Loading...
HomeMy WebLinkAbout94-042 - Execution of an Amendment to a Loan Agreement119 RELmvb6/15/9~, RESOLUTION NO. 94-042 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE EXECUTION OF AN AMENDMENT TO A LOAN AGREEMENT AND AN AMENDMENT AND RESTATEMENT OF THE CITY'S $2,250,000 INDUSTRIAL DEVELOPMENT REVENUE NOTE FOR THE PARKSIDE PLAZA PROJECT. WHEREAS, the city of Santa Ana (the "City") has heretofore adopted Resolution No. 82-159 on December 6, 1982, which authorized the sale and delivery of its $2,250,000 Industrial Development Revenue Note For the Parkside Plaza Project (the "Note") and also authorized the execution and delivery of a Loan Agreement by and among the City, Unionmutual Stock Life Insurance Co. of America, as succeeded by UNUM Life Insurance Company of America (the "Noteholder"), and Parkside Plaza, a California joint venture (the "Developer") (the "Loan Agreement"); and WHEREAS, the Note was sold to the Noteholder and the proceeds of the sale of the Note were loaned to the Developer to provide financing for commercial development in the project known as Parkside Plaza; and WHEREAS, the Noteholder and the Owner now wish to modify the terms and conditions of the Loan Agreement and to amend and restate the Note to provide fer different payment provisions; and WHEREAS, a form of Amended and Restated Note (the "Amended Note") and a form of Amendment No. 1 to Loan Agreement (the "Amendment"), prepared by the Noteholder's counsel, which sets forth the terms and conditions upon which the Note and Loan Agreement are to be amended have been presented to the City; and WHEREAS, the City' has determined that it is in its best interests to participate with the Noteholder and the Developer to modify the Loan Agreement and Note terms by executing the Amended Note and the Amendment and other related documents, if necessary; and WHEREAS, the Amended Note and Amendment provide for the lowering of the interest rate on the Note, greater amortization, and certain covenants with respect to the tax-exempt status of the Note, as more particularly described in the Amended Note and Amendment. 120 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY THE CITY OF SANTA ANA AS FOLLOWS: Sqction 1: Amendment to Loan Aqreement. The form of the Amendment presented to this meeting, to be entered into by and among the City, the Noteholder and the Developer, is hereby approved, and the Mayor is hereby authorized and directed for and in the name and on behalf of the City to execute and the City Clerk is hereby authorized to acknowledge and deliver the Amendment in substantially the form hereby approved, with such insubstantial changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 2: Amended Note. The Amended Note presented to this meeting is hereby approved and shall be executed in substantially the form hereby approved, and the Mayor is hereby authorized and directed for and in the name and on behalf of the City to execute and the City Clerk is hereby authorized to acknowledge and deliver the Amended Note in substantially the form hereby approved, with such insubstantial changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 3: Other Acts. The City Manager of the City is hereby authorized to execute on behalf of the City any certificate, including, but not limited to, a tax certificate, which may be necessary in order to carry out any of the transactions contemplated hereby and is further authorized to take any and all other actions which he deems necessary and expedient to carry out the purposes of this Resolution. ADOPTED this _~18th_ day of July , 1994. ATTEST: ~C~e~eo~ ' t~:Ycounci ~/ Mayor COUNCILMEMBERS: Young Pulido Lutz McGuigan Mills Moreno Richardson APPROVED AS TO FORM: City Attorney 2 CERTII~ICATE OF ORIGINALITY & PUBLICATION State of Califomia County of Orange I, IANICE C. GUY, Clerk of the Council, do hereby certify the attached Resolution ~ 5~.,7.- to be the originnl resolution ~dopW~d by the City Council of the City of Santa ;ma on Date: \ /C~er~o~e ~uncil