HomeMy WebLinkAbout93-037 CC Resolution RESOLUTION NO. 93-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA APPROVING THE TEMECULA
REDEVELOPMENT AGENCY LENDING $60,000 TO
QUICKSILVER ENTERPRISES, INC., TO RESTORE
FACILITIES DESTROYED BY THE JANUARY 1993
FLOODS
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. Quicksilver Enterprises, Inc., manufacturers ultralight aircraft. It is located at
27595 Diaz Road, Temecula, within the Temecula Redevelopment Project Area. Prior to
January 18, 1993, it employed 45 persons.
B. Quicksilver is located adjacent to Murrieta Creek. Its manufacturing facilities were
flooded over the weekend of January 15-18, 1993. As a result, it had to repair or replace its
shop equipment computers, telephones, and office equipment, at a cost of $130,000, and lay-off
2 employees on a temporary basis. In addition, for the six weeks after January 18,
manufacturing was halted in favor of flood clean-up, at a cost of $120,000. Further, there were
losses of $74,000 in inventory, $6,600 in administrative supplies, and $19,000 in engineering
documents. The cost of the clean-up depleted available cash resources for inventory. This has
reduced manufacturing to 60% of capacity.
C. One of the principal objectives of the Temecula Redevelopment Plan was to improve
flood control facilities within Murrieta Creek. To this end, the Temecula Redevelopment
Agency may install flood control facilities which would otherwise be the obligation of the private
landowner.
D. In addition, the Agency is authorized to enter any contract that may be necessary or
convenient to expand employment opportunities for the jobless, underemployed and low income
persons and which creates the physical, environmental and economic conditions to remove and
prevent the recurrence of blight.
E. Pending the improvement of flood control facilities by the Riverside County Flood
Control District, the Redevelopment Agency, and other public and private entities, it is
necessary to assist businesses which suffered severe flood damage. Such assistance will retain
and attract private investment, thereby advancing the objectives of redevelopment, principally
in the areas of job retention and creation.
Resoo 93-37
F. Quicksilver suffered severe flood damage in January 1993. In order to assist
Quicksilver to recover from the impacts of the flood, it is necessary for the Temecula
Redevelopment Agency to lend Quicksilver $60,000 for 120 days. This will serve as interim
financing until a Small Business Administration loan of $458,000 becomes available. The rate
of interest for such a loan will be five percent (5 %) per annum, which is approximately the rate
of return on Agency investments. Said loan will be secured by a letter of credit issued by the
Bank of Paris. Quicksilver will also release the City and Agency from any potential liability in
connection with the Flood.
G. The Quicksilver manufacturing facility is of benefit to the project area in that it
provides employment to the jobless, underemployed and low income persons.
H. No other reasonable means are available, and if tax increment funds are not used to
help provide interim financing, Quicksilver may not stay in business.
I. A public hearing 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 providing Agency assistance to Quicksilver 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
business survival. The City Council does hereby approve the lending of tax increment funding
to the Quicksilver manufacturing 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 ADOPRED this llth day of May, 1993.
Sal Muiioz, &layor
A=T:
Ju reek, City Cler@
[SEAL]
Resos 93-37 2
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE SS
CITY OF TEMECULA
1, June S. Greek, City Clerk of the City of Temecula, California do hereby certify
that the foregoing Resolution No. 93-37 was duly adopted at a regular meeting of the City
Council of the City of Temecula on the 1 lth day of May, 1993, by the following roll call vote:
AYES: 4 COUNCILMEMBERS: Parks, Roberts, Stone,
Muiioz
NOES: 0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
ABSTAINED: 1 COUNCILMEMBERS: Birdsall
City Clerk
Resos 93-37 3