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