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HomeMy WebLinkAbout2007-025 - Authorizing and Directing the Execution of Certain Lease Financing Documents RESOLUTION NO. 2007-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AND DIRECTING THE EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council (the "Council") of the City of Santa Ana (the "City") hereby finds, determines and declares as follows: A. The City proposes to finance the costs of the construction of a parking structure on City-owned property located adjacent to the proposed State Appellate Court Building in Santa Ana, California (the "Improvements"); B. In 2005, the City entered into a lease/leaseback transaction with the Authority to finance the Improvements and the City agreed to make lease payments to the Authority with a principal component of $5,970,000 and an interest component calculated at the rate of 4.71 % per annum; C. The Authority assigned its right to receive the lease payments to All Points Public Funding, LLC ("All Points") which advanced the principal component of the lease payments to the City to finance the Improvements; D. The City experienced construction cost increases, utility undergrounding complications and other problems in connection with the Improvements and requires additional funds to complete the Improvements; E. The City approached All Points to finance the remaining amounts required for the Improvements and All Points agreed to do so on substantially the same terms as the original 2005 transaction; F. The City and All Points agreed that the City would prepay the 2005 lease agreement, with no prepayment penalty, and would enter into a new lease/leaseback transaction that would provide for the total amount required to finance the Improvements; G. The City has determined to enter into a new site lease (the "Site Lease") and a new lease agreement (the "Lease Agreement") with the Authority with a total principal component of not to exceed $8,470,000 and an interest component calculated at the rate of 4.78191 % per annum; H. The Authority will assign its rights under the Site Lease and the Lease Agreement to All Points; Resolution No. 2007-025 Page 1 of 3 I. It is in the public interest and for the public benefit that the City authorize and direct execution of the Site Lease and the Lease Agreement with the Authority and certain other financing documents in connection therewith; and J. The documents below specified have been filed with the City and the members of the Council, with the aid of its staff, shall review said documents; Section 2. The below-enumerated documents be and are hereby approved, and the City Manager, the Executive Director of Finance and Management Services, or the designee of any such official, is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, and the City of the Council is hereby authorized and directed to attest to such official's signature: A. A termination agreement, by and among the City, the Authority and All Points, terminating all documents relating to the 2005 lease/leaseback transaction; B. The Site Lease, by and between the City, as lessor, and the Authority, as lessee, pursuant to which the City will lease certain real property (the "Site") to the Authority; C. The Lease Agreement, by and between the Authority, as lessor, and the City, as lessee, pursuant to which the Authority will lease the Site and the Improvements back to the City, in a principal amount not to exceed to $8,470,000, with a final payment date of May 1, 2026, and with an interest component of 4.78191 % per annum; and D. A reimbursement agreement, by and between the City and the Community Redevelopment Agency of the City of Santa Ana (the "Agency"), pursuant to which the Agency will agree to reimburse the City for payments made by the City under the Lease Agreement, to the extent such amounts are available. Section 3. The firm of Northcross Hill & Ach Inc. is hereby retained as financial advisor to the City in connection with the lease financing approve by this resolution. The City Manager is authorized to execute a financial advisory agreement with such firm in such form as shall be approved by the City Attorney. Section 4. The firm of Quint & Thimmig LLP is hereby retained as bond counsel to the City in connection with the lease financing approve by this resolution. The City Manager is authorized to execute a financial advisory agreement with such firm in such form as shall be approved by the City Attorney. Section 5. The. City Manager, the Executive Director of Finance and Management, the Cityof the Council and all other appropriate officials of the City are Resolution No. 2007-025 Page 2 of 3 hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution and the financing herein authorized. Section 6. This Resolution shall take effect upon its adoption by this Council. ADOPTED this 5th day of March, 2007. APPROVED AS TO FORM: ( ey , ( AYES / -----C'ouncilmembers Alvarez, Benavides, Bustamante, Martinez, Pulido, Sarmiento, Tinaiero (7) NOES: Councilmembers None (0) ABSTAIN: Councilmembers None (0) NOT PRESENT: Councilmembers None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Patricia E. Healy, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007-025 to be the original resolution adopted by the City Council of the City of Santa Ana on March 5, 2007. Date: , Patricia E. Healy Clerk of the Council City of Santa Ana Resolution No. 2007-025 Page 3 of 3