HomeMy WebLinkAboutNS-1609REL: adg
10/19/81
ORDINANCE NO. NS- 1609
AN ORDINANCE OF THE CITY OF SANTA ANA
ADDING CHAPTER 28 TO THE SANTA ANA
MUNICIPAL CODE, AUTHORIZING THE ISSUANCE
OF CITY OF SANTA ANA INDUSTRIAL DEVELOPMENT
BONDS FOR THE PURPOSE OF FINANCING
INDUSTRIAL AND COMMERCIAL DEVELOPMENT WITHIN
SAID CITY IN THE INTERESTS OF THE PUBLIC
HEALTH, SAFETY AND WELFARE
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES
ORDAIN AS FOLLOWS:
SECTION 1: That the Santa Ana Municipal Code is hereby
amended by adding a Chapter, to be numbered 28, which said
Chapter consists of sections numbered 28-1 through 28-21,
and reads as follows:
Chapter 28. Industrial Development Bonds
ARTICLE I. GENERAL PROVISIONS
Sec. 28-1. Findings and determinations.
The City Council of the City of Santa Ana hereby
finds and determines as follows:
(a) The full employment of residents of the City
of Santa Ana, and the prevention of unemployment and
underemployment of such residents, serves a vital and
compelling public interest of the City of Santa Ana and
promotes the public health, safety and welfare of the City
by reducing the incidence of crime, improving the mental and
physical health and well-being of the City's residents,
alleviating the financial drain upon limited public and
private resources for welfare programs and unemployment
assistance, and enhancing the financial resources of the
City.
(b) The encouragement of industrial and
commercial development within the City serves a vital and
compelling public interest of the City and promotes the
public health, safety and welfare of the City by increasing
the employment of residents of the City, increasing the tax
and revenue base and thereby enhancing the financial
resources of the City, and preventing physical deterioration
and abandonment of industrial and commercial areas within
the City. In addition, the City's participation in the
financing of such development serves the public interest by
ensuring that such development will reflect the needs and
objectives of the community more so than if such development
were undertaken without City participation.
(c) The State legislature has not acted to place
such public interests solely under State control or to
prevent local action with respect thereto.
(d) In the past, efforts have been made to assist
industrial and commercial development and to promote local
employment by State and federal agencies acting through
local government. However, such efforts have generally been
inadequately funded, unresponsive to local needs and
objectives of the community, or have been unavailable to the
City, making such efforts unsatisfactory for the City in
effectuating the aforesaid public interests of the City.
ORDINANCE NO. NS- 1609
PAGE TWO
(e) The City can promote such public interests by
assisting the financing of industrial and commercial
development within the City, pursuant to this Chapter,
without adversely affecting areas outside the boundaries of
the City or transient residents of the State, and without
conflicting with or in any way impairing the efforts of the
State to solve problems of legitimate Statewide concern.
(f) Encouraging industrial and commercial
development pursuant to this Chapter (1) will promote the
health, safety and welfare of the City, including those
public interests enumerated in subsection (a) and subsection
(b) hereof, and will improve the social, moral, economic and
physical condition of the cc~munity thereby, and (2)
constitutes a municipal affair of the City of Santa Ana, a
valid exercise of the police powers of the City of Santa
Ana, and a public purpose in which the City of Santa Ana has
a peculiar and unique interest.
Sec. 28-2.
Definitions.
Unless the context otherwise requires, the
following definitions shall govern the construction of
Chapter:
this
Acquisition. "Acquisition" and its variants
means acquisition, construction, improvement, furnishing,
equipping, remodeling, repair, reconstruction or
rehabilitation.
Administrative Expenses. "Administrative
Expenses" means the reasonable and necessary expenses
incurred by the City in the administration of the provisions
of the Chapter with respect to a particular Project and the
issuance of Bonds pursuant to this Chapter for said Project,
including without limitation fees and expenses of paying
agents, trustees, bond counsel and financing consultants,
and costs of printing and advertising.
submitted
to obtain
Application. "Application" means an application
by a Participating Party pursuant to this Chapter
financing for a Project.
Bonds. "Bonds" means any bonds, notes, interim
certificates, debentures or other obligations issued by the
City pursuant to this Chapter, which are payable exclusively
from Revenues and other funds permitted by this Chapter, and
which are "industrial development bonds" within the meaning
of Section 103(b) of the Internal Revenue Code of 1954, as
amended, or any similar provision of said Code then in
effect.
City. "City" means the City of Santa Ana,
California, a charter city in the State existing under and
exercising powers pursuant to the City Charter.
City Council. "City Council" means the City
Council of the City of Santa Ana.
ORDINANCE NO. NS-1609
PAGE THREE
City Charter.
the City, entitled "The
as amended from time to
"City Charter" means the charter of
Charter of the City of Santa Ana,"
time.
Costs. "Costs" means, with reference to a
Project, any or all of the following costs incurred for
acquisition thereof:
the
(a) obligations of the
incurred for labor and materials
acquisition of the Project;
Participating Party
in connection with the
(b) the cost of acquisition of any property,
whether real or personal and improved or unimproved,
including franchise rights and other intangible property,
and any interests therein, required for the acquisition of
the Project;
(c) the cost of demolishing, removing or
relocating any building or structure, and the cost of making
relocation assistance payment required by law;
(d) the cost of contract Bonds and of insurance
of all kinds that may be required or necesaary during the
course of the acquisition of the Project;
(e) all costs of engineering, legal and
consultant services, including the costs of the
Participating Party for surveys, estimates, plans and
specifications and preliminary investigation therefor, and
for supervising construction, as well as for the performance
of all other duties required by or consequent upon the
proper acquisition of the Project;
(f) all costs incurred in connection with
proceedings by the Participating Party necessary to cc~ply
with the California Environmental Quality Act of 1970, as
amended;
(g) all amounts required to fund any reserve
funds for Bonds and any interest on Bonds becoming due and
payable during a period not exceeding the period of
acquisition of the Project and 12 months thereafter;
(h) all Administrative Expenses;
(i)
be required to
contracts, for
all costs which the Participating Party
pay, under the terms of any contract or
the acquisition of the Project;
shall
(j) the refinancing of any existing indebtedness
secured by an interest in any real property comprising any
portion of the Project, so long as and to the extent that
such refinancing does not cause interest on the Bonds to
become taxable under Section 103 of the Internal Revenue
Code of 1954, as amended; and
(k) any sums required to reimburse the
Participating Party for advances made for any of the above
items or for any other costs incurred and for work done
which are properly chargeable to the Project.
ORDINANCE NO. NS- 1609
PAGE FOUR
Finance. "Finance" and its variants means the
lending of moneys or any other thing of value, or the
purchase of loans, for the purpose of paying any or all of
the costs of a project pursuant to this Chapter.
Participating Part~. "Participating Party"
means any person, corporation, partnership, firm or other
entity or group of entities requiring financing for the
acquisition of a Project pursuant to this Chapter. No
member of the City Council or officer, staff member or
employee of the City shall be eligible to be a Participating
Party under the provisions of this Chapter.
Pro~ect. "Project" means real property located
within the City and improved or to be improved with an
industrial or commercial structure, and all property in
connection therewith or incidental thereto, including
machinery, equipment and furnishings, the acquisition of
which is financed or otherwise assisted pursuant to this
Chapter.
Revenues. "Revenues" means, with respect to a
Project, all amounts received as repayment of principal,
interest and all other charges received for, and all other
income and revenue (including the proceeds of insurance)
derived by, the City in connection with such Project, and
any receipts derived from the investment of such income or
revenues, including moneys deposited in a sinking,
redemption or reserve fund or other fund to secure the Bonds
or to provide for the payment of the principal of or
interest on the Bonds and such other moneys as the City
Council may in its discretion make available therefor.
Rules and Regulations. "Rules and Regulations"
means the rules and regulations promulgated by the City
Manager of the City of Santa Ana pursuant to Sec. 28-7
hereof.
State. "State" means the State of California.
ARTICLE II. POWER AND PURPOSES
Sec. 28-3.
Powers. The City is
authorized and empowered:
(a) To determine the location and character of
any Project to be financed under the provisions of this
Chapter, and to finance such Projects by making or
purchasing loans to Participating Parties therefor.
(b) To issue Bonds for the purpose of financing
or otherwise assisting the acquisition of Projects
authorized by this Chapter and for the purpose of funding or
refunding Bonds.
(c) To fix fees, charges and interest rates for
financing any Project, and to revise such fees, charges and
interest rates from time to time, and to collect interest
and principal on any loan made to a Participating Party
together with such fees and charges incurred in such
financing, and to contract with any person, partnership,
association, corporation or public agency with respect
thereto.
(d) To hold deeds of trust as security for
financing any Project and to pledge the same as security
repayment of Bonds issued therefor.
ORDINANCE NO. NS- 1609
PAGE FIVE
(e) To establish the terms and conditions
financing of any Project undertaken pursuant to this
Chapter.
for the
(f) To require that the full amount owed on any
loan for the financing of a Project pursuant to this Chapter
shall be due and payable upon sale or other transfer of
ownership of such Project.
(g) To acquire, by deed, purchase, lease,
contract, gift, devise, or otherwise, any real or personal
property, structures, rights, rights-of-way, franchises,
easements, mortgages and other interests in property located
within the State necessary or convenient for the financing
or acquisition of a Project, upon such terms and conditions
as it deems advisable and to lease, sell or dispose of the
same in such manner as may be necessary or desirable to
carry out the objects and purposes of this Chapter.
(h) To employ or contract for such engineering,
architectural, accounting, collection, economic feasibility,
or other services in connection with the servicing of loans
made to Participating Parties, as may be necessary in the
judgment of the City Council for the successful financing of
a Project. The City may pay the reasonable costs of
consulting engineers, architects, accountants, construction
experts, and economic feasibility experts, if, in the
judgment of the City Council, such services are necessary to
the successful financing of a Project and if the City is not
able to provide such services. The City may employ,
contract for, and fix the compensation of financing
consultants, bond counsel, and other advisers as may be
necessary in its judgment to provide for the issuance and
sale of Bonds.
(i) In addition to all other powers specifically
granted in this Chapter, to do all things necessary or
convenient to carry out the purposes of this Chapter.
Sec. 28-4.
Non-operation.
The City shall not have the power to operate any
Project as a business. Furthermore, the City shall not
realize a profit from any Project financed pursuant to this
Chapter nor shall the City compete with any private firm in
connection therewith. The City shall take no more action
with respect to any Project than is necessary to promote the
public interests of the City.
Sec. 28-5. Applications for Financing.
Participating Parties may apply for financing
pursuant to this Chapter by filing an Application with the
City in such form and with such person or office as shall be
specified by the rules and regulations. Applications shall
set forth all information required to evaluate the financial
reliability and stability of the Participating Party and the
feasibility of the proposed Project, and to verify and
assure that the long-term employment of residents of the
City will be increased. Among all other information,
agreements and undertakings required to be contained
therein, Applications shall include an estimate of the
maximum amount of Bonds proposed to be issued, a description
or itemization of the Costs of the proposed Project, and an
agreement to pay all Administrative Expenses for the
proposed Project.
ORDINANCE NO. NS- 1609
PAGE SIX
Sec. 28-6.
Acceptance of Applications.
Upon receipt of an Application containing all
required information, agreements and undertakings, the City
Council shall at such time as is deemed convenient by it,
review such Application and any staff recommendations with
respect thereto. If the City Council chooses to approve any
Application, it shall adopt a resolution in which it (1)
finds and determines that the proposed Project described in
the Application (a) promotes the long-term employment of
residents of the City, (b) will not adversely affect areas
outside the boundaries of the City or transient residents of
the State, and (c) is in the public interests of the City
and constitutes a municipal affair of the City, a valid
exercise of the police powers of the City, and a public
purpose in which the City has a peculiar and unique
interest, and (2) accepts and approves such Application and
the participation of the City in the financing of such
Project, subject to the provisions of this Chapter and the
conclusion of all proceedings undertaken to consummate such
financing to the satisfaction of the City.
Sec. 28-7. Rules and Regulations.
Ail proceedings taken in connection with the
processing of Applications and the financing of Projects
shall be in accordance with this Chapter and with such rules
and regulations as promulgated, and as shall be amended or
supplemented from time to time, by the City Manager of the
City of Santa Ana in furtherance of this Chapter.
ARTICLE III. BONDS
Sec. 28-8.
Authorization.
The City is hereby authorized to issue Bonds in an
aggregate principal amount of not to exceed $500,000,000 for
the purpose of financing or otherwise assisting the
acquisition of Projects authorized by this Chapter. Every
issue of Bonds shall be a special obligation of the City,
payable solely from all or any part of the Revenues of
Projects.
Sec. 28-9. Issuance of Bonds.
The Bonds may be issued as serial Bonds or as term
Bonds, or the City Council, in its discretion, may issue
Bonds of both types. The Bonds shall be issued pursuant to
resolution of the City Council and shall bear such date or
dates, mature at such time or times, bear interest at such
fixed or variable rate or rates, be payable at such time or
times, be in such denominations, be in such form, either
coupon or registered, carry such registration privileges, be
executed in such manner, be payable in lawful money of the
United States of America, at such place or places, and be
subject to such terms of redemption as the resolution or
resolutions of the City Council may provide. The Bonds may
be sold at either a public or private sale and for such
prices as the City Council shall determine. Pending
preparation of the definitive Bonds, the City may issue
interim receipts, certificates, or temporary Bonds, which
shall be exchanged for such definitive Bonds.
ORDINANCE NO. NS- 1609
PAGE SEVEN
Sec. 28-10. Terms of Bonds.
Any resolution issuing any Bonds may contain
provisions respecting any of the following terms and
conditions, which shall be a part of the contract with
holders of the Bonds:
the
(a) The pledge of all or any part of the
Revenues, subject to such agreements with Bondholders as may
then exist.
(b) The interest and principal to be received and
other charges to be charged and the amounts to be reaised
each year thereby, and the use and disposition of the
Revenues.
(c) The setting aside of reserves or sinking
funds and the regulation and disposition thereof.
(d) Limitations on the purposes to which the
proceeds of a sale of any issue of Bonds, then or thereafter
issued, may be applied, and pledging such proceeds to secure
the payment of the bonds or any issue of Bonds.
(e) Limitations on the issuance of additional
Bonds, the terms upon which additional Bonds may be issued
and secured, and the refunding of outstanding Bonds.
~f) The procedure, if any, by which the terms of
any contract with Bondholders may be amended or abrogated,
the amount of Bonds the holders of which must consent
thereto, and the manner in which such consent may be given.
(g) Specification of the acts or omissions to act
which shall constitute a default in the duties of the City
to holders of its obligations, and providing the rights and
remedies of such holders in the event of default.
(h) The mortgaging of land, improvements, or
other assets owned by a Participating Party for the purpose
of securing the Bondholders.
(i) Such other terms and conditions pertaining
the issuance of the Bonds as are deemed advisable by the
City Council.
to
Sec. 28-11. Trust Agreement.
In the discretion of the City Council, any Bonds
issued under the provisions of this Chapter may be secured
by a trust agreement by and between the City and a corporate
trustee or trustees, which may be any trust company or bank
having the powers of a trust company within or without the
State. Such trust agreement or the resolution providing for
the issuance of such Bonds may pledge or assign the Revenues
to be received or proceeds of any contract or contracts
pledged, and may convey or mortgage any property. Such
trust agreement or resolution providing for the issuance of
Bonds may contain such provisions for protecting and
enforcing the rights and remedies of the Bondholders and of
the trustee or trustees, and may restrict the individual
right of action by Bondholders. In addition to the
foregoing, any such trust agreement or resolution may
contain such other provisions as the City Council may deem
reasonable and proper for the security of the Bondholders.
ORDINANCE NO. NS- 1609
PAGE EIGHT
Sec. 28-12. Personal Liability.
Neither the members of the City Council nor any
person executing the Bonds shall be liable personally on the
Bonds or be subject to any personal liability or
accountability by reason of the issuance thereof.
Sec. 28-13. Refunding Bonds.
The City Council may provide for the issuance of
Bonds any portion of which is to be used for the purpose of
refunding outstanding Bonds, including the payment of the
principal thereof and interest and redemption premiums, if
any, thereon. The proceeds of Bonds issued to refund any
outstanding Bonds may, in the discretion of the City
Council, be applied to the retirement of such outstanding
Bonds at maturity, or the redemption (on any redemption
date) or purchase of such outstanding Bonds prior to
maturity, upon such terms and subject to such conditions as
the City Council shall deem advisable.
Sec. 28-14. Repayment of Bonds.
Revenues shall be the sole source of funds pledged
by the City for repayment of Bonds issued hereunder. Bonds
issued hereunder shall not be deemed to constitute a debt or
liability of the City or a pledge of the faith and credit of
the City but shall be payable solely from Revenues. All
Bonds shall contain on the face thereof a statement to the
following effect:
"Neither the faith and credit nor the taxing
power of the City is pledged to the payment
of the principal of or interest on this Bond."
The issuance of Bonds shall not directly, indirectly or
contingently obligate the City Council to levy or pledge any
form of taxation or to make any appropriation for their
payment.
ARTICLE IV. FINANCING OF PROJECTS
Sec. 28-15. Authority to Assist 'Projects~
The City may provide financing to any
Participating Party for, or otherwise assist the acquisition
of, duly approved Projects pursuant to this Chapter.
Sec. 28-16. Loan Agreements.
The City may enter into loan agreements with any
Participating Party with respect to the financing of a
Project, which agreements may provide that the architectural
and engineering design of the Project shall be subject to
such standards as may be established by the City and that
the acquisiton of the Project shall be subject to such
supervision as the City deems necessary. The terms and
conditions of such loan agreements may be as mutually agreed
upon, but shall not be inconsistent with the provisions of
this Chapter or the Rules and Regulations. Any such loan
agreement may provide the means or methods by which any
mortgage taken by the City shall be discharged, and it shall
contain a covenant by the Participating Party to complete
ORDINANCE NO. NS- 1609
PAGE NINE
the Project whether or not Bond proceeds are sufficient
therefore, and such other terms and conditions as the City
may require. The City is authorized to fix, revise,
charge, and collect interest and principal and all other
rates, fees, and charges with respect to the financing of a
Project. Such rates, fees, charges, and interest shall be
fixed and adjusted so that the aggregate of such rates,
fees, charges, and interest will provide funds sufficient
with other revenues and moneys which it is anticipated will
be available therefor, if any, to do all of the following:
(a) Pay the principal of and interest on
outstanding Bonds issued to finance such Project, as the
same shall become due and payable.
(b) Create and maintain reserves required or
provided for in any resolution authorizing such Bonds. A
sufficient amount of the Revenues from the Project may be
set aside at such regular intervals as may be provided by
the resolution or trust agreement in a sinking or other
similar fund, which shall be pledged to, and charged with,
the payment of the principal of and interest on such Bonds
as the same shall be come due, and the redemption price or
the purchase price of Bonds retired by call or purchase as
therein provided. Such pledge shall be valid and binding
from the time the pledge is made. The rates, fees,
interest, and other charges, revenues, or moneys so pledged
and thereafter received by the City shall immediately be
subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such
pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise
against the City, irrespective of whether such parties have
notice thereof. Neither the resolution, the trust agreement
nor any loan agreement by which a pledge is created need be
filed or recorded except in the records of the City. The
use and disposition of moneys to the credit of such sinking
or other similar fund shall be subject to the provisions of
the resolution or trust agreement authorizing the issuance
of such Bonds.
(c) Pay Administrative Expenses to the extent not
paid from Bond proceeds.
Sec. 28-17. Trust Funds.
Ail moneys received pursuant to the provisions of
this Chapter, whether proceeds from the sale of Bonds or
Revenues, shall be deemed to be trust funds to be held and
applied solely for the purposes of this Chapter. Any bank
or trust company in which such moneys are deposited shall
act as trustee of such moneys and shall hold and apply the
same for the purposes specified in this Chapter, subject to
the terms of the resolution or trust agreement authorizing
the Bonds.
ARTICLE V.
MISCELLANEOUS
Sec. 28-18. Liberal Construction.
This Chapter, being necessary for the health,
welfare and safety of the City and its residents, shall be
liberally construed to effect its purposes. Furthermore,
ORDINANCE NO. NS- 1609
PAGE TEN
the City Council hereby declares that this Chapter is an
exercise of the power granted to the City by the City
Charter and the Constitution of the State and is an exercise
by the City of its powers has to municipal affairs and its
police powers, and this Chapter shall be liberally construed
to uphold its validity under the laws of the State.
Sec. 28-19.
Supplemental and
Additional Powers
This Chapter shall be deemed to provide a
complete, additional, and alternative method for doing the
things authorized thereby, and shall be regarded as
supplemental and additional to the powers conferred by other
laws. The issuance of Bonds under the provisions of this
Chapter need not comply with the requirements of any other
law applicable to the issuance of bonds.
Sec. 28-20. Actions to Determine Validity
of Bonds and Proceedings.
One or more actions may be brought pursuant to
Chapter 9 (commencing with E ection 860) of Title 10 of Part
2 of the Code of Civil Procedure to determine the validity
of this Chapter or the Bonds or the legality and validity of
all proceedings previously taken and (as provided in the
Bond resolution) proposed to be taken for the issuance, sale
and delivery of the Bonds and for the payment of the
principal thereof and interest thereon.
Sec. 28-21. Amendment of Ordinance.
This Chapter shall not be amended so as to affect
adversely the rights of the holders of any outstanding Bonds
theretofore issued hereunder, or the rights of Participating
Parties with respect to whom Projects have theretofore been
financed hereunder, without the written consent of such
Bondholders and Participating Parties; provided, however,
that this Chapter may be amended at any time (a) to make
such provisions for the purpose of curing any ambiguity, or
of curing, correcting or supplementing any defective
provision herein contained, as the City may deem necessary
or desirable; or (b) if such amendment does not materially
impair or adversely affect the interests of any such
Bondholder or Participating Party in the opinion of the City
Council; or (c) if such amendments apply solely to Bonds not
theretofore issued hereunder or Participating Parties with
respect to whom Projects have not theretofore been financed
hereunder.
SECTION 2: If any section, subsection, sentence, clause,
phrase or portion of this ordinance is for any reason held
to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions of this
ordinance. The City Council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each
section, subsection, sentence, clause, phrase or portion
thereof irrespective of the fact that any one or more
sections, subsections, sentence, clauses, phrases, or
portions be declared invalid or unconstitutional.
ORDINANCE NO. NS- 1609
PAGE ELEVEN
SECTION 3:
to a bond
adoption, in accordance with section 417 of the
the City of Santa Ana.
ADOPTED this 16th day of N0¥ember
by the following vote:
This ordinance, being an ordinance relating
issue, shall take effect immediately upon
Charter of
COUNCILMEMBER$:
AYES:
COUNC I LM EMBERS:
NOES:
· 1981,
Acosta, Bricken, Griset, Luxembourger,
McGuigan, Serrato
Markel
ABSENT:
ATTEST:
APPROVED AS TO FORM:
COUNC ILMEMBER$: N00e
GO RDON/~R IC KEN
EDWARD J. COOPER
CITY ATTORNEY