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AGENCY.AOu!ST FOR~/COWCIL A~ION
From: GLENDA SAUL.
r
"'-Pt: Redevelopment Agency
Subject: SAN BERNARDINO COMMUNITY HOSPITAL
I DB FEE
Date: DECEMBER 12, 1985
Synopsis of Previous Commission/Council ection:
12119/83 The Mayor and Comon Council adopted Resolution No. 83-466.
11/18/85 The Mayor and Common Council adopted Resolution No. 85-472 -
inducement resolution.
12102185 The Mayor and Common Council adopted Resolution No. 85-496
authorizing the issuance and the sale of bonds.
Recommsnded motion:
(MAYOR AND COMMON COUNCIL)
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A)
Authorize refunding a percentage of IDB fee if early call date
is utilized, and;
B) authorize RDA staff to invest IDB fee and release 1/8% each
year to Economic Development Council.
FUNDING REQUIREMENTS:
Amount: $
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Signature
Phone: 383-5081
Ward: 6
NIA Project: NW
Data: December 16. 1985
Contact person: GLENDA SAUL
Supporting data attached: YES
No adverse Impact on City:
Cncil Notes:
Agenda Item No. R..5- Z-
. Clft OF SAN BERNARDI~ - REQU"T FOR COUNCIL ACriON
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75-0264
STAFF REPORT
On December 2, 1985, the Mayor and Common Council adopted Resolution 85-496
approving the issuance and sale of a bond for the San Bernardino Community
Hospital. Included in the Loan Agreement and Trust Agreement was a provision
for a pro rata return of the 1% fee if certain conditions are not met by the
hospital within 12 months of the bonds being issued.
The provision provides an early call rate on the bonds if the hospital's plans
and specs are not approved by the office of State Architects and if a
construction contract has not been signed. If this early call date is
utilized, 7/8 of the IDB fee plus interest would need to be refunded in order
for the bonds to remain tax-exempt.
Staff recommends approving the refund if necessary. Bond counsel, tax counsel
and the developer all believe the early call will not be utilized.
Staff further recommends that the fee be paid to the Agency, and that the
Agency invest the fee and transfer 1/8 of the fee each year to the Economic
Development Council in order to ease their bookkeeping system. This way, if
the fee must be refunded the money is easily accessible.
The bond amount is not to exceed $40,000,000. IDB fee - $400,000.
Below is a recap of the application:
Principals:
Ray Barton III, Secretary
Amount of financing:
Not to exceed $40,000,000
Target date of financing:
December 1985
Project:
Moderization of a 322-bed acute health
care facility; construction of a
five-story steellconcrete medical
facility; acquisition of related medical
systems and equipment
Construction schedule:
18 to 24 months from the commencement of
construction
Location:
1500 West 17th Street, San Bernardino
Jobs:
Maintain 1,078 present positions
Estimated Tax increase:
Applicant is a nonprofit corporation and
is exempt from property tax
IDB reserve & development fee:
1% x $40,000,000 - $400,000
Trustee:
Security Pacific National Bank
Interest Rate:
Not to exceed 12 percent
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