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REf :VELOPMENT AGENCY -R lUEST FOR ( )_ISSION/COUNCIL A( JON
It: Redevelopment Agency
Subject: LETTERS TO SENATORS CRANSTON AND
WILSON REGARDING TAX EXEMPT
FINANCING LEGISLATION
From: GLENDA SAUL
Date: JANUARY 28, 1986
Synopsis of Previous Commission/Council action:
NONE
Recommended motion:
(MAYOR AND COMMON COUNCIL)
RECEIVE AND FILE
A6<~ ~/
Signature
Contact person:
GLENDA SAUL/KEN HENDERSON
Phone: 383-5081
Supporting data attached:
YES
Ward:
N/A
FUNDING REQUIREMENTS:
Amount: $
N/A
Project: ALL
No adverse I mpact on City:
Date:
January 28. 1986
('''uncil Notes:
Agenda Item No.
o
CITY OF SAN BERNARDINO
300 NORTH "0" STREET. SAN SERNAROINO. CALIFORNIA 92418
(714) 383.5133
EVLYN WILCOX
Mlyor
OFFICE OF THE MAYOR
January 10, 1986
Senator Alan Cranston
112 Hart Building
Washington, D.C., 20510
Re: TAX REFORM ACT/TAX EXEMPT FINANCING
Dear Senator Cranston:
We at the City of San Bernardino, have grave concerns regarding the proposed
Tax Reform Act awaiting action by the Senate. The section of the legislation
addressing the reduction in the use and issuance of tax-exempt bonds would
severely curtail our ability to attract new business and industry to the City
and provide needed employment to the citizens of San Bernardino.
The legislation proposes to include all private activity bonds, including
multi-family mortgage revenue bonds and single-family mortgage revenue bonds
under one volume cap to be distributed on a $150 per capita basis. This
translates into approximately $6,800,000 allocation for the City of San
Bernardino to do all types of private activity bond financing. In 1984, the
city issued 29 million dollars for commercial and industrial bonds, creating
approximately 600 new jobs for residents. In 1985, the city issued 10.8
million dollars in industrial development bonds for industrial projects. One
of the bonds issued will finance the construction of a facUity to house C&M
Fine Pack (Mitsubishi). This will be the establishment of C&M Fine Pack's
first facility in the United States. Also in 1985, the city issued 38 million
dollars in multi-family bonds and approximately l7 million dollars in a
single-family mortgage revenue bond which will provide needed housing for
those in the moderate to low income categories. As you can see, a 6.8 million
dollar allocation will not begin to meet the needs for a growth oriented
community such as San Bernardino.
I strongly urge you to carefully review this component of the legislation.
Although I agree that some restrictions must and should be set for this type
of financing, the current system of separate allocation caps for each type of
issuance is the most equitable system for controlled usage. The proposed
single allocation cap (6.8 million dollars) for all types of private activity
bond financing would almost totally constrain the City of San Bernardino in
providing bond financing to industrial/commercial and residential development
projects. Such a low volume cap would almost certainly mean the city would be
able to finance only all or a portion of one (1) significant development.
THE LIVING ClrY ON THE.!MOV,E
Both the State of California and the City of San Bernardino need the continued
availability of tax-exempt financing to ensure that California remains a
growth leader in business and industry, quality of life and employment
opportunities for its citizens.
1""'"
EVl!t~h:~
City of San Bernardino
cc: Members, Common Council
Glenda Saul, Executive Director, RDA
EW:KJH:EB:lo:55lL
~
CITY OF SAN BERNARDINO
300 NORTH "0" STREET. SAN SERNAROINO. CALIFORNIA 92418
(714) 383.5133
EVLYN WILCOX
Mlyor
OFFICE OF THE MAYOR
January 10, 1986
Senator Pete Wilson
11000 Wilshire Blvd.
West Los Angeles, Calif. 90024
Re: TAX REFORM ACT/TAX EXEMPT FINANCING
Dear Senator Wilson:
We at the City of San Bernardino, have grave concerns regarding the proposed
Tax Reform Act awaiting action by the Senate. The section of the legislation
addressing the reduction in the use and issuance of tax-exempt bonds would
severely curtail our ability to attract new business and industry to the City
and provide needed employment to the citizens of San Bernardino.
The legislation proposes to include all private activity bonds, including
multi-family mortgage revenue bonds and single-family mortgage revenue bonds
under one volume cap to be distributed on a $150 per capita basis. This
translates into approximately $6,800,000 allocation for the City of San
Bernardino to do all types of private activity bond financing. In 1984, the
city issued 29 million dollars for commercial and industrial bonds, creating
approximately 600 new jobs for residents. In 1985, the city issued 10.8
million dollars in industrial development bonds for industrial projects. One
of the bonds issued will finance the construction of a facility to house C&M
Fine Pack (Mitsubishi). This will be the establishment of C&M Fine Pack's
first facility in the United States. Also in 1985, the city issued 38 million
dollars in multi-family bonds and approximately 17 million dollars in a
single-family mortgage revenue bond which will provide needed housing for
those in the moderate to low income categories. As you can see, a 6.8 million
dollar allocation will not begin to meet the needs for a growth oriented
community such as San Bernardino.
I strongly urge you to carefully review this component of the legislation.
Although I agree that some restrictions must and should be set for this type
of financing, the current system of separate allocation caps for each type of
issuance is the most equitable system for controlled usage. The proposed
single allocation cap (6.8 million dollars) for all types of private activity
bond financing would almost totally constrain the City of San Bernardino in
providing bond financing to industrial/commercial and residential development
projects. Such a low volume cap would almost certainly mean the city would be
able to finance only all or a portion of one (1) significant development.
rHE LIVING ,frY ON rHE:MOVL
Both the State of California and the City of San Bernardino need the continued
availability' of tax-exempt financing to ensure that California remains a
growth leader in business and industry, quality of life and employment
opportunities for its citizens.
]"""
EVl~~~
Ci ty of San Bernardino
cc: Members, Common Council
Glenda Saul, Executive Director, RDA
EW:KJH:EB:lo:55lL