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HomeMy WebLinkAbout1992-009 1 2 3 4 5 6 7 8 RESOLUTION NO. 92-09 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AND AUTHORIZING THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION WITH THE ISSUANCE OF THE "CITY OF SAN BERNARDINO, CALIFORNIA, INDUSTRIAL DEVELOPMENT REVENUE REFUNDING BONDS, ISSUE OF 1992 (LA QUINTA MOTOR INNS, INC. PROJECT)" AND AUTHORIZING SUCH FURTHER ACTION AS MAY BE NECESSARY TO CONCLUDE THE ISSUANCE, SALE AND DELIVERY OF SUCH BONDS WHEREAS, the city of San Bernardino, California 9 ("city"), is a charter city duly organized and existing under and 10 pursuant to the provisions of the Constitution of the State of 11 California; and 12 13 WHEREAS, pursuant to its charter powers, the City duly 14 and regularly enacted Ordinance No. 3815, as amended (the 15 "Ordinance"), to finance various types of projects, as defined in 16 the Ordinance, and to issue its special revenue bonds for the 17 purpose of paying the costs of financing or refunding such 18 projects; and 19 20 WHEREAS, there was filed with the City an Application 21 (the "Application") pursuant to the provisions of the Ordinance 22 by La Quinta Motor Inns, Inc., San Antonio, Texas, referred to 23 herein as the "Corporation"), requesting the issuance of revenue 24 bonds (the "Bonds") for the purpose of refunding the outstanding 25 $7,000,000 city of San Bernardino, California Industrial 26 27 28 Development Revenue Bonds, Series 1982A (La Quinta Motor Inns, Inc. Project) (the "1982 Bonds"); and - 1 - 7 1 WHEREAS, the Application was reviewed and the plan of 2 financing was found to comply with the spirit, intent and 3 provisions of the Ordinance, and the City determined to proceed 4 with the financing; and 5 6 WHEREAS, the Mayor and Common Council must now approve 7 and authorize the execution of various documents in connection 8 with the issuance, sale and delivery of such Bonds entitled "City 9 of San Bernardino, California, Industrial Development Revenue 10 Refunding Bonds, Issue of 1992 (La Quinta Motor Inns, Inc. 11 Project)". 12 13 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 14 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 15 16 SECTION 1. The Recitals set forth hereinabove are 17 true and correct in all respects. 18 19 SECTION 2. The city hereby determines that the 20 project proposed by the Corporation to be refunded and for which 21 the Bonds will be issued is in compliance with the purposes of 22 the Ordinance and with the criteria established pursuant thereto, 23 and further determines that the Corporation provides benefits and 24 services to the citizens of the City and the undertaking of such 25 proposed project by the city will be a substantial factor in the 26 ability of the Corporation to continue to provide such necessary 27 services and to contain the cost of such services. The project 28 - 2 - 7 1 proposed by the Corporation is in compliance with the purposes of 2 the Ordinance and with the criteria established pursuant thereto. 3 4 SECTION J. It is likely that the undertaking of the 5 project by the city will be a substantial factor in the accrual 6 of public benefits from the use of the Corporation's facilities 7 as proposed in the Application. 8 9 SECTION 4. The issuance by the city of the "City of 10 San Bernardino, California, Industrial Development Revenue 11 Refunding Bonds, Issue of 1992 (La Quinta Motor Inns, Inc. 12 Project)" in an amount not to exceed $7,000,000 is hereby 13 approved. The Bonds shall be issued in substantially the form 14 and in accordance with the terms of the Trust Indenture as herein 15 defined and herein approved and as such Trust Indenture may be 16 from time to time amended. The Bonds shall be issued and sold to 17 NCNB Investment Banking Company (the "Underwriters") upon such 18 terms and conditions as are provided in the Bond Purchase 19 Agreement as hereinafter defined and approved. 20 21 SECTION 5. The Bonds shall be special obligations 22 of the City and shall not be deemed to constitute a debt or 23 liability of the city or a pledge of the faith and credit of the 24 City, but shall be payable solely from the payments received 25 under the terms of the Loan Agreement, described hereinafter. 26 The issuance of such Bonds shall not directly or indirectly or 27 contingently obligate the City to levy or pledge any form of 28 - J - 7 1 taxation whatsoever therefor or to make any appropriation for 2 their payment. 3 4 SECTION 6. The Mayor and Common Council, acting for 5 and on behalf of the City, hereby approve the Trust Indenture 6 referred to above, substantially in the form as on file with the 7 City Clerk with such corrections, changes, modifications, 8 additions or deletions as may be approved and recommended by the 9 city Attorney and Bond Counsel to the city, the Mayor, or, in his 10 absence or disability, the Mayor Pro Tem, and approved by him, 11 his execution thereof to be conclusive evidence of such approval. 12 The Mayor, or, in his absence or disability, the Mayor Pro Tem, 13 and city Clerk are hereby authorized and directed to execute such 14 final Trust Indenture when the same shall have been prepared for 15 execution, with the seal of the city to be affixed thereto. 16 17 SECTION 7. The Mayor and Common Council, acting for 18 and on behalf of the city, hereby approve the Loan Agreement with 19 the Corporation, substantially in the form as on file with the 20 City Clerk with such corrections, changes, modifications, 21 additions or deletions as may be approved and recommended by the 22 City Attorney and Bond Counsel to the Mayor or in his absence or 23 disability, the Mayor Pro Tem, and approved by him, his execution 24 thereof to be conclusive evidence of such approval. The Mayor, 25 or in his absence or disability, the Mayor Pro Tem, and City 26 Clerk are hereby authorized and directed to execute such final 27 Loan Agreement when the same shall have been prepared for 28 execution with the seal of the city to be affixed thereto. - 4 - 7 1 SECTION 8. The Mayor and Common Council, acting for 2 and on behalf of the City, hereby approve the Bond Purchase 3 Agreement, substantially in the form as on file with the city 4 Clerk with such corrections, changes, modifications, additions or 5 deletions as may be approved and recommended by the city Attorney 6 and Bond Counsel to the City, the Mayor, or, in his absence or 7 disability, the Mayor Pro Tem, and approved by him, his execution 8 thereof to be conclusive evidence of such approval. The Bond 9 Purchase Agreement shall be executed on behalf of the City as 10 hereinafter provided at such time as the final interest rates, 11 principal amount of Bonds, maturity dates and amounts and 12 Underwriter's discount are known; provided, however, that such 13 principal amount of Bonds shall not exceed $7,000,000, the net 14 interest cost shall not exceed 8% and the Underwriter's discount, 15 including original issue discount, shall not exceed 2%, without 16 further approval and authorization by the Mayor and Common 17 Council. The Mayor, or, in his absence or disability, the Mayor 18 Pro Tem, and city Clerk are hereby authorized and directed to 19 execute such final Bond Purchase Agreement when the same shall 20 have been prepared for execution, with the seal of the City to be 21 affixed thereto. 22 23 SECTION 9. The Mayor and the Common Counci l, acting 24 for and on behalf of the City, hereby approve the Preliminary 25 Official Statement and authorize its use by the Underwriters in 26 connection with the offering of the Bonds. The City authorizes 27 and directs the Underwriters to prepare a final Official 28 Statement at such time as the Underwriters deem appropriate and - 5 - 7 1 the city hereby authorizes the execution of such final Official 2 statement by the Mayor, or, in his absence or disability, the 3 Mayor Pro Tem. The Final Official statement shall be in 4 substantially the form of the Preliminary Official statement as 5 on file with the City Clerk with such corrections, changes, 6 modifications, additions or deletions as may be proposed by the 7 Underwriters, approved and recommended by the City Attorney and 8 Bond Counsel to the City, the Mayor, or, in his absence or 9 disability, the Mayor Pro Tem, and approved by the Mayor or, in 10 his absence or disability, the Mayor Pro Tem, with the execution 11 thereof to be conclusive evidence of such approval. 12 13 SECTION 10. The Mayor, or, in his absence or 14 disability, the Mayor Pro Tem, the city Clerk, the City's Project 15 Coordinator and such other city officers and employees as are 16 appropriate are authorized and directed to provide for the 17 payment of the costs of issuance solely from the proceeds of the 18 Bonds, provide for the investment of funds pursuant to the terms 19 of the Trust Indenture, execute such other documents, including 20 a subscription for federal securities, if necessary, to complete 21 the issuance of the Bonds and take such further action as shall 22 be consistent with the intent and purpose of this Resolution and 23 shall be needed to conclude the issuance, delivery and sale of 24 the Bonds. 25 26 27 28 - 6 - 7 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AND AUTHORIZING THE EXECUTION 2 OF CERTAIN DOCUMENTS IN CONNECTION WITH THE ISSUANCE OF THE "CITY OF SAN BERNARDINO, CALIFORNIA, INDUSTRIAL DEVELOPMENT REVENUE 3 REFUNDING BONDS, ISSUE OF 1992 (LA QUINTA MOTOR INNS, INC. PROJECT)" AND AUTHORIZING SUCH FURTHER ACTION AS MAY BE NECESSARY 4 TO CONCLUDE THE ISSUANCE, SALE AND DELIVERY OF SUCH BONDS 5 SECTION 11. This Resolution shall take effect upon 6 the date of its adoption. 7 I HEREBY CERTIFY that the foregoing Resolution was duly 8 adopted by the Mayor and Common Council of the City of 9 San Bernardino at a regular meeting 10 thereof, held on the 6th day of January 11 1992, by the following vote, to wit: 12 Council Members: ~ NAYS ABSTAIN ABSENT 13 ESTRADA 14 REILLY HERNANDEZ 15 MAUDSLEY MINOR 16 POPE-LUDLAM MILLER x x x x x x x 17 18 19 G~~ '- City Clerk 20 day of The foregoing resolution .Januarv I 1992. ed this 9th , / 21 22 ? of 23 Approved as to form and legal content: JAMES F. PENMAN 24 city Attorney 25 ~y: yat7~ ) 26 \OIl5\D0C\3 27 28 - 7 - 7