HomeMy WebLinkAbout1996-129
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RESOLUTION NO.
96-129
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, APPROVING A CERTAIN
AMENDMENT NO. 1 TO THE HUD SECTION 108 LOAN AGREEMENT
BY AND BETWEEN THE CITY OF SAN BERNARDINO AND THE
HARRIS COMPANY, APPROVING CERTAIN CONTRACTS FOR LOAN
GUARANTEE ASSISTANCE UNDER HUD SECTION 108 AS AMENDED,
AND AUTHORIZING EXECUTION OF NECESSARY DOCUMENTS IN
CONNECTION WITH THE PENDING PUBLIC OFFERING OF TRUST
CERTIFICATES GUARANTEED UNDER HUD SECTION 108
WHEREAS, the City of San Bernardino (the "City"), is a
municipal corporation and a charter city duly created and existing
pursuant to the Constitution and the laws of the State of California;
and
WHEREAS, the City previously entered into a Contract For
Loan Guarantee Assistance with the United States of America through its
Department of Housing and Urban Development ("HUD") pursuant to the
Housing and Community Development Act of 1974, as amended; and
WHEREAS, on May 4, 1995 the City entered into a HUD Section
108 Loan Agreement with The Harris Company ("Harris"), pursuant to
which the City agreed to lend Harris up to the maximum principal amount
of $7,350,000 for the purpose of financing Harris' acquisition of a
retail building located at 300 North "E" Street, San Bernardino,
California 92416 ("Site"); and
WHEREAS, the HUD Section 108 Loan Agreement requires Harris
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RES 96-129
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improvements ("Improvements") to the Site during the period of January
30, 1995 to May 1, 1996, and to prepare a final report of the sums
expended for the Improvements and the specific nature of the
Improvements not later than September 1, 1996; and
WHEREAS, Harris has recently advised the City that it
requires an additional 6 months to complete the Improvements and an
additional 3 months to prepare the final report; and
WHEREAS, the City at this time deems it desirable to enter
into an amendment to the HUD Section 108 Loan Agreement with Harris
( "Amendment NO.1") in order to provide the necessary extensions to
Harris relative to its completion of the Improvements and preparation
of the final report; and
WHEREAS, on or about April 25, 1996, HUD advised the City
that it intends to include the City'S promissory Note Nos. B-93-MC-06-
0539 in the aggregate principal amount of $490,000, and B-94-MC-06-0539
in the aggregate principal amount of $7,350,000 (collectively "Notes")
in a trust created by HUD, together with other HUD Section 108 notes
issued by other borrowers, and that certificates based on the trust
will be sold in a public offering scheduled for June 5, 1996; and
WHEREAS, in order for the Notes to be included in the June
5, 1996 public offering, the City is required to execute and forward
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RES 96-129
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to HUD by May 23, 1996, the Notes, the Contracts for Loan Guarantee
Assistance under HUD Section 108, As Amended ("Contractsll) I and an
opinion of counsel pursuant to paragraph 4. (b) of the Contracts; and
WHEREAS, the City deems it appropriate to enter into the
Contracts with HUD, issue the Notes, pledge the grant funds, and
execute such instruments as are necessary or desirable to accomplish
the transaction and to ensure that the Notes are included in the June
5, 1996 public offering.
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND
ORDER AS FOLLOWS,
SECTION 1.
The Recitals hereinabove are true and
correct and are incorporated herein by this reference.
SECTION 2. The City hereby approves Amendment No.1 to
the HUD Section 108 Loan Agreement, a copy of which is attached hereto
as Exhibit "A" and is incorporated herein by this reference.
SECTION 3. The Mayor and City Clerk of the City are
hereby authorized and directed to execute Amendment No. 1 to the HUD
Section 108 Loan Agreement with any such changes and modifications as
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RES 96-129
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may be approved by the Mayor and the Agency Administrator of the
Economic Development Agency of the City of San Bernardino.
SECTION 4. The appropriate personnel on behalf of the
City are hereby authorized and directed to prepare a composite of the
HUD Section 108 Loan Agreement indicating the changes that will take
affect as a result of Amendment No.1.
SECTION 5. The City hereby approves the Contracts,
including the issuance of the Notes and the pledge of grant funds.
SECTION 6. The Mayor and City Clerk of the City are
hereby authorized and directed to execute the Notes and the Contracts,
attached hereto as Exhibits "B" and "C", respectively, and incorporated
herein by this reference, and to return the executed Notes, Contracts,
and opinion of counsel pursuant to paragraph 4. (b) of the Contracts,
to HUD by May 23, 1996.
SECTION 7. The Mayor and the City Clerk of the City are
hereby authorized and directed to execute any other documents, at such
time as is necessary, which are necessary or desirable to accomplish
the transaction and to ensure that the Notes are included in the June
5, 1996 public offering, including without limitation, the wire
instructions for the transfer of funds to Chemical Bank as trustee in
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payment of the issuance costs, accrued interest of the interim loan,
and subsequent payments of interest and principal on the Notes.
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1m:; ~o- Ll~
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
SAN BERNARDINO, CALIFORNIA, APPROVING A CERTAIN AMENDMENT NO. 1 TO
HUD SECTION 108 LOAN AGREEMENT BY AND BETWEEN THE CITY
SAN BERNARDINO AND THE HARRIS COMPANY, APPROVING CERTAIN CONTRACTS
LOAN GUARANTEE ASSISTANCE UNDER HUD SECTION 108 AS AMENDED,
AUTHORIZING EXECUTION OF NECESSARY DOCUMENTS IN CONNECTION WITH
PENDING PUBLIC OFFERING OF TRUST CERTIFICATES GUARANTEED UNDER
SECTION 108
SECTION 7.
The findings and determinations herein shall
be final and conclusive.
This Resolution shall take effect upon the
date of its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly
adopted by the Mayor and Common Council of the City of San Bernardino
at a
regular meeting thereof, held on the
20th
day of May
1995, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN
ABSENT
x
x
x
x
NEGRETE
CURLIN
ARIAS
OBERHELMAN
DEVLIN
ANDERSON
MILLER
x
x
x
day of
The foregoing resolution
May , 1996.
1{Cf~fLeL 1!l!D/L/U
~' 0_ City nerk,..' f\)^~' .
:x:xuzclA/J /l1.d)j)rVj OJJL!ll ~.
i hereby appro d this ~3
.--::: j.'
'[biL-Er"l
ayor of the City of
San Bernardino
Approved as to form and legal content:
JAMES F. PENMAN
City Attorney
By:
SBEO\OOOl-43\DOC\310B
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OF
THE
OF
FOR
AND
THE
HUD
RES 96-129
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EXHIBIT "A"
(AMENDMENT NO. 1 TO HUD SECTION 108 LOAN AGREEMENT)
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"
RES 96-129
.,
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1 EXHIBIT "B"
2 (PROMISSORY NOTE NOS. B-93-MC-06-0539
and B-94-MC-06-0539)
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EXHIBIT "C"
"
RES 96-129
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(CONTRACTS FOR LOAN GUARANTEE ASSISTANCE
UNDER HUD SECTION 108, AS AMENDED)
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