HomeMy WebLinkAboutResolution - 1099 I RESOLUTION NO. 1099
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SAN JACIP TO r A CALIFORNIA I�7=-
3 PAALITY, ACCEPTING THE TERMS OF LEASE AND
SALE AND LEASE-BACK AGREEMENT- WITH' UNITED
4 CALIFORNIA BANK IN CONNECTION WITH THE
CONSTRUCTION OF AN INDUSTRIAL BUILDING '
51 AT GRAND INDUSTRIAL PARK, SAN JACINTO
6 This resolution is adopted with reference to the following
facts ;
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A. The City of San Jacinto is the 'owner in fee of approximately
8 nine acres of land zoned M-I-P of which; part is used as the city
service yard and animal pound. The parcel is larger than required
9 for immediate municipal use , but ultimate use of an industrial
building of the type and at the location hereinafter described
10 may be required.
11 B. Mullenix Ornamental Iron, Inc. , a corporation presently operates
a 'manufacturing activity on East Main Street in this city that
12 appears to have exceeded the nonconforming use created by past
users and has resulted in the filing of numerous objections and
13 complaints with the city by neighboring residential users .
14 C. That is in the best interests of the people of this city and
of Mullenix Ornamental Iron, Inc. if a more suitable industrial
15 building were constructed in an area properly zoned for such
activity. The city desires to construct such a building at its
16 industrial park and to 'lease the same to Mullenix Ornamental Iron'.
A lease for a term of ten years has been entered into between
17 the city and Mullenix Ornamental Iron, Inc. , for that purpose and
the building is nearly completed.
18
D. United California Bank , has offered to finance the construction
19 of such' a building by the purchase of the building as personal
property at the actual cost of construction and the city will
20 grant the bank a- ground lease for the parcel on which the building
is to be located, 'under such terms that United California Bank
21 will lease back the parcel and the building to the City of San
Jacinto for a period of ten years with the option on the part
22 of the City of San Jacinto to purchase the building and earlier
terminate its ground lease to the bank for a price that shall
23 be determined by a formula derived as if the original purchase
price by the bank were; treated as a loan bearing interest at the
24 rate o.f_' 8% per annum simple interest on the purchase price unpaid
and after determining all interest that would have accrued on the
25 unpaid loan as if the rental payments were loan repayment install-
ments applied first against accrued interest ;and then against
26 principal , then the said repurchase price by the city shall be
the equivalent of what would thenbe the unpaid principal plus
2711accrued interest plus the sum of one dollar.
28 NOW THEREFORE ? BE IT RESOLVL'D this ,T '` day of
1976' by!vthe. City, Council of the City of San Jacinto.{'sittinq
29 in regular session the day immediately above written as
follows
30
1. The council finds and determines that the foregoing'
31 facts are true and correct.
32 2 . The council accepts the terms of the offer of United California
DONALD C. WICKHAM
ATTORNEY AT LAW
163EAST MAIN STREET
SAN JACINTO,.
CALIFORNIA 92383
(714) 654-7410
i
1 Bank for the arrangement for the financing of the purchase and
construction of the industrial building at Grand Industrial Park
2 to be constructed pursuant to the terms of the lease with the City
of San Jacinto with Mullenix Ornamental Iron, Inc. , which terms
3 ; are set forth in paragraph D above.
41 3 . That as further terms of the agreement with United California
Bank, the annual rent for the use of the building shall be approxi
5 mately one-tenth of the purchase price paid by the bank for the
building plus eight per cent simple interest for one year on one-
6 half of the purchase price, payable annually, by an annual schedule
to be more particularly agreed upon.
7 /
MOVED, PASSED AND ADOPTED the day of -�-? �_� 1976 .
8 f`
9 ATTEST: ?
LUCY MAY ALLEN, CITY CLERK
10
Mayor
11 By
e
12
13 CERTIFICATE
14 The foregoing is certified to be a true copy of a Resolution
15 duly adopted by the City Council of the City of San Jacinto on the
16 date therein set forth.
17 LUCY BMAY/ ALLEN, CITY CLERK
18 By
Deputy
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