NEW ISSUE – BOOK-ENTRY ONLY RATING: Standard & Poor’s “A+” (See “RATING” herein) In the opinion of Bond Counsel, under existing law interest on the Series A Bonds and the Series B Bonds is exempt from personal income taxes of the State of California and, assuming compliance with the tax covenants described herein, interest on the Series A Bonds is excluded pursuant to section 103(a) of the Internal Revenue Code of 1986 from the gross income of the owners thereof for federal income tax purposes and is not an item of tax preference for purposes of the alternative minimum income tax imposed on corporations and individuals. The Authority has taken no action to cause, and does not intend for, interest on the Series B Bonds to be excluded pursuant to section 103(a) of the Internal Revenue Code of 1986 from the gross income of the owners thereof for federal income tax purposes. See “TAX MATTERS” herein. CALIFORNIA MUNICIPAL FINANCE AUTHORITY
$15,160,000 $220,000 Revenue Bonds (Oxnard Fire Station Project) Revenue Bonds (Oxnard Fire Station Project) 2014 Series A 2014 Series B (Taxable)
Dated: Date of Delivery Due: December 1, as shown on the inside cover The $15,160,000 California Municipal Finance Authority Revenue Bonds (Oxnard Fire Station Project) 2014 Series A (the “Series A Bonds”) and the $220,000 California Municipal Finance Authority Revenue Bonds (Oxnard Fire Station Project) 2014 Series B (Taxable) (the “Series B Bonds,” and together with the Series A Bonds, the “Bonds”) will be issued as fully-registered bonds registered in the name of a nominee of The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form only, through brokers and dealers who are, or who act through, DTC Participants. Beneficial Owners of the Bonds will not receive physical delivery of bond certificates. Payments of the principal of, premium, if any, and interest on the Bonds will be made to DTC by Wilmington Trust, N.A., as trustee (the “Trustee”). Disbursement of payments to DTC Participants is the responsibility of DTC, and disbursement of payments to the Beneficial Owners is the responsibility of DTC Participants. See Appendix C – “BOOK-ENTRY SYSTEM.” Interest on the Bonds is payable semiannually on June 1 and December 1 of each year, commencing June 1, 2014. The Series A Bonds are subject to optional and extraordinary redemption as described herein. The Series B Bonds are not subject to optional redemption but are subject to extraordinary redemption as described herein. See “THE BONDS – Redemption” herein. The Bonds are being issued by the California Municipal Finance Authority (the “Authority”), which will loan the proceeds of the Bonds to Oxnard Fire Station, LLC, an Arizona limited liability company (the “Borrower”), whose sole member is Community Finance Corporation, an Arizona nonprofit corporation (the “Member”) pursuant to a Loan Agreement (as defined herein). The proceeds of the Bonds will be used to (i) finance the design, acquisition, construction and equipping of a “turn-key” fire station including a training facility to be leased to the City of Oxnard (the “City”), (ii) finance 24 months of capitalized interest on the Bonds, (iii) fund a debt service reserve for the Bonds, and (iv) pay certain of the costs of issuing the Bonds. See “PLAN OF FINANCE” and “ESTIMATED SOURCES AND USES OF PROCEEDS” herein. None of the Authority, any Authority member or any person executing the Bonds is liable personally on the Bonds or subject to any personal liability or accountability by reason of their issuance. The Bonds are limited obligations of the Authority, payable solely from and secured by the pledge of Revenues under the Indenture. Neither the Authority, its members, the State of California (the “State”), nor any of its political subdivisions shall be directly, indirectly, contingently or morally obligated to use any other moneys or assets to pay all or any portion of the debt service due on the Bonds, to levy or to pledge any form of taxation whatsoever therefor or to make any appropriation for their payment. The Bonds are not a pledge of the faith and credit of the Authority, its members, the State or any of its political subdivisions nor do they constitute indebtedness within the meaning of any constitutional or statutory debt limitation. The Authority has no taxing power. This cover page contains certain information for quick reference only. It is not intended to be a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. The Bonds are offered by the Underwriter when, as and if issued by the Authority, and accepted by the Underwriter, subject to the approval of legality by Fulbright & Jaworski LLP, Bond Counsel, a member of Norton Rose Fulbright and subject to certain other conditions. Fulbright & Jaworski LLP is serving as Disclosure Counsel. Approval of certain legal matters will be passed upon for the Authority by its counsel, Jones Hall, A Professional Law Corporation, San Francisco, California, for the Underwriter by Stradling Yocca Carlson & Rauth, A Professional Corporation, Newport Beach, California, and for the Borrower and the Member by Slosser Struse PLC, Tucson, Arizona. It is expected that the Bonds will be available for delivery through the facilities of DTC on or about January 9, 2014.
Dated: December 18, 2013
MATURITY SCHEDULE
$15,160,000 CALIFORNIA MUNICIPAL FINANCE AUTHORITY Revenue Bonds (Oxnard Fire Station Project) 2014 Series A
Maturity Date Principal Interest (December 1) Amount Rate Yield CUSIP†
2016 $470,000 4.000% 1.170% 13048TQX4 2017 715,000 4.000 1.520 13048TQY2 2018 745,000 5.000 2.000 13048TQZ9 2019 780,000 5.000 2.470 13048TRA3 2020 820,000 4.000 2.970 13048TRB1 2021 850,000 4.000 3.400 13048TRC9 2022 885,000 4.000 3.690 13048TRD7 2023 920,000 3.625 3.950 13048TRE5 2024 955,000 5.000 4.160* 13048TRF2 2025 1,005,000 4.125 4.400 13048TRG0 2026 1,045,000 4.250 4.540 13048TRH8 2027 1,090,000 4.500 4.660 13048TRJ4 2028 1,140,000 4.625 4.780 13048TRK1 2029 1,190,000 4.625 4.870 13048TRL9 2030 1,245,000 4.750 4.950 13048TRM7 2031 1,305,000 5.000 5.050 13048TRN5 ______* Yield to first call date of December 1, 2023 at par.
$220,000 CALIFORNIA MUNICIPAL FINANCE AUTHORITY Revenue Bonds (Oxnard Fire Station Project) 2014 Series B (Taxable)
Maturity Date Principal Interest (December 1) Amount Rate Yield CUSIP
2016 $220,000 2.65% 2.65% 13048TRP0
† CUSIP is a registered trademark of The American Bankers Association. The CUSIP data herein are provided by CUSIP Global Services, managed by Standard & Poor’s Financial Services LLC on behalf of The American Bankers Association. These data are not intended to create a database and do not serve in any way as a substitute for the CUSIP Services. Neither the Authority nor the Underwriter is responsible for the selection or correctness of the CUSIP numbers set forth herein.
This Official Statement does not constitute an offer to sell the Bonds in any jurisdiction in which or to any person to whom it is unlawful to make such an offer. No dealer, salesperson or other person has been authorized by the California Municipal Finance Authority (the “Authority”), the Oxnard Fire Station LLC (the “Borrower”) or Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) to give any information or to make any representations, other than those contained herein, in connection with the offering of the Bonds and, if given or made, such information or representations must not be relied upon.
Neither the Authority nor its independent contractors has furnished, reviewed, investigated or verified the information contained in this Official Statement other than the information contained in the section entitled “THE AUTHORITY” and in the section entitled “ABSENCE OF MATERIAL LITIGATION - The Authority.” The Authority does not and will not in the future monitor the financial condition of the Borrower or otherwise monitor payment of the Bonds or compliance with the documents relating thereto. Any commitment or obligation for continuing disclosure with respect to the Bonds or the Borrower has been undertaken solely by the Borrower. See “CONTINUING DISCLOSURE” herein.
The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
The City maintains an Internet website, but the information on the website is not incorporated into this Official Statement.
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IN CONNECTION WITH THE OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS, INSTITUTIONAL INVESTORS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE HEREOF AND SUCH PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.
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[THIS PAGE INTENTIONALLY LEFT BLANK] TABLE OF CONTENTS
Page
INTRODUCTION ...... 1 General ...... 1 The Borrower ...... 2 The City ...... 2 Changes Since Date of Preliminary Official Statement ...... 2 The Bonds ...... 2 Book-Entry System ...... 3 Sources of Payment of the Bonds ...... 3 Debt Service Reserve Fund ...... 4 Leasehold Deed of Trust ...... 4 Continuing Disclosure ...... 4 Forward-Looking Statements ...... 4 Additional Information ...... 5 OXNARD FIRE STATION ...... 5 ESTIMATED SOURCES AND USES ...... 21 DEBT SERVICE SCHEDULE ...... 22 THE BONDS ...... 23 General ...... 23 Redemption ...... 23 Redemption Procedures ...... 23 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS ...... 24 Pledge of Revenues under the Indenture ...... 24 Lease ...... 25 Leasehold Deed of Trust ...... 25 Debt Service Reserve Fund ...... 25 Insurance ...... 26 Limited Obligation of Authority ...... 26 Limitation on Encumbrances ...... 27 Limitations on Indebtedness ...... 27 No Additional Bonds ...... 27 INVESTMENT CONSIDERATIONS ...... 27 Construction Risks ...... 27 Limited Source for Repayment ...... 29 Base Rental Payments Are Not Debt; Bonds are Limited Obligations ...... 29 No Acceleration Upon Default ...... 29 Abatement ...... 29 Seismic Activity; Flood Zone ...... 30 Risk of Uninsured Loss ...... 31 Eminent Domain ...... 31 State of California Finances ...... 31 Authority or City Bankruptcy ...... 31 No Liability of Authority to the Owners ...... 32 Tax-Exempt Status of the Series A Bonds ...... 32
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TABLE OF CONTENTS (continued) Page
Limitations on Remedies ...... 33 Limitations Relating to the Leasehold Deed of Trust ...... 33 Risks Related to Taxation in California ...... 34 IRS Audit of Tax-Exempt Bond Issues...... 37 Secondary Market Risk ...... 38 STATE BUDGET ...... 38 THE AUTHORITY ...... 40 TAX MATTERS ...... 41 Series A Bonds ...... 41 Series B Bonds ...... 43 APPROVAL OF LEGAL PROCEEDINGS ...... 46 ABSENCE OF MATERIAL LITIGATION ...... 46 The Authority ...... 46 The Borrower ...... 46 UNDERWRITING ...... 46 FINANCIAL ADVISOR ...... 47 CONTINUING DISCLOSURE ...... 47 RATING ...... 47 FINANCIAL STATEMENTS ...... 47 MISCELLANEOUS ...... 48
APPENDIX A: CERTAIN INFORMATION RELATING TO THE CITY OF OXNARD ...... A-1 APPENDIX B: FINANCIAL STATEMENTS OF THE CITY OF OXNARD ...... B-1 APPENDIX C: BOOK-ENTRY SYSTEM ...... C-1 APPENDIX D: SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS ...... D-1 APPENDIX E: FORM OF CONTINUING DISCLOSURE AGREEMENT ...... E-1 APPENDIX F: PROPOSED FORM OF BOND COUNSEL OPINION ...... F-1
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OFFICIAL STATEMENT
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
$15,160,000 $220,000 Revenue Bonds Revenue Bonds (Oxnard Fire Station Project) (Oxnard Fire Station Project) 2014 Series A 2014 Series B (Taxable)
INTRODUCTION
This Introduction contains a brief summary of certain of the terms of the Bonds being offered hereby and a full review should be made of the entire Official Statement, including the cover page and the Appendices hereto in order to make an informed investment decision. All statements contained in this Introduction are qualified in their entirety by reference to the entire Official Statement. References to, and summaries of, provisions of the laws of the State of California (the “State”) or any documents referred to herein do not purport to be complete and such references are qualified in their entirety to the complete provisions thereof. Capitalized terms used and not otherwise defined herein are defined in APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS” or in the Indenture, the Lease or the Loan Agreement, as applicable.
General
This Official Statement, including the cover page and Appendices hereto (this “Official Statement”), provides certain information in connection with the offering of $15,160,000 Revenue Bonds (Oxnard Fire Station Project) 2014 Series A (the “Series A Bonds”) and $220,000 Revenue Bonds (Oxnard Fire Station Project) 2014 Series B (Taxable) (the “Series B Bonds,” and together with the Series A Bonds, the “Bonds”) of the California Municipal Finance Authority (the “Authority”). The Bonds will be issued pursuant to the provisions of the Joint Exercise of Powers Act, comprising Chapter 5 of Division 7 of Title 1 (commencing with section 6500) of the Government Code of the State, as amended (the “Act”) and an Indenture of Trust, dated as of January 1, 2014 (the “Indenture”), by and among the Authority, the Oxnard Fire Station, LLC (the “Borrower”) and Wilmington Trust, N.A., as trustee (the “Trustee”).
The Authority will loan the proceeds of the Bonds to the Borrower pursuant to a Loan Agreement, dated as of January 1, 2014 (the “Loan Agreement”), by and between the Authority and the Borrower. Payments under the Loan Agreement will be made from amounts received by the Borrower from the City of Oxnard, California (the “City”) pursuant to the Master Lease and Option to Purchase, dated as of January 1, 2014 (the “Lease”), by and between the Borrower and the City. The proceeds of the Bonds will be used to (i) finance the design, acquisition, construction and equipping of a “turn-key” fire station including a training facility (the “Oxnard Fire Station”) for lease by the Borrower to the City, (ii) finance 24 months of capitalized interest on the Bonds, (iii) fund a debt service reserve for the Bonds, and (iv) pay certain of the costs of issuing the Bonds. The City has covenanted in the Lease not to acquire, construct or equip, or cause the acquisition, construction or equipping of, a fire station that will provide fire protection services substantially within the proposed service are of the Oxnard Fire Station until such time the Oxnard Fire Station has been completed and is operational.
Pursuant to a Site Lease, dated as of January 1, 2014 (the “Site Lease”), by and between the City and the Borrower, the City will lease the site to the Borrower on which the Oxnard Fire Station will be constructed.
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The Borrower
Oxnard Fire Station, LLC (the “Borrower” or in certain cases relating to the construction documents, the “Owner”) is an Arizona limited liability company formed by Community Finance Corporation (the “Member”), its sole member, for the purpose of financing the acquisition, design, construction and equipping of the Oxnard Fire Station. The Borrower does not employ any staff to carry out any functions; its operations are controlled by the Member and its management is reserved to the Member. The Member will provide all necessary administrative services to the Borrower.
The Borrower has no operating history, no historical earnings, no significant assets and no significant liabilities other than the Bonds or those liabilities associated with the Oxnard Fire Station. The Borrower is wholly dependent upon payments from the City under the Lease or from funds made available under the Indenture to meet its obligations under the Loan Agreement.
See “OXNARD FIRE STATION – The Borrower” herein.
The City
The City is located in western Ventura County (the “County”) on the shore of the Pacific Ocean. The City is approximately 65 miles northwest of the City of Los Angeles, 35 miles south of the City of Santa Barbara, and 6 miles south of the county seat of the County. The City is the largest city in the County, with a population estimated at 200,855 in 2013, accounting for approximately 24% of the County’s population. The City has a diversified economic base composed of agriculture and related business, retail, various services, and governmental agencies.
The City was incorporated as a general law city on June 30, 1903, and operates under a council- manager form of government. The City is governed by a five-member City Council elected at large for four-year alternating terms, with the exception of the Mayor, who is directly elected for a two-year term.
See APPENDIX A – “CERTAIN INFORMATION RELATING TO THE CITY OF OXNARD” and APPENDIX B – “FINANCIAL STATEMENTS OF THE CITY OF OXNARD” for demographic and financial information relating to the City.
Changes Since Date of Preliminary Official Statement
Both of the APPENDIX A – “CERTAIN INFORMATION RELATING TO THE CITY OF OXNARD” and APPENDIX B – “FINANCIAL STATEMENTS OF THE CITY OF OXNARD” have been updated to reflect the receipt of the Comprehensive Annual Financial Report for the Fiscal Year ended June 30, 2013.
The Bonds
The Bonds will be dated the date of delivery, will be issued in fully registered form in denominations of $5,000 or any integral multiple in excess thereof (each an “Authorized Denomination”). Interest on the Bonds is payable semiannually on each June 1 and December 1, commencing June 1, 2014 (each, an “Interest Payment Date”).
The Bonds are subject to optional, mandatory sinking fund and extraordinary redemption prior to their maturity as described herein. See “THE BONDS – Redemption” herein.
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Book-Entry System
The Bonds will be registered in the name of a nominee of The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Purchases of the Bonds may be made in book-entry form only, through brokers and dealers who are, or who act through, DTC Participants. Beneficial Owners of the Bonds will not receive physical delivery of the Bonds. Payments of principal of, premium, if any, and interest on the Bonds are payable by the Trustee to DTC, which will in turn remit such payments to the DTC Participants, which will in turn remit such payments to the Beneficial Owners of the Bonds. See APPENDIX C – “BOOK-ENTRY SYSTEM.”
Sources of Payment of the Bonds
The Authority is obligated to pay the Bonds solely from Revenues (as defined herein) and the other funds available therefor under the Indenture. Under the Loan Agreement, the Borrower has pledged Gross Revenues (as defined herein) to the payment of loan payments to be made under the Loan Agreement (“Loan Payments”), which are due in amounts and at the times necessary to pay the principal of, premium, if any, and interest to the date of maturity or redemption of the Bonds, when due. Gross Revenues primarily consist of rental payments under the Lease.
Pursuant to the Lease, the City will be required, subject to its abatement rights, to pay Base Rental and, as Additional Rental, any taxes, assessments, and insurance premiums with respect to the Oxnard Fire Station and the fees, costs, and expenses incurred by the Authority, the Borrower and the Trustee in connection with the Lease, the Indenture, or the Oxnard Fire Station. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Base Rental.” Base Rental payments are payable five business days prior to each June 1 and December 1, commencing on the Commencement Date, which is defined in the Lease to mean the date upon which certificate of occupancy has been issued with respect to the Oxnard Fire Station. Each Base Rental payment shall apply to the immediately preceding six month period. The City’s obligation to pay Base Rental payments commences upon substantial completion of the Oxnard Fire Station and the issuance of a permanent or temporary certificate or certificates of occupancy permitting legal and beneficial occupancy, operation and use of the Oxnard Fire Station for its intended purpose (the “Commencement Date”). A delay in the construction schedule beyond the capitalized interest period and any liquidated damage period (if applicable) would have a material adverse impact on the Borrower’s ability to make Loan Payments and accordingly the Authority’s ability to make debt service on the Bonds. See “INVESTMENT CONSIDERATIONS” herein.
Base Rental payments are subject to abatement during any period in which, by reason of a material title defect or material damage, destruction, or condemnation, there is substantial interference with the City’s right to use and occupy the Oxnard Fire Station or any portion thereof.
Under the Lease, at all times following the Commencement Date, the City is required to maintain rental interruption insurance covering a period of 24 months, in an amount equal to two times the maximum annual Base Rental payments. In addition, the Oxnard Fire Station will be insured, through insurers meeting certain requirements set forth in the Lease, against loss or damage. Any net insurance proceeds and condemnation awards will be applied to repair or replace the Oxnard Fire Station or to redeem all or a portion of the Bonds. See “THE BONDS – Redemption of Bonds – Extraordinary Redemption From Unexpended Proceeds or Insurance or Condemnation Proceeds” and APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS.”
The City has covenanted in the Lease to take such action as may be necessary to include and maintain all Base Rental payments and Additional Rental payments due under the Lease in its annual budget, and to make the necessary annual appropriations for all such payments, as long as a portion of the
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Oxnard Fire Station with fair rental value sufficient to support such Base Rental payments and Additional Rental payments is available for the City’s use. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Base Rental” and APPENDIX D – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS.”
None of the Authority, any Authority member or any person executing the Bonds is liable personally for the Bonds or subject to any personal liability or accountability by reason of their issuance. The Bonds are limited obligations of the Authority, payable solely from and secured by the pledge of Revenues under the Indenture. Neither the Authority, its members, the State, nor any of its political subdivisions shall be directly, indirectly, contingently or morally obligated to use any other moneys or assets to pay all or any portion of the debt service due on the Bonds, to levy or to pledge any form of taxation whatsoever therefor or to make any appropriation for their payment. The Bonds are not a pledge of the faith and credit of the Authority, its members, the State or any of its political subdivisions nor do they constitute indebtedness within the meaning of any constitutional or statutory debt limitation. The Authority has no taxing power.
Debt Service Reserve Fund
Payments of principal of, premium, if any, and interest on the Bonds will also be secured by amounts on deposit in the Debt Service Reserve Fund established under the Indenture at the Debt Service Reserve Requirement. On the date of delivery of the Bonds, the Debt Service Reserve Fund will be funded at the Debt Service Reserve Requirement in the amount of $1,372,150.
Leasehold Deed of Trust
To secure its obligations under the Loan Agreement and the Indenture, the Borrower will execute and deliver a Leasehold Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing, dated as of January 1, 2014 (the “Leasehold Deed of Trust”), for the benefit of the Trustee, as trustee for the Owners of the Bonds. See “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS – Leasehold Deed of Trust” and “INVESTMENT CONSIDERATIONS – Limitations Relating to the Leasehold Deed of Trust” herein.
Continuing Disclosure
The Borrower will agree in a Continuing Disclosure Agreement, dated as of January 1, 2014 (the “Continuing Disclosure Agreement”), by and between the Borrower and the Trustee, as Dissemination Agent thereunder, to provide, or to cause to be provided, certain annual financial information and operating data relating to the City and notices of certain enumerated events. See “CONTINUING DISCLOSURE” herein.
Forward-Looking Statements
Certain statements included or incorporated by reference in this Official Statement, including in Appendix A attached hereto, constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although such expectations reflected in such forward-looking statements are believed to be reasonable, there can be no assurance that such expectations will prove to be correct. The Authority and the Borrower are not
4 obligated to issue any updates or revisions to the forward-looking statements if or when the expectations, events, conditions or circumstances on which such statements are based occur.
Additional Information
The brief descriptions of the Bonds, the Indenture, the Loan Agreement, the Leasehold Deed of Trust, the Lease, the Continuing Disclosure Agreement and documents, statutes, reports and other instruments included in this Official Statement do not purport to be complete, comprehensive or definitive. All references to such documents and other documents, statutes, reports and other instruments are qualified in their entirety by reference to such document, statute, report or instrument. Copies of the Bonds, the Indenture, the Loan Agreement, the Leasehold Deed of Trust, the Lease and the Continuing Disclosure Agreement may be obtained, upon written request, from the Trustee.
OXNARD FIRE STATION
General Description
The Oxnard Fire Station will be the eighth fire station for the City and is designed to be a 13,956 square foot fire station and training complex to be constructed on the City owned property at 3000 South Rose Avenue which is on the Southeast corner of South Rose Avenue and East Channel Islands Boulevard in the City (the “Site”). The Site is currently a vacant land parcel of 2.49 acres located adjacent to the 70 acre College Park. The Site is owned by the City and will be leased to the Borrower pursuant to a Site Lease, dated as of January 1, 2014, by and between the City and the Borrower. The Oxnard Fire Station, including its associated training building, will occupy approximately 2.15 acres of the Site and the ancillary training yard will occupy the remaining approximate 0.35 acre.
The Oxnard Fire Station will contain a total of 13,956 square foot of building area consisting of an approximate 13,036 square foot fire station building and an approximate 920 square foot separate training building. The main station will have four “High-Bay” indoor drive isles to house fire apparatus vehicles, along with areas for administrative uses, living quarters & ancillary support spaces. The training building will have classroom and audio/visual amenities, restrooms and storage.
The Oxnard Fire Station amenities and improvements include: (a) four emergency vehicle apparatus bays; (b) ten dormitory living quarters with individual, private restrooms; (c) public lobby and ADA compliant public restroom; (d) administrative offices; (e) public lobby area; (f) firemen day-room, kitchen and dining facilities; (g) physical fitness gym; (h) paramedic emergency medical supply unit; (i) workshop, hose storage, oxygen supply, “Turn-Out” & storage rooms; (j) ancillary building equipment & support spaces; (k) naturally ventilated and day-lighted apparatus bays; and (l) conference and library room.
Both buildings will be one story structures of “Type-V, non-rated” construction and have automatic fire sprinkler systems. The main fire station structure will comply with all “Essential Public Safety Building” design code standards, as well as “Cal-Green” building code requirements.
Training center amenities and improvements include: (a) open educational and conference space; (b) audio/visual equipment; (c) ADA compliant restroom; (d) classroom equipment and storage space; (e) interior serving counter; and (f) interior furnishings, fixtures and equipment.
Site amenities and improvements will include: (a) two ingress and one egress vehicle access driveways; (b) approximate 49,000 square foot heavy truck traffic concrete paving and hardscape; (c) approximate 15,940 square foot heavy truck traffic concrete Vehicle Apparatus Training Yard with two fire hydrants for training purposes and night lighting; (d) emergency generator back-up power supply; (e)
5 on-site fuel island and above ground storage tank; (f) “Tiger” hose lift for drying hoses; (g) vehicle wash- down area; (h) bio-swale storm drainage; (i) 20,000+ square foot low maintenance/drought resistant landscaping; (j) site parking (20 employee and 5 public on-site parking spaces); (k) enclosed/secured masonry walls with automatic driveway gates; (l) exterior trash and storage enclosures; (m) covered patio recreational area; and (n) coordinated traffic signalization.
Renderings of the Oxnard Fire Station are shown the following page.
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Status of Entitlement
The following entitlement actions have been completed in connection with the Oxnard Fire Station (and their applicable appeal period have run and expired):
• Quitclaim of deed restrictions from the State of California and County of Ventura • Environmental Impact Report (EIR) Addendum • Special Use Permit • Lot Line Adjustment • Zone Change • Zone Text Amendment
The above-described entitlement actions constitute all of the subjective jurisdictional approvals required for the construction of the Oxnard Fire Station. Upon issuance of the Bonds, the development team will complete the construction drawings for the Oxnard Fire Station and submit such drawings to the City for plan checking and issuance of the building permit. Plan checking is an objective process whereby the City has a duty to issue a building permit provided the subject plans comply with the applicable building codes.
Design, Permitting and Construction Schedule
Anticipated schedule of design, permitting and construction of the Oxnard Fire Station is as follows:
Completion of Construction Documents April 2014 Issuance of Building Permit July 2014 Substantial Completion/Rent Commencement August 2015 Final Acceptance October 2015 End of Capitalized Interest Period January 9, 2016
No assurance can be made that the Oxnard Fire Station will be completed in accordance with the anticipated schedule above. Significant delay in the construction of the Oxnard Fire Station may have a material adverse impact on the Borrower’s ability to make Loan Payments as the City’s obligation to make Base Rental payments commences upon substantial completion of the Oxnard Fire Station. See “INVESTMENT CONSIDERATIONS – Construction Risks” herein. A portion of the proceeds of the Bonds will be used to fund 24 months of capitalized interest on the Bonds.
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Project Costs
The following table presents the total estimated costs of the Oxnard Fire Station, including contingency funds:
PERCENTAGE TOTAL COST PER OF TOTAL COST SQ. FT. COST CONSTRUCTION & FURNISHING COSTS: Land (N/A Assume Ground Lease) $ 0 $ 0.00 0.00% Fire Station Shell & Interior Construction Cost 5,123,165 367.09 41.14 Sitework 2,350,981 168.46 18.88 Added Alternates (Training Building, Training Yard, Channel Islands Entrance) 814,051 58.33 6.54 Furniture Fixtures & Equipment 200,000 14.33 1.61 Off-Site Improvements (Excluded with Exception of Rose Ave. and Channel Islands Sidewalk) 0 0.00 0.00 Direct Cost Contingency (5.0% of Direct Costs Excl. Land) 424,410 30.41 3.41 SUBTOTAL CONSTRUCTION & FURNISHING COSTS $8,912,606 $638.62 71.57%
(Architectural, Structural, MEP, Landscape Design, Civil DESIGN SERVICES Engineering) 924,900 66.27 7.43%
(Testing, Investigations, Inspections, Project CONSULTANTS Management) 970,075 69.51 7.79
(Legal, Insurance, Indirect MISC. SERVICES & COSTS Contingency, Etc.) 72,911 5.22 0.59
SUBTOTAL PROJECT COSTS 10,880,492 779.63 87.37
(Entitlements, Plan Check, CITY SERVICES & FEES Utility Connections) 595,218 42.65 4.78
DEVELOPER FEE 977,655 70.05 7.85
TOTAL PROJECT $12,453,365 $892.33 100.00% COSTS
______Source: Developer.
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Development Team
Lutzky Development, LLC (the “Developer”) will act in the capacity of developer and project manager for the Oxnard Fire Station project. Borrower will contract with Bernards Bros. Inc. (the “General Contractor”) for general contracting and construction services and will contract with HMC Group (the “Architect”) for architechural/engineering services. The Developer or the Owner will subcontract with various independent testing and inspection professionals to verify the quality of the work. Description of certain of the development team members are as follows:
Z Developer Lutzky Development, LLC
Company Profile Type of Legal Entity: Limited Liability Company Principal Contact: Richard Lutzky Office Location: 2915 Redhill Avenue, Suite C-101 Costa Mesa, CA 92626 714-323-7609