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HomeMy WebLinkAbout2007-001 RESOLUTION NO. IDA 2007-001 RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF SANTA ANA ACCEPTING THE APPLICATION OF INGARDIA BROTHERS PRODUCE, INC., AND EXPRESSING PRELIMINARY INTENT TO PROVIDE FINANCING IN AN AMOUNT OF $2,075,000 FOR THE ACQUISITION OF CERTAIN EQUIPMENT, AND AUTHORIZING VARIOUS ACTIONS IN CONNECTION THEREWITH BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF SANTA ANA AS FOllOWS: Section 1. The Board of Directors hereby finds, determines and declares as follows: A. The California Industrial Development Financing Act (California Government Code Sections 91500 et seq., as amended and supplemented) (the "Act"), permits an industrial development authority to issue revenue bonds for the purpose of financing the acquisition, construction and/or rehabilitation of facilities, including real and personal property suitable for industrial uses such as assembling, fabricating, manufacturing or processing activities with respect to any products of agriculture, forestry or manufacturing, and commercial uses within an empowerment zone and enterprise community designated pursuant to Section 1391 of the Internal Revenue Code of 1986, as amended (the "Code"), and the Act deems such revenue bonds to include various types of obligations and evidences of indebtedness. B. The Industrial Development Authority of the City of Santa Ana (the "Authority") is authorized pursuant to the provisions of the Act to exercise powers of acquiring, constructing, improving, furnishing, equipping, repairing, reconstructing and/or rehabilitating facilities and to enter into agreements for the same. C. The Board of Directors of the Authority desires to accept the application of Ingardia Brothers Produce, Inc., a California corporation, (the "Borrower") for the financing by the Authority of the acquisition of certain equipment to be located at the Borrower's food distribution facility located at 700 South Hathaway, Santa Ana, California, and certain costs of issuance in the estimated amount of $2,075,000, all of which together constitute a project under the Act (the "Project"). D. The Project is located within the City of Santa Ana Federal Empowerment Zone designated pursuant to Section 1391 of the Code and will be used for qualified purposes. E. The Authority, based on the information provided by the Borrower with respect to the Project, makes in Section 2 hereof certain determinations with respect to the public benefits that may be derived from the financing of the Project and the qualifications of the Project for financing under the Act. IDA Resolution No. 2007-001 Page 1 of 4 F. The Project constitutes "Facilities" within the meaning of the Act and the Borrower is a "Company" within the meaning of the Act. G. The Authority now desires to accept the application of the Borrower for financing, to make certain determinations under the Act and to express the present intention of the Authority to provide financing with respect to the Project. H. The Board of Directors of the Santa Ana Empowerment Corporation will consider the Project prior to the further consideration by the City of Santa Ana and the Industrial Development Authority of the City of Santa Ana of the Project and the financing. Section 2. The Board of Directors of the Authority hereby accepts the application of the Borrower for financing and finds and determines that: (a) the undertaking of the Project in an Empowerment Zone is in accord with Section 91503 of the Act; (b) the use of the Project is likely to result in public benefits and employment benefits by securing or increasing the number of employees of the Borrower, and any other direct users of the Project or the compensation for such employment; (c) the Loan made by the Authority in the amount sufficient to finance all or a portion of the costs of the Project is likely to be a substantial factor in the accrual of each of such public benefits from the undertaking of the Project; and (d) the proposed financing of the Project is otherwise in accord with the purposes and requirements of the Act. Section 3. This Board hereby expresses the present intention of the Authority to enter into obligations to finance the Project in an amount of approximately $2,075,000, the interest on which is expected to be exempt from federal income taxation. Section 4. (a) The Borrower will incur costs with respect to the Project prior to the issuance of any obligations. The Authority hereby states its intention and reasonably expects to reimburse to the Borrower any such costs with proceeds of obligations to be issued by it. (b) This resolution is consistent with the budgetary and financial circumstances of the Authority, as of the date hereof. No monies from sources other than the Authority issue are, or are reasonably expected to be reserved, allocated on a long term basis, or otherwise set aside by the Authority (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this Board of Directors is not aware of any previous adoption of official intents by the Authority that have been made as a matter of course for the purpose of reimbursing expenditures relating to this Project and for which tax exempt obligations have not been issued. IDA Resolution No. 2007-001 Page 2 Of4 (c) This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation S 1.1 03-8(a)(5) and Treasury Regulation S 1.150 2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of expenditures incurred prior to the date of issue of the obligations, is part of the Authority's official proceedings, and will be available for inspection by the general public at the main administrative office of the Authority. Section 5. The Authority by the adoption of this resolution shall be under no obligation to proceed with the approval of any financing for the Borrower or the Project, and the Borrower shall acquire no rights against the Authority by reason thereof. Section 6. Any authorized officer of the Authority (the "Authorized Representative") or his or her designee is hereby requested and authorized to (i) file a copy of this Resolution and the Application with the Clerk of the Council and (ii) file such information with the California Industrial Development Financing Advisory Commission as may be required for the review and approval of the Project pursuant to Section 91531 of the Act and (iii) publish notice of the filing of the Application by the Borrower in accordance with Section 91530(e) of the Act in a newspaper of general circulation within the City at the time and in the manner required by the Act. Section 7. The City Council of the City is hereby requested to conduct a public hearing with respect to the financing of the Project for the purpose of satisfying the public approval requirements of Section 147(f) of the Internal Revenue Code of 1986. Publication of the notice of such public hearing in a newspaper of general circulation within the City at the time and in the manner required by the Act. Section 8. All actions heretofore taken by the officers and agents of the Authority with respect to the approval of the application of the Borrower with respect to the Project are hereby approved, confirmed and ratified, and the officers of the Authority and their authorized designees, deputies and agents are each hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any an all certificates and documents which they, bond counsel, special tax counsel and the Authority Attorney may deem necessary or advisable in order to effectuate the purpose of this Resolution. Section 9. This Resolution shall take effect from and after its inception. ADOPTED this 16th day of Julv 2007. IDA Resolution No. 2007-001 Page 3 of 4 By: ------- / ~ES:' Boardmembers Alvarez. Bustamante. Martinez. Pulido. Sarmiento. Tinaiero (6) NOES: Boardmembers ABSTAIN: Boardmembers NOT PRESENT: Boardmembers Benavides (1) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E, HEALY, Secretary to Authority, do hereby attest to and certify the attached Resolution No. IDA 2007-001 to be the original resolution adopted by The Industrial Development Authority of the City of Santa Ana on July 16, 2Q07. Dated: 7/'SL If /0 '7 / j ::<..--/ Patricia E. Healy; Secret ry Industrial Development Authority, City of Santa Ana IDA Resolution No, 2007-001 Page 4 of4