HomeMy WebLinkAboutR09-Redevelopment Agency
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REDEVELOPMENT AGENCY-REQUEST FOR ~1SSION/COUftICIL
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ACTION
F'''m: I .
Glenda Ssul, Executive D1rector
tJept: Redevelopment Agency I
Subject:
TEFRA PUBLIC HEARING - SIMA
PAIn'NERSHIP NO. 1 - PROJECT 2
Date: November 8, 1985
Synopsis of Previous CommissioJ/Council action:
I
9-9-85
9-9-85
9-23-85
9-23-85
10-21-85
11-4-85
Approved IDA Resolution 85-7 accepting the application.
Approved IDA Resolution 85-8 authorizing agreement with Bond Counsel
Approved IDA Resolution 85-11 approving the application.
Approved Resolution 85-383 approving application and setting a TEFRA
Public Hearing.
Continued Public Hearing to 11-4-85
Continued Public Hearing to 11-18-85
.,
Recommended motion:
(MAYOR AND COMMON COUNCIL)
a)
OPEN PUBLIC HEARING
b)
CLOSE PUBLIC HEARING
c)
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION W1TH
A PUBLIC HEARING CONDUCTED IN ACCORDANCE WITH SECTION 103(k) OF THE
INTERNAL REVENUE CODE OF 1954 (SIMA PROJECT).
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Signature
Contact person:
GLENDA SAUL
FUNDING REQUIREMENTS:
Amount: $
N/A
Phone: 383-5081
Ward: 1
Project: CCS
Date: November 18, 1985
Supporting data attached:
YES
No adverse Impact on City:
Icil Notes:
Anpnri~ Itp,m Nn
lq
cli-y OF SAN BE~NARDI..JO -
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REQU~ST FOR COUNCIL ACl"ION
STAFF REPORT
Bond Counsel is awaiting a determination from CIDFAC as to whether or not the project
is eligible for CIDFAC financing. Attached is a copy of the letter sent to Don
Backstrom of CIDFAC accompanied by a description of the revised project as seen by
Pacific locations, an independent real estate brokerage firm.
I
Bond Counsel wishes to proceed with the process of securing bond financing since the
developer is anxiouslto close the bond by December 31, 1985. However, both the bond
counsel and developer have agreed that adoption of resolutions is contingent upon
satisfaction by the City that the issue is not eligible for CIDFAC financing and is
eligible under the City Charter as a commercial bond. This determination is to be
made either in writing by CIDFAC or by telephone communications among CIDFAC, Agency
Counsel and appropriate staff.
Below is a recap of the project:
APPLICANT:
SIMA Partnership Number 2
PRINCIPAL:
Allan Fainbarg
Steven Fainbarg
Michael Wimbush
Irving M. Chase
PROJECT:
Acquisition and construction of 8.3 acres.
Nineteen buildings, approximately 100,000
sq. ft. of owner-user and leasable for
industrial and/or research purposes.
LOCATION:
Northeast corner of Mill and "G" Street's
excluding corner.
AMOUNT OF FINANCING:
Not to exceed $6,000,000.
CONSTRUCTION SCHEDULE:
Fourth quarter of 1985 to begin.
INCREASE IN TAX INCREMENT:
1% x 3,477,000 = $34,770.
RESERVE & DEVELOPMENT FEE:
1/4 of 1% x $6,000,000 = $15,000 (if
industrial) -- 1% of $6,000,000 = $60,000
(if commercial).
JOBS:
Estimated 125 full-time jobs.
0078G/EB
11-18-85
75-0264
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1
RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COKMON COUNCIL OF THE CITY OF
2 SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FIRPIBGS~AND
3 DETERMINATIONS IN CONNECTION WITH A PUBLIC H~;eQRoUCTED IN
ACCORDANCE WITH SECTION 103(k) OF THE INTE ~~Ua CODE OF
4 1954 (SIMA' PROJECT) .~~~"'.it~
~~.'iz.:1,~~:I~~
WHEREAS, the City of San Bernardino, califO~i#(.City.), is
5
6 a .home rule city. duly organized and existing under and pursuant
7 to a Charter adopted under the provisions of the Constitution of
8 the State of California; and
9
WHEREAS, pursuant to its home rule powers, the City duly and
10 regularly enacted Ordinance No. 3815, as amended (the
1] .Ordinance.) to finance various types of projects, as ,defined in
]2 the Ordinance, and to issue its special revenue bonds for the
]3 purpose of paying the cost of financing such projects, and has
14 amended the same from time to time; and
15
WHEREAS, the Ordinance is intended to finance the
]6 development of industry and commerce and to thereby broaden the
17
.
employment opportunities and to broaden the tax and revenue base
]8 of the City without any liability to the City whatever; and
19 WHEREAS, the City intends to issue its Floating/Fixed Rate
20 Demand Industrial Development Revenue Bonds, Series 1985, (SIMA
21 Project) (the .Bonds.); and
22 WHEREAS, initial action concerning the issuance of the Bonds
23 was taken by the Industrial Development Authority of the City of
24 San Bernardino (the .Authority.) prior to a deci~fon by the
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25 Authority and the City that the City would issue~~he;Bonds; and
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26 WHEREAS, the Industrial Development Autho~i.~1::pi'eviously
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f- ','
27 adopted Resolution No. 85-7 dated September 9, 1985, and said
28 Resolution No. 85-7 was intended to constitute .official action.
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1 within the meaning of the United States Treasury Regulations and
2 the United States Tax Law which may require official action
,.,:_~M1;~~;'1.h'_ .
3 toward the issuance of the Bonds which may be,tj~~::~~in order
4 the Bonds to be exempt from federal income ta~~~~J1and
WHEREAS, certain provisions contained in 'Section 103(k) of
for
5
the Internal Revenue Code of 1954, as amended (the "Code.), as
6
7 said Section was enacted by Congress under the Tax Equity and
8 Fiscal Responsibility Act of 1982 ("T.E.F.R.A..), require that a
9 public hearing be held in connection with the authorization and
10 issuance of the Bonds for the Project and that an elected
11 representative be appointed to approve the issuance of the Bonds;
12 and
13 WHEREAS, the Council has set a public hearing pursuant to
14 Code Section l03(k) for the issuance and sale of the Bonds to
15 provide funds for the financing of the Project to be located
16 within the City of San Bernardino, County of San Bernardino, as
17 hereinafter set forth and the public notice thereof has been
18 published in The Sun; and
19 WHEREAS, it is in the public interest, for the public
20 benefit and furtherance of the public purposes of the City that
2] certain findings and determinations be made in connection with
22 said public hearing.
23 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
24 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO,
25 CALIFORNIA, AS FOLLOWS:
26 SECTION 1. The recitals set forth
27 correct in all respects.
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true and
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SECTION 2. The Mayor and Common Council, after having
2 conducted a public bearing, notice of which was duly published in
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3 a newspaper of general circulation . ,.,,) accordance
4 with the provisions of Code Section 103 (k), d~, .'~~,j find and
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5 determine that the purposes and intent of the'Or'illaftce shall be
6 furthered by the issuance by the City of the Bonds for the
7 construction and equipping of the Project which consists of the
8 acquisition of an eight (8) acre parcel of property located on
9 the northeast corner (excluding the corner) of -G- and Mill
10 Streets and the construction thereon of individual industrial,
11 commercial and research and development units for lease and/or
'12 sale. The total principal amount of the Bonds is estimated not
13 to exceed six million dollars ($6,000,000). Said Project shall
14 be undertaken by Sima Partnership Number One, a California
15 general partnership. The City intends to issue its Bonds
16 pursuant to the Ordinance in an amount presently estimated not to
17 exceed $6,000,000 for the acquisition and construction of the
18 Project. The Bonds shall be special obligations of the City and
19 shall not constitute a debt of the City nor shall the City be
20 liable for repayment of the Bonds.
21 SECTION 3. The Mayor is hereby appointed as the elected
22 official to approve the issuance by the City of its Bonds for the
23 acquisition and construction of said project in accordance with
SECTION 4. Adoption of this resolution s~\~~~t be
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26 construed as approval of the plans or concept:~f1toerproposed
"~:'.4~.:r.
27 development, nor as an indication that the Mayor and Common
24 Code Section 103(k).
25
28 Council will take any particular action toward granting any
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1 planning, I zoning, or other approval relating to a plan of
2 development. The Mayor and Common
3 evaluate ~ny future administrative
4 solely on ,the information available at the ti
5 including any actions or recommendations by 0
Development Review Committee and the Planning Commission.
6
7 Nothing herein shall be construed as advance commitment or
8 approval as to any such matter, and the applicant is notified
9 that normal planning processing shall be required, in accordance
10 with the standard procedures of the City of San Bernardino, and
11 that applicant will be required to comply with all applicable
12 laws and ordinances of the city, state and federal government.
13
SECTION 5.
All documents drafted 1n conjunction with this
14 proposed bond issue shall contain language emphasizing that
15 neither the general funds of the City nor its Industrial
16 Development Authority shall be liable for the payment of the
17 bonds, but the bonds shall be payable solely from the revenues
18 pledged therein.
19 SECTION 6. This resolution shall take effect upon adoption.
20 I HEREBY CERTIFY that the foregoing resolution was duly
21 adopted by the Mayor and Common Council of the City of San
22 Bernardino at a
meeting thereof, held on the
day of
, 1985, by the following vote, to
23
24 wit:
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4
1
2
3
4
5
6
7
8
9 of
10
II
12
13 Approved as to form:
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AYES.
Council Members
NAYS:
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ABSENT:
City Clerk
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The foregoing resolution is hereby approved this
day
, 1985.
Mayor of the City of San Bernardino
~~d~
15 City Attorney
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em or aD IllXAIDlNO INDUSTRIAL DlViLOPKlNt AlITHOIITY
U'LICAtION
(the Applic.nt BUlt C~lltl Chaptlt ODI, Part. I throulh 'I,
and Chlptlr Two. thl r'Quirld Ippllcation tll ...t bl
lubmlttld b, thl Applicant with thl Application.)
CHAPTII ONI - TIANS"ITIAL INFOIKATION
'.lIT I. IDlNTIFICATION OF AUTHOIITY
A. IUMRevelopment Agency-City of San Bernardino
I. Addrl.. and tll.phon, numb,r
300 North "0" Street, 3rd Fl. (714) 383-5081
C. lam. ot Authotlt, contact perioD
Glenda Saul
,AIT II. IDlNTIFICATION or PUBLIC AGENCY - nlae and addrl..
(above)
PAIT III. IDENTIFICATION OF APPLICANT FIIK
A. ....
SIMA PARTNERSHIP NU~~ER ~~O
I. Addr... and tllephon. numblr
2323 North Tustin Avenue,Suite L, Santa Ana, Ca. 92705
C. Contact ,Ir.on
Irving M. Chase
PAlT IV. CONTACT INFOWTION - naml. addrl" and telephonl nuaber
A. Counl.l to Applicant
Not selected
B. Bond CO\lll"l (415\ 398-3909 San Francisco
David Casnocha, Esq.dBrown,woodI555 C~1if9~nia St.Ca. 94104
C. orhlnal putcha.er. un ,rwrlter. flnanch1 advllor 01'
placllllnt allnt tor thl lond. Bruce Barnum, VP Bank of America
555 California Street, San Francisco,Ca. ~4~04(415) 622-1229
D. TtU.tll, it an1
Not selected
I. 'arins .Slnt, it anr
David Scheppers,Ernst&Whinney.4000 MacArthur Blvd Ste 800
F. Accountant tor Applicant Nel.;rport Beach,Ca.92660 (714) 851-1700
Kay Smith,V.P.Bank of America,801 N. Main St, Sa~ta Ana~Ca92701
o. Ptlncipal ban!tl.) ot Applicant \7141 972-3171
$5,000,000.
PA1T V. KlXlftU! A"OUN! OF 10NDS PROPOSED to BE ISSUED IN
CONJUNCTION WITH THE UNDERTAlING OF THE PROJECT
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,AIT VI. DlTllIIIIIATIOIlS IIQU!STlD &T THIS tIll! (ch.ck .acb
applicabl.)
Public I.llttit
I.locatioll
'inallclal (Artlclt V:
Go~.r"'nt Cod.
S.ctioll '1570, Il Ill.)
,JRr 'II. DOCUKINT CHICI LIST
A. 1ppro~td appllcation and .upportill' document.
I. AuthoritJ d.t.rmillation ot aub.tantlal public ben.tit., ..
certifi.d bJ AuthoritJ SecretarJ or A..i.tant l.er.tarJ
C. COPf ot publication ot acc.ptanc. of application
D. Public a,ancJ appro~al of proj.ct and i..uanc. ot the
bondl. c.rtiti.d b, Cl.rk or Deput, Clerk
I. Motice Dr public hurinC bJ le,hl&th. bod, and c.rtltiecl
con of r'llolution or minut'l lndicatln, appronl ot the
illuance ot the bondl (can be pro,lded when a~ailabla)
r. Appllcant'l tinancial Itat.mentl
G. In~ironmantal lmpact r.port or n.catl~. deelaratlon
I. ADJ otbtr r'lolutionl or documentl relatlD, to actionl
taken b, the Authorit, and the Publlc A,encJ with re,ard to
tbe application
I. IIqulnd documentl nl&tlnc to the Iltuance of bond., al '
applicable (ror thOle document. una~allable at time of
luballllon, indic.te the date of a,aillbilltJ)
All DOCUlllents to l>e p'rovided
1. Loan, LIala or Salt A&reement
2. lond ae,olutlon
3. Dltd of tru.t and/or perlonal property .tcurit,
a,ree.lnt
t. Pr.liminary Ofrlcl.l St.te.ent
5. Orrlcial Statement
6. Guarantee Acr.ement.
7. Bond Counlel', Opinion
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I, CompanJ eoun..l'. Opinion
9. fru.t Ind.ntur.
10. CQlmitaent l.tt.r(.) or pro.p.cti,e ,urcha..r,
and.rvrit.r or plac~nt alent
11. Oth.r
,m VIII. III
CHAPTIR TWO - SUBftISSION INlOlKlTION
'liT I. PUBLIC AGENCY ACTIONS Future Actions to be taken
A. !adu.trial DenloPlMnt AuthoritJ a.lolution or Intent
".olution 10. dated
Ctrtiried bJ
I. A COPJ or the requir.d publication or th. notice or tilinl
aD application in accordance witb Go..rnaent Code
I.ction 91~30(e), d.ted
C. A certiried copy ot the rtlolution or .inut.. bdic.tins
the approyal of the project bJ the Llsf.lat!.. body.
D. A eopJ ot the notic. of the public hearinl of the
1eSi.lati'. body .nd . certiri.d cOPJ or the re.olution or
.inute. indie.tinl approyal.
:
PllT II. IDINTIFICATION OF AND DESCRIPTION OF THE APPLICANT
A. Company Id.ntification
1. Official bUlln... name and addr...
SIMA Partnership Number Two, 2323 No TustinAve.Ste L
2. AnJ DIA'. Santa Ana,Ca.9270S
None
3. Addr... of Applicant" headquart.r. .nd .acb op.ratins
location in C.lifornia
(Same as A,l above )
.. Th. 1.,al torm or the Applicant
a. Corporation
1) OrCicer. of the Corporation - name. .nd
.ddrt....
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b.
2) lIajor Shauhold.re IlO'f. or .r.) - n_. .nd
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3) Itat. ot IDcorporatlon .nd d.t.
4) 'or publlclJ h.ld corpor.tlon., .tock .zch.ne'
on which ll.t.d. If tr.ded oy.r th. count.r, or
aD IASDAQ pl.... Indic.t. th. aarklt aaklr..
P.rtDluhlp
1) I... .nd .ddu.... of I.n.ral ed limited
~.rtner., and .b.re of own.r.hlp
Allan Fainbarg , Michael Wimbush
Steven Fainbarg Irving M. Chase
2) D.t. at p.rtn.r.hip
July 9, 1984
101. Propri.tor.hlp
,
c.
5. lu.ine.. relatlonahlp. - II the AppUcaat .a owner,
lubddl.rJ or .ffiU.ted dlnct1J or Indlr.ctlJ with
InJ oth.r orc.nll.tlon! It '0, Indlc.t. the
nlatloD.blp.
B. Coap.nf Dt.crlptloa
1. IIC Cod. No. ot Companr
N/A
2. Dt.crlption or principal product aad/or .erylce.
Real Estate Development
3. Da.crlptlon or tlrm'. phJ.lcal f.cllltl..
N/A
4. Oth.r taz-.z.mpt flnanclne :
SIMA PARTNERSHIP NUMBER I (National Lumber/Phil & Jim's)
5. 'In.nelal .tattm.ntl tor th. put 3 ,un One statement,1984
a. 'or public corporation, torm 101'. plu. ..t rac.nt
Fora 1012 N/A
b. 'Inanclal Itat.ment'N/A
C. A dllcriptlon, it .ppllc.ble, or th. It.ttwld. .he .nd
location or the oper.tlon. or the Appllc.nt llncludlnc
r.l.ted perlon and principal u.er'IN/A
1. A lllUne or the current Itatewld. operatloas or the
Applic.nt. lncludlns IIEe, location, number or
.mplore.. .nd parroll. N/A
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2. A li.tinc ot the .tat~id. op.r.tion. ot th. Appli~.nt
.pon ll~ltUon ot the proj.~t, ln~ludinl .h.,
location, Dumb.r ot ..plo,... Ind PI,roll.N/A
s.
A lhtlnc
two (2)
lndudiDC
parroll.
ot thl .tat~idl op.ration. ot th. Appli~ant
'tin atter Iloaplttlon ot the proje~t,
.il., location, Dumb.r ot .-plo,e.. and
N/A
4. A li.tinl ot other tal-elempt tinancinl" it an,.
wbi~h th. Applicant or relat.d per. on to the Applicant
ba. obtained within the Unit.d Itate. (e.l. oth.r
lndu.trial develo,..nt bond., pollution con~rol bond.,
.ultit..il, rlntal bou.inl bond., etc.). NfA
PAlT III. DBSCIIP1'ION OF nil PROJECT
A. Project Location and Sit. Information
1.
&ddre.. or oth.r locational indicator and .i.. ot .it.
. attaeb up 8.3 acres at the northeast corner of Mill & G
Streets excluding corner
Dt.~riptlon ot inprovemlnt. on the .it., includiDC
ac., ~urrent u.e and .i.., ln~lud. picture. it
Inl1lbleRaw Land
2.
3. OWnlnbip
I. DOl. appli~'Dt curr.ntlr llVll IiteEscrow to close October .15,
1985.
b. It Applicant dOli not own lite. a dllcriptioD of
1.... arr'nc.~nt., option. or oth.r .vid.nce ot
Applieant'. perai..ioD to u.. .ite, or pl.n. to
aequir. .ite N/A
B. Propo.ed Proj.ct
1. A dl.eription ot the p1'opo..d project
a. 1',p. ot Project (des~rib. In d.tail) Nineteen buildings, apprc
100,000 sq ft of ower-user & leaseable industrial &research
develop~~w buildinl or tacilit,
All new
2) Ilpanalon or ilDproYltmtnt of ..hHnl buildiec
or taeiUt, N/A
3) lew machln.rJ or 'Quipm.nt N/A
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4) "no~atlon ot all.tlns facility N/A
5) Ac;ul.ltlon ot all.tlns tacllltJ N/A
I) Othar N/A
b. I.tlaatad time or conltructlon
1) Ittrt June, 1986
a) COII,pletion December, 1986
c. Principal product., U"I and acthiti.. ot
projact lSIC Coda ot Acti,ity to ba tiD'DcadjN/A
d. Iltia.ted u.atu1 1ita or buildlnl' or equipment
a. Irier IlIorl".tha ezplallllnl wIIJ AppUcnt 11
uDdartaUns projaetTo create industrial & research & develop-
ment sq ft for sale and/or lease
C. proj.et U"I - A Stat_nt of eUSibilltJ of tile Proj.ct
tor tinancinl und.r B.etion '1503 ot th. Act
1. Projact i. tor indu.trial u... a. pr.lcrib.d in
par'lrlpb 11)(1) of Go,.ru.lnt Code laction 91503,
Ind/or tor .urn eODl.nation u... II pr..crlb.d in
p.ralraph (1)(2) or Oovernllllnt Cod. Section 91503 The sq. ft.to be
~g~~;r~T5"q ~!tl(~~ used for purposes set-out in Government Code
it. t lilt.~nt that the Project il not for the gl'l
d.lcrib.d und.r paralrapb (b) ot Go,arnm.nt Cod.
I.ction 91503The sq. ft. to be const;ructed will not b~ used
for the purposes set oue in Government Code Sect. 91503 (b)
3, Any cov.nantl or bond t.~. raltrletinl th. UI. ot th.
taclllti.. or propartJ None
,
'&It IV. COST or tHE PROJICt - Stlta the eo.t. raa.ontbly nac'..Iry
to tha ac;uhition or the lite and eon.traction of the
propo.ad proj.ct tOlather with Iny mlchinery tnd .;uipaant
Dace..lry or conYanlent in connection therewith, Ind
ineludinc IDy utilitl.I, Ieee.. rOld. or Ipportionaeot
tacUni..
A. Eli.tinl Land ~~~1iIiX
1. Contract Price . 750.000.
2. L'Sd, riUns. Khe. I
3. ,..., Permit. Ind/or tile. .
Subtotal
. 750,000.
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II. Architectural &Dd IOlio..rinl
C. Con. traction to.t.
1. lit. Pr.paratloD
(on & off site)
2. lat.rhl.
3. Coo.truetloD Contract.
4, Labor
5. Utlllti.. CODn.ction
lubtotal
D. lIacbtaerl &Dd l;ulPlDlnt
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$132,000
745.000.
. 2,600,000.
'3,477,000.
Bond Counsel
Company Counsel 1. In,olea Co.t .
Credit Counsel
Trustee Z. ~n.tallatlon .
Paying Agent/Registrai b 1
Credi t Agency II tota
Issuing AuthoJity Fees
Private Plac~entIW~Ui~rlol ConltrucUon
Placement Fee r June t Dee)
Letter of Credit Fee rOIl 50% ~ut
Index Fee
-us tee r. rlnanclnl. Lelal, II.c.
\~ . (Pl.... 'P.cit,)
(Fees of Issurance)
G. Contlnl.ncl (It appropriat.)
(1ncluaing Leas1ng Commissions &
toTAL Bonds
. Nt"
. 70.000.
~BO,OOO.
. 193 non
. 4,770.000.
lOti: Projlct eo.tl .., Dot lnclud. vorklnl capital, ao,inl ..p.n....
tanntor)' or aUlIIlptlon, npaJllllnt or ntinaDclDI ot III htl nl
lnd.bt.dn... oth.r than eon.truction lOin..
'AlT V. DESCRIPTION OF TH! PUBLIC BlKIFITS - Pro,ld. a dtleJ'lption or
the pllbllc b.n.rlt. pur.uant to erlt.ria contaln.d In Gov.rnmlnt
Cod. l.cUon 91502.1, which would Iccru. trOlll und.rtaUnl thl
proj.ct. (It applieablt. lntormaUon In thh IIctlon II to b.
liven tor both thl Applicant and all othlr .ntltl.. that will bl
principal ullr. or th. helli ti...) Creation of employment, property tax
and sales tax increment
A. Implorment 8enetltl
1. Currlnt .mployment and payroll by cat'lor,
(manallmlnt, .klll.d, unlklll.d, or .enl.kill.d) of
thll Applicant wi thin the Cl ty/Count, (rull-tilll.
,art-tint tnd Ilalonal)
Estimated: 125 Full-time jobs.
(1 full-time job per 1,000 sq ft + 25%)
-'
4.
I.timat. or decr..... or public
yirtu. or c~l.tion or the proj.ct
welrare or Ilnemplo,..nt co.t.)
..ryic. co.t. b,
l.ucb .. d.cr....d
N/A
",
'&IT VI. DISCIIPTIOII or PUBLIC DITIIIIINT FlOII IISUDCI or BOII!lS D
fill IIAX1IM1 AIIom PIOPOSID II fill UPLICArIOII
A. laplo,aent di.pl.c...nt - viII the c~letioD ot tb.
proj.ct contribut. to jab dhplaclllltllt. l.uch a. r..ultilll
trOll lite cl.aranc. or dlllh. or cOJll).Un& ril'lU)' No
I. In.rI7. aiD.ral or n.tural or cultiy.t.d r..ourc.
cOllnrnUon - vill tb. compl.tion or the proj.ct lud to
bcrland utiliz.tion ot relouree.,Yes, Electrical & gas use age
1. I.ti.at. ot illcr.a..d utillzatloll or r..ourc..
To be determined
2. l.tSute or hcn.... in co.t to the pubUc due to
Illcru..d uUUzaUon None, Industrial users to pay for their
own use.
C. Do.. cOD.truction or the proj.ct, or coapl.tlon ot tb.
proj.ct, bue 'D7 ady.rn .llyirolllHntal lapute, IDClucSlll1
additional v..t. dh~o.a1f'ies, Additional non-toxic waste disposal
which is to be pa1d for by users.
1, I.tlute ot the .Ilyironalllt.l iapact.
2. Includ. copie. ot .n7 reQuit.d InYlrolllUntal Imp.ct
I.pott. N/A
D. Ico~omlc i.pact on th. Cit7, Count7 .nd/or It.t.
1. lati.at. trp.a .nd co.t. or D'W public ..ryic..
nQu!nd b)' th. proj.ct To be determined
2. An.17.11 ot the COltl to the Cltr, Count)' and/or St.t.
ror pubUc iapronlllnt. hcludinl uUUt)' uPlndlnl,
.tra.t laprov....nt.. trarric control .nb.nc.lllnt, .nd
tb. COlt ot tin.ncinl .uch iaprov.m.nta N/A
PAlT VII. IE LOCATION
A. I.alon ror I.loc.tion - It rin.nclnl i. r'Quir.d ror
relocation ot a facUity wi thin the Stat. ot C.Urornia,
documentation that tll. reloc.tlon h due to Olll ot the
tollovlnl:
1. An In.dequ.cy or the ellatlnl tacilit, N/A
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....'
'"
2. I,tlutld 1IIP10JIIIllt &lid pI)'roll UPOII COIIPletlOIl or
projlct To be dtermined
S. I,ti.ltld MPloJlllllt &lid pa)'roll two (2) rear, arter
projlct cOllpleUon To be determined
I,Uute, it IppUclble.
pI,roll In related and
COllPlltloll or thl projlct
5. IndlclUon. it applicable. ot &lIUclPltld Illplct or
thl propo..d nlW Job' 011 probll.' or '''Ire
llnlllploJlllnt or thl bard corl llnlllPloJIDlnt Additional jobs to
lessen unemployment
,. Documelltltlon thlt thl coaphtioll or thl projlct will
retain job, that would Othlrvhl bl lo,t, it
appUcabll N/A
ot incr....d ..,loJlllnt
.ervlce field, due to
To be deter.mined
Ind
the
4.
I. ",ource Con,erYltlon
1. Ixpllnltion Ind documentltlon or I,timlted
cOll..rntlon ot Inlr&1. mineral 01' lIItunl. or
cultl.ltld rl,ourcI' Iri'ill& out ot thl projlct N/A
2. Expllllltlon and docuaentatlon ot thl rlduction or
vutl. IllPro'lllIent or reco"r)' or illtlnliricltion or
uUUlltion ot ruourcu that othlrvhl would bl 1Iu
intentl"17 utilized, wilted or Dot ncoYlnd N/A
c. COII'Wllr IIDetlt'
1. bplanation IlId documlntation ot thl Illpro"mlnt or
lIuaUtr or QUlntitr or productl, Inlr&)' 01' rllated
..nlcu h7 .irtuI ot coaplethn or the projlct N/A
D. Othlr 1llIltit'
1. 11111 project contribute to tbl impronment ot
dltrillle:\tal .niroMlntal tactore? Yes, Removal of vegatation
overgrowth.
2. Will projlc:t contribute to the revi taU lit ion or ,
clluriontld Irea. or will It iner.... Iconolllic
Ulltulnl" or In lrel! Development of raw land to increase
tax base.
3. l,tillllU ot lllcullld local Ind ,tau tu.., te.. Ind
othlr rl,enue. dUI to thl cOlllpletloll ot thl projec:t
Increase real estate taxes
Business license fees
State & local sales tax from industrial producers.
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, ,
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2. A .llllUlcallt "anle In tll. tlra'. operation. that
vould reQuire a dirrerent location N/A
3. A bulldlnl aoratorlllll viler. the uhtinl belUtJ' II
locat.d N/A
4. 1'11. ..hUlll 1.... h 81plrlnl an4 C&Dnot lie renewed
un4.r .conGaic condltion.
N/A
5. An .conallic n..d to 80n clour to the tlnll'.
cu.tomer. or .upplt..
, . oth.r
B. Will tile campanl r.taln i tI current eaplo)'... at tlla n.w
racilit)" N/A
C. Vbat et.p. vill tile callpan)' tate to aitilat. the .tt.ct. at
~. r.locatlon on It. curr.nt .-pIa,...,
1. a.locatlon ..p.n...
N/ A
2. Bu..., carpool., otller tran.portatlon a..i.tanc. N/A
3. Incr.a..d campen.ation N/A
.. Other N/A
D. Document.tlon th.t .uch relocation i. n.c....r)' to pr.,.nt
the r.location or .ub.tantial operation. ot the cOllpanJ'
out.ld, the .tat., or the abandonn.nt ot .ubatantial
oper.tion. or tll. company N/A
.AIT VIII. DI5C1IPTION or tHI Pl0P051D I5SU!NCI or tHE BONDS
,
A. tIP' or plae.=-nt
1. .rint. Bank of Arnerica,Corp.Fin.Dept.5051 San Francisco,Ca
2. PubUc
3. .'lotht.d
B. 'ropo..d t.rm. or tll. Bond.
C. Indicat. .etllod or rinaneint
1. Loan or bond proce.d. by Authorlty to Applicant N/A
Maturity 10 years
2. Lta.e or tacillti.. by Authority to Applicant N/A
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-
:
":
3.
-
ID.tal~nt .all
jppUcaIlt
-
ot tacllltlo.
N/A
bJ' jllthodtJ'
to
" . Otllu
Sale of bonds by placement agent
D. Indicatl tho .0clIrlt)' ot tho bond. and th. ..tbod ot/a,..nt Bonds
secured by a letter of Credit drawn by Bank 0 America
1. jttacb copio. ot trult a,rlonantl and/or otticial
.tat...nt. or pnUllinu7 otticial .tat_nt,
Dnderlrin, paJllont doc_nt To be provided_ upon drafting.
2. Idutit7 rUInUI. to be Illld to pa)' dlbt lonico Cash flow from
sale and or rental of industrial units
I. Idontltr tbl propolld purcbllu ot tbo bOlldl, undorwrlter
or ploc...nt a,lnt tor tba jpplicallt, and attach a cop)' ot
. tllltatin a.no.nt with nch undorwrlter or plac_nt
"Int Bruce Barnum, V.P. Bank of Americ, Corp.Fin.Dept.505l
555 California St., San Francisco, Ca. 94104 (415)398-3909
r. Indicoto whotber tbe bond. aro propoolel to bo hluod in
IIcban,o tor one or IIOro outnandin, bondi, Dr bonelo or
Claill., or part1r in luch IIchan,e and partlr tor Cllh or
proportl. It ao, do.cribl. N/A
to be
-'--
-
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"
,
SIGNATURE
The undersigned as a General Partner of the Applicant hereby
certifies that the undersigned has the authority to bind the
Applicant to contract terms, that this Application to the best
knowledge and belief of the undersigned, contains no false or
incorrect information or date, and this Application, including
exhibits and attachments hereto, is truly descriptive of the
proposed project.
DATED: tkfv">t"' 2-D! l"lrS
"APPLICANT"
TNERSHIP NUMBER TWO
,
M. ase,General Partner
-.------ -- ------ - ,'-
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BROWN, WOOD, IVEY, MITCHELL & PETTY
\
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555 CALIFORNIA STREET
SAN FRANCISCO, CALlF"ORNIA 94104
ONE: WOALD TIIt....OE CENTER
NEW TORK,H.T.I004S
212-1138.5300
....ls-3es-3IiitOIiit
October 30, 1985
Donald Backstrom
California Industrial Financial
Advisory Commission
9800 S. Sepulveda #820
Los Angeles, CA 90445
Re: City of San Bernardino
Industrial Development Bonds
Dear Don:
Several weeks ago I brought a transaction in the City
of San Bernardino (the "City") to your attention which I
felt was inappropriate for financing under the California
Industrial Development Financing Act (the "Act"). This
financing was proposed by the City for a project developed
by Sima Partnership Two (the "Developer") and for which
the Bank of America had agreed to issue an irrevocable
direct-pay letter of credit. Bank of America Capital
Markets Group, via Bruce Barnum is the placement agent
for the bonds.
The project involves the construction of 26 buildings
on a vacant site zoned for industrial uses in the City.
While the Developer does not use the words "industrial park"
it seems to me as if those words apply to the project. It
has been represented to me by Bruce Barnum that he contacted
the California Industrial Development Financing Advisory
Commission ("CIDFAC") and was advised that the project was
not eligible for financing under the Act either because the
Developer did not have tenants committed to the various
buildings or because the project was not sufficiently
"industrial" or "manufacturing" to qualify under the Act.
The City is a charter city and otherwise has the Authority
to issue industrial development bonds for the project.
In an attempt to determine if the project qualified
under the Act I solicited the enclosed letters, one from
the Developer and one from a broker in San Bernardino. They
are self-explanatory and seek to demonstrate that the project
is not exclusively industrial or manufacturing.
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Donald Backstrom
October 30, 1985
Page Two
In order for the City and Brown Wood to proceed with a
financing authorized by the charter of the City I am requesting
that you review the enclosed, speak, if necessary, to Bruce
Barnum, myself or Michael Winbush of the Developer about the
project and finally direct a letter to my attention indicating
that the project is not CIDFAC eligible.
As you might expect all parties concerned want to close
the transaction in December. I understand how busy you must
be but I hope that your attention can focus on our dilemma
at your earliest convenience.
At your suggestion I am sending a copy of this letter
and the exhibits to Walt Weisner of the State Attorney's
office.
Very truly yours,
~ (]u:zO g C~o,-L
David G. Casnocha
DGC/sz
Enclosures
cc: Walt Weisner, Esq.
Bruce Barnum
Ellen Bonneville
Allan Briggs, Esq.
Mary Grover, Esq.
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4'0 .
SIMA ~TNERSHIP NU,~3R ONE
2323 No~~h Tustin Avenue, Suite L
Santa Ana, Calif. 92705
October 11, 1985
David G.Casnocha, Esq.
Brown, Wood, Ivey, Mitchell & Petty
555 California Street
San Francisco, Ca. 94104
RE: SIMA Partnership Number One - Project Two
San Bernardino, Ca. (Mill & "G" Streets)
Dear David:
Per our conference telephone call of Thursday, October 10, 1985,
this letter will serve to more clearly define the intended uses
of the above project. The projects users can be classified
by what products and services are provided:
1. Automotive repair and/or maintenance.
2. Retail sales and/or service and;
3. The repair, re-finishing and/or re-conditioning
of existing products,all types of inst~llation contracters.
For lack of a better work, we have termed the th1rd group as
"industrial" for the City has defined such as industrial.
The square footage devoted to each classification is as follows:
1. Automotive repair and/or maintenance is 5,600 sq ft.
(5%) ;
2. Retail sales and/or service is 15,300 sq. ft. (15%)
and;
3. The industrial is 82,800 sq. ft. (80 %). The total is
103,700 square feet.
The types of tenants that would typically be found amongst the
automotive users would be the repair and maintenance of vehicle
brakes, radiators, engines, tires, sheeks, emission systems,
carburetors, mufflers, transmissions, body and fender, air-
conditi.oning, electrical systems and the like.
The tenants found i.n the retail classification would be any
business selling a legal product or service. Examples of such
products would be stores selling vehicle parts, paint, garden
supplies, furniture, appliances, clothes and services related
to such products.
-~
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RE:
I, ,
SIMA Partnersh1p Number One - ProJect Two
San Bernardino, Ca. (Mill & "G" Streets)
I
I
The uses fouAd in the industrial classification would be
any tenant repairing, re-finishing or re-conditioning an existing
product which might include the following: landscaper, sign con-
tractor, pluffibe~, sheet metal contractor, lumber framer, roof
repairman, transmission re-conditioner, vehicle battery re-
conditioner, Idoor installer, air conditioning repairman, drywall
installer, cabinet installer, tool re-conditioner and the like.
,
I hope that the above clarifies the definition of our uses. If
not, please contact me or Irving M. Chase.
Thank you.
, SINCERELY YOURS,
~Po/ :ARTNERS~HIP NUMBER ONE
if:: q ~~C-
~ICHAEL R. WI USH, Gener~ner
MRW:enun
1
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PACIFIC LOCATIONS
I
INDUSTRIAL & COMMERCIAL REAL EST A TE BROKERS
I
.
INDIVIDUAL MEM8ERSt-l'~
SOCff'TY Of; INDUSTRIAL REAL TORS
RICHARD RHODES. S.I.A
October 28, 1985
Messrs Fainbarg, Chase & Wimbush
SIMA II I
2323 N. Tustin Avenue
Santa Ana, ,
California 92705
RE: Mill Street Project, San Bernardino, California
Gentlemen:
In our continuing attempt to update you on the proposed marketing
concepts for your new San Bernardino project, we would like to comment
on the revised site plan, and what we see as the potential market for
the building mix.
Overall, of course, the whole project, with the possible exception of
Building 26, is set up to meet the needs of the largest industial
user market. That market is the small business service and product
manufacturer and distributor.
Specfically, we see buildings I and 2 as being ideal for automotive
related uses. This segment of the market has become one of the most
active in the past two years and is a perfect fit for an industrially
oriented development. There are two reasons why I feel these two .
buildings work so well for this market. First, the bay dimensions and
unit sizes (approximately 700 square foot increments) are perfect for
automotive users, and, second, it is always desirable to have this type
of occupant separate from the rest of a mixed use development.
Potential users will include shops for battery and electrical service
and repair, wheel balancing and alignment, radiator repair and replace-
ment, upholstery shops and general automotive repair shops as well as
specialists in carburetors, transmissions,headers and brakes. The
final use would be'a support wholesale-parts distributor.
Buildings 3 through 25, which make up the majority of the development,
provide ideal space for the largest segment of the industrial market.
The 3,000 - 4,500 square foot space ~s occupied by the small business
tenant that has typically survived the problems of starting up a business
and this represents their second or third move up from incubator space,
or, the tenant will be an older, established company that is comfortable
at that size. In either case, these tenants will invariably employe
four to six people.
We see occupancy in these buildings coming primarily from the contractor,
.~ and service businesses. These properties, which provide excellent
facilities with enclosed year spaces, are ideal for all types of
construction contractors including air conditioning companies, framers,
170 N, ARROWHEAD AVENUE, SUITE D RIALTO, CA 92376
(7J 4) 820-0900
~- -.,..
.
. ..
"'r
October 28, 1985
RE: Mill Street P~oject, San Bernardino, California -2-
roofers, plumbers, I electrical and drywall contractors and the whole
line of product and service oriented companies requiring manufacturing,
warehouse and distribution space.
Finally, we feel very strongly that Building 26 will be best retailized
as a retail or quasi-retail wholesale occupancy taking advantage of the
commercial quality of the Mill Street frontage. The recent opening of
the new National Lumber and Phil and Jim" s retail outlets irrunediately
across the street have created a highly exposed corrunercial value to
Mill Street frontage. This type of use is-certainly the highest and
best use for Building 26.
As the project progresses to completion we will continue to refine the
marketing plan and user profiles. If you have any questions, please
don't hesitate to give us a call.
Sincerely,
~~~C
C
'-iIC RHODE~
ERRYNE 0' BRYAN
RR:EO'B:emm