HomeMy WebLinkAbout93-036 CC Resolution RESOLUTION NO. 93-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA APPROVING THE TEMECULA
REDEVELOPMENT AGENCY LENDING FUNDS TO
ASSIST PROFESSIONAL HOSPITAL SUPPLY, INC.,
MEDICAL DESIGN CONCEPTS, INC., AMERICAN
MATERIAL MANAGEMENT ALLIANCE, INC., AND JOHN
HOFFEE IN EXPANDING INTO TWO NEW MEDICAL
DEVICE SUPPLY FACILITIES IN THE CRYSTAL RIDGE
BUSINESS PARK.
The City Council of the City of Temecula does hereby resolve as follows:
Section 1. The City Council of the City of Temecula hereby finds, determines and
declares as follows:
A. Professional Hospital Supply, Inc., Medical Design Concepts, Inc, and American
Material Management Alliance, Inc., owned by John Hoffee, (collectively referred to as "PHS ").
PHS is in the business of processing, packaging, storing and marketing medical supplies. PHS
is located at 43225 Business Park Drive within the Temecula Redevelopment Project Area.
B. PHS, along with Advanced Cardiovascular Systems, are the two principal businesses
engaged in the medical device industry within the Project Area. The City is seeking to
encourage economic development in the Project area by retaining and attracting the medical
device industry.
C. PHS seeks to expand its facilities into two new buildings of approximately 41,000
and 140,000 square feet, to be located within the Crystal Ridge Business Park (APN 940-031-
045 and 940-031-046). Redevelopment of this site will encourage redevelopment of the Business
Park and the Project Area, particularly with additional companies involved in the medical device
industry. However, PHS also has been offered the opportunity to expand on property located
in Coachella, at a cost of approximately $700,000 less than the cost of the land available within
the Project Area.
D. The cost of land acquisition for the proposed PHS site is significantly greater than
that in Coachella. In order to induce PHS to redevelop the property, it is necessary for the
Temecula Redevelopment Agency to lend PHS $700,000. This loan will be secured by a first
trust deed on the property. The loan is subject to an interest rate equivalent to the rate available
to the Agency on its investments, or 5 %, whichever is greater. The loan will be fully amortized
and repaid over 20 years. It may be repaid not only with cash, but with one-half of the new
Resos 93-36 1
sales tax the City receives from the expansion, and with a $2,000 credit for every new employee
hired.
E. The PHS expansion is of benefit to the Project Area because it will induce
redevelopment of the surrounding area and attract other companies engaged in the medical device
industry.
F. If tax increment funds are not used to reduce the cost of PHS's acquiring property
for expansion, the project will not occur. No other reasonable means are available to induce the
expansion.
H. Expansion of PHS will expand the employment opportunities for the jobless,
underemployed, and low income people.
1. A public hearing in substantial compliance with the requirements of California Health
and Safety Code Section 33433 has been held, and a notice has been published in a newspaper
of general circulation in the community for at least two successive weeks prior to the Public
Hearing.
Section 2. Based upon the foregoing, the City Council of the City of Temecula hereby
determines that the Development and Disposition Agreement providing Agency assistance to PHS
is necessary for the benefit of and to effectuate the Redevelopment Project No. 1-1988
redevelopment area and that the proposed contribution to its financing is the only reasonable
means available to insure its completion. The City Council does hereby approve a loan to
reduce the effective purchase price of the property PHS will acquire for the construction of a
medical device supply facility in the Redevelopment Project No. 1-1988 redevelopment area.
Section 3. The City Clerk shall certify to the adoption of this resolution.
APPROVED AND ADOPTED this llth day of May, 1993.
J.@* Muiioz, May@
v
Greek, C@
[SEAL]
Resoa 93-36 2
STATE OF CALIFORNIA)
COUNTY OF SI]DE ) SS
CITY OF TEMIECULA )
I, June S. Greek, City Clerk of the City of Temecula, California do hereby certify
that the foregoing Resolution No. 93-36 was duly adopted at a regular meeting of the City
Council of the City of Temecula on the I 1 th day of May, 1993, by the following roll call vote:
AYM: 3 COUNCILMEMBERS: Birdsall, Parks, Roberts
NOES: 2 COUNCILMEMBERS: Mufioz, Stone
ABSENT: 0 COUNCILMEMBERS: None
une S. Greek, Ci@rk
Resos 93-36 3