HomeMy WebLinkAboutAgenda Report - January 17, 2001 E-21 PHCITY OF LODI COUNCIL COMMUNICATION
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AGENDA TITLE: Set Public Hearing for February 7, 2001 to hold necessary hearing to assist
Lustre -Cal Nameplate Corporation in securing tax-exempt financing
MEETING DATE: January 17, 2001
SUBMITTED BY: Economic Development Coordinator
RECOMMENDED ACTION: That the City Council by minute action establish February 7, 2001 as
the date to conduct a public hearing to approve a resolution
authorizing issuance of $3.735 million in tax-exempt Industrial
Revenue Bond (IRB) financing.
BACKGROUND INFORMATION: As part of the City's economic development business attraction and
expansion efforts, it is often necessary to assist business in securing
project financing. Lustre -Cal Nameplate Corporation, a local
manufacturer of custom identification products since 1964, has
purchased a 4.25 acre parcel in the Beckman Industrial Park for the purpose of constructing a new
46,800+/- square foot manufacturing facility.
Lustre -Cal is seeking approximately $3.735 million dollars in tax-exempt bonds to finance the construction
of the new building and is requesting the City of Lodi 's assistance in securing the bonds by acting as a
conduit for their issuance. This public hearing is required pursuant to the Federal Tax Equity Fiscal
Responsibility Act ("TEFRA"), which governs issuance of such bonds and is the initial step in the
application process.
The City is not the bond issuer nor is it financially or legally responsible for bond repayment. Thus, there is
no impact on the City's debt capacity or bond rating. The bonds are payable solely from company
generated revenues and bond repayment security is provided by the bond applicant, Lustre -Cal Nameplate
Corporation.
FUNDING: None required (There is no City budget impact)
Respectfully submitted,
Tony C. Goehring
Economic Development Coordinator
APPROVED:
H. Dixon FI n -- City Manager
CITY OF LORI NOTICE OF PUBLIC HEARING
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Carnegie I`orum Date: Wednesday, February 7, 2001
305 Wcst Pinc Strect, Lodi Time: 7:00 p.m.
of
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For information regarding this notice please contact:
Susan J. Blackston
City Clerk
Telephone: (209) 333-6702
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, February 7, 2001 at the hour of 7:00 p.m., or as soon
thereafter as the matter may be heard, at the Carnegie Forum, 305 West Pine Street, Lodi, the City Council
of the City of Lodi, California (the 'Clly"), will conduct a public hearing concerning the issuance and sale by
the California Statewide Communities Development Authority (the "issuer") of notes, bonds, or any other
evidence of indebtedness (the "Obligations) in an aggregate principal amount not expected to exceed
$5,000,000. Proceeds of the Obligations are to be loaned to Lustre -Cal Nameplate Corporation, Joseph C.
and Clydene G. Hohenrieder or an affiliate (the "Borrower"} pursuant to a Loan Agreement (the "Loan
Agreement") to provide for 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") to be used in
the manufacturing of labels, nameplates and related supplies. The Project will be located at the northwest
corner of Industrial Way and South Guild Avenue, Lodi, California 95240 and/or 1101 East Turner Road,
Lodi, California 95240. The Obligations will be paid entirely from repayments by the Borrower under the
Loan Agreement. Neither the faith and credit nor any taxing power of the City, the Issuer, the State of
California (the 'State") or any other political corporation, subdivision or agency of the Slate is pledged to the
payment of the principal of or premium, if any, or interest on the Obligations, nor shall the City, the State or
any other political corporation, subdivision or agency of the State be liable or obligated to pay the principal of
or premium, if any, or interest on the Obligations.
The public hearing is intended to comply with the public approval requirements of Section 147(f) of the
Internal Revenue Code of 1986.
Those wishing to comment on the proposed nature and location of the Project and the financing of the
Project with the proceeds of the Obligations may either appear in person at the time and place indicated
above or submit written comments, which must be received prior to the public hearing, to the City in care of
Susan J. Blackston, City Clerk, at 221 West Pine Street, Lodi, California 95240 or P.O. Box 3006, Lodi,
California 95241-1910.
By Order of the Lodi City Council:
Susan J. Blackston
City Clerk
Dated: January 17, 2001
Approved as to form:
Randall A. Hays
City Attorney
JACITYURKFORMSINolSpeaal4m I/MMi
NOTICE OF PILING AN APPLICATION WITH
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
NOTICE IS HEREBY GIVEN that Lustre -Cal Nameplate Corporation (the "Corporation")
has filed an application with the California Statewide Communities Development Authority (the
"Issuer") and that the Issuer has accepted the application. The application requests that the Issuer issue
its notes, bonds or any other evidence of indebtedness (the "Obligations"), in an aggregate principal
amount not expected to exceed $5,000,000, to finance (tic acquisition, constriction, rehabilitation and
improvement of property, including real and personal property, to be used as, or as a part of, a
manufacturing facility for the Corporation, Joseph C. and Clydene G. Hohenrieder (the Corporation's
owners) or an affiliate (the "Project"), to be used in the manufacturing of labels, nameplates and
related supplies, which Project will be located at the northwest corner of Industrial Way and South
Guild Avenue, Lodi, California 95240 and/or 1101 East Turner Road, Lodi, California 95240. Neither
the frith and credit nor any taxing power of the City of Lodi, California (the "City"), the Issuer, the
State of California (the "State") or any other political corporation, subdivision or agency of the State is
pledged to the payment of the principal of or premium, if any, or interest on (lie Obligations, nor shall
the City, the State or any other political corporation, subdivision or agency of the State be liable or
obligated to pay the principal of or premium, if any, or interest on the Obligations.
Further particulars may be obtained by reviewing the application at the Issuer's office, located
at 1 100 K Street, Suite 101, Sacramento, California, during regular business hours.
Dated: January 18, 2001
/s/ Dan Harrison
Secretary
California Statewide Conununities
Development Authority