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Home My WebLink AboutR08-Redevelopment Agency . - .. - ,.",-- ..-........... . RE6..:VELOPMENT AGENCY-OUEST FOR ~MMISSION/COUNCIL A~ION . From: Glenda Saul, Executive Director Subject: ELECTION FOR $10,000,000 LIMITATION - IRS CODE OF 1954 - RIO BERNARD (ANDRESON BUILDING) "- Jt: Redevelopment Agency Date: October 14, 1985, 1985 Synopsis of Previous Commission/Council ection: 12-7-81 Inducment Resolution 81-596 adopted for the issuance of IDB financing for the Andreson Bldg. Project (Rio Bernard, Inc.) 1-9-84 Resolution adopted setting Public Hearing 1-23-84 Resolution 84-27 adopted following TEFRA Hearing 12-20-84 Resolution 84-559 adopted following second TEFRA hearing 12-20-84 Resolution 84-560 adopted authorizing and providing for the issuance of an Industrial Development Bond. A_~-Sl~ A~nph'~ R..anll1t-inn ,,"t-hnrh,ina Nnti"" nf Public Hearin2 - TEFRA (Cont. P2) Recommended motion: (MAYOR AND COMMON COUNCIL) ,- f RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, DECLARING ITS ELECTION TO HAVE THE $10,000,000 LIMITATION OF SECTION 103(b) (6) (D) OF THE INTERNAL REVENUE CODE OF 1954, AS AMENDED, APPLY TO IT'S CITY OF SAN BERNARDINO, INDUSTRIAL DEVELOPMENT REFUNDING BONDS, SERIES 1985 (ANDRESON REFUNDING PROJECT), AND MAKING CERTAIN DETERMINATIONS RELATING THERETO '- ~u Signature Contact person: GLENDA SAUL Phone: 383-5081 I Supporting data attached: YES Ward: FUNDING REQUIREMENTS: Amount: $ NIA Project: Mlcc No adverse Impact on City: Date: October 21, 1985 Cl;u.lncil Notes: ~ 1447J/EB Agenda Item No. ~ . CIH OF SAN BERNARD~ - REQU~T FOR COUNCIL AC..:iON STAFF REPORT ~. In December 1984 the City sold a 4.9 million dollar Industrial Development Bond for the Andreson Building Project under the name of Rio Bernard. The bonds were sold at an interest rate of 13%. (The project was induced for $5.9 million) The applicant would like to refund the issue in order to reduce the interest rate. Past policies on refundings have imposed the same fee structure as adopted for initial IDB issues, i.e. $500 inducement fee, $10,000 upon public hearing, and 1% of the funded amount upon closing of the bond. The item went before the Redevelopment Committee on July 23, 1985. The Committee recommended that the refunding be approved, but that the fees would have to be paid again for the refunding of the bond. The refunding bonds would be issued under the original Inducement Resolution and will not impact the City's IDB allocation so long as the principal amount issued is equal to or less than the bonds being redeemed. If the refunding bond is issued for $5.9 million, one million of the city's 1985 allocation would be used. A TEFRA Hearing was held on Septemer 9, 1985. Below is a recap of the 1984 IDB. ,,- '- PRINCIPALS: Rio Bernard, Ltd. AMOUNT OF FINANCING: $5,900,000 PROJECT: Refurbish and rehabilitate the building known as the Andreson Bldg. LOCATION: 320 "E" Street TARGET DATE OF FINANCING: December 31, 1985 CONSTRUCTION SCHEDULE: Ongoing INCREASE IN JOBS: liO RESERVE AND DEVELOPMENT FEE; 1% of $5,900,000 - $59,000 The Resolution before you today is required by the Internal Revenue Code of 1954 in order to issue the bond. 1447J/EB 10-21-85 ,,..- '- 75-0264 \." . /""'....... v 'I '-, San Bernardin ) 60,009-58-1 '- , . '- RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, DECLARING ITS ELECTION TO HAVE THE $10,000,000 LIMITATION OF SECTION 103 (b) (6) (D) OF THE INTERNAL REVENUE CODE OF 1954, AS AMENDED, APPLY TO IT'S CITY OF SAN BERNARDINO, INDUSTRIAL DEVELOPMENT REFUNDING BONDS, SERIES 1985 (ANDRESON REFUNDING PROJECT), AND MAKING CERTAIN DETERMINATIONS RELATING THERETO - (ANDRESON REFUNDING PROJECT) - WHEREAS, pursuant to Ordinance No. 3815 (the "Law") the city of San Bernardino (the "City") has previously issued its city of San Bernardino, Industri~ Development Revenue Bonds, Series 1984 A (Andreson Building Project) (the "1984 Bonds"); and """ WHEREAS, the city has taken proceedings leading toward the issuance and sale of its "CitY of San Bernardino, Industrial Development Refunding Bonds, Series 1985 (Andreson Refunding Project)" (the "Bon,ds"), to obtain moneys to assist in refunding the 1984 Bonds; and --- "- WHEREAS, the prov~sions of Section 103 (b) (6) (D) of the Internal Revenue Code of 1954, as amended (the "Code), apply to the issuance of the Bonds, and it is necessary that the city make an election to have the $10,000,000 limitation in the manner hereinafter set forth. -1- JWB443:443.9 10-10-85 (JAS:bl) , -. \..v . ~ -- '- /-. '- ,..-' r"" -..) ~-...... San BernardinI....) 60,009-58-1 '-' NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CIT',t OF SAN BERNARDINO DO HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals are true and correct in all respects; and all actions heretofore taken , by or a~ the direction of the City and its officers directed toward the sale and issuance of the Bonds therefor a hereby approved and ratified. Section 2. The Mayor and COllllllon Council, acting for and on beha1f of the city, hereby elects to have the $10,000.000 limitation provided for in Section 103 (b) (6) (D) of the Code apply to the Bonds. Section 3. The City Clerk is hereby authorized and diracted to file a certified copy of this Resolution with tha District Director of the Internal Revenue Service in Fresno, California. Section 4. Effecilve Date. This Resolution shall t~ke effect upon adoption. -2- JWB443:443.9 10-10-85 (JAS:bl) I \............ [., ~ ......,; '-.(' San Bernardinl-1 60,009-58-1 - 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: A,jtlA~~ ~~~c~ty Attorney , ,- -;-:~ --- I '- -3- JWB443:443.9 10-10-85 (JAS:bl)