GIDA Resolution 85-3RESOLUTION NO. 85 - 3
A RESOLUTION OF DETERMINATION AND OF INTENTION
TO UNDERTAKE PROJECT FOR LAS ANI~S INN,
A CALIFORNIA LIMITED PARTNERSHIP, AND TO ISSUE BONDS THEREFOR
RESOLVED, by the Board of Directors of the Industrial Develop-
ment Authority of the City of Gilroy, California, that
WHEREAS, by Resolution of Acceptance of Application of Las
Animas Inn, A California Limited Partnership, adopted this date by
this Board, this Board has accepted the application (the "Application")
of Las Animas Inn, a California limited partnership (the "Company") for
further processing pursuant to the Economic Development Financing Law
of the City (the "Bond Law");
NOW, THEREFORE, IT IS DETERMINED AND ORDERED as follows:
1. T~.e.P~.oject
A brief summary of the proposed project (the "Project") is
set forth in the form of notice attached hereto and said description
is hereby incorporated by reference herein. The Company proposes to
use the real and personal property to be acquired by means of the
Project (the "Facilities") as a visitor serving facility to consist
of a 150-room hotel with meeting and conference facilities. The
Facilities will be suitable for industrial, commercial or other
business activities or uses within the meaning of the Bond Law, not
including any of the-activities excluded from financing by that Law.
2. Project Costs and Bonds
The Application estimates the maximum amount of bonds
proposed to be issued, the sources of amounts otherwise required for
the Project, and an itemization of the costs and other expenses.
The Total Estimated Project Cost is $10,000,000.
For the purpose of paying the Project Costs, the City shall
issue its revenue bonds under the Bond Law in principal amount
adequate to finance the Project, the maximum amount of which is
currently estimated at $9,500,000 (the "Bonds"). Other terms of
the Bonds, the methods of prOviding for the security and payment of
the Bonds and the sale and delivery of the Bonds shall be as stated
in the Application or as shall be agreed upon between the City and
the Company. To the extent bonds are not issued in an amount suf-
ficient to pay or reimburse Total Project Costs, the Company will pay
the other amounts required.
3. Project Completion
The Project is estimated to be completed or available for use
as stated in the Application, and Bonds to pay or reimburse the
Company therefor are proposed to be issued prior to the expiration
of one year after the first placing in service of the Facilities.
Expenditure of bond proceeds to pay or reimburse Project Costs shall
be supervised to assure proper application to the Project.
RESOLUTION NO. 85 - 3
4. Project Benefits
It is likely that the undertaking of the Project by this
City will be a substantial factor in securing and increasing the number
of persons employed and aggregate direct employment earnings within
the City, as stated in the Application. In addition, a substantial
number of the jobs which will likely be made available will be jobs
for the semi-skilled and unskilled. It is also likely that the under-
taking of the Project by the City will be a substantial factor in the
accrual of the other public benefits as stated in the Application.
Consequently, public benefits from the use of the Facilities likely
will substantially exceed any public detriment from issuance of Bonds
in the proposed principal amount.
Neither the completion of the Project nor the operation of
the Facilities will have the proximate effect of relocation of any
substantial operations of the Company from one area of the State to
another or in the abandonment of any substantial operations of the
Company within other areas of the State.
5. P.r.oject and Bond Qualification
The Project, including the proposed issuance of the Bonds, is
otherwise in accord with the purposes and requirements of the Bond
Law, and affirmative determinations regarding each of the remaining
criteria pursuant to subdivision (c) of Section 8A.15 of the Bond
Law are hereby made.
6. Intention
It is the intention of this City to undertake the Project for
the Company, including the issuance of the Bonds, on the terms and
conditions set forth in the Application and this resolution and as
authorized by the Bond Law. A notice of the filing of the Application
with the City, in substantially the form attached hereto, shall be pub-
lished pursuant to Section (8A.15(e) of the Bond Law.
Introduced at the meeting of the Industrial Development Authority
of the City of Gilroy held on the 2nd day of December, 1985, by Director
Gage who moved its adoption and passage, which motion was carried after
being duly seconded, and passed by the following vote:
AYES:
Directors: Albert, Gage, Kloecker, Mussallem, Palmerlee,
Valdez and Hughan
NOES:
Directors: None
ABSENT: Directors: None
SECONDED: Director: Mussallem
APPROVED
ATTEST:
ยท
RESOLUTION NO. 85 - 3
THIS RESOLUTION NULL AND VOID. SHOULD HAVE BEEN ADOPTED BY CITY COUNCIL,
NOT INDUSTRIAL DEVELOPb%NT AUTHORITY, PROPOSED TO BE ADOPTED 12-16-85.
-2-
NOTICE OF ACCEPTANCE OF APPLICATION OF
LAS ANIMAS INN, A CALIFORNIA LIMITED PARTNERSHIP,
AND OF THE FILING OF SAME WITH CITY
AND
NOTICE OF PUBLIC HEARING ON APPROVAL
OF PROVISION OF APPROXIMATELY $9,500,000
INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING
NOTICE IS HEREBY GIVEN that the Application of Las Animas
Inn, A California Limited Partnership (the "Company"), for financing
of the following described project (the "Project") has been accepted
by the City Council of the City of Gilroy and the City Council has
determined that it is likely that the undertaking of the Project
will be a substantial factor in the accrual of employment benefits
from the use of the real and personal property proposed by the
Application to be acquired by the Company (the "Facilities") and
the Initial Operator or Manager of Facilities will be Great West
Hotels, Inc., a Texas Corporation, and that the Project is in accord
with the purposes and requirements of the Economic Development
Financing Law of the City (the "City Law").
The Project includes the acquisition by Las Animas Inn, A
California Limited Partnership of an approximately 150-room hotel,
with restaurant, lounge, and meeting and conference facilities, and
related landscaping and parking improvements to be located on a
parcel of land within the City of Gilroy of about 4 acres,
approximately triangular in shape, the apex of which is at the
intersection of Arroyo Circle and the easterly right-of-way of line
of U.S. 101 and which is bounded by said street and right-of-way
line on 2 sides, extending northerly from said intersection. There
is no direct access between Arroyo Circle and U.S. 101; access is
between Arroyo Circle and Leavesly Road to the north, including the
acquisition of real and personal property therefor, by the provision
of revenue financing by bonds or other instruments by the City
Council under the City Law.
Revenue financing in principal amount adequate to finance the
Project, the maximum amount of which is currently established at
$9,500,000 is proposed to be provided to finance the Project. The
financing is to be repaid by payments to be made by the Company.
Neither the faith and credit nor the taxing power of the State of
California or the City of Gilroy will be pledged to the payment of
such revenue financing, nor is the state or the city in any manner
obligated to make any appropriation for payment.
NOTICE IS FURTHER GIVEN that the Application as so accepted
has been filed with the City of Gilroy and a copy of same is open to
public inspection in the office of the City Clerk, 7351 Rosanna
Street, Gilroy, California.
NOTICE IS FURTHER GIVEN that the City Council of the City of
Gilroy will hold a public hearing on , 198_, at the hour of
.m., in the Council Chambers, City Hall, 7390 Rosanna Street,
Gilroy, California 95020, on the question of approval of the
provision of said revenue financing to finance the Project, at which
time and place all persons desiring to be heard with differing views
on provision of the financing and the location and nature of the
Facilities will be given an opportunity to be heard. Further
information may be obtained by contacting Susanne E. Steinmetz, at
(408) 842-3191, Ext. 202.
Dated: , 198 .
City Clerk
IDB0003.GIL/1 12/02/85
