HomeMy WebLinkAbout97-134 CC ResolutionRESOLSON NO. 9%134
A ~LUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA
APPROVING AN OWNER PARTICIPATION AGREEMENT BY AND
BETWEEN THE CITY OF TEMECULA AND INTERNATIONAL
RECTWIER CORPORATION, A CALIFORNIA CORPORATION
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES I-IF~RERY DETERMINE,
RF~OL~, AND ORDER AS FOLLOWS:
Section 1. Findings. The City Council of the City of Temecula hereby makes the
following findings:
A. International Rectifier Corporation (Participant) presenfiy has on the Site one
building of approximately 307,000 square feet used to manufacture semiconductors. Participant
proposes to expand its operations by constructing an additional 30,000 square feet on the Site the
"Facility" to manufacture semiconductors.
B. Participant represents to the City Councfi that construction and equipping of the
Facility will result in an initial increase in the assessed value of the Site of approximately
$160,000,000.
C. Participant presently employs Five Hundred and Thirty Four (534) full-time
employees at the 41915 Business Park Drive Site. Participant proposes to employ One Hundred
Seventy (170) new full-time employees consisting of 65 technical positions, 30 management and
professional positions, and 75 skilled labor positions with an average annual salary estimated to
be $32,000 by December 1999.
D. Participant was offered financial grants and inducements from foreign countries
worth not less than $25,000,000 to locate the Facility outside the United States.
E. In order to induce Participant to expand the Facility in Temecula and add one
hundred seventy (170) new employees, the following steps will be taken:
1. Following the issuance of the Certificate of Completion, the City shall reimburse
Owner Fifty Percent (50%) of the Net Tax Increment for ten (10) years. The reimbursement shall
be paid for the July 1- July 30 fiscal year thereafter. By way of example, if the Certificate of
Completion is issued on January 1, 1998, the first reimbursement period will be July 1, 1998
through June 30, 1999.
Re~os./97-134 I
2. The reimbursement of net Tax Increment shall be paid following:
The submission from Participant of (I) evidence of payment of ad valorem
property taxes for the fiscal year for which reimbursement is sought; (ii)
information regarding employment pursuant to Section 2.1D of the Owner
Participation Agreement, ('fii) approval of the City report referred to at
Section 2.1F of the Owner Participation Report; and
Sixty (60) days after City receipt of the Property Tax Increment from the
County.
3. The City's obligation to reimburse Participant shall be subordinate to all written
agreements of the City in effect as of the date of this Agreement. If the City should lack sufficient
funds in any year to funy reimburse participant due to such existing agreements, then such unpaid
reimbursement shall be deferred until the next fiscal year until City has sufficient funds to pay
such deferred reimbursement.
4. The reimbursement of Net Tax Increment shall be reduced on a proportional basis
to the extent Owner fails to add and continuously employ on the Site at least 170 full-time
additional employees above the base line of 534 employees. Owner shall have 70 additional
employees within one (1) year following issuance of the Certificate of Completion, 100 additional
employees within two (2) years following Certificate of Completion, but in no event later than
March 2000, and continuously employ them for the subsequent nine (9) years.
F. Pursuant to § 32~.~.~..6 of the California Community Redevelopment Law, the City
finds that the pro~sed financial assistance is necessary for the economic feasibility expansion of
International Rectifier Corporation in the City of Temecula; and that the expansion assistance
could not be obtained on economically feasible terms from the private market and will assist in
removing blight in the Project Area.
O. This project is exempt from the provisions of the California Environmental Quality
Act on the grounds that the impacts of an City action such as this were part of the EIR for Plan
approval pursuant to CEQA buildings § 15180. The Council finds that no facts exist to justify a
subsequent or supplemental EIR under CEQA Guidelines §15162 and 15163.
Section 2. Based upon the above findings, the City of the City of Temecula hereby
consents to the approval of the Owner participation Agreement by and between the City of
Temecula and International Rectifier Corporation, a California Corporation in substantially the
form attached hereto as Exhibit A.
Resos./97-134 2
PASSED, APPROVEi~ AND ADOPTED, by the City of Temecula at a regular meeting
on the 9th day of December 1997.
Ron Roberts, Mayor
ATTEST:
Jun~. ~l~eek, CMC/AA~-~-~)
City Clerk
[SEt L]
R¢~o~./97-134 3
STATE OF CALIFORNIA )
COUNTY OF RIVF.~SIDE ) s$
CITY OF TEMECULA )
I, June S. Greek, City Clerk of the City of Temecula, California, do hereby certify that
Resolution No. 97-134 was duly and regularly adopted by the City Council of the City of
Temecula at a regular meeting thereof held on the 9th day of December, 1997, by the following
vote:
5 COUNCILMEMBERS: Comerchero, Ford, Linclemans, Stone, Roberts
NOES:
0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
June S. Greek,"~.~l~fC/AAE
City Clerk
Ro~o~./97-134 4