HomeMy WebLinkAboutR21-Redevelopment Agency
MENCY-.fi!bu.ST FOR ~/COUNCIL A~ION
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Glenda Saul, Executive Director
Subject:
SETTING TEFRA PUBLIC
HEARING AND RATIFYING
PUBLICATION OF NOTICE
CAL-SHEL PROJECT
Redevelopment Agency
Dam: November 25, 1985
Synopsis of Previous Commission/Council ection:
10/1/84 Adopted Resolution 84-383, inducement resolution
6/17/85 Community Development Commission adopted Resolution 4770 reinducing
the project for a Redevelopment Agency issue
7/1/85 Adopted Resolution 85-237 - TEFRA Public Hearing
Recommendad motion: (Mayor and COIIIIIOn Council)
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, AMENDING A CERTAIN APPLICATION AND RATIFYING Tj!E PUBLICATION OF A
NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF APPROXIMATELY~27,OOO,000 PRINCIPAL
AMOUNT OF MULTIFAMILY MORTGAGE REVENUE BONDS BY THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO (CAL-SHEL PROJECT)
(ADOPT WITH CHANGES RECOMMENDED BY AGENCY COUNSEL)
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, Signature
Contact person:
Sl-.;;;uda 3r;1.ul
Phone: 383-5081
Supporting data attschad:
FUNDING REQUIREMENTS:
Amount: $
N,'A
Ward: 5
Project: se
......ES
No adverse Impact on City:
C'Cil Notes:
Date:
uecember 2, 1'8)
0870K/EB /2-"/
12/2/8~genda Item No. ~
.' CIO OF SAN BERNARDOO - REQUOT FOR COUNCIL ACOoN
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75-0264
STAFF REPORT
The application before you was originally induced in October 1984 as a City
issue. Subsequently, the State cap for Multifamily Mortgage Revenue Bonds has
been reached. On June 17, 1985, the Community Development Commission approved
Resolution 4770 reinducing the project as a Redevelopment Agency issue. The
resolution before you is for the TEFRA public hearing (Tax Equity and Fiscal
Responsibility Act). A TEFRA public hearing was held on July 1, 1985. However,
bond counsel has requested another TEFRA hearing since the developer has
requested an additional $2,000,000 in financing.
The name of the project has been changed to Cal-Shel; however, the principals
remain the same.
The applicant is ready to pursue financing. Below is a recap of the project.
Applicant:
Carousel Development & Associates
Principals :
Carousel Development, Inc. - 25%
Van Maron Construction, Inc. - 25%
Block Group Developments - 50%
Financing :
$27,000,000 (amended from $25,000,000)
Purpose:
Construction of 720 apartment units in 35
two-story buildings located on a 43-acre site to
include three swimming pools and 1,600 vehicle
parking spaces
Location:
Shand in Hills - on the north side of Kendall Drive
approximately 1-1/2 miles west of Little Mountain
Target Date of Financing:
December 1985
Construction Schedule:
1st quarter, 1986 to start
3 construction phases
18-30 months to complete
Jobs:
During construction, approximately 200
After construction, 12
Project Cost:
$21,582,288
1% of $21,582,288 ~ $215,823
(State College Project)
Increase Tax:
Reserve & Development Fee:
1% x $27,000,000 ~ $270,000
1 bedroom - $460!mo. (360 units)
2 bedroom - $490!mo. (360 units)
720 Units
Rental Schedule:
0870K!EB
12/2/85
1 CI'Cf OF SAN BERNARDCO - REQUOT FOR COUNCIL ACOoN
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75.0264
STAFF REPORT
In order for the City to issue Multifamily Mortgage Revenue Bonds under our IDB
Ordinance, the applicant must agree to rent 20 percent of the units to
low/moderate income families for as long as the bond is outstanding. The
applicant agrees to this covenant in the final bond documents.
The project location is zoned R-l and PRD (Residential, Planned Residential
Development) and the project would have approximately 16.74 units per acre. The
applicant will not request a density bonus.
0870K/EB
12/2/85
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SBE069-2/l273S/rw
11/25/85
RESOLUTION NO.
RESOLUTION SF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING A
CERTAIN APPLICATION AND RATIFYING THE PUBLICATION
OF A NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF
APPROXIMATELY $27,000,000 PRINCIPAL AMOUNT OF
MULTIFAMILY MORTGAGE REVENUE BONDS BY THE
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO (CAL-SHEL PROJECT)
WHEREAS, the Community Development. Commission of the City
of San Bernardino (the "Commission"), as the Redevelopment Agency of
the City of San Bernardino (the "Agency"), is authorized by the
Community Redevelopment Law of the State of California, constituting
Part 1 of Division 24 of the California Health and Safety Code (the
C "Community Redevelopment Law"), to issue and sell its multifamily
mortgage revenue bonds for the purpose of enabling the developer to
pay the costs of financing the development of multifamily rental
housing located wi thin survey areas and redevelopment project areas
of the Agency; and
WHEREAS, Carousel Development and Associate, a California
general partnership, or its successors or assigns (the "Applicant"),
has previously submitted a certain application (the "Application")
to the Mayor and Common Council of the City of San Bernardino,
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California (the "Mayor and Common Council"), for tax-exempt
financing for a certain multifamily rental housing development
pursuant to Ordinance 3815, as amended, and .the Applicant has
previously requested the Agency to issue and sell its multifami ly
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mortgage revenue bonds for the purpose of providing financing for
C the acquisition and construction by the Applicant of a multifamily
rental housing development as more fully described in said
Application (the "Project") pursuant to the Community Redevelopment
Law; and
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WHEREAS, the Project consists of the acquisition of land
and construction thereon of approximately seven hundred twenty (720)
apartment uni ts in thi rty-fi ve (35) two-story buildings located in
the State College Project No.4 on an approximately forty-three (43)
acre site in the University Park section of the 600 acre master p~an
development known as Shandin Hills, on the north side of Kendall
Drive. and approximately one and one-half (l 1/2) miles west. of
Little Mountain, shall include approximately sixteen hundred (1600)
on-site vehicle parking spaces, three (3) swimming pools,
landscaping, recreation center, barbecue areas, basketball and
volleyball facilities and shall consist of three hundred sixty (360)
one-bedroom, one-bath renta 1 uni ts and three hundred sixty (360)
two-bedroom, one-bath rental units; and
WHEREAS, pursuant to Resolution No. 84-383 of the Mayor and
Conunon Council, adopted on October 1, 1984, the Mayor and Common
Council has previously declared its intent to issue multifamily
mortgage revenue bonds in an aggregate principal amount not to
exceed $32,000,000 for the purpose of financing the Project; and
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WHEREAS, pursuant to its Resolution, adopted on June 17,
1985, and entitled:
...
"Resolution of the Community Development
Commission of the City of San Bernardino
Declaring its Intent to Issue Multifamily
Mortgage Revenue Bonds (Carousel Development and
Associates Project)"
the Commission has previously declared its intent to, issue
multifamily mortgage revenue bonds in an aggregate principal amount
not to exceed $32,000,000 (the "Bonds") and to authorize such
financing by the Agency for the aforesaid purposes and for the
Project pursuant to the terms and conditions of said Resolution
No. 84-383; and
WHEREAS, the City Council. by adoption of its Resolution
No. 85-237 on July 2. 1985 approved the substitution of Cal-Shel. a
California genera 1 partnership. or its successors or assigns (the
"Developer")
for the Applicant as
the beneficiary of said
Resolutions of the Mayor and Common Council and the Commission.
approved the findings and determinations to be made in connection
with the public hearing as required pursuant to Section 103(k) of
the Internal Revenue Code of 1954. as amended (the "Code"). and
declared its intent that the Developer be the beneficiary of said
public hearing.
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WHEREAS, the Ci ty has been requested by the Developer to
accept certain conforming amendments to the Application to effect.
in view of certain' increases in the total anticipated cost of
construction of the Project, an increase in the aggregate principal
amount of tax-exempt financing for the Project to $27,000,000; and
WHEREAS, the certain amendments to Section 103 of 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 various developers to finance the cost of
multifamily rental housing; and
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WHEREAS, the City has been requested by the Developer to
hold a public hearing pursuant to the Code, as amended by
T.E.F.R.A., for the issuance and sale of multifamily mortgage
revenue bonds by the Agency as permitted by the Community Developer
Loan; and
WHEREAS, the City must now approve the requests of the
Developer.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
C ORDER AS FOLLOWS:
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C Section 1. The recitals set forth hereinabove are true
and correct in all respects.
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Section 2. The Mayor and Common Council hereby accepts
and approves the conforming amendments to. the Application of the
Developer, which amendments effect, in view of certain increases in
the total anticipated cost of construction of the Project, an
increase in the aggregate principal- amount of tax-exempt financing
for the Project to $27,000,000.
Section 3. Pursuant to the requirements of Code
Section 103(k), the Mayor and Common Council hereby ratifies and
approves the pUblication of notice of the public hearing by the City
Clerk in connection with the Project referred to in the recitals
hereof to be held in accordance with said Code Section 103(k) on
December 16, 1985, at the hour of 11:00 A.M.. in the Council
Chambers, San Bernardino City Hall, for the purpose of considering
the pUblic benefi ts 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 multifamily mortgage
revenue bonds by the City for the Project pursuant to the Ordinance,
as amended. A public hearing shall be held at the hour and on the
date herein provided for the Project. The Mayor and Common Council
hereby ratifies and approves the action of the City Clerk, which
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Ci ty Clerk caused to be published by at least two (2) insertions,
c:; one of which shall not be less than fourteen (14) days prior to said
hearing, in The Sun, a notice of public hearing substantially in the
form of the notice attached hereto as Exhibit "A" and incorporated
herein by reference and made a part hereof.
Section 4. The Developer shall provide appropriate
covenants in the tax-exempt financing documents as may hereinafter
be submitted to the City 'for consideration and approval in a form
acceptable to the City Attorney and Bond Counsel and to assure that
not less than twenty percent (20\) of the multifamily rental housing
uni ts included in the Project are to be occupied or reserved for
occupancy by the individuals of .low and moderate income as provided
in the Code.
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Section 5. Prior to issuance of any bonds for the
Project as may hereafter be approved pursuant to an appropriate
resolution or resolutions of the Agency and the City, the Developer
shall provide for the recordation of a covenant running with the
land in a form approved by the City Attorney of the City whereunder
the Developer waives any claim under state law to a density bonus,
as defined by Government Code Sections 65915 and 65915.5, for the
property on which the Project is to be constructed.
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Section 6. 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 its right to
evaluate any future adminstrative 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 Developer is hereby notified that normal
planning processing shall be required, in accordance with the
standard procedures of the City and that Developer will be required
to comply with all applicable laws and ordinances of the City, State
and federal government.
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Section 7.
This Resolution shall take effect upon
C adoption.
I HEREBY
adopted by the
San Bernardino at
day of
CeRTIFY
Mayor
a
the foregoing resolution was duly
Common Counci I of the City of
meeting thereof, held on the
, 1985, by the following vote, to wit:
that
and
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
t of
The foregoing resolution is hereby approved this
, 1985.
day
Mayor of the City of
San Bernardino
Approved as to form:
City Attorney
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STATE OF CALIFORNIA )
CCOUNTY OF SAN BERNARDINO) 55.
CITY OF SAN BERNARDINO )
I. SHAUNA CLARK, City Clerk in and for the City of San
Bernardino. DO HEREBY CERTIFY that the foregoing and attached. copy
of San Bernardino ctty 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 "A"
NOTICE OF PUBLIC HEARING BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO.
CALIFORNIA. FOR A CERTAIN MULTIFAMILY MORTGAGE
REVENUE BOND FINANCING AND THE ISSUANCE BY THE
CITY OF MULTIFAMILY MORTGAGE REVENUE REVENUE
BONDS IN CONNECTION THEREWITH (CAL-SHEL PROJECT)
NOTICE IS HEREBY GIVEN that a public hearing shall be
conducted by the Mayor and Common Council of the City of San
Bernardino. Californi a (the "Mayor and Common Counci 1") on Monday.
December 16. 1985. at the hour of 11:00 A.M., in the Council
Chambers.
City Hall.
300 North
"0"
Street.
San Bernardino.
California 92418. for the purpose as hereinafter set forth.
The purpose of said public hearing is to consider a
proposal by CAL-SHEL.
C successors or assigns
a California general partnership. or its
(the "Developer").
in accordance wi th
Section 103(k) of the Internal Revenue Code of 1954. as amended. for
the Redevelopment Agency of the City of San Bernardino. California
(the "Agency"). to provide certain industrial development revenue
bond financing by the issuance of mUltifamily mortgage revenue bonds
for the "University Park Apartments Project" which Project shall
consist of the acquisition of land and the construction thereon in
one or more phases of approximately seven hundred twenty (720)
apartment units in thirty-five (35) two-story buildings located in
the state College Project No. 4 on an approximately forty-three (43)
acre site in the University Park section of the 600 acre master plan
development known as Shandin Hi lIs. on the north sicSe of Kenda 11
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Drive,
and
approximately one
and one-ha 1 f
(1 '1/2) miles west of
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Little Mountain, shall include approximately sixteen hundred (1600)
on-site
vehicle
spaces,
parking
(3)
swimming
three
pools,
landscaping, recreation center, barbecue areas, basketball and
volleyball facilitie~ and shall consist of three hundred sixty (360)
one-bedroom, one-bath rental uni ts and three hundred sixty (360)
two-bedroom, one-bath rental units.
The Agency intends to issue its multifamily mortgage
revenue bonds pursuant to Part 1 of Division 24 of the California
Health and Safety Code (the "Community Redevelopment Law"). The
financing for this Project shall be derived from the issuance _ of
tax-exempt bonds in a maximum principal amount presently estimated
not to exceed Twenty-Seven Million Dollars ($27,000,000). The City
intends to issue its bonds pursuant to the Community Redevelopment
Law,
in an amount presently estimated not to exceed $27,000,000 for
the financing thereof without any liability to the Agency or the
City whatsoever.
All persons interested in the subject matter and the public
purposes and public benefits and the issuance by the Agency, of
multifamily mortgage revenue bonds in an estimated principal amount
not to exceed $27,000,000 in connection with the Project may attend
such hearing and/or file their written comments thereto.
NOTICE GIVEN as of this 26th day of November
1985.
/S/ Glenda Saul
City Clerk of the City of
San Bernaraino, California
To be publiShed in The Sun on 11/29/85 and 12/6/85
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PART I
1.1
1.2
1.3
t 1.4
1.5
1.6
1.7
1.8
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APPLICA~ION OF ~AR~USEL bEVE~PM~NT aNn A~SOCTAT~
.OR INDUSTRIAL REVENUE ROND PTNANrTNG
CITY OP SAN BERNARorNO. raY.TP'ORNIA
GENERAL AND BUSINESS INFORMATION
The legal name of the Applicant is .Carousel Develop-
.ent and Associate..
The applicant is a California partnership in the
process of formation which shall engage in the
development, leasing, and ownership of approximately
720 apartment units located in the Shand in Bills
subdivision off of lendall Drive in the City of San
Bernardino, California. The real property where
the apartments will be constructed is owned by Block
Bros. Industries (DSA) Inc., one of the general
partners of the partnership.
The .ailing address of the Applicant is:
Carousel Development and Associate
720-475 Bowe St.
Vancouver, British Columbia
CANADA V6C 283
Employer Tax I.D. No. - NA
Mr. Rick Jeffs is the principal contact
Applicant.
The telephone number for the Applicant is 604 689-2944.
for the
The Applicant is a California general partnership in
the process of formation.
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1.7.1
The Applicant shall own property and conduct
business in the County of San Bernardino,
State of California.
1.7.2
The general partnership organizational
documents of the Applicant shall be executed
prior to the time when Applicant acquires
legal title to said property which shall be
developed in connection with the Project.
The Applicant is not related to any other
legal entity.
The ownership interest of each of the general partners
associated with the Applicant shall be as follows:
1.7.3
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Carou..l Dev.lopm.nt, Inc.,
. California corporation
2st
V.n Mar.n Con.truction, Inc.,
. Californi. corporation 2st
Block Group Dev.lopment. (California), Inc. sot
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Th. nam. of ~. v.n.ral partn.r
have pri.ary r..pon.i~ility
~u.in... of ~. Applicant i. ..
IIr. Rick J.ffs
604 689-2944
of Applicant who will
of con~ucting .the
follows:
1.10 Bu. in... v.ntur.. of ~. v.n.ral partners of the
Applicant:
A. 1Ir. Rick Jeffs
Dev.lopm.nt, Inc.,
IIr. J.ffs ha. int.r.st.
including ~e following:
i. ~. Pr..i~.nt of Carousel
. California corporation.
in ..v.ral ~u.in..s v.ntures
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1. Carous.l Inv.stment. Lt~.
2. lIanchester Development Lt~.
3 . Consort En.rCJY Corp.
4. Comma~or P.trol.ums Inc.
5. Haida Hot.l partn.r.hip
B. 1Ir. Barni. Van Mar.n is ~. Pr.sident of Van
lIar.n Con.truction, Inc.,. California corporation.
1Ir. Van lIar.n ha. int.r..t. in ..v.ral ~u.iness
v.ntur.. inclu~ing ~. following:
1. Van lIaren Construction Co. Lt~., a Cana~i.n
corporation
C. Block Group Dev.lop.ents (California), Inc. has
.xt.nsive lan~ holdings in~. State of California
.n~ inclu~.s ~e 600 .cre .ast.r plan development
known .s Shan~in Hill. locat.~ in the City of San
"rnar~ino. The Univ.rsity Park ..ction of the
Shan~in Hills 600 acr. ..ster plan d.v.lopment is the
parc.l ~at i. to ~. d.v.lop.~. Block Bros. Indus-
tri.s (USA) Inc. i. . wholly-own.d .Ub.i~iary of
Olympia , York, Inc.
Employ..s
Th. Applicant curr.ntly ha. z.ro ..ploy.... However,
con.truction .n~ co.pl.tion of ~. proj.ct ~y the
Applicant will utli.at.ly provide numerous .mployment
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opportunities in the City of San Bernardino. The
Applicant plans to locate in San Bernardino County.
~he Applicant currently has offices at 720-475 Howe
Street, Vancouver, British Columbia, Canada V6C
2B3.
1.12
Professional services will be provided as follows:
1.12.1
Steres, Alpert' Carne shall .erve as the
accountant for the Applicant and the contact
person with .aid firm is Gary Carne, tele-
phone number 619 292-3200.
~he law firm of Wagner, Loftus, Chucas ,
McCue is the attorney for the Applicant. The
contact person with said firm is
T. M. Chucas, telephone number 619 299-1964.
~he law offices of ~imothy J. Sabo shall
serve as Bond Counsel to the City with regard
to the tax-exempt financing for the project.
~he principal civil engineer shall be Van
Del , Associates, 17801 Cartwright Road,
Suite A, Irvine, CA 92714.
~he principal architect shall be Kermit
Dorius Architects 'Associates, 1550 Bayside
Drive, Corona Del Mar, CA 92625, telephone
number 714 644 7111.
1.13 ~he principal banking accounts of the Applicant shall
be at Security Pacific National Bank, San Bernardino,
and opened upon financing becoming available.
1.12.2
1.12.3
1.12.4
1.12.5
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.
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PART II
2.1
BOND ISSUE
~he estimated total cost of the financing package and
the proposed use of bond proceeds is as follows:
2.1.1
2.1.2
2.1.3
Construction costs
$ 21,582,288.
Legal, printing and related fees
FinanCing costs and fees
100,000.
669,600.
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C 2.1.4 C.pit.liz.d int.r..t 2,828,069.
2.1.5 oth.r Mi.c.ll.n.ou. co.t. 100,000.
2.1.6 Land .cqui.ition 5,040,000.
Tot.l $ 30,31','57.
2.2
'!'b. ..ti..t.d t.r;.t d.t. for the fin.ncing i.
pr...ntly .nticip.t.d in 1.84 witb con.truction to
comm.nc. .. aoon .a po..ibl. .ft.r the fin.ncing
p.ck.g. ia co.pl.t. .nd to b. co.pl.t.d in tbree
con.truction pb.... wbich ab.ll t.ke b.tween 18 .nd
30 .onth. to co.pl.te.
It i. propo..d th.t the fin.ncing be in the form of a
con.truction loan during the con.truction period
which would b.v. the traditional construction loan
provi.ion. in that dr.wdown. would b. permitted as
con.truction proc..d. upon aub.i..ion of requisition
voucher.. upon compl.tion of con.truction of the
Proj.ct .nd c.rtification th.t .11 i.prov..ents bave
been co.pl.ted, the l.nd.r will th.n permit .n
int.r..t r.t. .dju.t.ent .nd . princip.l amount
incr.a.e, .. w.rr.nt.d, .nd convert the con.truction
loan to . p.rm.n.nt financing.
'!'b. pr..ent propo..l for the financing of the Project
.nticipat.. th.t the tax ex..pt bonds or otber obliga-
tion. will b. .old to. commerci.l bank or otber such
l.nder througb . private pl.c..ent or th.t th.r. be a
public off.ring of aaid a.curiti...
2.3
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2.4
PART III FINANCIAL INFORMATION
3.1 Upon it. formation, the Applic.nt aball be . a.all
bu. in... doing bu. in... .. . ven.ral partn.rsbip
pur.uant to the 1.w. of the stat. of California, .nd
the Applicant would be con.id.r.d . ..all busin.s. with
r.gard to it. r.l.tiv. aiz. in co.pari.on witb other
aucb busin..... und.rt.king proj.ct. of this type.
A1thougb tbe Applicant i. . a.all bU.in.ss, no federal
a.all bu.ine.. lo.n guar.nt.es w.r. propo.ed in connec-
tion with the propo..d fin.ncing .. cont..plat.d by this
Applic.Uon.
PART IV PROJECT INFORMATION
"..
4.1
'!'b. Proj.ct .. propo..d by the Applic.nt ab.ll include
the con.truction of .pproxi..t.ly 720 .p.rtm.nt unit. in
the Univ.r.ity P.rk a.ction of the 600 .cr. ...ter plan
dev.lop.ent known .. Sb.ndin Hill.. '!'b. .pproxi..te
720 unit. .b.ll b. con.truct.d in thr.e pb....
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ov.r.n 11 to 30 month periocS. '1'he .aeniti.s in the
.parta.nt proj.ct shall inclu4e awimming pool., r.crea-
tion cent.r, barbe;u. .r.as, ba.k.tba],l aM voll.yball
court.. '1'he Proj.ct i. locat.4 within the R.lSevelopment
Proj.ct Ar.a of the R.IS.v.lopaent Ag.ncy of the City of
Ian BernarlSino. '1'he propo..4 Project shall be located
upon land which i. mora particularly d..cribed in
Exhibit -A- attach.d h.r.to.
4.2
'1'h. proj.ct i. a bu.in..s v.ntur. that would increase
the .......d valuation of curr.ntly und.rutilized land
and v.n.rat. significant employm.nt opportunities
within the city.
'1'h. compon.nt. .nd the ..tiaated total cost of the
functional part. of the proj.ct .r. as follows
4.2.1 Land
$ 5,040,000.
21,582,288.
180,000.
4.2.2 Building con.truction
4.2.3 Engin..ring' t.chnical s.rvices
4.2.4
Mi.c.llaneou. it.ms
.. 5' construction conting.ncy
b. Interest 4uring construction
c. Real .state brokerage commi..ion
d. Other aiscellan.ou. co.t.
1,079,144.
6,200,000.
-0-
200,000.
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Total
$ 34,281,432.
4.3
'1'he ..timated construction period for the Project is as
fOllow. :
4.3.1
Con.truction of the Project would commence as
soon .. po..ibl. .ft.r i.suance of the
tax-ex.mpt Obligation..
'1'he planned con.truction .hall occur in three
phase. .n4 .hall be completed within 18 to 30
aonth. from the 4ate of commencement.
4.3.2
4.4
'1'he supervi.ing civil .ngineer responsible for the
4e.ign of the Project on behalf of the .Applicant shall
be Van Del' A..ociate., 17801 Cartwright Road, Suite
A, Irvin., CA '2714.
4.5
'1'he Project shall be known ..
divi.ion of the Shand in Hill.
development.-
-univ.r.ity Park, a
600 .cr. aaster plan
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4.6
~he Project aite ia the development of apartment units
and ia not an expanaion or an alteration of an existing
facility. ~he neceaaary infraatructure items and other
public improvementa muat be inatalled on tbe Project
aite and the Applicant deairea to obtain.a below market
rate tax-exempt conatruction and permanent financing of
the improvements to be placed thereon from a combin-
ation of aourcea.
4.7 ~he property on which the Project is propoaed to be
located ia currently owned by Block Broa. Industries
(OSA) Inc. and the Applicant has an option to acquire
aaid property purauant to tbe terms of the joint
venture agreement between the proposed general
partners.
4.8 ~he Project will provide approximately 720 rental units
to be leased to various tenants.
4.8.1
4.9
Attacbed as Bxhibit -B- is an 8-1/2 x 11 inch
map ahowing the aite location of the proposed
Project.
A description of the plant process-not
applicable.
A negative declaration pursuant to the provisions of
tbe California Environmental Quality Act of 1970, as
amended, would in all probability be aatiafactory for
the Project as proposed by the Applicant. Bowever, the
Project ahall comply with all applicable provisions of
aaid Act.
4.8.2
4.10 ~here are no permita, water quality enforcement orders,
air pollution permita or variances or other evidence of
actions necessary in connection with this Project.
4.11 ~here are no local, atate or federal pollution control
agencies which impose regulations, atandards or
requirements with regard to the operations of the
proposed Project to be undertaken by the Applicant.
4.12 The proposed Project ahall comply with all applicable
City of San Bernardino, County of San Bernardino, and
other regional, county or basin plans to which this
Project ahall conform and the appropriate waste water
and air quality requirements Which aball be in conform-
ity with all of the above jurisdictions.
It is presently anticipated that the propoaed Project
will not produce any byproducts or residuea wbicb would
involve the ultimate disposal or the need for a plan
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4.13
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PART V
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to .ccompli.h ..... ..cycling or ..lv.g. will not be.
function of the propo..d proj.ct nor will th.r. be any
aark.t opportuniti.. 9.n.r.t.d with r.9,rd to ...e.
PUBLIC BENEFITS
~. City of I.n Bern.rdino will r.c.ive .iqnific.nt
ben.fit. by the initi.tion of thi. proj.ct .. proposed
by the Applic.nt and p.rticul.rly throuqh the utili-
..tion of the financing ..thod.. i. .v.il.bl. under
Ordin.nc. No. 3815, .. ...nd.d, of the City of S.n
Bern.rdino. Du. to the f.ct th.t conv.ntion.l interest
r.t.. for con.truction .nd p.rm.n.nt fin.ncing for the
type of Proj.ct contempl.t.d by the Applic.nt .re .t
.uch .n extr...ly high l.v.l on conv.ntion.lly borrowed
fund., if .v.il.bl..t .11, n.ith.r the Applic.nt nor
.ny oth.r p.r.on. or l.g.l .ntiti.. .r. able to provide
the type of .od.rn .nd .ttr.ctiv. .p.rtment buildings
n..d.d within the City of S.n Bern.rdino. Addition-
.lly, the City of S.n Bern.rdino, it. inh.bit.nts .nd
the ..d.v.lop..nt Aq.ncy of the City of S.n Bernardino
will ben.fit from the incr....d .......d v.lu.tion of
the prop.rty within the ..d.v.lopm.nt proj.ct Area.
S.id incr....d ........nt will occur.. the r..ult of
the compl.tion of the Proj.ct. ~i. incr.... in the
.......d valuation of the property includ.d in the
Proj.ct will a..ure th.t the ..d.v.lop.ent Aqency of
the City of S.n B.rnardino will h.v. a .or. viable
..an. of und.rt.king it. r.d.v.lop..nt activit.s within
..id proj.ct Ar... Th. City lik.wi.. would b.nefit by
obt.ininq qu.lity hou.ing for the citiz.n. of San
Bern.rdino. Oth.r bu.in....s will b. encouraqed to
locate or reloc.t. within the City of S.n Bern.rdino
.nd thus cr.at. .n upward .piralinq eff.ct on the
economy of the City.. . r..ult of the Project.
5.1.1 ~. Project will provide lonq t.rm e.ployment
opportuniti.. for the inh.bitant. of the City
of I.n Bern.rdino. Wh.n fully con.truct.d .nd
l....d the proj.ct will provide employm.nt oppor-
tuniti.. for. .ub.t.nti.l numb.r of per.ons. The
c.t.qory of job. to b. provided in the Project
.ft.r it. compl.tion include ..n.g.ri.l, .killed,
...i-.killed, .nd un.kill.d. ~. v.qes to be paid
in the v.riou. jOb c.t.qori.. ...t loc.l .nd
r.qion.l .t.nd.rd. .nd will .u.t.in . ..tisfactory
l.v.l of fin.nci.l .t.bility.
Con.truction of the Project i. .nticip.t.d to .dd
.pproxi.at.ly $20,000,000.00 to $25,000,000.00 of
.......d v.lu.tion to the t.x roll. of the City.
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5.1.2
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5.2
PART VI
6.1
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5.1.3
~be useful method of financing provided for
in Ordinance No. 3815 of the City. vis-a-vis
the use of the conventional method will
permit tbe Applicant to complete the finan-
cing and construction of the. Project within
an accelerated time frame. ~be method of
financing provided in Ordinance No. 38lS will
provide new sources of financing to the
Applicant and such financing will be .ade at
lower tax-exempt interest rates.
~be City will benefit, as can be demonstrated pursuant
to lection 1 of Ordinance No. 3815, as amended, of the
City of San Bernardino, in tbat employment opportun-
ities will be generated by tbe proposed Project both
during tbe construction phase and after said Project is
constructed and leased. ~he Applicant i. not attempt-
ing 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.
~here are no detriments that can be incurred by the
City with regard to this type of financing for this
Project, and the City of San Bernardino and the
Redevelopment Agency of the City of San Bernardino will
receive substantial benefits through increases in
asse.sed valuation of property within a redevelopment
Project ar.a, plus the increased long-term employment
opportunities that will be available to the local
residents of the City.
COMMI'l'MENTS
~he Applicant by the submission of this Application
agrees to comply and/or to as.ist 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, i.suance or sale of the bonds or other tax-
exempt obligations, and any a.endments thereto, and any
per.it or other authorization of such governmental
department, prior to the delivery by tbe City of such
bonds or other tax-exempt Obligations.
~he 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
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6.4
PART VII
7.1.
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publisbed in connection with the issuance, offer or
sale of bonds or otber tax-exe.pt 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.
~be 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 barmless from any and all
expenses related tbereto, 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.
~he Applicant will supply any additional information,
agreements, and undertakings as the City may require as
the result of conferences and negotiations will be
reproduced and supplied to the City and shall be deemed
as supplements or amendments to this Application.
SIGNATURE
~he undersigned as authorized principals of the
Applicant as noted below, hold the pri.e responsibilty
for the financing to be taken for the proposed Project,
and certify that the undersigned have 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 bereto, is truly descriptive of the
proposed Project. ~he undersigned also represent by
the execution of this Application familiarity with
Ordinance no. 3815, as amended, of the City of San
Bernardino.
8.1
PART VIII PEE SCHEDULE
~he 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. ~he Applicant
acknowledges that the commitments in Part VI above are
in addition to these fixed amounts. ~hus, in the event
that no Closing occurs, the City shall reimbursed for
its processing costs.
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8.2
All fees of tbe City may be capitalized and included in
the bond issue as acceptable to tbe bond purchaser.
8.3 ~be 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-sup-
porting 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 tbe City is involved. Project revenues are
tbe sole security for bonds of the City. The federal
guarantees, if any, enhance these revenues and income
and the security of the bonds.
8.4 Pursuant to Resolution No. 81-108 of the City, as
amended by Resolution Ro. 81-410 of the City, one
percent (1'> of the prinCipal amount of the bond issue
shall be deposited in the City Treasury in the Indus-
trial Revenue Bond Reserve and Development Fund, which
shall be used in such manner as the Mayor and Common
Council may direct from time to time.
APPLICANT
AND ASSOCIATE,
ill partnership
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MOUSEL DEVELOPMENT, INe.,
er
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REN for VAN MAREN
INC., ita general partner
for IIf(); (JQJp 1J:'1lma.1S (C.UHR'\lAI. l'C
, ita general partner
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