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HomeMy WebLinkAbout1999-02-09; City Council; 15041; Revenue Bonds For Natural Alternatives1 . , c 8 P a % . . g 2 d i2 s 0 h - CITY OF CARLSBAD - AGENUA BILL AB# ls$((l ) TITLE1 MTG. dr k 1s $ CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY INDUSTRIAL DEPT. ED DEVELOPMENT REVENUE BONDS FOR NATURAL ALTERNATIVES INTERNATIONAL DEPT. HD. CITY MGR RECOMMENDED ACTION: Hold a public hearing on the question of issuance of tax-exempt debt by the California Statewide Communities Development Authority to fund a portion of the improvements related to Natural Alternatives International Inc. Adopt Resolution No. 99- Y S Endorsing the issuance of bonds by California Statewide Communities Development Authority for the acquisition, construction, rehabilitation and improvement of property located in the City of Carlsbad, California, pursuant to the California Industrial Development Financing Act. ITEM EXPLANATION: On October 25, 1994, the City Council took action to join the California Statewide Communities Development Authority (CSCDA). CSCDA is a joint powers agency formed through the cooperation of the California League of Cities and the County Supervisors Association of California designed to assist member agencies in pursuing programs that improve the quality of life and economic vitality of communities. The primary tool available to CSCDA is the use of tax-exempt financing vehicles that reduce the cost of borrowing for qualified businesses, including manufacturers. Natural Alternatives International, a manufacturer of vitamins, micronutrients, and related nutritional supplements has tiled an application with CSCDA to assist in the financing of its project. The proposed project financing is for the buildout of an 82,000 square foot building located at 5759 Fleet Street, Carlsbad, CA 92008. It consists of a new shell building that will leased by Natural Alternatives International for a period of 15 years, at which time they will have an option to purchase. The shell building has been completed with tenant improvements estimated to begin February 1, 1999 and be completed by August 1, 1999. The proposed project is being undertaken because the company has outgrown its existing facility at its San Marcos, California location. Although the City of Carlsbad is not the issuer of the debt that will finance the NAI facilities, Section 147(f) of the Internal Revenue Code of 1986 requires that the proposed financing be approved by the city, because the proposed facility is located within the City’s jurisdictional boundaries. In addition, the Joint Exercise of Powers Agreement between the City and CSCDA states that CSCDA cannot issue debt to finance any project unless the governing body of the jurisdiction has approved the financing. All parties should clearly understand that the debt to be issued to fund these facilities is not debt of the City of Carlsbad, in anyway. There is no obligation of any kind on the part of the City, the City Council or any entity controlled by the City to repay the debt issued by CSCDA. All repayment of debt is the sole obligation of the property owner, NAI. All monitoring and administrative actions related to this issue are the responsibility of CSCDA. h PAGE 2 OF AGENDA BILL NO. 15 0 Y 1 Staff is recommending that the City Council hold the public hearing as required by the Internal Revenue Code. At this hearing, anyone may comment on the proposed financing. Following the public hearing, the City Council may consider the adoption of the attached resolution which states the Council’s endorsement of the NAI financing plan. This resolution will provide CSCDA with the authority to proceed with the NAI financing. FISCAL IMPACT: The City of Carlsbad’s costs related to this financing will be limited to minimal staff time to monitor the CSCDA process. All direct costs, if any, will be funded through the debt issue. EXHIBITS: 1. Resolution No. 95 - rS approving the issuance of bonds by CSCDA for Natural Alternatives International Inc. 2. Notice of Public Hearing 3. Notice of Filing Application 4. CSCDA Inducement Resolution a RESOLUTION NO. gg-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE ISSUANCE OF BONDS, NOTES OR OTHER EVIDENCE OF INDEBTEDNESS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO BENEFIT NATURAL ALTERNATIVES INTERNATIONAL WHEREAS, the California Statewide Communities Development Authority (“CSCDA”) in its inducement resolution (the “Inducement Resolution”) attached hereto as Exhibit “A” has proposed to issue its bonds, notes or other evidence of indebtedness (the “Bonds”) in an aggregate principal amount not expected to exceed the Maximum Principal Amount pursuant to the California Industrial Development Financing Act, Section 91500 et seq. of the Government Code of the State of California, as amended and supplemented (the “Act”); and WHEREAS, the project to be financed by the Bonds consists of the acquisition, construction, rehabilitation and improvement of property, including real and personal property, to be used as, or as a part of, a manufacturing facility (the “Project”) as described in the Inducement Resolution; and WHEREAS, CSCDA has requested that the governing body of the City of Carlsbad approve the issuance of the Bonds in order to satisfy the public approval requirement of Section 147 (f) of the Internal revenue Code of 1986, as amended (the “Code”), the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers Agreement (the “Agreement”), dated as of June 1, 1988, among certain local agencies, including the City of Carlsbad, and the public agency approval requirement of Section 91530(f) of the Government Code of the State of California, as amended; and WHEREAS, the City of Carlsbad hereby finds and determines that the Project is not substantively inconsistent with the City of Carlsbad’s general plan as prepared and adopted in accordance with Article 5 (commencing with Section 65300 of the Government Code of the State of California) of Chapter 3 of Title 7; and WHEREAS, the City of Carlsbad held a public hearing on the Public Hearing Date providing a reasonable opportunity for persons to comment on the issuance of the Bonds and the Project; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code, Section 9 of the Agreement and Section 91530(f) of the Government Code of the State of California; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the issuance of the Bonds is hereby approved for the purposes of Section 147(f) of the Code, Section 9 of the Agreement and Section 91530(f) of the Government Code of the State of California. 3. That the City Clerk of the City of Carlsbad shall certify the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. I// l/l Ill I// Ill l/l l/l /I/ -2- t -i 8 5 1C 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 9th day of February , 1999, by the following vote, to wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin NOES: None ABSTAIN: None ATTEST: OVSL . ALETHA L. RAUTENKRANZ, City Cle& (SEW -3- .J)W. 13. 1999”il :OOAM G ILMOP,E 8 BELL P. C. _ PROOF OF PUBLkATION (2010 s 2011 C.C.P.) STATE OF CALtFORNlA County of San Diego I am a c&en of the United States and a resident of the thmty aforesaid: I am over the age of eighteen years and not a party to of interested in the above- entitled matter. I am the principal clerk of the printer of North County fimes formerly known as the Blade-Citizen and The Times-Advocate and which newspapers have been adjudged newspapers of general circulation by the Superior Court of the County of San Diego, State of California, under the dates of June 30, 1989 (Blade-Citizen) and June 21, 1974 (Times- Advocate) case number 171349 (Blade-Citizen) and case number 172171 (The Times-Advocate) for the cities of Escondido, Oceanside, Carlsbad, Solana Beach and the North County Judicial District; that the notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: kc. 31, 1998 I certify (of declare) under penalty of perjury that the foregoing is true and correct. an t!slL-co5 Dated at Cahfornia, this, 31st of JllY.2. 1998 ----.;& ------ - NORTH COUNTY TIMES Legal Advertising 8%221-:018 NO. 8990 P. b”3 This space is for the County Clerk’s Filing Stamp Proof of Publication of Public Heaking -------_---3-------------- .J.AE 13. 1999 :l:OOAM GILMOP,E 6: BELL P. C. PROOF OF PUBL,,AflON (2010 8 2011 C.CJ?) STATE OF CALIFORNIA County of San DiegO I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above- entitled matter. I am the principal clerk ofthe printer of North County ‘Times formerly known as the Blade-Citizen and The limes-Advocate end which newspapers have been adjudged newspapers of general circulation by the Superior Court of the County of San Diego, State of California. under the dates of June 30, 1989 (Blade-Citizen) and June 21, 1974 (times- Advocate) case number 171349 (Blade-Citizen) and case number 172171 (The Times-Advocate) for the cities of Escondido, Oceanside, Cartsbad, Solana Beach and the North County Judicial District; that the notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: lk- 31, 1998 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated a@%l,#8!%%&is of r&z. 1998 31st day ---m&yGgb-- -----d - NORTH COUNTY TIMES Legal Advertising 816-221-1018 IO. 8990 P. 3/3 This space is tb,, the County Clerk’s Filing Stamp Proof of Publication of Notice of Fdlirg an Apy?Xcation ----------------_---____1_ 3 .,~ '$7, 22, 1999 '1O:58AM=="GILMORE %. BELL P. C. 816-22 ?-1018 NO. 9536--P; 2Dg . e. * . ‘a,, 1 8, .: . , , RJi3SOLtJTION NO. paflbBL&3# . , ’ ,’ - ‘I . . -.. ’ I .-I i’ .$ , .‘:;-’ -8:s ..4 :_ . I ,‘. e FACXLI’TIS% PeqG IZS OPFICXAL INTENT. TO VNDERWiKE s’(Jc$~ - , :.. . -0 .’ ; ,s , FINANC~G; AND~o.~~~T~dilp~~Exp~~$~~hii;:: - - _ ‘- PROCEEDS OF ~&Kl’EDNESS . . . wEEEm, dlc C&d scamvidc w Dcv&pmcnt &x&c+ (T&e “Aucboriy”) is a.udrorited aud axpnmmd by die px’kions of Title 1, Division 7, Cluptu 5 of &o Gowumax Code of the State of CI&omia m iwuc i61 in&&I dead-e. zcveme bon& pumaat co the C- Jnduotrill DcvJopmcar Fhmdag Act, as ammded sud sup#zmxcd (&c "Act"), f0t die pUpoeC Of &Ian* CCdO cOsU Of 4 pr+W& gn &St B is de&d if& the Acr; and WI-ZERSi#, NATURAL UTEtllWiWW WTERIUATIONAL, INC, or its mcwssor or a+x (de “~onoud’), dcaim to aquim, ~MXUCL, imprape and/or equip a ficiJ$ or kiIhi.e, which ud be louti iu the Citp of Viatm and he ciry of C&bad, Couaty of se0 Diego, Cdifomim, and v&h will corwist of the aqikicm, c oAauuaiony illlpeg d/or c+pping of a ItKin&- fkdity of ficilitics (the “ProjCcr”) for malulhcwing of vim, rAYicmnu~w and related nuaitional supplemena; and ~,theB~ir~~o~roasrtucE,isap~C~~orequipsuch Pmjdm upon the issrvulcc of the Atitity’t iadpsti &cl-t revaue bonds to &an- dumb Psojccrpuuuan trotbeAq;rad :r ’ , -, *.Borropru.bt’chatEbre..6ub~ ma d&i commibsion ha!& . . accq+ nn ap$idOB RquWing ibad8g iia au& Proja and . umERs& dlc Aucl¶wiy may Aot isme inadd dmdopalt rmmalJe boudh cb &mace such Projccc until &is Cd tU&S~-~~~pUttop&liC bede& aud qua&&n ofrhe Bo@ct wequired bprbrAamd -, this comfni%b has cYzs&Ryco~ aodcliscus6cdthciafo~don contaitkediAsuch app!ica~ondo~~naa~ntces~~o makesuch~s;d -, dais -aion &sires co iaduw the Bomxwa to commence &e acqtirios wusuuctio~ impwing ad/or quipping ofhe Project at the esdktpwibIs rime so 2s co produce the public bench set hrh b&n; sad /-* w?lEmus, cbe Au&W, in ha wvJlr6e of e663dng the Beuomt in the fiAbq# of Ihs P)rojcct srpccrp &at the Bon!owcr has prid ox w pay cctoskl espenclkum (rhc Ykcimbl.ass~t ~~~dicurcs’) ~XJ conmaio~ vi& the Pmjecx widaiu 60 days p&t o$ &c adopdau OF this Resolutian and prioz ro rhe is- af indcbmimss fbr &c putpose of h?odng cow associated with t&c Projeer on a leng-rctm b&; and JJK 22. : 999 ‘10: !j8Ati55P"'GILMOF(E & BELL P. C. 816-22:-1018 - rlo. 9536 ‘I, $T9 . p * . ,,. 1,. ,( 1 ‘.‘., *,,I, 1. : .*: I,.. v..,:ma .‘-,n’L,*:. 1. * ( I ,-+,’ .A. .- I +;, c.i’.‘-,--,!-,l,; -,&e 4+q+aW =soapbljI 9-m rket d&t ~bugdona in aa amc~uat aoc :.:‘,.‘.>% , , ‘:;i ,.~~~dto.~~d~~~~!~,~~~~.snd.~.~ ti~$quocc&~f~+bb~~ - +s!, ‘;“y !, , .J.l ;-may bcs wised TV SC ti &hh~~t Ed&tht& kid ,, I- ’ ..- , .‘b -, :?’ :: , . . :.,. s * I.. : : :rr: I % ,I, : ‘. , , I . . , .I. w ,$aion 1.103-8(1)(S) md Se&n 1.1502 of dao Trtss~ ReguZlrioos re+c dae Auchexiy m de&i in rcasoombls offid imenc m rckrhac p&z cxp* & t& Prajccr with p~~,ceeds of a subsquea bcmowins; NOW, THEKEFORE, the Gmmhioa of rhr GlifbmL Stamvide &mm&&, ~cdopuiin~ hnhariy dots hepebptie as f~uows; sesrioal. WChdSslreUUCa4dCWRCt This Commission herday &da aad detemker &at the fix- s4cfion.g lld6cw hereby kds aaddammimtbac @I ~uscoftbc~~tislikelltop~dUCbOcmplQpment~~ (~thcplaning~Scction91502-1@)(1)05rhe~bysecprisgar~~ zmnba oP~loyecs of t?x Bamwez and any othe dkcet usem of rhc Pmject or dae compeosaticm for such craplagrnerrr and (?iQ cmsumcr b-e&s (+&in rk mtmiug of, Sectin 91SOZ,l(b)(3) of the Act) by impzovk~ the quaa+ at qumliy ot r&&g the p&e of pfaducrs, enQep OI xdatd smkes w 6ilcililies, and hy pcoduchr% new or irrkpmed pro- arzclmxl ocmiccs or fi*; (4 dae ismace of the iwhsed dm&pmsrs remme bonds by &e Arrrkotyinm~~5~to~ceroiacasrsof~Ploi~rPiriebis~w ~~obe~~~oa3lion,asdesedbcdiaIbrht’bicAm~~~, is~~obeasubzPvrrial~caoE~drcYffUdOf~OLmonof~epubIi=~ hm tba we aftb Pmjcct as pa-opostdb the Bomuds application; and 60 dlcpeupo6ed6aendogiscnh~eioaecurd*dlcpurp~d rcqd of the Aa. w &~cbep~c.in~ofchcA~~Fo$surq~bPctime~~m time to time, - ddnprcrcat rm~uc ban& (the htesc of which is immded to be cxcmpr ticomfrdcrnliPcomd~~~p~deDdoseundrrtbcActia~hrr;mo~~~eoe*cssd $8.0 million to amarl& CcsIain msts occbc Project - TIIaisMnirkiagado~dbgkA&~tiyti~ of 4smabbs* clxnpb with rht rcqus of sci&Ik 1.103-a(i) 8nd sccdon 1.1504 of& lhxlusy I(rgJadQnr. IO amt zega4 Qe Autbsriy luscby &d&w im obliki il!Ltmlta4ul4~ot /*c idcbttdnms co zcimb~c the kimbuaaaent Expadiwes. NoMchn&ng Fhe kuegoiag this raohim does not bind rim Audmiy ta m& “IP axp&ituze, incur my iudeb- cq pcaclad with &he Project. POCSFI~~.I 2 [Al?, 22, 1999 ~(I:~~AM'="G~LMOF;E & BELL P. C. 816-221-1018 no. 9536-F. 4/7 __ r .4/19 ” . s .,I( (_I P-1 . I, ,I .,I,,, , $,:‘.“a t ;,” ,* ,m, ~;;Rcilolution~rrbbcffrc[~priy.~~~pn~-. I - -.-.:. ,N’ $.-f:‘&:... : _*, .* : - :’ : - .‘s: I ,.: ,:;,, ..I.* . . , , .J?As$lt@ #YD;+DQPIED by tie Caiito* i+$& (3arataw a++,p~at Au&o&y &is 14th day of Deccrrrb&WW, .. . _ IL ,: . .I - : s;~‘:->; ;-;* -’ ._ . . . . . . . _.. , * * 1. * * w I, rbe unw4 r.ddy appoiuted¶ lad qQalibd Member oftit coaesoion-of the cdifonia staccwidc ewe lJtvtlopmuu Audlaakp, DO HEREBY CElmFY’~i ‘&e -‘- * fazeping pohion was duly adoptad by tie Commission of said Au&otiq u a duly alled m~t&q of the Commirsion of said Authcdy hetd in acr.ordmce oridr law on December 14.1998.