Applicant proposes.
The storage facility will be constructed from split-face block with
attractive curb landscaping surrounding the north and west exterior
walls. The project will help upgrade the area and the buildings will
bring in greater tax revenues than would a parking lot. The storage
units will meet the needs of surrounding residents and local
businesses for record or inventory storage. The facility will also
offer special size units for small contractors. The public storage
project will offer employment for a full time manager and three (3)
to five (5) part-time people.
5.1.1
The Project will provide long term employment opportunities
for the inhabitants of the City of San Bernardino. When
fully leased and operational the Project will provide
employment opportunities for a substantial number of
persons. The category of jobs to be provided in the
Project 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.
5.1.2
Construction of the Project is anticipated to add
approximately $2,500,000 to $3,000,000 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.
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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
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.
5.2 The City will benefit, as can be demonstrated pursuant to Section 1
of Ordinance No. 3815, as amended, of the City, in that needed public
storage space will be generated by the proposed Project and the
clearance of an underutilized and blighted area will be implemented.
The Applicant 4s 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 will receive
substantial benefits through increases in assessed valuation of
property, plus the increased long-term employment opportunities that
will be available to local residents of the City.
PART VI COMMITMENTS
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6.1
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 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.
6.3
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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.
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6.4
The Applicant will supply any additional information, agreements and
undertakings as the City may require as a result 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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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 COllllllon Council of the City of San Bernardino, California
(the "Mayor and COllllllon 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 COllllllon 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 recollllllendations by or appeals from the
Development Review COllllllittee and the Planning COllllllission. The
Applicant acknowledges and recognizes that nothing herein shall be
construed as advance cOllllllitment 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.
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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
cOllllllitments 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.
7.3 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
City.
7.4
Pursuant to Resolution No. 81-108 of the City, as amended by
Resolution No. 81-410 of the City, one percent (11) 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 COllllllon Council may direct
from time to time.
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PART VIII SIGNATURE
8.1 The Wldersigned, 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"
S.P. COMMERCIAL DEVELOPMENT,
a California limited partnership
By:
Mervyn Simchowitz
General Partner
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