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HomeMy WebLinkAbout1985-015 \.. l \.. L \.. RESOLUTION NO. IDA 85-15 OF RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF SANTA ANA AUTHORIZING ISSUANCE OF BONDS FOR THE PURPOSE OF FINANCING THE CONSTRUCTION INDUSTRIAL FACILITIES BY MCFADDEN PROPERTIES WHEREAS, the City Council of the City of Santa Ana (the "City Council") on December 21, 1981, adopted its Resolution No. 81-223 authorizing the issuance and sale of bonds of the City of Santa Ana ("City") in a principal amount not to exceed Ten Million Dollars ($10,000,000) for the purpose of financing the acquisition, construction and improvement of certain industrial and commercial facilities and parking and related and appurtenant facilities (the "project") to be constructed by McFadden properties, a partnership qualified to do business in California (the "Company"), and WHEREAS, such resolution was adopted for the purpose of inducing the Company to undertake to construct and develop the project; and WHEREAS, the project as approved by the City Council included proposed commercial facilities to be constructed by the Company at 2002 East McFadden Avenue in the City (the "Commercial portion") and a proposed industrial facility to be proposed on adjacent land, which parcel extends to Wilshire Avenue at approximately 2041 East Wilshire Avenue in the City (the "Industrial portion"); and WHEREAS, the City Council found that authorization of bonds for the aforesaid purposes was in the public interest, for the public benefit and in furtherance of the public purposes of the City; and WHEREAS, this Authority is organized and existing in accordance with the California Industrial Development Financing Act (Title 10, commencing with section 91500 of Government Code) (the "Act") to render assistance to private industry for industrial development within the City of Santa Ana in accordance with the Act; and WHEREAS, the Industrial Portion of the Project approved by the City Council is an industrial facility subject to the Act; and WHEREAS, this Authority agrees with the findings by the City Council that financing of the Industrial Portion of the Project is in the public interest, for the public benefit and in furtherance of the public purposes of the City and desires to assume the City's intent, as expressed in City Council Resolution No. 81-223, to assist McFadden Properties in the acquisition, construction and improvement of the Industrial Portion of the Project. NOW, THEREFORE, BE IT RESOLVED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The undertaking of the financing of the Industrial Portion of the project by this Authority will be a substantial factor in accrual of the public benefits to be received from the project. Section 2. The proposed financing of the Industrial Portion of the Project is in accord with the purposes and requirements of the Act. Section 3. This Authority will incur indebtedness, in an aggregate amount of up to $1,750,000 to finance the Industrial Portion of the Project and hereby authorizes the issuance and sale of Bonds of the Authority pursuant to the Act in a principal amount of not to exceed $1,750,000 for the purpose of financing the acquisition, construction and improvement of an industrial facility and related and appurtenant facilities, to be constructed by the Company within the City at a site located at approximately 2041 East Wilshire Avenue. Such authorization is an undertaking by the Authority to issue and sell such Bonds in lieu of the City and is intended as a transfer of the authorization of the City with respect to such Bonds which was made for the purpose of inducing the Company to undertake to construct and develop the Project. This undertaking by the Authority to assume the City's resolution of intent applies only to the Industrial Portion of the project, in an amount not to exceed $1,750,000, and does not impact the balance of the $10,000,000 principal amount of Bonds proposed to be issued by the City pursuant to its Resolution No. 81-223 in connection with the Commercial Portion of the Project. wi J "'" J ...J "" I I L \.. l "-' Section 4. The issuance and sale of said Bonds shall be upon such terms and conditions as may be mutually agreed upon by the Authority, the Company and the purchaser of said Bonds and shall be issued by resolution of the Authority at a meeting duly held and conducted for such purpose. The indebtedness will be payable solely from the revenues to be received by this Authority pursuant to a sale, lease, loan or other financing agreement mutually acceptable to this Authority and the Company. section 5. The proceeds of the Bonds shall include such related and necessary issuance expenses, administrative costs, debt service reserves and the interest payments as may be required to accomplish successfully the financing. section 6. The Secretary of this Authority is hereby directed to indicate the willingness, on the part of this Authority, to proceed with and effect such financing and to advise the Company that, subject to due compliance with all requirements of law and the obtaining of all necessary consents and approvals and to the happening of all acts and conditions, this Authority, in the place and stead of the City, will take all necessary action to issue indebtedness in an amount not exceeding $1,750,000 to pay the cost of the Industrial portion of the project. section 7. The Company is authorized to commence the Industrial portion of the project and advance such funds as may be necessary therefor, subject to reimbursement for all expenditures out of the proceeds of the indebtedness herein authorized. section 8. It is intended that the City Council's Resolution No. 81-223 constitutes "some other similar official action" toward the issuance of indebtedness within the meaning of the Internal Revenue Code of 1954, as amended, with respect to the Industrial portion of the project, and that this Resolution constitutes a transfer of such intent to the Authority for the Industrial Portion of the project. -.--.- -----_."_.._~.._._-~..._~--~ -. .-- -'--~ -"--------_. ._________~ ___.... _~_,__~ ____________.______..____n___ """ Section 9. This Resolution shall take effect immediately upon its passage and adoption. ADOPTED this 2ht day of October , 1985. J ~ Daniel E. Griset Chairman ATTEST: DIRECTORS: ..., Griset Acosta Hart Johnson Luxembourger MCGuigan Young Aye Aye Absent Absent Aye Aye Aye APPROVED AS TO FORM: ~bope' Legal el J "'"