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HomeMy WebLinkAbout1978-11 CRA '. - .,,1 . " 8 . RESOLUTION NO, 78-11 RESOLUTION OF THE COMMUNITY REDEVELOP- MENT AGENCY OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO SELL BONDS OF SAID AGENCY IN THE AMOUNT OF $13,500,000 FOR THE CITY OF SANTA ANA REDEVELOPMENT PROJECT AREA FIXING TIME AND PLACE FOR TAKING BIDS, AND DIRECT- ING PUBLICATION OF NOTICE INVITING BIDS WHEREAS, this Agency deems it proper and the necessity therefor appears that bids be invited for the pur- chase of its $13,500,000 City of Santa Ana Redevelopment Project Area, 1978 Tax Allocation Bonds (the "Bonds"), and that if bids are satisfactory, the Bonds be sold in the manner and at the time and place hereinafter set forth; NOW, THEREFORE, the Community Redevelopment Agency of the City of Santa Ana DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1, Sealed bids for the purchase of the Bonds shall be received by the Agency at the time and place hereinafter set forth in the Notice Inviting Bids. Section 2. The Secretary is hereby authorized and directed to publish said Notice Inviting Bids by one insertion in the The Register a newspaper of general circulation in the City of Santa Ana, California, said publication to be at least ten days prior to the date of opening bids stated in said Notice, ", 1 Section 3. The Secretary is further authorized and directed to cause to be furnished to prospective bidders copies of said Notice Inviting Bids and of the Official State- ment relating to the Bonds; but the failure, in whole or in part, to comply with this section shall not in any manner affect the validity of the sale of said Bonds. Section 4. Said Notice shall be substantially as follows: I [insert notice] . . 2. I 2/28/78 NOI'ICE INVITING BIDS ON $13,soo.000 TAX ALLOCATION BONDS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA NOTICE IS HEREBY GIVEN that sealed propo$ais for the purchase of $13,500,000 par value Tax Allocation Bonds of the COMMUNITY-REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA will be received by said Agency at the place and up to the time below specified. I TIME: Tuesday, March 21, 1978 11:00 o'clock A.M. PLACE: O'Melveny & Myers 36th Floor Conference Room 611 W. Sixth Street Los Angeles, California 90017 Mailed bids should be addressed to the Agencyclo O'Melveny & Myers 36th Floor Conference Room 611 W. Sixth Street Los Angeles, California 90017 Attention: 1. P. Zanotti OPENING OF BIDS: The bids will be received and opened at 11:00 o'clock A.M. on March 21,1978, and reported to the Agency at its meeting later the same day. MAILED BIDS: ISSUE: $13,500,000 designated CITY OF SANTA ANA REDEVELOPMENT PRO1ECT AREA, 1978 TAX ALLOCATION BONDS, consisting of 2,700 Bonds, numbered 1 to 2700, both inclusive, of the denomination of $5,000 each, dated April 1, 1978. . MATURITIES: The Bonds will mature on April 1 in the amounts for each of the several years as follows: = Year PriDdpol Year Amomd 1979. $ 225,000 1992 . $ 520,000 1980. 240,000 1993 555,000 1981 . 260,000 1994 . 590,000 1982. 275,000 1995. 625,000 1983 . 295,000 1996 . 670,000 1984. 315,000 1997 715,000 1985 . 335,000 1998 . 760,000 1986 . 355,000 1999 810,000 1987. 380,000 2000 . 860,000 1988 . 405,000 2001 . 915,000 1989 430,000 2002. 980,000 1990 455,000 2003. 1,045,000 1991 . 485,000 1 . 3, 1 2/28/78 IN1EREST: The Bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not to exceed 8% per annum, payable semiannually on April 1 and October] of each year, commencing on October 1, 1978. PAYMENT: The Bonds and the interest thereon (except for interest on fully registered Bonds, which shall be payable by check or draft) will be payable in lawful money of the United States of America at the principal office of the Fiscal Agent, United California Bank, in Los Angeles, California, or, in the case of coupon Bonds, at the option of the holder, at the offices of the Paying Agents of the Agency in New York, New York or Chicago, lliinois. I REGISTRATION: The Bonds will be issued as coupon Bonds exchangeable for fully registered Bonds as to both principal and interest, all in accordance with the provisions in the resolution providing for the issuance of the Bonds (hereinafter referred to as the "Resolution") adopted on February 28, 1978. REDEMPTION PROVISIONS: Bonds maturing on or prior to April 1, 1989, are not subject to call or redemption prior to maturity. Bonds maturing on and after April 1, 1990, may be cal1ed before maturity, at the option of the Agency, as a whole, or in part in inverse order of maturity and by lot within a maturity, from any available source of funds on April 1, 1989, or on any interest payment date thereafter, upon payment of accrued interest to the date of redemption and a redemption price equal to the principal amount thereof plus a premium (percentage of principal amount) equal to one-quarter of one percent (\4 %) for each year or fraction of a year from the redemption date to the maturity date of the Bonds, but in no event exceeding three percent. . PURPOSE OF ISSUE: The proceeds from the sale of the Bonds will be used for the acquisition and clearance of property for redevelopment, relocation costs, construction of public improvements, repayment of advances by the City of Santa Ana and related expenses in connection with the City of Santa Ana Redevelopment Project Area. SECURITY: The bonds are special obligations of the Agency payable, both principal and interest, solely from Tax Revenues (as defined in the Resolution) and from certain other limited funds and accounts as provided in the Resolution. Such obligations, however, may be limited by bankruptcy, insolvency or other laws aIIecting enforcement of creditors' rights. The bonds are not obligations of the City of Santa Ana. TERMS OF SALE IDterest Rate: The maximum rate bid may not exceed 8% per annum, payable semiannually on April 1 and October 1 of each year. Each rate bid must be a multiple of 1/20 of 1 %. No Bond shall bear more than one interest rate, and all Bonds of the same maturity shal1 bear the same rate. Each Bond must bear interest at the rate specified in the bid from its date to its fixed maturity date. Only one coupon will be attached to each Bond for each instanmentof interest thereon, and bids providing for additional or supplemental coupons will be rejected. The rate. on any maturity or group of maturities shall not be more than 2 % higher than the interest rate on any other maturity or group of maturities. Award; Highest Bidder: The Bonds shall be sold for ~ only. All bids must be for not less than all of the Bonds hereby offered for sale and each bid shal1 state the bidder offers the purchase price, which shal1 not be less than 95% of par, and accrued interest to the date of delivery, the premium or discount, if any, and the interest rate or rates not to exceed those specified herein, at which the bidder offers to buy the Bonds. Each bidder shall state in his bid the total net interest cost in dollars and the average net interest rate determined thereby, which shall be considered informative only and not part of the bid. 2 . 4. I 2/28/78 The Bonds will be awarded to the highest responsible bidder or bidders considering the interest rate or rates specified and the premium or discount o1Iered, if any. The highest bid will be determined by deducting the amount of premium bid (if any) from, or adding the amount of discount bid (if any) to, the total amount of interest which the Agency would be required to pay from the date of the Bonds to the respective maturity dates thereof at the coupon rate or rates specified in the bid, and the award win be made on the basis of the lowest net interesll cost to the Agency. The purchaser must pay accrued interest from the date of the Bonds to the date of delivery computed on a 36ü-day year basis. The cost <>!' printing the .Bonds will be borne by the Agency. Right of Rejectioo: The Agency reserves the right, in its discretion, to reject any and all bids and to the extent not prohibited by law to waive any irregoIarity or informality in any bid. , Prompt Award: The Agency will take action awarding the Bonds or rejecting all bids not later than twenty-six (26) hours after the time herein prescribed for the receipt of proposals; provided that the award may be made after the expiration of the specified time if the bidder shall not have given to the Agency notice in writing of the withdrawal of such proposal. Place of Delivery; FUDds for Payment: Delivery of the Bonds will be made to the successful bidder at 1elfries Banknote Company in Los Angeles, California, or at such other place agreeable to both the successful bidder and the Agency. Payment for the Bonds shall be made in Federal Reserve Bank Funds or other immediately available funds. Prompt Delivery; Cancellation for Late Denvery: The Agency reserves the right to deliver the Bonds in temporary or fully registered form, pending availability of definitive Bonds. It is expected that the definitive Bonds will be ready for delivery or exchange within thirty days from the date of sale thereof. In no event shall the Agency fail to execute the Bonds in definitive form and tender them for delivery within sixty days from the date herein fixed for the receipt of bids. Fonn of Bid: Each bid, together with the bid check, must be in a sealed envelope, addressed to the Agency in care of O'Melveny & Myers, with the envelope and bid clearly marked "Proposal for City of Santa Ana Redevelopment Project Area, 1978 Tax Allocation Bonds". Each bid must be in accordance with the terms and conditions set forth in this notice. . Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of $135,000, payable to the order of the Agency, must accompany each proposal as a guaranty that the bidder, if successful, win accept and pay for the Bonds in accordance with the terms of his bid. The check accompanying any accepted proposal shall be applied on the purchase price, or if such proposal is accepted but not performed, unless such failure of performance shall be caused by any act or omission of the Agency, shall then be cashed and the proceeds retained by the Agency. The check accompanying each unaccepted proposal will be returned promptly. Change in Tax Exempt Status: At any time before the Bonds are tendered for delivery, the successful bidder may disaffirm and withdraw the proposal if the interest received by private holders from Bonds of the same type and character shall be declared to be taxable income under present federal income tax laws, either by a ruling of the Internal Revenue Service or by a decision of any federal court, or shall be declared taxable, or shall be required to be taken into account in computing any federal income taxes, by the terms of any federal income tax law enacted subsequent to the date of this notice. Closing Doeuments; Legal Opinion: Each proposal will be understood to be conditioned upon the Agency furnishing to the purchaser, without charge, concurrently with payment for and delivery of the bonds, the following closing documents, each dated the date of delivery: 3 " 5. I 2/28/78 e (a) The opinion of O'Melveny & Myers of Los Angeles, California, Bond Counsel, approving the validity of the bonds and stating that interest on the bonds is exempt from income taxes of the United States of America under present federal income tax laws, and that such interest is also exempt from personal income taxes of the State of California under present state income tax laws. (A copy of said opinion of O'Me1veny & Myers, certified by an officer of the Agency by facsimile signature, will be printed on the back of each bond. No charge will be made to the purchaser for such printing or certification); (b) A certificate of the Agency certifying that on the basis of the facts, estimates and circum- stances in exi~tence on the date of issue, it is not expected that the proceeds of the bonds will be used in a manner that would cause the bonds to be arbitrage bonds; (c) A certificate of the Agency signed by officers and representatives, acting in their respective official capacities, certifying to the following: ( 1) that said officers and representatives have signed the bonds, whether by facsimile or manual signature, and that they were respectively duly authorized to execute the same; (2) that there is no litigation threatened or pending affecting the validity of the bonds; (d) The receipt of the Agency or the Fiscal Agent showing that the purchase price of the bonds, including interest accrued to the date of delivery thereof, has been received by the Agency or the FISCal Agent. 0fIiclal Statement: The Agency will furnish to the successful bidder or bidders, as many copies of the Official Statement as said bidder or bidders shall request. No charge will be made to the successful bidder for the first 350 copies of the Official Statement. The Agency will deliver to the successful bidder, at the time of the delivery of the bonds a certificate o( the Executive Director of the Agency, acting in his official and not his personal capacity, to the effect that at the time of the sale of the bonds and at all times subsequent thereto up to and including the time of delivery of the bonds, the Official Statement relating to the bonds did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in tight of the circumstances under which they were made, not misleading. . CUSIP Numbers: It is anticipated that CUSIP numbers will be printed on the bonds, but neither the failure to print such numbers on any bond nor error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with the terms of the purchase contract. All expenses of printing CUSIP numbers on the bonds shall be paid by the Agency, but the CUSIP Service Bureau charge for the assignment of said numbers shall be paid by the purchaser. Information Available: For details as to the items referred to in this notice, prospective bidders . are invited to examine the Official Statement and the Resolution relating to the issuance of the Bonds. Any requests for such documents and other information concerning the Agency and this proposed financing should be directed to: Stone & Younberg Municipal Financing Consultants, Inc. One California Street Suite 2750 San Francisco, California 94111 (415) 989-2300 GIVEN by order of the Community Redevelopment Agency of the City of Santa Ana, adopted February 28, 1978. Secretary of the Community Redevelopment Agency of the City of Santa Ana tt 4 6. ',- '," I 8 . . ADOPTED, SIGNED AND APPROVED this 28th day of February, 1978. c=~~~~~ ~ \:.. A> ' L<r Cha rman 0 the Commun1ty Redevelopment Agency of the City of Santa Ana ATTEST: opment (SEAL) ;-;¡¡:;M'C KEITH L. GOW, City Attorney 7.