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HomeMy WebLinkAboutRES NO 75-00RESOLUTION NO. 7 5 =' ~} {} A RESOLUTION APPROVING THE ISSUANCE OF EQUIPMENT ONLY PURCHASE PROGRAM NOTES BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY Local Government Participant: Issuer: Borrower: Notes: City of Bakersfield, Califbrnia California Statewide Communities Development Authority Guy Chaddock & Company or ~ affiliate Equipment Purchase Program Note or Notes (Guy Chaddock & Company Project) of the Issuer Maximum Principal Amount: Public Hearing Date: $1,600,000 JUN 2 8 2000 , 2000 WHEREAS, the Issuer in its inducement resolution (the "Inducement Resolution") attached hereto as Exhibit A has proposed to issue its Equipment Purchase Program Note or Notes 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 WHERLAS, the project to be financed by the Notes consists of the acquisition and installation of the property and financing costs (the "Project") as described in the inducement Resolution; and WHEREAS, the Issuer has requested that the governing body of the Local Government Participant approve the issuance of the Notes in order to satisfy the public approval requirement o£ Section 1470) of the lntemal 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 Local Government Participant, and the public agency approval requirement of Section 91530(0 of the Government Code of the State of California, as amended; and WHEREAS, the governing body of the Local Government Participant hereby finds and determines that the Project is not substantively inconsistent xvith the Local Government Participant's general plan as prepared and adopted in accordance with Article 5 (commencing with Section 65300 of the Government Code of the State of Califbrnia) of Chapter 3 of Title 7; and WHEREAS, the Local Government Participant held a public hearing on the Public Heafing Date providing a reasonable opportunity for persons to comment on the issuance of the Notes and the Project; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Notes required by Section 1470) 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 governing body of the Local Government Participant, that the issuance of the Notes Js hereby approved for the purposes of Section 147(f) of the Code, Section 9 of the Agreement and Section 91530(,t) of the Government Code of the State of California. RESOLVED FURTHER, the Clerk of the Local Government Participant shall certif~v the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. I HEREBY CERTIFY that the foregoing Resolution xvas passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on JU~q g 8 ~00~1., by the following vote: AYES: NOES: ABSTAIN: ABSENT: COUNCIl ,MEMBER CARSON, DEMOND, MAGGARD. COUC[ I. ROWLES, SULLIVAN, SALVAGGiO COUNCILMEMBER ~4 COUNflI,MEMBER NO~ ~ COUNCll,MEMBt~R /XJ 0 ~.~_ CITY CLERK and Ex Officio ~)~erk of the Council of the City of Bakersfield APPROVED JUN g 8 2~ BOB PRICE MAYOR of Bakersfield APPROVED as to Form: BART J. THILTGEN City Attorney ~' JANICE SCANLAN Deputy City Attorney EXHIBIT RESOLUTION NO. 2000EPP-25 RESOLUTION OF THE CALIFORNIA STAT~WIDE CO,~EVIUNITIES DEVELOPMENT AUTHORITY MAKING DETEPu~IINATIONS WITE[ RESPECT TO THE FINANCLNG OF FACILITIES AND DECLARING ITS OFFICIAL INTENT TO UNDERTAKE THE FINANCING AND TO REIMBUnRSE CERTAIN CAPITAL EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS Notes: Ma×lmum Principal Araount: Equipment Description: Activi~es and Uses of the Equipment: An ticipated Public Benefits: Guy Chaddock & Company or an affiliate Equipment Purchase Program Note or Notes (Guy Chaddock & Company Project) $2,000,000 Manufacturing Equipment In a manufacturing facility or facilities engaged in the manufacturing and refurbishing of antique famiture (a) Employment benefits (w/thin the meaning of Section 91502.1(b)(1) of the Act) by securing or increasing the number of employees of the Bomo,,,-er and any other direct users of the Equipment er the compensation for such employment. (b) Consumer benefits (within the meaning of Section 91502.10>)(3) of the Act) by improving the quantity or quality or reducing the price of products~ energy, or relaled services or facilities, and by producing new or improved products or related serv/ees or facilities. W}IEREAS, the California Statewide Communities Development Authority (the "Issuer") is authorized and empowered by the provisions of Title 1, D/vision 7, Chapter 5 of the Goverrmaent Code of tee State of California to issue its industrial development notes pursuant to the California hxdustrial Development Financing Act, as amended and supplemented (the "Act"), for the purpose of financing certain costs ora pro. iect, as that term is defined in the Act; and WHEREAS, the Borrower desires to acquire and install certain manufacturing equipment (the "Equipment"): and WHEREAS, the Borrower is willing to acquire and install the Equipment upon the issuance by the Issuer of the Notes to iqna~ce the Equipment pursuant to the Act: Md WHEREAS, the Borrower has heretofore submitted, and th/s Commission has accepted, an application requesting financing for the Equipment; and WHEREAS, the Issuer may not issue industrial development notes to finance the Equipment until this Commission makes certain determinations with respect to public benefits a2:d qualification of the Equipment as required by the Act; and WHERE.~,S, this Commission has carefully considered and discussed the information contained in the Borrower's application and other information necessary to make such determinations; and WHEREAS, this Commission desires to induce the Borrower to commence acquisition and installation of the Equipment at the earl/est possible time so as to produce the public benefits set forth here/n; and WFIEREAS, the Issuer, in the course of assisting the Borrower in the fimmcing of the Equipment expects that thc Borrower has paid or may pay certain expenditures (the "Reimbursement Expenditures") in connect/on with tho Equipment within 60 days prior to the adoption of this Resolution and prior to thc issuance of the Notes for the purpose of financing costs associated with the Equipment on a long-term basis; and WItEREAS, thc Issuer reasonably expects that Notes in an amount not expected to exceed the Maximum Pr/~cipal Amount will be issued and that certain of the proceeds of the Notes may be used to reimburse the Reimbursemeat Expenditures; aud WltlEREA$, Section 1.103-8(a)(5) and Section 1.150-2 of the Treasury Regulations require the Issuer to declare its reasonable official intent to reimburse prior expenditures for the Equipment with proceeds of a subsequent borrowing: NOV,', TItEREI:OI~, the Commission of the California Statewide Communities Development Issuer does hereby resolve as follows: Section 1. This Commission hereby finds and determines that the foregoing recitals are true and correc[. Section 2. This Commission hereby finds and determ/nes that: the Activities and Uses of the Equipment are in accord with Section 91503 of the Act; (b) the use of the Equipment is likely to produce the Anticipated Public Benefits; (c) the issuance of the Notes by the Issuer in ~ amount sufficient to finance certain costs of the Equipment, which is now estimated not to exceed the Maximum Principal Amount, as described in the Borrower's application attached hereto as Exhibit A, is likely to be a substantial factor in the accrual of one or more of the Anticipated Public Benefits from the use of the Equipment as proposed in the Borrower's application; arid id) the acquisition of the Equipment by the issuance of the Notes is otherwise accord with the purposes and requirements of the Act_ Section 3. It is the present intent of the Issuer to issue, at one time or from time to time: the Notes (the interest of which is intended to be exempt from federal income taxation) when permitted to do so under the Act/n the amount not to exceed the Maximum Principal Amount to finance certain costs of the Equipment. Section 4. T~is Resolution is being adopted by thc Issuer for purposes of establishing compliance with the requirements of Section 1.103-8(a)($) and Section 1.1.50-2 of the Treasm'y Regulations. In that regard, the Issuer hereby declares its official intent to use proceeds of indebtedness to reimburse the R.e/m. bursement Expenditures. Notwithstanding the foregoing, this resolution does not bind the ]'ssuer to make any expenditure, incur any indebtedness, or proceed with the finall¢ixlg of the Equipment. Section 5. T~s resolution shall take effect immediately upon its passage. PASSED AND ADOPTED by the California Sra~ewide Communities Development Authority this 23rd day of May. 2000, The undersigned, a duly appointed and qu.~Iified Member of the Commission of the California Storewide Communittes Development Authority, DOES 14EI~EBY CERTIlm~ that the foregoing r:~sulution was duly adopted by the Commission of the Issuer at a duly called meeting of the Commission o F the Issuer held in accordance with law on May 23, 2000, ~~'~'~'~_ . ~-~' Member o~- f the Comm~'ssion Califomla Statewide Communities Development Attthority -3- APPLICATION AND ~LIGIBILITS( ~7ORKSHEET GUY CHADDOCK & COHPAN¥ 220[ EAST BR~NDAGE LANE ~ A K_~.~.~.~]~E L g ¢.AL~ FORNIA. . 93307__ State Zip DAVID T. ~DWARDS PRESIDENT (66Z) ~55-5960 Title Phone Number Solid w:~,sre Recycler k'~x Na]llber P1R OSECT DESCmPTION ATTACH A LIST OF EQI.rIPME~ TO BE lqNANCED, INCLUDING A DESCRIPTION AND COST. ALSO ATTACH EQ[FIPMENT BROCHLrI~s, LF AVAILABLE. PUBLIc BENEFITS ~k. I~;qpLOYM~Y' CReaTiON The Sc.~c ~,£ california has n guideline that one (D new job should be created FOr every $50,~0 m band flnancit~g er 20 n:~ ~obs [or each $1 Million in bond financing ~ithin 2 years of file purch~ and imstallafi~n ~f thc equ(pmem rD be financed. This has h~en a flexible guideline thai t~ re~lar}~ a(l~usted to meet the ~mique circumstances of [he financing, You 5houlc[ make a good faith e~fimare 0f rke number of jobs to be c,'carcd ba::ed on rea)Lqtic assumptions. The S~a~u will conduct a {~lllt~ 5u~cy rD dcrenlline if your estimate was accumm "N'~'> jnbs are net to Californm arid dlerefore do riot include transfers or rekm-ation$ from o~er Caliti)mia locations. Estmla~c tile number of jc,b~ Lo be cxeared ar file Site the equipmcm will be instated with- in 2 years. CLrtu'~T T~NSFERS Nmw Hm~s TOTAL .'~MPLOYEES: 316 70 386 l. v~lum~ nf Solid ~zste D~vert~d from Landf~ .... 2. Volume of R~c~cIabl~ Rcc~md ~. SourCe of Solid ~a.~te~ec/clables ~ The ownership structure fs ~mp~m~n~ fro' de~erming ~he ~:dlabi~iW af Mvesto~ ~d ~ 1~ ~ti~ r~sponsible for purch~sb~,g the eob ipmenL ~tease com~er~ the roi}owing: EatiW Subchapter $ Corpotzxion Partnership Limited Liability Company Principal O'criers/Shareholders J Guy L. Chaddock Oavi~d T. E~waJ'ds / Yvonne Edward~ Other (specf~) ..... Iga. t~ o[ Incorporation cw Fom~arirm: _. F..ou.~ded~lgS6 / Inc. 2975 State: ~al iforn'ia Signature Davld T~ Edwards President Title APPLICATION Cf.IECKI ST 'Plezs= send alt of the following so we <.-an process your application: 1. A completed Application and Eligibility Worksheet (rl~is form). 2. Financial Statements for the three most recent years and the curre~[ ye~lr inte~. & *chedulc of eqtfipment to be firanced including cost, des~ipdon and brochure. 4. A $1;500 non-reflmdable Applicacon Fcc payabIe to CSAC Fina~xce Corp. ~is t~e w~l ~ credited ro your issuance eos~ at closing. (800) 635-3993 (925) 933-9229 5EaND COMPLETED APPLICATION TO: C liforpAa Commundttes l~7O Maria ,Nme. Suite 400 Walnut Creek, California 9459~ Fax (925) 933-8457 CAI. IFCOMM~6.0L.C.O~'I 1SIT OUR XY/EBS1TE: CALIFCOMM-ORG