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CMB has I-829
CMB EB-5 Regional Center I-829 Approval CMB Regional Center now has I-829 approval of our Investment Structure. The approvals are as deep as our third project, CMB Infrastructure Investment Group I. This is the very first I-829 approval of any Regional Center based solely on indirect job creation not using any direct jobs. The number of operating Regional Centers that can say they have an I-829 is extremely small. ...More

Group III
 
 Approval Notices:
Approval Notice for Group III 03-30-10
Approval Notice for Group III 04-03-10

THE CMB INFRASTRUCTURE INVESTMENT GROUP III PARTNERSHIP 

 

CMB Infrastructure Investment Group III, L.P. (the “Partnership”) was established on October 27, 2009 in the State of California and CMB Export, LLC, a federally designated Regional Center, (“CMB”) is the general partner. The Partnership initially is authorized to raise investment capital of up to $21 million. The Partnership will be engaged in investment activities within the geographic scope of the CMB Regional Center and has been granted 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 and Group II Partnerships. The structure is exactly the same as CMB is funding infrastructure initiatives through two government agencies engaged in the development of the former military base regions and the jobs methodology is the same. The differences are the actual individual infrastructure projects that CMB is funding and that CMB will be making its first investment with the City of San Bernardino Economic Development Agency (SBEDA).

The partnership consists of $21 million (forty two 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 Group III Partnership and

(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) the City of San Bernardino Economic Development Agency (SBEDA) which is also involved in reuse and redevelopment projects in and around the former Norton Air Force Base.

The investments are $6 million with the IVDA/SBIAA and $15 million with SBEDA for a total of $21 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 government redevelopment agencies in and around the former Norton Air Force Base in accordance with the loan agreements. Individual investor funds are not segregated or directed to a particular government agency or project. Each of the CMB investments will be combined with other capital sources to fund defined infrastructure projects in the CMB development region.

Since the business enterprise of this Partnership is to make infrastructure investment loans to the various government agencies engaged in former military base and surrounding area redevelopment, we have chosen two defined investments. Within each investment there will be multiple project descriptions. Each target investment has provided specific information on what the funds will be invested into. 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 III are shared equally among the partners. Likewise credit for employment creation in this case well over 1,000 indirect jobs, partnership wide, is shared equally among the partners. The investment structure will be exactly the same for both authorized investments with the IVDA/SBIAA and SBEDA. As stated earlier, the entire investment structure and job creation methodology is the same as the earlier USCIS approved CMB Group I, CMB Group II, 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 either credited to or obtained by the government redevelopment agencies. Capital invested with these two public redevelopment agencies 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 government agencies will be able to utilize the funds long enough to realize a return on the investment into the infrastructure improvements thus enabling them to pay back the original investment, and to allow economic growth to start immediately.

AUTHORIZED PROJECTS FOR THE CMB INFRASTRUCTURE INVESTMENT GROUP III LIMITED Peb5 investorARTNERSHIP

The CMB Infrastructure Investment Group III, L.P. (“Group III”) is a continuation of the work involved in the original $38.1 million funding requested by the IVDA. The Group A partnership ($5 million) represented 8% of the total $38.1 million commitment by CMB. Group B partnership ($7 million) represented 11% and Group II ($20 million) represented 31.6% of the total commitment. Group III will represent 9% of the total commitment in support of the new Stater Bros. facility. Notice that CMB did not claim the entire amount thus being conservative in order to insure there was not “double” counting of capital spending or job creation statistics.  

Group III will consist of investments with the SBEDA and with the IVDA and SBIAA in San Bernardino. Group III will have $21 million of investment capital ($15 million to SBEDA and $6 million to the IVDA/SBIAA). Similar in structure to prior investments, Group III 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 San Bernardino and the region surrounding the former Norton Air Force Base. The second component of investment into the CMB development area is with San Bernardino’s Economic Development Agency. A significant portion of the investment focuses upon the development of a high speed mass transit system that will serve this entire region. The total capital expenditures in this investment project are expected exceed $175 million since a portion of the Group III infrastructure investments is going to support the new $295 million Stater Bros. distribution complex at the IVDA/SBIAA.

IVDA/SBIAA Project:

The first Group III Partnership investment is with the IVDA and the SBIAA where they have authorized CMB to raise up to $6 million as the last tranche of CMB’s original commitment of $38.1 million in investor capital to fund new infrastructure in direct support of the new Stater Bros. facility, as well as other job-creating businesses locating at the former military base. CMB funds will be combined with federal grant funds, California State and Federal tax credits and IVDA funds. Moreover, CMB Group III investors will receive an apportioned credit to the Stater Bros. $295 million in capital spending.

There are three components to this first investment:

1.)  DFAS Building – Installation of a Photovoltaic Power System- In an effort to shift to renewable energy, the IVDA has committed to help construct and finance a photovoltaic power system on the roof of the former Defense Finance and Accounting Systems (“DFAS”) building, currently owned by the IVDA. Utilizing CMB investor funding to purchase this power system at this time will allow the IVDA to pay a considerably lower cost for the system by taking advantage of the federal 30% solar tax credit and a California state solar rebate.

2.)  Lena Road Roadway Improvements – Lena Road is designed to be an eighty eight foot width right-of-way and has been identified as a critical alternative roadway for vehicular and specifically truck access to the I-10 and I-215 freeways. The Lena Road improvements will provide critical added ingress and egress to the new Stater Bros. Corporate Headquarters and Distribution Center.

3.)  Airport Tarmac Concrete Projects – The SBIAA is currently undertaking the initial phases of a tarmac and taxiway renovation and upgrade program. The SBIA’s tarmac and taxiways need widening and improvements to accommodate modern commercial passenger aircraft. The initial phases of the tarmac concrete replacement and upgrades are required prior to obtaining regularly scheduled commercial passenger airlines at the Airport. 

To recap the CMB and IVDA/SBIAA investment of this total $48.23 million investment:

  • $6 million from CMB Group III funds
  • $28.03 million from Stater Bros. capital spending
  • $800,000 funded from the tax credit investor and State rebates under the California Solar Initiative
  • $13,400,000 funded through other IVDA funds and loan proceeds and federal EDA grant funds

EB5 Investment Map
Project Area Map

The SBEDA Project:

The second investment authorized by the Group III Partnership consists of $128,225,000 in projects with the City of San Bernardino Economic Development Agency or SBEDA. SBEDA is seeking an investment of $15 million from the Partnership to be combined with $113,225,000 from several public and government funding sources. The SBEDA will use the $15 million in CMB funding to complete six infrastructure projects.

1.)  The Interstate 215/University Parkway Interchange – This project will add a direct connector ramp to the I-215 freeway. This will provide relief for traffic near the intersection as well as provide the much needed operational enhancements for current traffic conditions as well as for future proposed development to accommodate 10,000 additional employees to the immediate area.

2.)  The La Placita Commuter Rail Parking Structure – This project calls for the realignment of streets and the acquisition by the City of San Bernardino of additional right-of-way and for the City to construct a 750-space parking structure adjacent to commuter rail facility and the La Placita shopping center.

3.)  Installation of a sprinkler safety system for the California Theatre - This is a project where SBEDA issued a contract for the installation of a modern fire suppression system throughout the theater and is requesting that CMB provide the bridge financing to fund the safety improvements.

4.)  Installation of photovoltaic power system – This Project allows SBEDA to lock in the price of electricity at today’s cost for the duration of the Project and first year utility savings are estimated at $111,316 with twenty five year savings estimated at $3,721,500.

5.)  The county court house sewer relocation project – This is necessary as any new court house construction cannot commence until such time as SBEDA has concluded the realignment of the existing sewer line.

6.)  The sbX Bus Rapid Transit System and Omnitrans temporary bus facility project - This project is at the core of a very large transportation system installation. Omnitrans is presently developing a high speed bus rapid transit system to be known as the “sbX line”. The sbX line development is only possible if SBEDA assists in the relocation of the current linear transit center to a more suitable interim location.

To recap the funding of the $128,225,000 investment with the SBEDA

  • $15,000,000 from CMB Group III Funding
  • $1,025,000 from State rebates under the California Solar Initiative
  • $200,000 from San Bernardino Community Development Block Grant
  • $26,000,000 from SANBAG Local Transportation Sales Tax Override
  • $86,000,000 from Federal Highway Transportation Grant Funds
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