HomeMy WebLinkAbout2014-002 - Approving the Industrial Development Authorityles: 12/17/13
RESOLUTION NO. 2014 -002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING THE INDUSTRIAL
DEVELOPMENT AUTHORITY OF THE CITY OF SANTA
ANA AUTHORIZING THE AMENDMENT OF A LOAN
AGREEMENT TO REFINANCE THE MANUFACTURING
FACILITY OF MEMORY EXPERTS INTERNATIONAL
(USA), INC., LOCATED AT 1651 ST. ANDREW PLACE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The Santa Ana Empowerment Zone originally received an allocation of
$130 million of private activity bond volume cap for the issuance of industrial
development bonds ( "IDBs "). The City Council of the City of Santa Ana (the "City ") is
authorized to grant allocations of the volume cap to qualified businesses in the
empowerment zone for capital financing of projects in the empowerment zone.
B. On December 20, 2004, the City Council adopted its Resolution No. 2004-
100, allocating an amount not to exceed $4.7 million of such volume cap to Memory
Experts International (USA), Inc. ( "Memory Experts ") to permit the use of industrial
development bonds or loans to finance and refinance a manufacturing facility located at
The Pres Corporate Center, 1651 St. Andrew Place, and related equipment and
furnishings (the "Project').
C. On December 20, 2004, the Industrial Development Authority of the City of
Santa Ana (the "Authority') adopted its Resolution No. IDA 2004 -002, authorizing the
Authority to assist in such financing and refinancing by entering into a Loan Agreement,
dated as of February 1, 2005 (the "Original Loan Agreement'), among GE Capital Public
Finance, Inc., as lender and collateral agent (the "Lender "), the Authority, as issuer, and
Memory Experts, as borrower.
D. Under the Original Loan Agreement, the Lender loaned $4.4 million to the
Authority and the Authority immediately loaned the same $4.4 million to Memory
Experts (collectively, the "Loan "). Memory Experts is required to make all Loan
repayments directly to the Lender. Neither the City nor the Authority bear any financial
responsibility whatsoever for the Loan.
Resolution No. 2014 -002
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E. The Lender has offered to reduce the interest rate to produce debt service
savings over the remaining term of the Loan. In order to achieve these savings, the
Lender and Memory Experts have proposed a First Amendment to Loan Agreement
(the "Amendment'), which would lower the interest rate. The proposed form of the
Amendment is on file with the Secretary of the Authority (the "Secretary").
Section 2. The City Council herby approves the Authority entering into the
Amendment to the Loan Agreement for the purposes of lowering the interest rate to
produce debt service savings over the remaining term of the Loan. Neither the City nor
the Authority bear any financial responsibility whatsoever for the Loan, as amended.
Section 3. All actions heretofore taken by the employees, officers and agents of
the City with respect to the Amendment are hereby approved and ratified, and the
officers and employees of the City and their authorized deputies and agents are hereby
authorized and directed, jointly and severally, to do any and all things to execute and
deliver any and all certificates and documents which they, bond counsel and the
Authority Attorney and the City deem necessary or advisable to consummate the
Amendment and otherwise effectuate the purpose of this Resolution.
Section 4. This Resolution shall take effect immediately upon its adoption by the
City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
Resolution No. 2014 -002
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ADOPTED this 7th day of January, 2014.
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
Lisa . Storck
Assistant City Attorney
AYES: Councilmembers: Amezcua, Benavides, Martinez Pulido, Reyna
Sarmiento (6)
NOES: Councilmembers: None (0)
ABSTAIN: Councilmembers: None (0)
NOT PRESENT: Councilmembers: Tinajero (1)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2014 -002 to be the original resolution adopted by the City Council of the
City of Santa Ana on January 7, 2014.
Date: 3/ Q;A�Gtcui
Clerk of the Council /
City of Santa Ana
Resolution No. 2014 -002
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