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HomeMy WebLinkAboutMinutes 1984-07-25Chairman Mark N. Addiego Board Members: Emanuele N. Damonte Richard A. Haffey Gus Nicolopulos Roberta Cerri Teglia M I N U T E s O0 OiO Industrial Development Authority Municipal Services Building July 25, 1984 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the Special Meeting of the Industrial Development Authority of of the City of South San Francisco held on the 27th day of June, 1984, at 7:00 p.m., in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California, was adjourned to Wednesday, the 25th day of July, 1984, at 7:00 p.m., in the Municipal Services Building, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Continuation of Public Hearing - Consideration of the proposal to issue not more than $7,000,000 aggregate principal amount of the South San Francisco Industrial Development Authority Industrial Development Revenue Bonds (Mercedez-Benz of North America Project), pursuant to the provision of the California Industrial Development Financing Act, California Government Code Section 91500, et. seq., as amended, for the purpose of providing the cost of an industrial development project consisting of the acquisition of a site and a building and the construction of improvements and additions to such building for use as a vehicle preparation center facility for receiving storage, delivery, wholesale preparation, quality control, repair of damages and related and appurtenance structures, facilities and equipment (the "Project"), the Project will be owned by the Company. It is contemplated that a loan agreement will be entered into between the Issuer and the Company, under which the Issuer would provide the proceeds from the sale of the Bonds to the Company in return for loan pa3nnents from the Company sufficient to pay the principal of and interest and premium, if any, on the Bonds as the same fall due. Mar~kL. Addi~e 'o~of the Board Industri al Development Authority City of South San Francisco Dated: June 28, 1984 A G E N D A ADJOURNED SPECIAL MEETING CALL TO ORDER ROLL CALL ACTION TAKEN ADJOURNED SPECIAL MEETING 7:10 p.m. Chairman Addiego presiding. Boardmembers present: Nicolopulos, Teglia, Damonte, Haffey and Addi ego. Boardmembers absent: None. AGENDA A C T ! 0 N T A K E N 0000"~ Public Hearing - Consideration of the proposal to issue not more than $7,000,000 aggregate principal amount of the South San Francisco Industrial Development Authority Industrial Development Revenue Bonds (Mercedez-Benz of North America Project), pursuant to the provision of the California Industrial Development Financing Act, California Government Code Section 91500, et. seq., as amended, for the purpose of providing the cost of an industrial development project con- sisting of the acquisition of a site and a building and the construction of improvements and additions to such building for use as a vehicle preparation center facility for receiving storage, delivery, whole- sale preparation, quality control, repair of damages and related and appurtenance structures, facilities and equipment (the "Project"), the Project will be owned by the Company. It is contemplated that a loan agreement will be entered into between the Issuer and the Company, under which the Issuer would provide the proceeds from the sale of the Bonds to the Company in return for loan payments from the Company suf- ficient to pay the principal of and interest and premium, if any, on the Bonds as the same fall due. Mayor Addiego stated that the recommen- dation at the 6/27/84 meeting had been to continue the meeting in August and the Mayor had continued the meeting to today's date. He stated that he was interested in knowing which way the Federal or State legislature was headed at this point in time. City Manager Birkelo stated that it was true that Congress had acted subsequent to the June meeting, however he had learned that the project had raised questions as to its eligibility at the State level where it has to be approved before it goes further. He continued, rather than have the City go through the whole process with them, his recommen- dation was to have the Council postpone the matter indefinitely and if and when they can clarify their eligibility with the State authority then the Council can schedule another hearing to deal with it. He stated that Mr. Neilsen, Jones, Hall, Hill & White, was present to respond to any questions on how the legislation would affect -- his understanding was that Mercedez-Benz was far enough along to be exempt of the requirements of the new legislation. Jorgensen, Neilsen, Esq. stated he would be happy to answer any questions. Mayor Addiego stated that the question was in reference to the particular appli- cant being exempt from Federal regula- tions coming down. Neilsen, Esq. stated that the Federal regulation with regard to the probable limitations effective 12/31/83 unless the inducive resolution was adopted before 6/19/84, which it was in this case; and if the bonds were issue before 1/1/85. He continued, so this particular project will be grandfathered. He stated that it has to be entered into before the end of the year. Mayor Addiego questioned the time frame it would take to complete the project after processing the application and the bonds. 7/25/84 Page 2 AGENDA ACTION TAKEN 1. Public Hearing - Continued. Neilsen, Esq. stated that he believed that the entire process could be handled in two months from an administrative level provided the information requested by the Commission was forth coming. Mayor Addiego questioned if the Mercedez-Benz people had indicated when they expected to get some kind of a con- firmation of eligibility from the State. City Manager Birkelo stated that he did not know. Neilsen, Esq. stated that it was his understanding that the attorneys for Mercedez-Benz are going to be submitting a letter through his office to the State for clarification of their jurisdiction in regard to the financing. He stated that it should not take more than a couple of weeks to get back an answer. M/S Teglia/Haffey - To postpone the item indefinitely. Carried by unanimous voice vote. M/S Teglia/Haffey - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: The meeting was adjourned at 7:15 p.m. RESPECTFULLY SUBMITTED , · y , ~ecre~y~ Industr~ al Development Authority City of South San Francisco APPROVED: Industrial Development Authority City of South San Francisco Board The entries of this Authority meeting show the action taken by the Board to dispose of an item. Oral communications, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the Secretary and are available for inspection, review and copying. 7/25/84 Page 3