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UPDATE ON THE PARTNERSHIPS PROGRESS
Building infrastructure creates jobs!
The CMB Infrastructure Investment Group II partnership has received USCIS approval in the form investor I-526 petitions which were approved in less than a month of their submission. We cannot promise that quick adjudication of each investor’s petition however what is significant is the review of an investors petition means the project and its fundamental structure has been reviewed and approved by the USCIS. During the review process if the USCIS has questions on the business structure, jobs methodology, or any other aspect of an I-526 petition, the investor’s petition will not be approved. Our Group II investment is a continuation of the same structure we have built into all of our investment partnerships and we will continue to build them with the same care for achieving our investor’s goals of obtaining a permanent visa and the return of their original capital. As of this date June 2010, 48 of the 52 investor petitions have been approved. The remaining petitions are currently under review by the USCIS.
Approval Notices:
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| McClellan Park Project |
IVDA / SBIA Project |
CMB INFRASTRUCTURE INVESTMENT GROUP II PARTNERSHIP
CMB Infrastructure Investment Group II, L.P. (the “Partnership”) was established on August 21, 2008 in the State of California and CMB Export, LLC, a federally designated Regional Center, (“CMB”) is the general partner. The Partnership initially was authorized to raise investment capital of up to $26 million. The Partnership will be engaged in investment activities within the geographic scope of the CMB Regional Center and has received for a lenders license from the State of California. The principals of the Partnership include CMB Export, LLC as general partner and foreign national investors who have contributed a minimum of $500,000 to the Partnership as limited partners. Limited partners will have all the rights accorded them under the Uniform Limited Partnership Act and the Limited Partnership Agreement which includes voting rights on certain critical issues as well as other responsibilities thus meeting the USCIS requirement that the limited partners are involved in the management of the Partnership.
The Partnership is nearly identical to our previously approved Group I Partnership. The structure is exactly the same as CMB is funding infrastructure initiatives at the same two former military bases and the job methodology is the same. The differences are the actual individual infrastructure projects and CMB is funding an additional $6 million to the IVDA ($20 million instead of $14 million).
The partnership will raise up to $26 million (52 units) to be used for job creating infrastructure development within the geographical boundaries of the CMB Regional Center. The Partnership will make two separate and distinct investments. The investments will be between the CMB Partnership and(click links to view authorization to raise capital letters)
(1) Inland Valley Development Agency (IVDA) and The San Bernardino International Airport Authority (SBIAA) the redevelopment agencies of the former Norton Air Force Base, and
(2) McClellan Park, LLC the former McClellan Air Force Base master developer.
The investments are $20 million with the IVDA/SBIAA and $6 million with McClellan Park, LLC for a total of $26 million in CMB investor funds to be invested by the Partnership. The funds invested by each investor are pooled together and then allocated to the respective base redevelopment agencies of Norton Air Force Base and McClellan Air Force Base in accordance with the loan agreements. Individual investor funds are not segregated or directed to a particular base. Each of the investments will be combined with other capital sources to fund defined infrastructure projects at the two former military bases.
Since the business enterprise of this Partnership is to make infrastructure investments to former military base redevelopment authorities we have chosen two defined investments. Within each investment there will be multiple project descriptions. Each investment target will have specific information on what the funds will be invested in. A qualified jobs methodology report has been provided for each investment showing that the investments of the Partnership meet the requirement of creating at least ten new American jobs per investor. Additionally, proof of qualifications as an official high unemployment area with unemployment above 150% of the national average has been produced by the State of California EDD for both project areas. The Uniform Limited Partnership Act mandates that each partner is required to be treated equally and as such, allocation of any benefit or liability must be identical. The funds of every investor are invested within the Partnership and not a particular target investment or project. All investment loans of CMB Group II are shared equally among the partners. Likewise credit for employment creation in this case 902 indirect jobs, partnership wide, is shared equally among the partners. The investment structure will be exactly the same for both authorized investments at the former McClellan and Norton Air Force Bases. As stated earlier, the entire investment structure and job creation methodology is the same as the earlier USCIS approved CMB Group I, CMB Investment Group A and Investment Group B projects.
STRUCTURE OF THE JOB CREATING INVESTMENTS WITH THE AUTHORIZED DEVELOPMENT AUTHORITIES
CMB has agreed to fund the infrastructure projects in concert with various other funding sources obtained by the redevelopment authorities. Capital invested with the redevelopment authorities will take the form of a low interest investment loan. The investment loans have a term of six years and are interest only with quarterly payments. The six year structured term of the investment is to ensure the former military base reuse entity will be able to utilize the funds long enough to realize a return on the investment in the infrastructure improvements thus enabling them to pay back the original investment, and allow economic growth to start immediately.
AUTHORIZED PROJECTS FOR THE CMB INFRASTRUCTURE INVESTMENT GROUP II LIMITED PARTNERSHIP
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 The CMB Infrastructure Investment Group II, L.P. (“Group II”) is a continuation of the work of the original $38.1 million funding request by the IVDA. The Group A partnership ($5 million) represented 8% of the total $38.1 million commitment. CMB Group II with its $20 million will represent 31.6% of the total commitment. Group II will consist of investments with McClellan Park in Sacramento and with the IVDA and SBIAA in San Bernardino. Group II will have $26 million of investment capital ($6 million to McClellan and $20 million to the IVDA/SBIAA). Similar in structure to Group I, Group II will invest in critical infrastructure promised in order to bring Stater Bros. to this former military base which will lay the ground work for increased efficiency, economic growth and regional productivity in these two areas. The total capital expenditures in this project are expected exceed $200 million since a portion of the Group II infrastructure investments will go to support the new $295 million Stater Bros. distribution complex at the IVDA/SBIAA.
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IVDA Project Area Map
More on each project
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