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Resolution No. 2010-161RESOLUTION NO. 2010-161 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16,000,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION OF CERTAIN RECOVERY ZONE FACILITIES FOR THE BENEFIT OF GOLDEN WEST TRADING OR AN AFFILIATE THEREOF, RATIFYING THE DESIGNATION OF THE COUNTY OF LOS ANGELES AS A RECOVERY ZONE WITHIN THE MEANING OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009, AND OTHER RELATED MATTERS WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement") in order to form the California Municipal Finance Authority (the "Authority"), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the'Authority is authorized to issue and sell revenue bonds, including recovery zone facility bonds, for the purpose, among, others, of financing or refinancing the acquisition and/or , construction of capital projects such as the Project (defined below) within the jurisdiction of its Members; and WHEREAS, the. City of Vernon (the "City") is a Member of the Authority; and WHEREAS, Golden West Trading, Inc., Culver City Meat Co., Inc. or another affiliate thereof (the "Borrower"), has requested that the Authority issue and sell recovery zone facility bonds in the maximum principal amount of $16,000,000 (the "Bonds") for the purpose of making a loan to the Borrower, to enable the Borrower to finance the design, acquisition, installation, construction, development, improvement, rehabilitation and equipping of an approximately 214,000 square foot food processing facility, including freezer storage and chilled production space, to be owned or operated by the Borrower and located at 3376 E. 44th Street in the City (the "Project"); and , WHEREAS, in -order for the interest on the Bonds to be tax- exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that an "applicable elected representative" of the governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the Bonds following such hearing; and WHEREAS, the Authority has determined that the City Council is an "applicable elected representative" for purposes of holding' uch hearing and approving such issuance; and WHEREAS, as a condition to issuing bonds to assist in the financing of capital projects, Section 4 of the Agreement requires the approval of the Member within the jurisdiction of which the project is situated; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement; and WHEREAS, notice of such public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an -2- opportunity to be heard on all matters relative to the financing of the Project and the Authority's issuance of the Bonds therefore; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the issuance of the Bonds by the Authority for the aforesaid purposes; and WHEREAS, Section 140OU-1 of the Internal Revenue Code of 1986, as amended (the "Code") authorized the County of Los Angeles (the "County") to designate a "recovery zone for the purpose of the issuance of Recovery Zone Economic Development Bonds under Section 140OU-2 of the Code, and Recovery Zone Facility Bonds under Section 140OU-3 of the Code; and WHEREAS, pursuant to a resolution entitled "Resolution of the Board of Supervisors of the County of Los Angeles, California, Designating Los Angeles County as a Recovery Zone Pursuant to the American Recovery and Reinvestment Act of 2009" adopted on January 26, 2010 (the "County Resolution"), said board did designate the entire geographic territory of the County, including the geographic territory of the City, as a recovery zone for purposes of the Code (the "County Recovery Zone"); and WHEREAS, the Bonds are proposed to be issued as Recovery Zone Facility Bonds under Section 140OU-3 of the Code to finance recovery zone property within the County Recovery Zone. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE: CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council hereby finds and determines that the foregoing recitals are true and correct. SECTION 2: The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City -3- Council that. this resolution constitute approval of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental unit having jurisdiction over the area in which the Project is or is to be located in accordance with Section 147(f) of the Code and (b) by the City Council in accordance with Section 4 of the Agreement. SECTION 3: The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. SECTION 4: The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection.with any planning approval, permit or other action necessary for the acquisition, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds,whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. SECTION 5: The designation of the County Recovery Zone, which includes the entire geographic territory of the City, is hereby affirmed and ratified by the City Council. SECTION 6: The executing officers, the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. no SECTION 7: This resolution shall take effect immediately upon its passage. SECTION 8: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 15th day of November, 2010. Name: RiLkl.rp GgOlk�iS Title: Mayor /-Uahr^r nre - Wil hi, City Clerk -5- STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2010-161, was duly passed, approved and adopted by the City Council of the City of. Vernon at a regular meeting of the City Council duly held on Monday, November 15, 2010, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of November, 2010, at Vernon, California. Wi lard G. Ya ag chi, City Clerk (SEAL) M 4305 Santa Fe Avenue Vernon, CA 90058 Phone: 323.583.8811 x 175 Fax: 323.826.1439 FAX To: Ron Lee From: Willard G. Yamaguchi Company: Jones Hall, a Professional Law Corp City Clerk Fax: 415-391-5784 Date: 11-15-10 Phone: 415-391-5780 Pages: 2 pages, including cover. Re: Golden West Trading CC: 0 Urgent 0 For Review 0 Per Your Request ❑ Please Comment ❑ Please Reply 0 U.S. Mail Comments: See the attached letter of support. Same faxed to 866-736-4482. This facsimile transmission may contain CONFIDENTIAL INFORMATION, which also may be LEGALLY PRIVILEGED and which is intended only for the use of the addressee(s) named above. If you are not the intended recipient of this facsimile, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any dissemination or copying of this facsimile may be strictly prohibited. If you have received this facsimile in error, please immediately notify us by telephone and return the original facsimile to us at the above address via the postal service. Thank you. TRANSMISSION VERIFICATION REPORT TIME 11/15/2010 17:08 NAME FAX 3238261498 TEL SER.# E7J452115 DATE,TIME 11/15 17:07 FAX NO./NAME 714153915784 DURATION 00:00:34 PAGE(S) 02 RESULT OK MODE STANDARD ECM 4305 Santa Fe Avenue Vernon, CA 90058 Phone: 323.583.8811 x 175 Fax: 323.826.1439 FAX To: Ron Lee From: Willard G. Yamaguchi Company: Jones Hall, a Professional Law Corp City Clerk Fax: 866-736-4482 Date: 11-15-10 Phone: 415-391-5780 Pages: 2 pages, including cover. Re: Golden West Trading CC: R1 Urgent 0 For Review 0 Per Your Request ❑ Please Comment ❑ Please Reply 0 U.S. Mail Comments: See the attached letter of support. This facsimile transmission may contain CONFIDENTIAL INFORMATION, which also may be LEGALLY PRIVILEGED and which is intended only for the use of the addressee(s) named above. If you are not the intended recipient of this facsimile, or the employee or agent responsible for delivering it to the intended recipient, you are hereby notified that any dissemination or copying of this facsimile may be strictly prohibited. If you have received this facsimile in error, please immediately notify us by telephone and return the original facsimile to us at the above address via the postal service. Thank you. --4wl 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 November 15, 2010 Attention: California Debt Limit Allocation Committee (CDLAC) SUBJECT: Recovery Zone Facility Bond Allocation — Golden West Trading Company. The City of Vernon, California supports the application submitted by Golden West Trading Company for a Recovery Zone Facility Bond allocation and recommends that it be approved by CDLAC. The award of an allocation will allow the company to utilize tax exempt bond financing to acquire new meat processing and freezer equipment at a reduced interest rate. The addition of the equipment will result in the hiring of 25 new workers. The new equipment will also increase the company's processing capacity to meet customer demand. Golden West Trading has been a family owned and operated business since 1977 and provides employment to areas directly surrounding the City of Vernon. Golden West Trading is a valuable community member in the City of Vernon. Thank you. Yo s truly, WILLARD G. U City Clerk E.iCcfusivefy Industrial TRANSMISSION VERIFICATION REPORT TIME 11/15/2010 17:06 NAME FAX 3238261498 TEL SER.# E7J452115 DATE DIME 11 / 15 17: 06 FAX NO./NAME 718667364482 DURATION 00: 00: 44 PAGE(S) 02 RESULT OK MODE STANDARD ECM ,.,) CJ/ ii ./ fo / 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 November 15, 2010 Attention: California Debt Limit Allocation Committee (CDLAC) SUBJECT: Recovery Zone Facility Bond Allocation — Golden West Trading Company. The City of Vernon, California supports the application submitted by Golden West Trading Company for a Recovery Zone Facility Bond allocation and recommends that it be approved by CDLAC. The award of an allocation will allow the company to utilize tax exempt bond financing to acquire new meat processing and freezer equipment at a reduced interest rate. The addition of the equipment will result in the hiring of 25 new workers. The new equipment will also increase the company's processing capacity to meet customer demand. Golden West Trading has been a family owned and operated business since 1977 and provides employment to areas directly surrounding the City of Vernon. Golden West Trading is a valuable community member in the City of Vernon. Thank you. Yo s truly, WILLARD G. Y U City Clerk E.,cfusivefy Industfiaf NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on November 15, 2010, a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986 will be held with respect to the proposed issuance by the California Municipal Finance Authority (the "Authority") of its revenue bonds in one or more series in an amount not to exceed $16,000,000 (the "Bonds"). The proceeds of the Bonds will be used to: (i) finance the design, acquisition, installation, construction, development, improvement, rehabilitation and equipping of an approximately 214,000 square foot food processing facility, including freezer storage and chilled production space, to be owned or operated by the Borrower and located at 3376 E. 44a' Street in the City of Vernon, California (the "City"), and (2) pay certain expenses incurred in connection with the issuance of the Bonds. The Project is to be owned and operated by Golden West Trading, Inc. or Culver City Meat Co., Inc. or another affiliate thereof (the "Borrower"). The Borrower has submitted an application to the Authority for the financing of the Project through the issuance of the Bonds, and reference is made to such application for further particulars. The Bonds and the obligation to pay principal of and interest thereon and any redemption premium with respect thereto do not constitute indebtedness or an obligation of the Authority, the State of California or any political subdivision thereof, within the meaning of any constitutional or statutory debt limitation, or a charge against the general credit or taxing powers of any of them. The Bonds shall be a limited obligation of the Authority, payable solely from certain revenues duly pledged therefor and generally representing' amounts paid by the Borrower. The hearing will commence at 9:00 a.m. or as soon thereafter as the matter can be heard, and will be held in the Council Chamber, 4305 Santa Fe Avenue, Vernon, California. Interested persons wishing to express their views on the issuance of the Bonds or on the nature and location of the facilities proposed to be financed may attend the public hearing or, prior to the time of the hearing, submit written comments. Additional information concerning the above matter may be obtained from, and written comments should be addressed to, City Clerk, City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058. Dated: October 28, 2010 DATE: TO: FROM: RE: Background STAFF REPORT City Clerk October 7, 2010 Honorable Mayor and City Council Willard G. Yamaguchi, City Clerk Culver City Meat Company Public Hearing— November 1, 2010 RECEIN -F-D OCT 1.9 2010 CITY CLERK'S uFFICE E ME A", �v __ NVIII'v"I Golden West Trading, Inc. or Culver City, Meat Co., Inc., has requested that the California Municipal Finance Authority ("CMFA") serve as the municipal issuer of Bonds in an aggregate principal amount not to exceed $16,000,000 of Tax -Exempt Bonds. The proceeds of the Bonds will be used to: (i) finance the design, acquisition, installation, construction, development, improvement, rehabilitation and equipping of an approximately 214,000 square foot food processing facility, including freezer storage and chilled production space, to be owned or operated by the Borrower and located in the City of Vernon, California and (2) pay certain expenses incurred in connection with the issuance of the Bonds. The Project is to be owned and operated by Golden West Trading, Inc. or Culver City Meat Co., Inc. or another affiliate thereof A prerequisite to issuing all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Vernon must conduct a public hearing (the "TEFRA Hearing") under the Tax and Equity Fiscal Responsibility Act ("TEFRA") to provide members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project. California Municipal Finance Authority The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic - development and charitable activities throughout California. To date, over 100 municipalities, including the City of Vernon, have become members of CMFA. The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA's. representatives and its Board of Directors have considerable experience in bond financings. The Joint Exercise of Powers Agreement provides that the CMFA is'a public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of the members executing such agreement. The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California, but are to be paid for solely from funds provided by the Borrower. Participation by the City in the CMFA will not impact the City's appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution and executing the Joint Exercise of Powers Agreement of the CMFA, no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required. Fiscal Impact The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the "Foundation"), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Vernon (the "City"), it is expected that 25% of the issuance fee will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City. A similar amount will be donated by the CMFA to one or more non-profit organizations in the City. Recommendation 1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the "Code"). 2) Adopt a resolution approving the issuance of the Bonds by the CMFA for the benefit of Golden West Trading, Inc. or Culver City Meat Co. (the "Borrower"), to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following). Re: Golden West Trading Notice of Public Hearing Page 1 of 3 Juarez, Debbie From: Muro, Evangelina Sent: Tuesday, November 09, 20,10 9:02 AM To: Juarez, Debbie Subject: FW: Golden West Trading Notice of Public Hearing From: Ron Lee [mailto:rlee@joneshall.com] Sent: Tuesday, November 09, 2010 9:00 AM To: Muro, Evangelina Cc: Yamaguchi, Willard Subject: Re: Golden West Trading Notice of Public Hearing Eva, This looks fine. A representative of CMFA (Ben Barker or John Stoecker) will be in attendance in case the council has questions. As we mentioned to Willard, the company will need a signed copy of the resolution immediately after the council meeting in order to meet a state deadline for approval of the bonds. The signed resolution can be handed to Ben or John. Thank you for all your help. Ron Ronald E. Lee Jones Hall, a Professional Law Corporation 650 California Street, 18th Floor San Francisco, CA 94108 0: 415.391.5780 x240 rleeCa)joneshall.com Circular 230 Disclaimer. To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in the communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. ------------ From: "Muro, Evangelina" <emuro ci.ve_rnon.ca.us> Date: Tue, 9 Nov 2010 08:23:47 -0800 To: Ron Lee <rlee 'oneshall.com> Cc: "Yamaguchi, Willard" <WYamaguchi@ci.vernon.ca.us> 11/9/2010 Re: Golden West Trading Notice of Public Hearing Page 2 of 3 Subject: RE: Golden West Trading Notice of Public Hearing Good Morning Ron, Attached is a copy of the resolution which will go for Council approval at the November 15th City Council meeting. Thank you. From: Ron Lee [mailto:rlee(nbjoneshall.com] Sent; Tuesday, November 02, 2010 3:40 PM To: Muro, Evangelina Subject: Golden West Trading Notice of Public Hearing Eva: Please see attached. It was published in the Vernon Sun on 10/28. If you need anything else, please let me know. Ron J014ES IIALL Ronald E. Lee Jones Hall, a Professional Law Corporation 650 California Street, 18th Floor, San Francisco, CA 94108 415-391-5780 ext. 240 415-391-5784 (fax) http://www.joneshall.com Circular 230 Disclaimer. To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in the communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it may contain confidential information that is legally privileged. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of any of the information contained in or attached to this transmission is STRICTLY PROHIBITED. If you have received this transmission in error, please immediately notify the sender. Please destroy the original transmission and its attachments without reading or saving in any manner. Click here <https://www.mailcontrol.com/sr/imrmTsU5]ZvTndxI! oX7UIFgrXJaieUT23E6XyWyIHo9aKg4kHSMf3 12V4Asf2Fjc3yNY2GdwEdSrLFZ!o! pA--> to report this email as spam. 11/9/2010 Re: Golden West Trading Notice of Public Hearing 11 /9/2010 C omia Municipa Authority Tax -Exempt Financing Throughout California 2111 Palomar Airport Road, Suite 320 • Carlsbad, CA 92011 • (760) 930-1221 • Fax (760) 683-3390 January 28, 2011 Mr. Willard Yamaguchi City Clerk City of Vernon 4305 Santa Fe Avenue Vernon, California 90058 Re: CMFA Fee Sharing Dear Mr. Yamaguchi: Please find the enclosed check for $6,250.00 which is made payable to the Vernon Rotary Club from the California Municipal Finance Authority ("CMFA"). The CMFA has a policy of sharing 25% of its initial issuance fees from each financing with the host municipality and donates. another 25% to support local non-profit organizations. — The enclosed check, payable through our Foundation, represents the portion of fees from the Golden West Trading project that the CMFA is sharing with the Vernon Rotary Club. The City chose the Vernon Rotary Club as the non-profit that they would like to be the beneficiary of the CMFA fee sharing. Sincerely, California Municipal finance Authority John Stoecker Financial Advisor RECEIVE FEB 14 2011 CITY CLERK'S OFFICE 1110031570 �: L 2 2 2B 7 L 70;i: 20000 4 40 5 5 9 2 5ii' CALIFORNIA FOUNDATION FOR STRONGER COMMUNITIES Vernon Rotary Club Date Type Reference Original Amt. 12/31/2010 Bill Golden West 6,250.00 CFSC Wachovia Che Golden West Trading Charitable Contribution 1 /28/2011 Balance Due Discount 6,250.00 Check Amount 3157 Payment 6,250.00 6,250.00 6,250.00 RE: Building Code Variance Golden West Trading, Inc. located at 3386 44th Street Golden West Trading, Inc. ("GWT"), a meat processing/cold storage company, recently acquired the subject property located at 3386 441h Street. The building was originally occupied and operated by Kal Kan Foods and Mars Petcare. Additionally, GWT currently has a long-term lease on the property at 3383 451" Street. This property is adjacent to the east side of the 3386 44th Street:parcel. GWT is requesting a building code variance from the 2010 California Building Code (CBC), Chapter 7, Section 705.8.1 "Allowable Area of Openings" and Table 705.8 "Maximum Area of Exterior. Wall Openings based on fire separation distance and degree of opening protection', and from Chapter 5, Section 507.4 "Unlimited area of two story buildings GWT is proposing to construct additional openings in the east wall of the building they own at 3386 44t Street. Presently the prop.oSed site has functional truck docks,, exit doorways, and windows. Due to the nature of GWT business; they would like to add additional truck docks, and exit doorways in. the east wall of the building. in order to allow them. to transfer merchandise effectively and provide ingress/egress. In addition, GWT is also proposing to install additional' window .openings in the east wall of the building. The windows will provide natural lighting. However, a portion of this :east wall is only 0.6 feet from the westerly property line. of 3383 45th Street property.. Table 705.8 of the CBC. does not permit openings within 3 feet of a property line. GWT has obtained a long-term lease of the 3383 45th Street property in order to provide.a 100=foot setback: In accordance with the CBC if a 30-foot. setback is provided no protection is required and the amount of openings in a wall is unlimited. Therefore, as long as GWT maintains the lease, of the 3383 451h Street property they will be in compliance with the intent of the code. The existing building on the 3386 44' Street property is approximately 218,982 square feet in size. GWT is proposing only minor modifications to the.exterior of the structure. Section 507.4 permits a two story building to be unlimited in size if it is used as a factory or storage facility and is equipped with an automatic sprinkler system and is adjoined by yards not less then 60 feet in width. The code permits this width to be reduced to 40 feet if the wall and openings have a three hour rating, in this instance the openings are not proposed to be protected. However; as mentioned earlier, approximately 113 feet of the subject building is approximately 0.6 feet from the 3386 44th Street property. Therefore, the subject building is not completely surrounded by 60 foot yards With only: three yards the maximum size building for a factory use.would be less than 60,000 square feet in size, unless fire wall were. constructed. separating the. spaces. GWT has entered into a long-term lease for the 3386 44.. Street property. As long as GWT is in control of this property and maintains the'yard it is incompliance. with the intent of Section 507.4 of the code: By applying for this variance, if granted, GWT will improve productivity, ingress/egress, and provide natural lighting. The property owner of 3386 44th Street, Mary Taurek (APN# 6303 017-005) has entered into a long-term lease with GWT and has approved, of the property be used as a truck parking and loading area. In addition,. GWT has also entered into a lease on the adjoining property located at4427 Downey Road, G & M Papazian Trust (6303-017-007), in order to meet the truck maneuvering requirements. Therefore, it is recommended, that a building code variance from Sections 507.4, 705.8.1; and table 705.8 be granted with the. following conditions: 1. Upon the expiration or termination of GWT's'lease of either the 3383 45th Street or the 4427 Downey Road property, for any reason; either a no 60 foot wide no build easement shall be provided in order to maintain the yard required in the California Building Code or that portion of the building shall be removed so that the building setback conforms with. the yard' requirements for an unlimited size buildings as set forth in the California Building Code. In addition, the truck loading and parking shall be relocated on the lot so. as to conform with the City's zoning requirements; 2. All tenant improvements shall. be in compliance with the 2010 California Building Codes (Building, Fire, Mechanical, Plumbing and Electrical). The proponent shall obtain all necessary building; fire, mechanical, plumbing, and electrical permits from the. City, of Vernon Community Services Department prior to commencement of construction. 3. Any violation of this variance will result in a revocation of the Certificate of Occupancy for the structure.