SR-203-001-02
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UET 1 7 1935
2t73--- PPI -.0 2-
AP:HED:mh
CouncIl Meet1ng:
12/17/85
Santa Mon1ca. CalIforn1a
TO
Mayor and CIty CouncIl
FROM:
CIty Staff
SUBJECT:
Aooroval of Various ActIons Related To The Issuance of
IndustrIal Development Bonds for FIxed Base Operator
FacIlItIes at the Airport
Introduct1on
This report requests that CIty Counc1l adopt two resolutIons
relating to the CIty'S authorIty to Issue IndustrIal Development
Bonds. The f1rst resolutIon would state the CIty'S Intent to
lssue IndustrIal Development Bonds on behalf of fIxed base
operator development at the Santa MonIca Alrport.
The second
resolut1on carr1es forward the CIty'S 1985 IndustrIal Development
Bond allocatIon so that It may be utIlIzed 1n 1986.
Background
On October l. 1985 ~ the Cl ty Counc1l adopted OrdInance '/'11345
(CCS). WhICh establIshed the CIty's authorIty to Issue Industrial
Development Bonds.
One expres sed Intent of thi s act Ion was to
preserve the option for the CIty to Issue Industr1al Development
Bonds In support of the constructIon of Fixed Base Operator
fac1litles at the Santa Monica AIrport.
On October 22, the
CounCIl
authorIzed
CIty
staff
to
enter
Into
exclUSIve
negotIations WIth Gunnell AVIat10n and
Danforth/Price AVIatIon
(SupermarIne
Alrcraft~
Ltd. )
for
two
Fixed
Base
Operator
leaseholds at the AIrport
These leasehold developments are
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estImated to cost approxImately $5 mIllIon and $3 mIllion
respectIvely.
ThIS amount 15 well above the $4.8 mIllIon annual
IndustrIal Development Bond allocatIon made avaIlable to the CIty
by the State of CalIfornIa
Two related actIons are also necessary to preserve the City's
optIon to Issue IndustrIal Development Bonds from Its 1985
allocatIon In support of FIxed Base Operator development at the
AIrport.
The fIrst reqUIred actIon IS the adoptIon of an
Inducement resolutlon~ WhICh declares the Clty'S in~ent to Issue
IndustrIal Development Bonds to support the constructIon of the
two FI xed Base Opera tor f aci 11 tIes.
These bonds would be paid
back by the two developers and would not commIt the CIty In any
way to repayment of the bonds.
The adoptIon of an Inducement
re so 1 ut Ion would not comml t the CI ty to the 1 s sua nce of the
bonds
The second actIon necessary IS the carry-forward of the 1985 IDB
allocatIons Into 1986 so that the actual Issuance may take place
durIng calendar year 1986
Budeetarv/FIscal Imoact
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There IS no budgetary or fIscal Impact.
RecommendatIon
CIty staff respectfully recommends that the City CounCIl take the
follOWIng actions:
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1) Adopt a Resolutlon. ~hlCh states the City's lntent to
Issue Industrlal Development Bonds to faCIlItate two
FIxed Base Operator developments at the Alrport.
2) Adopt a Resolution~ WhiCh carries forward $4.8 mllllon
1n 1985 Industrlal Development Bond allocation to 1986
for the airport proJect.
Prepared By.
Hank Dittmar~ Airport Director
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CA:RMM:lmd120/hpw
City Council Meeting 12-17-85 Santa Monica, California
RESOLUTION NO. 7136(CCS)
(City council Series)
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA, CALIFORNIA, DECLARING ITS
INTENTION TO ISSUE REVENUE BONDS FOR
CERTAIN AIRPORT FACILITIES
WHEREAS, on October I, 1985 the City council of the city of
Santa Monica adopted Ordinance No. 1345 (City council Series)
(the "Ordinance") specifying the powers and procedures for the
issuance of revenue bonds to finance facilities for participating
parties in the City of Santa Monica ("City"); and
WHEREAS, Gunnell Aviation, Inc. ("Gunnell") has filed an
application with the City for financing assistance pursuant to
the Ordinance; and
WHEREAS, Price/Danforth & Associates dba supermarine
Aircraft, Ltd. ("Price/Danforth") has filed an application with
the City for financing assistance pursuant to the Ordinance; and
WHEREAS, the city Council
wishes to declare its intention
subject to certain conditions;
of the city
to provide
of Santa Monica
such assistance,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA, DOES RESOLVE AS FOLLOWS:
section 1. The City Council of the city of Santa Monica
hereby declares its intention to assist in financing the
acquisition and construction of two fixed base operator
facilities at the Santa Monica Airport, one to be owned and
operated by Gunnell ("Facility 1") and the other by
Price/Danforth ("Facility 2"), each of which constitutes an
airport facility within the meanlng of IRe section 103 (b) (4) ,
through the issuance and sale of revenue bonds in a principal
amount not to exceed five million dollars ($5,000,000) for
Facility 1 and three million dollars ($3,000,000) for Facility 2.
Section 2. The issuance and sale of such revenue bonds
shall be upon such terms and conditions as may be mutually agreed
upon by the City and Gunnell and the Clty and Price/Danforth,
respectively, and as shall be set forth and authorized by
resolutlons of the city Council of the City of Santa Monlca as
may be adopted hereafter.
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Section 3. The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
~~-'O~
ROBERT M. MYERS U
City Attorney
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Adopted and approved thIS 17th day of December, 1985.
Cl~+-~ .e. ~
I Mayor
I hereby certIfy that the foregoing Resolution No. 7136(CCS)
was duly adopted by the CIty Council of the CIty of Santa Monica
at a meeting thereof held on December 17, 1985 by the following
Council vote:
Ayes: Councilmembers:
Conn, Epstein, JennIngs, A. Katz,
H. Katz, Zane and Mayor Reed
Noes: Councllmembers:
None
AbstaIn: Councilmembers:
None
Absent: Councilmembers:
None
ATTEST:
6~.J L--F L
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Clerk
CIty
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CA:RMM:lmd12l/hpw
City Council Meeting 12-17-85
Santa Monica, California
RESOLUTION NO. 7137(CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SANTA MONICA, CALIFORNIA
ELECTING TO CARRY FORWARD ITS
PRIVATE ACTIVITY BOND LIMITATION
HHEREAS, the City of Santa Monica, California (the "City")
has $4,841,000 of unused private activity bond allocation for the
1985 calendar year (the "1985 Allocation"); and
WHEREAS, that certain executive proclamation signed by
Governor George Deukmej ian on July 19, 1984, and amended on
August 30, 1985, permits any governmental unit with such an
allocation to treat all or any portions of said allocation as a
carry forward pursuant to Section 103 Cn) (10) of the Internal
Revenue Code of 1954, as amended (the "Code"); and
WHEREAS, Section 103(n) (10) of the Code
1.103(n)-4T of the Income Tax Regulations adopted
103(n) of the Code prescribe the manner and
election; and
and Section
under section
form of said
WHEREAS, the California Debt Limit Allocation Committee
(the "Committee") has requested that it be notified of any such
election; and
WHEREAS, the city Council of the City of Santa Monica has
heretofore adopted Resolution No. 7136 (CCS) declaring its
intention to assist in financing through the issuance of its
revenue bonds two airport fixed base operator facilities to be
1 oca ted at the City's Airport, one to be owned and operated by
Gunnell Aviation, Inc. ("Gunnell") and one to be owned and
operated by Price/Danforth & Associates, dba Supermarine
Aircraft, Ltd., ("Price/Danforth") which facilities are intended
to qualify as exempt airport facilities within the meaning of
Section 103(b) (4) of the Code (collectively the "projects"): and
h~EREAS, the city council of the City of Santa Monica has
determined to make such an election with respect to the 1985
Allocation for the Projects.
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NOW, THEREFORE, THE CITY COUNCIL
MONICA DOES RESOLVE, AS FOLLOWS:
.
OF THE CITY OF SANTA
Section 1. The City Council of the City of Santa Monica
hereby elects, in accordance with section 103(n) of the Code and
section 1.10J(n)-4T of the Income Tax Regulations adopted under
section 103(n) of the Code to carry forward the 1985 Allocation
with respect to the Projects and authorizes and directs the City
Manager of the city to sign and file said election.
section 2. The City Council of the City of Santa Monica
hereby further authorizes and directs the City Manager to notlfy
the Committee of said election, in writing, no later than 15 days
after the date of adoption of this resolution.
Section 3. The City Clerk shall certify to the adoption of
this Resolution and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS U
city Attorney
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Adooted and approved thIS 17th day of December, 1985.
t
k~~ fcA~(,
Mayor
I hereby certify that the foregoIng ResolutIon No. 7137(CCS)
was duly adopted by the CIty Council of the City of Santa Monica
CouncIl vote:
at a meet I ng ther eo f held on December 17, 1985 by the following
Ayes: Councllmembers:
Noes: Councllmembers:
Abstain: Councllmembers:
Absent: Councilmembers:
Conn, Eostein, Jennings, A. Katz,
H. Katz, Zane and Mayor Reed
None
None
None
ATTEST:
/7 fA,
(J.-.:. o..A''l 17 7~ L-?i Jc,(
CIty Clerk
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BEFORE DISTRIBUTION CHECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION # 713(;
Council Meetlng Date /3//7_/:/5
Agenda Item #
/1- C-
Was It amended?
/Vo
7-0
.
FOR CITY C~ERKfS ACTION
ORDINANCE #
Introduced:
Adopted:
AilIiJAYS PUBLISH AOOPIJ:ill ORDINANCES *
*Cross out Attorney I s approval
VOTE. AffirmatIve:
Negative:
Abstain'
Absent.
PROOF votE~ hITH ANOTHER PERSO~ BEFORE A~~THING
DISTRIEuTI0~- ORIGINAL ~o be signed, sealed and filed in Vault.
~EWSPAPER PUBLICATION (Date:
)
)
Department orIgInating staff report (
Management Ser~2~e~ Lynne Barrette -vrdinances only
~
Agency mentIoned In document or staff report
SubJect fIle (agenda packet)
Counter fIle
Others;
AIrport
!
ParkIng Auth.
AudItorum
Personnel
BUIlding Dept.
Planning
EnVIron. Servo
PolIce (en-
forcement?)
FInance
FIre
Purchasing
Recr/Parks
General Servo
LIbrary
Transportation
Treasurer
;.1anager
SEND FOUR COPIES OF ALL ORDINANCES TO:
CODFD SYSTEMS, Attn Peter MacleaYle
120 \!aIn --"'tr"'et
m AV0~1 S~w Jersey_07717
SEND FOUR COPIES OF AU. ORT1TNANrF5 TO:
PRESIDING JUDGE
SANTA MONICA MUNICIPAL COURT
;725 MAIN STREET
SANTA MON!CA, CA 90401
(certifIed?)
1
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.
*Check Code Sectl0ns before sendmg.
TOTAL COPIES
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BEFO~E DISTRIBUTION CHECK CONTENT OF ALL
DIS'iRIBUTION ('~ RE~O~PTION # 7/57
J'U'"'- - _" MeecuJg Date / d-h7/J'~
Agenaa Item # ~/- ~
Was It amended? ~o
7-0
e
FOR CITY C~ERK'S ACTION
ORDINANCE It
Introduced:
Adopted:
AIJ.VA,YS PUBLISH AOOP'l:t;lJ ORDINANCES *
*Cross out Attorney's approval
if'
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VOTE: AffirmatIve:
:-.Jegative:
Abstain'
Absent:
4 PROOF VOTE~ WITH ANOTHER PER SOy BEFORE AJ\1YTHING
DISTRIBUTION' 0RIGI~AL ~o be signed, sealed and
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flIed in Vault.
NEWSPAPER PUBLICATION (Date:
)
)
Department orIgInatIng staff report (
Management Sery.~~e~ Lynne Barrette -urdinances only
~
""
Agency mentioned In document or staff report
(certified?)
Subject fIle (agenda packet) 1
Others'
Counter file 1
Building Dept, PlannIng
EnvIl'on. Servo Police (en-
forcement?)
FInance
PurchasIng .
FIre
Recr/Parks
General Servo
TransportatIon
LIbrary
Treasurer
Manager
AIrport
Parking Auth.
Audltorum
Personnel
SE'JD FOUR. COPIES OF ALL ORDINANCES TO:
CODED SYSTEMS, Attn Peter Maclearie
120 i'.!ain S'~ roet
AV0~. ~ew Jersey_07717
. .. ..
SEND FOUR COPIES OF AT,TL ORDTNANr'?S TO:
PRESIDING JUDGE
SA~TA ~ONICA MUNICIPAL COURT
1725 MAIN STREET
Sil,)HA ;vtoNICA, CA 90401
*Check Code Sections before sendlllg.
TOTAL COPIES