HomeMy WebLinkAbout94-061 CC ResolutionRESOLUTION NO. 94 - 61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECUI,A APPROVING AN OWNER PARTICIPATION
AGREEMENT BY AND BETWEEN THE CITY OF
TEMECULA AND INTERNATIONAL RECT~'IER, A
CALIFORNIA CORPORATION
The City Council of the City of Temecula does hereby determine, resolve, and order as
follows:
Section 1.
following findings:
Findings. The City Council of the City of Temecula hereby makes the
A. International Rectifier (Owner) has proposed to construct an addition of 40,000
square feet to its existing building to be used for the manufacturing of semiconductors.
B. The total cost of the building and equipment for the new facility should not be less
C. Once fully equipped and operating, the facility will create a total of 150 new, full-
time jobs consisting of 40 professional positions, 30 management positions and 80 skilled labor
positions. The average annual salary is estimated to be $28,000 beginning in 1995.
D. Construction and equipping of the Facility will result in an initial increase in the
assessed value of the Site of not less than $66,000,000.00. This will result in a Net Tax
Increment due the Temecula Redevelopment Agency, of not less than $190,000.00 per year.
E. Owner was offered financial grants and inducements from foreign countries worth
not less than $20,000,000.00 to locate the Facility outside the United States. In order to induce
Owner to develop the Facility in the United States, specifically in the County of Riverside, City
of Temecula, it is necessary that incentives be offered Owner at a Federal, County and local level.
F. In order to induce Owner to locate the Facility in Temecula, the following steps
will be taken:
1. The County of Riverside will sell Industrial Development Bonds in the
amount of not less than $25,000,000.00, the proceeds of which will be loaned to Owner to
construct the Facility (hereinafter referred to as the 'Bonds").
R¢~o~ 94-61 1
2. Security for the Bonds will be provided according to the following priority:
a. Owner will provide reasonably appropriate security for the Bonds,
as determined pursuant to a separate agreement between the Owner and the County of Riverside.
b. The County will use the Section 108 Loan Guarantee Program of the
United States Department of Housing and Urban Development to guarantee the Bonds.
c. The City will agree to pledge its annual allocation of CDBG funds
in its entirety to the County of Riverside in the event Owner is in default on the debt service on
the bonds, and until such time that such default is remedied. Such allocation of CDBG funds shall
be committed until all County CDBG funds utilized for debt service on the Bonds are repaid.
d. The Redevelopment Agency of the City of Temecula (Agency) and
the County of Riverside will enter into an agreement transferring to the County property tax
increment from Site not previously obligated by the Agency. Such transfer shall begin upon a
default on Bonds and continue until such default is remedied and all CDBG funds utilized for debt
service on the Bonds are repaid.
3. The Agency will reimburse Owner fifty percent (50%) of the Property Tax
Increment resulting from the proposed construction and equipping of an expansion to the
International Rectifier Facility located at 41915 Business Park Drive.
The reimbursement shall be exclusive of the pass through of tax-increment
revenue to local agencies and the set-aside for the low to moderate income housing fund as
required pursuant to Health and Safety Code Sections 33401 and 33334.2, respectively. The
period of the reimbursement of the property tax increment will be for ten years, and is contingent
upon the creation and maintenance of 150 new jobs. Failure to meet this job quota will result in
a reduction of this reimbursement.
4. The Agency will reimburse Owner all City land use, grading and permit fees
for approval of the Facility, up to a maximum of $100,000. This reimbursement will be paid
exclusively from the Property Tax Increment reimbursement set forth in Section 3 above.
5. The City will "expedite" all City building and permit applications.
Based upon the above findings, the City of Temecula hereby approves the Owner
Participation Agreement by and between the Redevelopment Agency of the City of Temecula, the
City of Temecula and International Rectifier, a California Corporation.
Resos 94-61 2
PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula
at a regular meeting on the 14th day of June 1994.
ATTEST:
Oreek, city Clerk
[SEAL]
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) SS
CITY OF TEMECULA )
I, June S. Greek, City Clerk of the City of Temecula, California, do hereby certify that
Resolution No. 94-61 was duly and regularly adopted by the City Council of the City of Temecula
at a regular meeting thereof held on the 14th day of June, 1994, by the following vote:
4 COUNCILMEMBERS: Mufioz, Parks, Stone, Roberts
NOES:
0 COUNCILMEMBERS: None
ABSENT: 1 COUNCILMEMBERS: Birdsall
Greek, City C~~l~k
ReMs 94-61 3