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HomeMy WebLinkAbout2003-02 CRARESOLUTION NO. 2003-02 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE BORROWING OF FUNDS FROM THE CITY OF SANTA ANA PUBLIC FINANCING AUTHORITY RELATING TO THE AGENCY'S SANTA ANA SOUTH MAIN STREET REDEVELOPMENT PROJECT, AUTHORIZING AND DIRECTING EXECUTION OF A LOAN AGREEMENT AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO. BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The Board of the Community Redevelopment Agency of the City of Santa Ana ("Agency") hereby finds, determines and declares as follows: The City of Santa Ana (the "City") and the Agency have heretofore entered into a Joint Exercise of Powers Agreement, establishing the Santa Aha Financing Authority (the "Authority") for the purpose of issuing its bonds to be used to provide financial assistance to the City and the Agency. To finance and refinance redevelopment activities with respect to the Santa Ana South Main Street Redevelopment Project (the "Redevelopment Project"), the Agency issued its $44,650,000 aggregate principal amount of Santa Ana South Main Street Redevelopment Project Tax Allocation Bonds, Series 1993D (the "Series 1993D Bonds") pursuant to an Indenture, dated as of August 1, 1993, by and between the Agency and Dai-Ichi Kangyo Bank of California (the "1993 Indenture"). The Agency now wishes to finance certain additional redevelopment activities (within the meaning of Section 33678 of the Law) with respect to the Redevelopment Project Area and, in implementation thereof, the Agency has determined to issue its $25,000,000 aggregate principal amount of Santa Ana South Main Street Redevelopment Project Tax Allocation Bonds, Series 2003A (the "Agency Bonds") at an interest rate not to exceed 6 ~ %. D= The Agency may, however, be prohibited by law from issuing and delivering the Agency Bonds in a timely manner for the purpose of financing the planned redevelopment activities. If the Agency is unable to issue and deliver the Agency Bonds, the Authority is willing to issue its City of Santa Ana Public Financing Authority 2003 Tax Allocation Revenue Bonds (Santa Ana South Main Street Redevelopment Project), in an aggregate principal amount of not to exceed $25,000,000 (the "Authority Bonds") to provide funds to make a loan to the Agency in such aggregate principal amount for the purpose of financing such additional redevelopment activities (the "Loan") to be made by the Authority to the Agency pursuant to a Loan Agreement, dated as of January 1, 2003 by and between the Agency and the Authority (the "Loan Agreement"). As a condition precedent to the issuance of the Authority Bonds, section 6586.5 of the California Government Code requires that the Agency approve the proposed financing by the Authority and that the Agency make certain findings with respect to such financing, and section 6586.5 further requires that such approval be given and findings be made only after noticed public hearing thereon. The Agency proposes to sell the Bonds to the Authority which will concurrently sell the Bonds to Salomon Smith Barney, as purchaser of the Bonds (the "Underwriter"), all as shall be provided in a pumhase contract in customary form (the "Purchase Contract"). The Agency will cause to be prepared an Official Statement describing the Bonds (the "Official Statement"). The Agency, with the aid of its officers and staff, have reviewed the Loan Agreement; Section 2. Approval of Loan. The Agency hereby authorizes and approves the Loan to be made to the Agency by the Authority from the proceeds of the Authority Bonds in and amount not to exceed $25,000,000 at an interest rate not to exceed 6 ¼. The Loan shall be made pursuant to and in accordance with the terms of the Loan Agreement. The Agency hereby approves the Loan Agreement in substantially the form on file with the Secretary together with any additions thereto or changes therein (including but not limited to the principal amount of the Loan) deemed necessary or advisable by the Executive Director or an authorized representative of the Executive Director, whose execution thereof shall be conclusive evidence of approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute, and the Secretary is hereby authorized and directed to attest and affix the seal of the Agency to, the final form of the Loan Agreement for and in the name and on behalf of the Agency. The proceeds of the Loan shall be applied by the Agency for the purposes and in the amounts as set forth in the Loan Agreement. The Agency hereby authorizes the delivery and performance of the Loan Agreement. Section 3. Amendment of Loan Agreement. The Loan Agreement shall be amended to incorporate the final terms of the sale of the Authority Bonds pursuant to the Purchase Contract and the resulting Loan payments to be made by the Agency to the Authority. Section 4. Preparation and Submission of Official Statement. If the Agency is unable to timely issue and deliver the Agency Bonds, the Agency hereby directs Agency staff, in cooperation with Authority staff, to cause the preparation of the Purchase -2- Contract and the Official Statement for use with respect to the sale of the Authority Bonds and the Purchase Contract and the Official Statement shall be submitted to the Agency for final approval. Section 5. Official Action. The Chairman, the Vice Chairman, the Treasurer, the Secretary, the Executive Director, counsel to the Agency and any and all other officers of the Agency are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions deemed necessary or advisable in order to consummate the lawful issuance and sale of the Authority Bonds and the making of the Loan as described herein. Section 6. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. ADOPTED this 6th day of January ,2003. APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel Bej~ja~in Kaufh~an A/~sist.~lnt General Counsel AYES: NOES: ABSTAIN: NOT PRESENT: Boardmembers: Boardmembers: Boardmembers: Boardmembers: A. Pulido Miguel Chair Alvarez, Bist, Franklin, Garcia, Solorio (5) None (0) Pulido (1) Christy (1) CERTIFICATION OF ATTESTATION AND ORIGINALITY I, JOHN P. REEKSTIN, Secretary of the Agency, do hereby attest to and certify the attached Resolution No. 2003-02 to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Aha on January 6, 2003 Date: January 7, 2003 Community Redevelopment Agency of the City of Santa Ana