HomeMy WebLinkAbout1980-178 Tri-Cities
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMOv
_ CjU, C_L GF THE CITY OF SAN BERNARDINO
FINDING THAT AN APPLICATION FOR
INDUSTRIAL DEVELOPMENT BOND FINANCING
HAS BEEN SUBMITTED PURSUANT TO THE
PROVISIONS OF ORDINANCE NO. 3815 OF
THE CITY BY TRI-CITIES INVESTMENT
COMPANY, A GENERAL PARTNERSHIP,
FINDING THAT SAID APPLICATION COM-
PLIES WITH THE PROVISIONS AND
REQUIREMENTS OF SAID ORDINANCE NO.
3815; PRELIMINARILY APPROVING SAID
APPLICATION AND THE PROJECT TO WHICH
IT REFERS; FIXING A TIME AND PLACE
FOR THE HOLDING OF A HEARING THEREON;
ORDERING THE PUBLICATION OF A NOTICE
OF HEARING IN THE FORM AND MANNER
PROVIDED BY SAID ORDINANCE NO. 3815;
AND MAKING CERTAIN OTHER FINDINGS
AND DETERMINATIONS IN CONNECTION
THEREWITH
WHEREAS, the City of San Bernardino ( "City"
herein) , 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
( "Ordinance" herein) to finance various types of projects,
as defined in the Ordinance, and to issue its special
revenue bonds for the purpose of paying the cost of financ-
ing such projects; and
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WHEREAS, said Ordinance No. 3815 is intended to
finance the development of industry and commerce and to
thereby broaden the employment opportunities for residents
of the City and its tax and revenue base; and
WHEREAS , Tri-Cities Investment Company, a general
partnership, consisting of Quail Run- Northwood, a limited
partnership, Bayshore Oil Company, Inc . , a California Corpo-
ration and M. F. Solta, Company, a California Corporation,
( "Tri-Cities" herein) , have submitted their Application in
the form and manner provided in said Ordinance No. 3815
requesting the City to issue and sell to Miller & Schroeder
Municipals, Inc. ( "Underwriter" herein) , its special revenue
bonds as authorized by said Ordinance for the purpose of
financing for Tri-Cities two buildings to be used as a
commercial building of approximately 44,282 square feet to
be located at 165 West Hospitality Lane and an office building
of approximately 34 ,564 square feet, to be located at 155
West Hospitality Lane in the City of San Bernardino, which
buildings , including the land necessary therefor and for the
providing of parking spaces for the use and convenience of
the tenants of and visitors to said buildings , and the
financing of same, including interest during construction,
costs and expenses of issuing said bonds, including bond
discount, if any, constitute a project ( "Project" herein)
as that term is used in said Ordinance No. 3815; and
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WHEREAS, the Coordinator (being the Redevelopment
Agency of the City) , City Attorney, Redevelopment Agency
Counsel, Bond Counsel, the Underwriter and staff cf both
the City and the Coordinator have reviewed the Application
and have found that the Project is within and complies with
the spirit, intent and provisions of the Ordinance, and
that the City should proceed with the financing; and
WHEREAS, the City finds that it is in the public
interest to authorize an issue of its special revenue bonds ,
for the purpose of paying the cost of financing the Project
upon such terms and conditions as may then be agreed upon
by the City, Tri-Cities ,their successors and assigns , and the
Underwriter;
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED
AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS :
Section 1 . That the recitals set forth hereinabove
are true and correct in all respects .
Section 2 . That said Application as referred to
in the recitals hereof complies with the provisions and
requirements of said Ordinance No. 3815.
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Section 3. That said Application and the Project be, and the
same are, hereby preliminarily approved.
Section 4 . That in accordance with the provisions of Section
ll (C) of said Ordinance No. 3815 , a public hearing shall be held
at the time and place and for the purpose set forth on the "Notice
of Hearing" form attached hereto as Exhibit A and incorporated herein ,
which notice complies with the requirements of said Ordinance.
Section 5 . That the City Clerk is hereby directed to cause
said Notice of Hearing referred to in Section 4 hereof to be
published in a legal newspaper of the City in the time and manner
required by Section 6061 of the Government Code of the State of
California.
I HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Mayor and Common Council of the City of San Bernardino at
a meeting thereof, held on the day of
1980 , by the following vote, to-wit:
AYES : Councilmen
NAYS :
ABSENT:
—T City Clerk
The foregoing resolution is hereby approved this day of
ati 1980 .
Mayor o t i, y of San Bernardino
Appr ved as to form: (/
City A torney
Tri-Cities
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CITY OF SAN BERNARDINO
NOTICE OF PUBLIC HEARING ON
APPLICATION FOR FINANCING OF A --
PROJECT PURSUANT TO ORDINANCE
_ NO. 3815 OF THE CITY OF SAN
_ BERNARDINO FOR AND ON BEHALF OF _
TRI-CITIES INVEST14ENT COMPANY,
A GENERAL PARTNERSHIP
NOTICE IS HEREBY GIVEN that the Mayor and
Common Council of the City of San Bernardino have accepted
an application from Tri-Cities Investment Company, a general
partnership, consisting of Quail Run - Northwood, a limited
partnership, Bayshore Oil Company, Inc. , a California Corpo-
ration and M. F. Solta, Company, a California Corporation,
and have adopted its Resolution entitled:
"Resolution No.
"Resolution of the Mayor and Common
Council of the City of San Bernardino
Finding that an Application for
Industrial Development Bond Financing
Has Been Submitted Pursuant to the
Provisions of Ordinance No. 3815 of
the City by Tri-Cities , a general
partnership; Finding that Said Appli-
cation Complies with the Provisions
and Requirements of Said Ordinance
No. 3815; Preliminarily Approving
Said Application and the Project to
Which it Refers; Fixing a Time and
Place for the Holding of a Hearing
Thereon; Ordering the Publication
of a Notice of Hearing in the Form
and P,Ianner Provided by Said Ordinance
No. 3815; and Making Certain Other
Findings and Determinations in
Connection Therewith"
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all for the financing of two buildings to be used as a
commercial building of approximately 44 ,282 square feet
to be located at 165 West Hospitality Lane and an 'office
building of approximately 34 ,564 square feet, to b?a located
at 155 West Hospitality Lane in said City (the "Project")
and to issue approximately $2,150 ,000 and $2, 375,000 , respec-
tively, of special revenue bonds therefor pursuant to Ordinance
No. 3815.
NOTICE IS FURTHER GIVEN that the Mayor and
Common Council will hold a public hearing on the Application
and the proposed Project and its financing as follows :
Date: May 19 , 1980
Time: 2: 00 P.M.
Place: Council Chambers
City Hall
300 North "D" Street
San Bernardino, California 92418
on which date, time and place any and all persons interested
may appear and be heard.
GIVEN by order of the Mayor and Common Council of
the City of San Bernardino, California, May 5, 1980 .
Shauna Clark, City Clerk of the
City of San Bernardino
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APPLICATION FOR
REVENUE BOND FINANCING `
PART I GENERAL AND BUSINESS INFOR14ATION
1.1 Legal Name of the Applicant:
TRI-CITIES INVESTMENT CO. , A GENERAL PARTNERSHIP
1.2 - Line of Business:
Real Estate Development
1.3 Mailing Address and Headquarters Address:
19752 MacArthur Blvd. , Suite 250
Irvine, CA 92715
1.4 Employer I.D. Number:
95-3325120
1.5 Name and Title of General Contact:
Charles Henderson, Financial Consultant , Sterling Homes Corp.
1.6 Phone Number of 1.5:
(714) 752-8200
1.7 Tyne of Business Organization: Partnership
1.7.1 Place of Organization: Irvine, California
1.7.2 Date of Organization: 9/13/79
1.7.3 Nature of Legal Affiliation or Relationship: N/A
1.8 Constitution of Ownership of the Company:
TRI-CITIES INVESTI,SENT CO. , A GENERAL PARTNERSHIP
1.9 Na:e and Location of Key Officials:
1.9.1 Principal Officials:
Quail Run - Northwood, A Ltd. Partnership
19752 Mac Arthur Blvd. , Suite 250
Irvine, CA 92715
Bayshore Oil Co. , Inc.
3591 Long Beach Blvd. ,
Long Beach, CA 90807
M. F. Salta Co. , Inc.
3141 E. Broadway
Long Beach, CA 90803
1.9.2 Directors: 1�/A
1.9.3 Principal Stockholders : N/A
1.10 Description of other business affiliations of principal offiC-ers ,
directors , and principal stocia;olders: N/A
1.11 Employees:
1.11.1 Number of Employees in California: N/A
1.11.2 Location in California: one
1.12 Expert Services:
- - 1.12.1 Applicant 's Accountant:
Diehl, Evans & Co.
1910 N. Bush Street
Santa Ana, CA 92706
1.12.2 Applicant's Attorney:
i•_r. Norman Rasmussen
Ra.msey & Rasmussen
444 W. Ocean Blvd. , Suite 1703
Long Beach, CA 90804
1.12.3 Architect:
Kermit Dorius, A.I.A.
3161 Second Avenue
Corona Del Mar, CA 92625
General Contractor:
.;one-Owner/Builder - Tri-Cities Investment Co.
19752 MacArthur Blvd. , Suite 250
Irvine, CA 92715
1.13 Principal Banks of Account and Name of Officers handling Account:
Bank of A°erica - Wally Neilsen, V.P.-Nana�-er
500 Newport Center Drive
Newport Beach, CA 92660
PART II B071D ISS E
2.1 Provide Tre Estimated Total Amount Of The Financinr- ,•;ith
A Tabulation Of Froposed Use Of Bond Proceeds , Including-:
Office Bld-. Co7in- Bldg.
2.1.1 Froject Cost $2,05 ,0 b 7. $1,77779c,
2.1.2 Under-vriting, legal printing
and related fees - 61 ,682, 55,12 .
2.1.3 :inancing costs and fees -0- -0-
2.1.4 Capitalized interest -0- -0-
2.1.5 7'iscellaneous costs -0- -0-
2.2 Estimated Target Date Of Financing:
June 5, 1980
2.3 Estimated Time Of Financing:
30 years
2.4 Tyne Of Ecnd Sale:
Private Placement
PART III FINANCIAL INFORMATION
3.1 Tri-Cities Investment Co. - Balance Sheet dated December 31, 1979•
Quail Run - Northwood - Balance Sheets dated December 31, 1977,78,79•
Bayshore Oil Company, Inc. - Balance Sheets dated June 30.,, 1977,78,79.
M. F. Salta Co. , Inc. - Balance Sheets dated August 31, 1977,78,79•
3.2 - Income (Profit & Loss) Statement:
Quail Run - Northwood - Federal Tax Return from January 1, 1977 to
December 31, 1977, January 1, 1978 to December
31, 1978, January 1, 1979 to December 31, 1979•
Bayshore Oil Co. , Inc. - Federal Tax Return from July 1, 1976 to
June 30, 1977, July 1, 1977 to June 30, 1978,
July 1, 1978 to June 30, 1979.
M. F. Salta Co. , Inc. - Federal Tax Return from September 1, 1976 to
August 31, 1977, September 1, 1977 to August
31, 1978, September 1, 1978 to August 31, 1979•
3.3 Analysis Of Sources And Application Of Funds:
Source - Bond Proceeds plus Owners Equity.
Application - Construction of project and cost of issuance.
PART IV PROJECT INFOF 'ATIOIi
4.1 Surmary Of Purpose, Objective And Function Of Proposed Project :
The purpose of this project is to design and construct a modern, attractive
34,564 square foot office building and a 44,282 square foot co=ercial
multi-tenant building.
4.2 Description of Components And Estimated Total Cost Of Functional Parts Of
Project : Office Bldg. Cc=. Bldg.
4.2.1 Land $ 266,085. 414 ,615.
4.2.2.1 Building 1,352,975. 1,182,003.
4.2.2.2 Tenant Improvements 359,650. 175,000.
4.2.3 Equip7.ent -0- -0-
4.2.4 Engineerinf- & technical serives 77,377. 65,873.
4.2.5 Miscellaneous items -0- -0-
Total Project Costs $2,056,087. 41 ,837,496.
4.3 Estimated Construction Period:
Seven (7) I•'onths
4.3.1 Scheduled startin- date - April 1, 1980.
4.3.2 Scheduled cc--:pletion date - Noven.ber, 1980.
4.4 Name And Location Of Supervisin::� Or Consultinc- En�inner Who
Designed Project:
Stan C. Morris Eng. , Inc.
17621 Irvine Blvd. , Suite 212
Tustin, CA 92680
4.5 Location Of Proposed Project:
South of Hospitality Lane, between Hunts Lane and Waterman Avenue,
San Bernardino, California
4.6 Advise As To Whether Project Site Is A New Location:
y
New location _
4.7 Name Of Legal Owner Of Location:
Tri-Cities Investment Co. , A General Partnership
4.7.1 Terms and Nature of Occupancy: N/A
4.7.2 Is There Or Will There Be A Legal Relationship Between
Applicant And Owner Of Location And Nature Of Relationship:
N/A
4.8 Description Of Operation To Be Conducted At Project :
Office Building and Commercial Building
4.8.1 812 x 11 Map Showing Site: Attached
4.8.2 Description Of Plant Process: N/A
4.9 List Of Environmental Quality Regulations, Standards Or Reouirer..ents
To Be Met Within Project:
Negative Declaration Issued By City.
4.10 List And Copies Of All Permits , 1.1ater Quality Enforcement Orders ,
Air Pollution Pewits And Variances Or Evidence Of Other Actions
Evidencing Need For Project :
N/A
4.11 Pollution Control Agencies ImTosing ATplicable Regulations , Standards
Or Requirements For Operations Or Disposal:
N/A
4.12 Regional County Or Basin Plan To Which This Project Is To Confor:-::
N/A
A
4.13 By Products Or Residues Of Project :
N/A
PART V PUBLIC BENEFITS
5.1 The benefits that will accrue to the City and its citizens as a result
of the installation of the project and the use of tax exempt financing
vis-a-vis a conventional method include the following:
(1) The project will provide long-term employment for a .substantial
_ section of the locally unemployed. When construction on the
_ project site has been completed and facilities on the site are
operational, it is estimated that an average of approximately
175 jobs will be created. The categories of jobs to be provided
are anticipated to include managerial, skilled, unskilled, and
office-professional. The wages to be paid by the enterprises
locating in subject Project for the employees in various job
categories are anticipated to meet local and regional standards
and to sustain a satisfactory level of financial stability.
Working conditions in the facilities (all of which will be newly
constructed and are anticipated to be constructed in accordance
with all applicable federal, state and local laws and regulations)
are anticipated to be satisfactory.
(2) Additional benefits anticipated to be attributable to the con-
struction of said Project and the general economic revitalization
resulting therefrom in the financial district of the City of
San Bernardino, include the reduction of public assistance
expenditures, all because this Project will be self supporting
at no unreimbursed cost to the City.
(3) The construction and operation of the Project anticipated on tis
site, are two buildingswhose approximate market values will be
added to the City tax rolls.
(4) The use of the method of financial provided for in Ordinance #3515
of the City vis-a-vis the use of a conventional method will permit
the applicant to move forward with the financing and construction
of the Project within an accelerated time frame. As the City is
well aware, conventional interest rates are at a historical high
level and many sources of conventional financing do not currently
have funds available to loan at anv interest rate. The method of
financing provided in Ordinance #3515 will provide new sources of
financing to the applicant and such financing will be available
at lower tax-exempt interest rates.
5.2 The applicant believes that the construction and operation of this Project
and the financing thereof pursuant to Ordinance #E3815 of the City are in
conforr_ance with the findings set forth in Section 1 of Ordinance ##3515•
In particular:
(1) `-::e Project is anticipated to have a significant impact on the
_ Lne--_ployT.nient problem of the City without imposing a financial
burden on the City.
(2) The Project will not produce detrir.ental effects on, or conflict
with, or otherwise restrain State efforts to solve problems of
legitimate State concern.
(3) The applicant has legitimate, long-term business reasons for
construction and operation of said Project including the
long-tern profit potential from said operation. The financing
of said Project under the method provided by Ordinance #3815
will provide additional financing sources to the applicants at
lower tax-exempt rates and will enable the time schedule for
construction of said Project to be accelerated.
(u) The City will only provide a method of financing the Project
and will only be paid certain fees to reimburse the City for
costs incurred by the City in connection with the financing
of said Project. The City will not realize a profit in such
a manner as to compete with or rival private firms and the
applicant is not requesting the City to take any more action
than is necessary to consur.;mate the financing. As described
in Part 5.1, certain incidental benefits will, of course,
accrue to the City as a result of the construction of said
Project.
(5) The City will receive a substantial benefit from construction
of said Project that exceeds any detriment incurred by the
City. The Project will be absolutely self-supporting.
Ordinance #3815 and the documents pursuant to which any bonds
issued by the City to finance the Project provide or will
provide that such bonds are limited obligations of the City,
payable only from revenues generated by the Project and that
all fees and expenses incurred by the City in connection with
the Project will be required to be paid by the applicant.
Indirect benefits such as the increase in the property tax
base and increases in other taxes and user fees are anticipated
to exceed any indirect detriments to the City such as increases
in costs of police, fire and other municipal services.
(6) The applicant will not take any action that will result in a
violation of any applicable State standards relating to sewage
disposal and will provide the City with a satisfactory plan
for the disposal of any anticipated wastes.
PART VI C0'•2•4IT:'-':I;TS
6.1 The Applicant hereby agrees and co7irits to comply, and/or to assist
the City in complying, with all state and federal laws in the issuance
of the Bonds, including, without limitation, the making of any required
application to a governmental department, for authorization, qualifica-
tion or registration of the offer, issuance or sale of the Bonds , and
any amendments thereto, any permit or other authorization of such
governmental department , prior to the delivery by the City of the Bonds.
6.2 The Applicant hereby agrees and corjr,its 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 and sale of Bonds, prior to the delivery by the City of the Bonds ,
and, if deemed necessary by the City, following the delivery of the `0�.ds.
6.3 The Applicant hereby warrants and covenants to pay all expenses in
connection with its commitments set forth above and with the issuance,
offer and sale of the bonds, whether or not they are finally issued, to
hold the City harmless from any and all expenses related thereto and to
pay items on an ongoing basis so that neither the City, nor its advisors,
attorneys, employees and the like will accumulate any clai4Es against
the City. -
6.4 _ The Applicant agrees that any additional information, agreements and
undertakings as the City may require as a result of various conferences
and negotiations shall be reproduced in written, printed or other
tangible form, shall be supplied in as many copies as the City prescribes
and shall be deemed supplements or amendments to this Application.
PART VII SIGNATURE
7.1 This Application is signed below by the Applicant with prim responsibil-
ity for the financing, who, by his signature below,represents and cer-
tifies that he has authority to bind the Applicant to contract terms;
that his Application, to the best of his knowledge or belief, contains
no false or incorrect information or data, and this application, including
exhibits and attachments, is truly descriptive of the Project , and that
the Applicant is familiar with Ordinance (/3815.
PART VIII FEE SCHEDULE
8.1 The Applicant agrees that, for the Project to be considered for eligi-
bility, a non-refundable application fee of $50 will be paid to the City
when the basic documents are requested. With the submittal of this
Application form, there is enclosed $500 payable to the City. If this
Application is accepted, Applicant agrees that it will pay the City an
additional fee of $10,000. for administrative costs. Applicant agrees
that its coninitments in Part VI above are in addition to these fixed
amounts. Thus, in the event that no closing occurs , Applicant agrees
that the City shall be reir.bursed for its processing costs.
TRI-CITIES INVEST 'EJT CO.
BY: QUAIL RUN-NORTHWOOD, M. J. SALTA CG 'Pru+Y, INC.
A LIMITED PARTNERSHIP
BY: STERLING HO',TS CORP, BY:
GENERAL PARTNER 14. F. Salta, President
BY r -
Robert H. Lintz, President ames Smith, SecretaT-
BAYSHORE OIL COMPANY, INC.
BY:
D. S. Dunlap, President
BY: _ ►• -
Foster Hooper, Secretary