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HomeMy WebLinkAboutR10-Redevelopment Agency f, , RB-::VELOPIENT AGENCY .L.auEST FOR ~~ISSION/COUNCIL. AC(ION From: Glenda Saul, Executive Director Subject: TEFRA PUBLIC HEARING - S. P. COMMERCIAL DEVELOPMENT _..pt: Redevelopment Agency Date: November 12, 1985 Synopsis of Previous Commission/Council action: Ordinance 3815 providing for the issuance of industrial development bonds 10/7/85 11/4/85 Adopted Resolution 85-390 - inducement resolution Continued to November 18, 1985 Recommended motion: (Mayor and Common Council) Open Public Hearing Close Public Hearing RESOLUTION OF THE MAYOR AND 'COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON A CERTAIN INDUSTRIAL DEVELOPMENT BOND FINANCING AND THE ISSUANCE BY THE CITY OF INDUSTRIAL DEVELOPMENT REVENUE BONDS IN A MAXIMUM PRINCIPAL AMOUNT NOT TO EXCEED $1,400,000 (S.P. COMMERCIAL DEVELOPMENT PROJECT) , ".1;'.) \'}.-) LP.......'r\~ /~/~U1d{l(J'd!'l) S gnatu re Contact person: GLENDA SAUL FUNDING REQUIREMENTS: Amount: $ N/A Phone: 383-5081 3 Ward: Project: SV Date: November 18, 1985 Supporting data attached: YES No adverse Impact on City: r -'mcil Notes: . Agenda Item NO," / D . CI\,../ OF SAN BERNARDL.O - REQUL. JT FOR COUNCIL AC' ~':ON STAFF REPORT Ordinance 3815 provides for the issuance of Industrial Development Bonds. received an application from S.P. Commercial Development. The application commercial project and, therefore, is not subject to CIDFAC approval. Staff has is for a 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: 51.4 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, 1985 CONSTRUCTION SCHEDULE: I phase completed within 4-6 months from date of commencement INCREASE IN TAX INCREMENT: 51,025,000 x 1% = 510,250 RESERVE AND DEVELOPMENT FEE: 51,400,000 x 1% = 514,000 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. The resolution before you today makes certain findings and determinations pursuant to the Tax Equity Fiscal Responsibility Act (TEFRA). Both the developer and bond counsel will be present to answer any questions you may have. 0782K/EB 11/28/85 75-0264 -- For Jour review. below i. . .t.tUI report of the Owner participation Aara-.ent with SP to-ef"C: tal l)evelo,..nt: IV - IP COllII!UCAL ~1lT ., Develo~nt - CoDltruct . Indu.trial/to..ercial a.tail u.. Suildiaa Schedule of Dey.lo~nt Pro1)O.ed Under A&re.-ent ~ ~ Coaptation nate ~ Completion ~ 1 April 85 tl,840,OOO.00 5opt. 85 *3,140,000.00 2 April 87 *1,344,000 00 To .tart Jan. 86 (C..piaa World) 3 April 89 * 379,000.00 1'0 .tart Hal'. 86 (Hini Storace) 4 April 91 * 882,100.00 5 April 93 * 900.000.00 6 April 95 * 900,000.00 7 April 96 tl,460,OOO.00 8 April 97 $1,905,000.00 b) Aaancy Participation Off Site Coltl *2,037.860.00 eo.aittad (Aeenc, Share) CoDtract A "42,608.00 C.rolime/Concourle/Flood Contract Include. Utility Trenching and CO', 1-6 Cootl'ac:t B * 50,808.00 Crading Contract C *105,022.00 ..dlandl/Caroline . COI, 1-2 Contract C $180,532.00 Hunt. Lane Storm Drain SV Portion of Contract Only Contract E * 82,659.00 Traffic: Siloall SV Portion Only Contract D *112,144.66 Huntl Lane Soil lnveatia'tioD. ED&ineerin~ City Feea . Utilitie5 *330,267.00 BALANCE ($1.704.040.661 * 333,819.34 Work aeaainina *Conu'act , * 20,000.00 Railroad ero'ling *!.t i.ate ...u.ea ...Urold Crant 'an ic1plt ion. If &rlnt i. not .pproved, ..ti.ate i. &150,000 to be .pent SO/50 vith Colton. 0080C/SL 11-18-85 SBE003-83(1020)/1157S/cb 11/08/85 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON A CERTAIN INDUSTRIAL DEVELOPMENT BOND FINANCING AND THE ISSUANCE BY THE CITY OF INDUSTRIAL DEVELOPMENT REVENUE BONDS IN A MAXIMUM PRINCIPAL AMOUNT NOT TO EXCEED $1,400,000 (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 and regularly enacted Ordinance No. 3815, as amended (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, the Ordinance, as amended, is intended to finance the development of industry and commerce and to thereby broaden the employment opportuni ties and to increase the avai labi li ty of commercial 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 - - . WHEREAS, the Mayor and Common Council of the City of San Bernardino, California (the "Mayor and Common Council"), pursuant to its Resolution No. 85-390, dated October 7, 1985, has accepted the application for financing (the "Application") as submitted by S.P. Commercial Development, a California limited partnership, or its successors or assigns (the "Company"), requesting the issuance of industrial development revenue bonds ln the principal amount not to exceed one million four hundred thousand dollars ($1,400,000) for the purpose of providing financing, on beha If of the Company, for a certain Proj ect, 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 155 West Caroline Street in the City and which Project shall consist of said facility, on-site vehicle parking spaces as required by the City, appurtenant landscaping and other improvements; and WHEREAS, the Mayor and Common Council, pursuant to its Resolution No. 85-390, has declared its intention to authorize and issue tax-exempt bonds or other obligations of the City for the purpose of providing for costs of financing the Project of the Company, as described herein and in said Application and the costs of issuing such bonds, upon such terms and condi tions as may be ag reed upon by the Ci ty, the Company and the purchasers of the bonds, without any liability to the City whatsoever; and . - 2 - WHEREAS, the Mayor and Common Council has been requested to conduct a public hearing pursuant to the Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code.), for the issuance and sale of said tax-exempt bonds; and WHEREAS, the Mayor and Common Council has, pursuant to Code Section 103(k), set a public hearing on the issuance of the bonds for November 4, 1985, and has authorized the publication of notice thereof which has been duly published in The Sun; and WHEREAS, the Mayor and Common Council has, by appropriate motion, continued said public hearing to November 18, 1985; and WHEREAS, the Mayor, and Common Council must now approve the findings and determinations to be made in connection with said public hearing. 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. The recitals set forth hereinabove are true and correct in all respects. Section 2. created, established The and City is a authorized municipal corporation to transact business duly and exercise its powers, all under and pursuant to the Constitution and - 3 - --- ~ 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 issuance of bonds or other obligations of the City for the Project shall be authorized by resolution or resolutions of the Mayor and Common Council to be adopted at a meeting or meetings to be held for such purpose, subject to the execution of the appropriate project agreements and such other requi red ag reements by the Company and the Ci ty, and that any such agreement regarding the tax-exempt bond financing of the Project by - 4 - - ~ the City shall specify that the bonds which may hereafter be issued in connection with the Project are special obligations of the City, the bonds shall not constitute a debt of the City and that the general fund of the City shall not be liable for repayment of the bonds. Section 7. The Mayor and Common Council, after having conducted a public hearing, notice of which was duly published in a newspaper of general circulation within the City and which hearing was continued to November 18, 1985, by appropriate motion, as said public hearing is required pursuant to the requirements of Code Section 103(k), does hereby find and determine that the purposes and intent of the City's industrial development bond financing program providing for the authorization and Issuance of industrial development revenue bonds to provide financing for the Project undertaken pursuant to the Ordinance, as amended, will be furthered by the issuance of the bonds in the maximum principal amount not to exceed $1,400,000 for the purpose of providing financing for the Project. Such bonds shall be in the principal amount presently -, estimated not to exceed $1,400,000 and upon such terms and conditions as shall be set forth in the appropriate documents prepared in connection with the bonds, and said bonds shall be issued solely for the Project. The Mayor and Common Council hereby finds and determines that the public purposes and benefits as set forth in the Ordinance, as amended, will be furthered by the issuance of the bonds in that the bonds will provide financing for the Project, that such financing will thus make the Project a - 5 - ~ financially viable and productive industrial development and thereby provide for the accrual of each of the public benefits from the use of the facilities as proposed in the Application as submitted by the Company to the City. Section 8. The Mayor and Common Council hereby appoint the Mayor of the City to serve as the elected official to approve the issuance of the bonds pursuant to Code Section 103 (k) at such time as the City shall have approved the necessary financing documents and agreements. Section 9. Adoption of this Resolution shall not be construed as approval of the plans or concept of the proposed development, nor as an indication that the Mayor and Common Counci 1 will hereafter take any particular action toward granting any planning, zoning, or other approval relating to a plan of development. The Mayor and Common Counci 1 reserves the 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 the Company is hereby notified that normal planning processing shall be required, in accordance with the standard procedures of the City and that the Company will be required to comply with all applicable laws and ordinances of the City, State and federal government. - 6 - - ... Section 10. This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the Ci ty 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: Ci&~~ - 7 - -- .. . STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss. CITY OF SAN BERNARDINO ) I, SHAUNA CLARK, Ci ty 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 the City of San foregoing and attached copy is 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 ~ - - 8 - --- -.. ...... - 1,020-67/0926S/krl 10/01/85 APPLICATION OF S.P. COMMERCIAL DEVELOPMENT FOR INDUSTRIAL DEVELOPMENT REVENUE BOND FIt\ANCING CITY OF SAN BERNARDINO. CALIFORNIA PART 1 GENERAL ~~ 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 mai ling address and the address of the Applicant is as follows: S.P. Commercial Development 1950 South Southwest Lan~ 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 0"'11 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 (501) interest therein and is the general partner of the Applicant (the "General Partner"). Pearson Land Ltd., a California limi ted partnership, owns a fifty percent (501) interest therein and is the limited partner of the Applicant (the "Limited Partner"). EXHIBIT "A" - 1 - ~ ~ .- ... 1.9 Mr. Mervyn SilIIchowitz 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 encased in the development of commercial, industrial and residential property in California. Mervyn Simchowitz is a principal in the Simchowitz Corporation, which corporation has its resume attached hereto as Exhibit "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 1.11.2 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. The Applicant bas offices at the above listed address. 1.12 Professional services will be provided by the following: 1.12.1 \ 1.12.2 1.12.3 1.12.4 1.12.5 1.12.6 Dennis Grant of Weil". Higashi, Sallal , Ettinger, 233 Wilshire Boulevard, Suite 600, Santa Monica, California 90401, is the accountant for the Applicant. Robert H. Morrison, Esq., of 25201 Paseo De Laicio, Suite 101, Laguna Hills, . California 92673, is the attorney f9r the Applicant. 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. Principal Architect - Bessey-Brown-Boffman, 6809 Avenue, Suite 203, Riverside, California (714) 683-2310. Magnolia 92506, Principal Civil Engineer John Engineering, 2627 South Waterman San Bernardino, California 92408, (714) Starner Avenue. 824-1819. of C.G. Suite E, 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 92401, and the officer at said bank responsible for such account is Peggy Merryman. . - 2 - ---..... ..- --.. .- ..... ... 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 Legal, printing and related fees - $30,000 2.1.2 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 cODlDence as soon as possible after the financing package is completed and the Project shall be completed in one (1) construction pbase which shall take between four (4) and six (6) 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 permi t. an interes t rate adjus tment 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 commercial 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 - 3 - ~-~ -.~ ~ - ..... size in comparison with other such businesses undertaking projects of this type. No federal small business loan suarantees 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 .ball 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 Tbe 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 "iscellaneous 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: 4.3.1 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 one (1) phase and be completed within four (4) to six (6) months from the date of commencement. - 4 - ~~ ~ .--- ~ . 4.4 The supervising architect responsible. for the design of the Project on behalf of the Applicant shall be Bessey-Brown-Boffman. . 4.5 The Project shall be known as the "S.P. COIIIJIercial Development Project". 4.6 The public storage facility is the development of . Dew complex and is not an expansion or an alteration of an exiatinl 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 on 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. 4.9 4.10 4.11 4.12 4.13 , 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. 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. Bowever, 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 Project to be undertaken by the Applicant. 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 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. - 5 - - --- - ~~ PART V PUBLIC BENEFITS 5.1 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 ~o. 3815, as amended, of the City. Due to the fact that conventional interest rates for construction and permanent financinc 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 upon 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 5.1.2 The Prbject will provide long term employment opportunities for the inhabitants of the City of San Bernardino. "'hen 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. 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. - 6 - -~- -- . ...... ... 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 permi t 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 aources of financing to the Applicant and such financing will be -.de 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 senerated 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 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 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 CODlDitS 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 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 oblisations 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. - 7 - .-. --" .. 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. 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 COlllDOn Council of the City of San Bernardino, California (the ''Mayor and COlllDOn 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 COlllDOn 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 Coamittee and the "..Planning COlIIDission. The Applicant acknowledges and recognizes that. nothing herein shall be construed as advance cOlIIDitment 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. H this Application is accepted, an additional fee of $10,000 is payable for administrative costs. The Applicant acknowledges that the cOlIIDitments 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 COlIIDon Council may direct from time to time. - 8 - ~- - -- - .- .- - ... PART VIII SIGNATURE F 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 tbat the undersigned has the authority to bind the Applicant to contract teras; 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 DEVELOP~vr, a California limited partnership ,- By: Mervyn Simchowitz General Partner - 9 - -~'3'8]~ . ji:n~ ~-"- :". i'~'I. BIt""" -,,,-,-,'.u.'-'-.'-_. -".1;; r < i..i;... 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