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HomeMy WebLinkAbout2002-090 - Authorizing Lease Financing Relating to Renovation of the Historical Phillips Hutton BuildingRESOLUTION NO. 2002-090 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING LEASE FINANCING RELATING TO RENOVATION OF THE HISTORICAL PHILLIPS HUTTON BUILDING IN THE MAXIMUM PRINCIPAL AMOUNT OF $2,800,000, AND APPROVING RELATED DOCUMENTS AND ACTIONS bk: 10/15/02 BE IT RESOLVED BY THE CITY COUNCIL OF THE CiTY OF SANTA ANA, AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: The Community Redevelopment Agency of the City of Santa Ana (the "Agency") has undertaken to assist in financing the restoration, renovation and rehabilitation of historical buildings located at 301-309 West Fourth Street, known generally as the Phillips Hutton Building (the "Project"), which is located in the Central City Redevelopment Project of the Agency, and in order to provide funding for the Project and to pay related financing costs the Agency has requested the City to make a loan to the Agency in the amount of not to exceed $2,800,000 (the "Loan"). In order to raise the funds needed to make the Loan to the Agency, the City has proposed to enter into a Site Lease (the "Site Lease") with the Santa Ana Financing Authority (the "Authority"), whereby the City leases to the Authority certain land and improvements constituting the Cambridge Reservoir (the "Property") in consideration of the agreement by the Authority to pay to the City an amount which is sufficient to enable the City to make the Loan to the Agency. Co The Authority has proposed to lease the Property back to the City and to assign its rights under the related Lease Agreement (the "Lease Agreement") to Zions First National Bank (the "Bank") in order to raise the funds necessary to enable the Authority to make the payment due to the City under the Site Lease and thereby enable the City to make the Loan to the Agency. The Agency has proposed to repay the Loan from available tax increment revenues derived from the Central City Redevelopment Project, in semiannual installments which are equal to the City's lease payments under the Lease Agreement, and the City will pledge and assign the Loan repayments to the Bank so that the City will be obligated to make Resolution No. 2002-090 Page 1 of 3 payments to the Bank only if and to the extent the Agency's Loan repayments are insufficient for that purpose. E= The City Council wishes at this time to authorize and approve all proceedings and documents relating to the financing of the Project. Section 2. The City Council hereby approves the financing of the Project as outlined above. To that end, the City Council hereby approves each of the following financing documents in substantially the respective forms on file with the Clerk of the Council together with any changes therein or additions thereto deemed advisable by the City Manager or the Director of Finance (each, an "Authorized Officer") and approved as to form by the City Attorney, whose execution thereof shall be conclusive evidence of such approval: Site Lease dated as of October 21, 2002, between the City and the Authority, whereby the City leases to the Authority the existing land and improvements which constitute the Cambridge Reservoir in consideration of the payment by the Authority to the City of an up- front rental payment which is sufficient to enable the City to make the Loan to the Agency. Lease Agreement dated as of October 21, 2002, between the Authority as lessor and the City as lessee, whereby the Authority agrees to lease the existing land and improvements which constitute the Cambridge Reservoir back to the City in consideration of the payment by the City of semiannual lease payments, which the Authority will assign to the Bank. Assignment of Lease dated as of October 21, 2002, between the Authority and Zions First National Bank, whereby the Authority assigns its rights under the Lease Agreement to the Bank. An Authorized Officer is authorized and directed for and in the name and on behalf of the City to execute, and the Clerk of the Council is hereby authorized and directed to attest and affix the seal of the City to the final form of each of the foregoing documents. Section 3. The City Manager, the Director of Finance, the Clerk of the Council and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, leases and other instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved pursuant to this Resolution. Whenever in this resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer Resolution No. 2002-090 Page 2 of 3 - by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 4. This Resolution shall take effect from and after the date of its passage and adoption. Section 5. this Resolution. The Clerk of the Council shall attest to and certify the vote adopting APP[~J:;)-V~D AS TO FORM: Jo~,~ ,,~~rney By: ~ ~ iK~-~fm~'D/ stant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Councilmembers: Councilmembers: Councilmembers: Alvarez, Bist, Chdsty, Franklin, Pulido, Solorio (6) None (0) None (0) McGuigan (1) CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2002-090 to be the original resolution adopted by the City council of the City of Santa A~ober 21, 2002.. ~-~ ........ Date: .//4::~ ~,~ - ~)~ ~/~~~~' Clerk of Council City of Santa Ana Resolution No. 2002-090 Page 3 of 3