HomeMy WebLinkAbout1986-46 CRA
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RESOLUTION NO. 86-46
A RESOLUTION OF.~HE.CO~UNITY REDEVELOP-
MENT AGENCY OF 'THE 'CITY OF SANTA ANA
APPROVING LEASE-PURCHASE, TRUST, ASSIGN-
MENT AND LOAN AGREEMENTS, PRELIMINARY AND
FINAL OFFICIAL STATEMENTS AND CONTRACT OF
PURCHASE PERTAINING TO THE SANTA ANA
DOWNTOWN PARKING FACILITIES PROJECT, AND
AUTHORIZING EXECUTION THEREOF
WHEREAS, the City of Santa Ana (the "City") wishes to
acquire and construct the City of Santa Ana Downtown Parking
Facilities Project (the "Project") on real property owned by
the Agency, which Project will benefit the Santa Ana
Redevelopment Project Area; and
WHEREAS, the Community Redevelopment Agency of the City
of Santa Ana (the "Agency") has agreed to cause the Project
to be acquired and constructed and to lease the Project to
the City pursuant to the Lease-Purchase Agreement, dated as
of July 1, 1986; and
WHEREAS, in order to permit the financing of the
Project, the Ci ty and the Agency will enter into a Trust
Agreement, dated as of July 1, 1986, with First Interstate
Bank of California, Los Angeles, California, as Trustee,
whereby the Trustee will deliver Certificates of
participation in the lease payments paid by the City pursuant
to the Lease-Purchase Agreement, which Certificates in turn,
will be purchased by Shearson Lehman Bros. Inc. and Grigsby,
Brandford and Co., Inc. for reoffering to the public; and
WHEREAS, the Agency has agreed to assign and transfer to
the Trustee, for the benefit of the Owners of the
Certificates, all of its rights under the Lease-Purchase
Agreement, including its right to receive lease payments from
the City under the Lease-Purchase Agreement, its right to
receive proceeds of condemnation of, and insurance on, the
Project, and its right to enforce payment of Lease Payments
when due in the event of a default by the City, all pursuant
to an Assignment Agreement, dated as of July 1, 1986; and
WHEREAS, the Agency intends to cause funds to be
provided for the acquisition and construction of the Project
and the City intends to initially finance such acquisition
and construction by leasing the Project from the Agency
pursuant to the Lease-Purchase Agreement; and
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WHEREAS, Health and Safety Code Section 33445 authorizes
the Agency to pay for the acquisition and construction of
public improvements or to reimburse other public agencies
that have initially paid for such improvements; and
WHEREAS, the Agency has agreed to reimburse the City
from the Agency's property tax increment revenues and other
available revenues for the City's payments under the Lease-
Purchase Agreement for the acquisition and construction of
the Project which are not defrayed by parking revenues,
pursuant to the Loan Agreement, dated as of July 1,1986; and
WHEREAS, for this financing there has been presented to
the Agency the following documents for approval:
(1) A Lease-Purchase Agreement, dated as of July 1,
1986, by and between the Agency and the City, hereinafter
referred to as the Lease-Purchase Agreement;
(2) A Trust Agreement, dated as of July 1, 1986, by and
among First Interstate Bank of California, Los Angeles,
California, the Agency and the City, hereinafter referred to
as the Trust Agreement;
(3) An Assignment Agreement, dated as of July 1, 1986,
by and between the Agency and First Interstate Bank of
California, Los Angeles, California, hereinafter referred to
as the Assignment Agreement;
(4) A Loan Agreement, dated as of July 1, 1986, by and
between the Agency and the City, hereinafter referred to as
the Loan Agreement;
(5) A Preliminary Official Statement for Certificates
of Participation, dated July 24 , 1986, hereinafter
referred to as the Preliminary Official Statement;
(6) A Contract of Purchase, dated AIJ~IJ~t 1 ,1986,
by and among Shearson Lehman Bros. Inc., Grigsby, Brandford &
Co., Inc., the City and the Agency, hereinafter referred to
as the Contract of Purchase; and
WHEREAS, the Agency has prepared, reviewed and
considered a Summary Report setting forth the cost of the
Agreements to the Agency, the estimated value of the
interests to be conveyed determined at the highest uses
permitted under the Redevelopment Plan and the lease-purchase
price, and made said Summary Report available for public
inspection in accordance with the California Community
Redevelopment Law; and
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WHEREAS, pursuant to the provisions of the California
Community Redevelopment Law, the Agency and the City Council
have held a duly noticed joint public hearing on the proposed
lease and sale of the Site and the proposed Agreements; and
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS:
1. The Lease-Purchase Agreement is hereby approved and
the Chairman or his designee are hereby authorized and
directed to execute and deliver the Lease-Purchase Agreement
in the name of and on behalf of the Agency, in substantially
the form and content now before this meeting, but with such
changes, modifications, additions and deletions therein as
shall be deemed necessary, desirable or appropriate by the
Chairman.
2. The Trust Agreement is hereby approved and the
Chairman or his designee are hereby authorized and directed
to execute and deliver the Trust Agreement in the name of and
on behalf of the Agency, in substantially the form and
content now before this meeting, but with such changes,
modifications, additions and deletions therein as shall be
deemed necessary, desirable or appropriate by the Chairman.
3. The Assignment Agreement is hereby approved and the
Chairman or his designee are hereby authorized and directed
to execute and deliver the Assignment Agreement in the name
of and on behalf of the Agency, in substantially the form and
content now before this meeting, but with such changes,
modifications, additions and deletions therein as shall be
deemed necessary, desirable or appropriate by the Chairman.
4. The Loan Agreement is hereby approved and the
Chairman or his designee are hereby authorized and directed
to execute and deliver the Loan Agreement in the name of and
on behalf of the Agency, in substantially the form and
content now before this meeting, but with such changes,
modifications, additions and deletions therein as shall be
deemed necessary, desirable or appropriate by the Chairman.
5. The form of the Preliminary Official Statement, in
the form presented to the Agency, is hereby approved and the
previous distribution of said preliminary Official Statement
by Shearson Lehman Bros. Inc. and Grigsby, Brandford & Co.,
Inc. to prospective purchasers of the Certificates of
Participation is hereby ratified and approved.
6. The form of the Final Official Statement, in
substantially the form of the Preliminary Official Statement
presented to the City, is hereby approved and Shearson Lehman
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Bros. Inc. and Grigsby, Brandford & Co., Inc. are hereby
authorized to complete the Final Official Statement by the
inclusion and/or addition of certain dates and other factual
information as may be required to make it complete and to
distribute it to purchasers of the Certificates of
Participation.
7. The sale of the Certificates to Shearson Lehman
Bros. Inc. and Grigsby, Brandford & Co., Inc. at a purchase
price of not less than qR ~ Pprrpnt of the aggregate
principal amount of the Certificates and at an interest rate
of not to exceed 7.9 Percent is hereby authorized, approved
and confirmed, and the Chairman is hereby authorized,
empowered and directed to do all such acts and things and to
execute all such documents as may be necessary to effectuate
the sale of the Certificates.
8. Subject to the above terms, the form and content of
the Contract of Purchase is hereby authorized, approved and
confirmed, and the Chairman is hereby authorized, empowered
and directed to accept the Contract of Purchase for and on
behalf of the City in substantially the form and content now
before this meeting but with such changes, modifications,
additions or deletions therein as shall to him seem
necessary, desirable or appropriate, his acceptance thereof
to constitute conclusive evidence of his approval of any and
all changes, modifications, additions, or deletions therein
from the form and content of the Contract of Purchase now
before this meeting and that, from and after the execution
and delivery of the Contract of Purchase, the Chairman is
hereby authorized, empowered and directed to do all such acts
and things and to execute all such documents as may be
necessary to carry out and comply with the provisions of the
Contract of Purchase as executed.
9. The Agency covenants with holders of the
Certificates of Participation that it will make no use of the
proceeds from the sale of the Certificates which will cause
any of the Certificates to be "arbitrage bonds" subject to
federal income taxation by reason of Section 103 (c) of the
Internal Revenue Code of 1954, as amended. To that end, so
long as any of the Certificates of Participation are
outstanding, the Agency and the Trustee shall comply with all
requirements of Section 103(c) and of all regulations of the
United States Department of the Treasury issued thereunder,
to the extent that such requirements are at the time
applicable and in effect.
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ADOPTED this 15th day of July, 1986, by the following
vote:
AYES:
MEMBERS: Acosta,Griset,Hart,Johnson
Luxembourger, McGuigan & Young
MEMBERS: None
NOES:
ABSENT:
MEMBERS: None
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Daniel E. Griset, Chairman
per, Agency Legal Counsel
4/146/061149-0011/08
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