HomeMy WebLinkAbout1995-04-04; Industrial Development Authority; Resolution 0011
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RESOLUTION NO. 001
A RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF CARLSBAD APPROVING THE CALIFORNIA INDUSTRIAL
DEVELOPMENT FINANCING ADVISORY COMMISSION PROJECT APPLICATION AND DECLARING THE INTENT TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR CIP LIMITED AND AALTO SCIENTIFIC LIMITED.
WHEREAS, the Industrial Development Authority of the City of Car&bad (the
“Authority” herein) has been duly activated by Ordinance No. NS-301 of the City of Carlsbad
(the “City”), and the City Council of the City has been duly authorized to act as the Board
of Directors of said Authority; and
WHEREAS, Aalto Scientific, Ltd., a general partnership, and CIP Limited, a California
limited partnership (collectively, the “Company” herein), has submitted its Application for the
issuance of Bonds on behalf of its proposed Project as described therein, attached hereto
as Exhibit 3 and incorporated herein by reference, all as such terms are defined in the
California Industrial Development Financing Act (California Government Code § 91500 et
seq.) (the “Act” herein) which Application Complies with all authority requirement therefor;
and
WHEREAS, said Project involves the purchase of approximately 1.54 net acres of
industrial land at 1959 Kellogg Avenue in the City and the construction of an approximately
21,415 square foot facility to be occupied by Aalto Scientific, Ltd; and
WHEREAS, the Authority wishes to secure for the people of the City the public
benefits which will accrue as a result of the financing of the Project and to express the
preliminary intent of the Authority to issue Bonds on behalf of the Project; and
WHEREAS, City staff has reviewed said Application and has prepared its report with
regard thereto.
NOW, THEREFORE, BE IT RESOLVED by the Industrial Development Authority of the
City of Carlsbad, California as follows:
1. That the above recitations are true and correct.
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2. That the application of the Company for financing pursuant to the Act is
hereby accepted.
3 The Authority hereby finds and determines with respect to said Application as
follows:
(4 It is likely that the undertaking of the Project by the Authority will be a
substantial factor in the accrual of the employment benefits and consumer benefits which
will result from the use of the facilities, all as proposed in the Application. These public
benefits will substantially exceed any public detriment from the issuance of the Bonds in the
maximum principal amount proposed in the Application.
(b) The financing of the Project and the resultant operation of the Project
will generate employment benefits for the community by increasing the number of
employees of the Company within the community. The Company estimates current
employment of 17 employees, which is expected to increase to 37 in the first 5 years of
operation. Moreover, the Company estimates that its sales will increase substantially within
five years of completion of the Project.
(c) The use of the facilities to be financed pursuant to the Company’s
Application qualifies under Government Code § 91503(a)(l) as an industrial use for the
manufacture of human enzymes, proteins and control sera.
(d) The Project, as proposed in the Application, is in accord with the
purposes and requirements of the Act in that the proposed Project will enhance and
promote economic development and increase opportunities for useful employment, all as
set forth in the Application.
(e) Aalto Scientific, Ltd. has properly notified the City of Vista that it is
intending to move from its present facilities in that community, as required by the
Application Guidelines issued by the California Industrial Development Financing Advisory
Commission.
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4. The Authority hereby declares its present intention to issue Bonds on behalf
of the Company to finance the acquisition and construction by the Company of the Project
described in the Application and recitals hereof, in a principal amount of approximately
$1,336,980.00, and in no event to exceed $10 million, and for the purposes described in
the Application, a copy of which is on file with the City Clerk of the City.
5. Bonds, if any are issued, shall be issued in accordance with the Act, and shall
be secured by the Project, together with any additional security necessary to ensure the
marketability of the Bonds.
6. In no event shall the Bonds constitute a pledge of the faith and credit of the
City, the State of California, or any political subdivision of the State and the City shall not
be liable to make any appropriations for repayment of the Bonds. The Bonds shall
constitute a mere special obligation of the Authority payable solely out of the revenues or
other sources provided for in the Project Agreement and proceedings to be provided
hereafter.
7. This resolution is adopted as official action of the Authority in order to comply
with Treasury Regulation 5 1.103-8T and any other regulations of the Internal Revenue
Service relating to the qualification for reimbursement of Authority expenditures incurred
prior to the date of issue of the Obligations, is a part of the Authority’s official proceedings,
and will be available for inspection by the general public at the main administrative office
of the Authority.
a. Anything to the contrary herein not withstanding, in no event shall this
resolution bind the Authority in any way, shape or form to proceed with the Project and
shall be subject in all respects to the unfettered discretion of the Authority with respect to
the issuance of Obligations for such Project, Moreover, the issuance of any Obligations
shall be subject to compliance in all respects with all environmental, regulatory and other
requirements which the Authority is subject to or may reasonably impose, the sole purpose
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of this resolution being to serve as official action under Treasury Regulation Sections 1.103-
8T and 1.150-2 and acceptance of the application under Government Code Section
91530(c). In any event, the Authority acknowledges it may not issue Bonds until such time,
if ever, as the State Legislature provides authority for the issuance of the Bonds for such
purposes pursuant to the Act, which authority has lapsed by reason of the operation of
Government Code Section 91521.3 set forth in the Act.
9. A copy of the Application shall be filed with the City Clerk of the City.
Concurrently, a notice of acceptance of the Application and the filing with the City shall be
published in a newspaper of general circulation pursuant to Section 91530(d) of the Act.
Such notice shall name the Company, state the estimated maximum bond issue, and briefly
summarize the proposed project.
10. A notice shall be published of the public hearing to be held before the City
Council of the City with respect to said Application in accordance with Section 147(f) of the
Internal Revenue code of 1986, as amended, and the Act.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the Industrial
Development Authority of the City of Carlsbad, California, held on the 4th day of
APRIL , 1995, by the following vote, to wit:
AYES: Board Members Lewis, Nygaard, Kulchin, Finnila, Hall
NOES: None
ABSENT: None
ATTEST:
TENKRANZ, Secreta
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