Loading...
HomeMy WebLinkAbout1988-048 .I .' SBE00085-13/2358S/dh 02/09/88 RESOLUTION NO. 88-48 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF NOT TO EXCEED $7,400,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA, TAX ALLOCATION REFUNDING BONDS, ISSUE OF 1988, AND MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH WHEREAS, the City of San Bernardino, California (the "Ci ty") is a municipal corporation and a charter ci ty, duly organized and existing under and pursuant to the Constitution and the laws of the State of California; and WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency"), is a redevelopment agency (a public body, corporate and politic) duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law, Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code of the State of California (the "Law"), and the powers of the Agency include the power to issue bonds and refunding bonds for any of its corporate purposes; and WHEREAS, the Redevelopment Plan for a redevelopment project known and designated as the "Central City North Redevelopment Project Area" (the "Redevelopment Plan") has been adopted and A - 1 - " approved by Ordinance No. 3366 of the City of San Bernardino, California, which became effective on September 10, 1973, and all requirements of law for and precedent to the adoption and approval of the Redevelopment Plan have been duly complied with; and WHEREAS, the Agency proposes to adopt its Resolution entitled: "RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $7,400,000 PRINCIPAL AMOUNT OF TAX ALLOCATION BONDS OF SAID AGENCY TO REFUND BONDS PREVIOUSLY ISSUED TO FINANCE A PORTION OF THE COST OF A REDEVELOPMENT PROJECT KNOWN AS THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA;" and WHEREAS, under and pursuant to the above Resolution, the Agency has authorized the issuance and sale of not to exceed $7,400,000 aggregate principal amount of Redevelopment Agency of the City of San Bernardino, Central City North Redevelopment Project Area, Tax Allocation Refunding Bonds, Issue of 1988 (the "Bonds"); and WHEREAS, under and pursuant to Resolution No. 4198, and on August 25, 1981, the Agency issued $4,300,000 "Redevel9pment Agency of the City of San Bernardino, Central City North Redevelopment Project Area, Tax Allocation Bonds, Issue of 1981, Series A," all of such Bonds being dated as of August 1, 1981, and maturing on August 1, 1984, herein collectively referred to as the "1981 Bonds"; and - 2 - WHEREAS, under and pursuant to Resolution No. 4412, and on December 29, 1982, the Agency issued $6,300,000 "Redevelopment Agency of the City of San Bernardino, Central City North Redevelopment Proj ect Area, Tax Allocation Bonds, Issue of 1982," all of such Bonds being dated as of December I, 1982, and consisting of serial bonds and a term bond the last maturity of which IS December I, 2007, herein collectively referred to as the "1982 Bonds", for the purpose of refunding the 1981 Bonds on February I, 1983, the first available date on which the 1981 Bonds could be redeemed; and WHEREAS, the Agency has authorized the issuance of certain refunding bonds pursuant to the applicable provisions of the Government Code of the State of California in order to obtain better financing terms and to lower the borrowing costs for the Agency for the purpose of refunding the 1982 Bonds; and WHEREAS, Section l47(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that the issuance of such refunding bonds, including such bonds issued for the purpose of advance refunding certain previously issued tax allocation bonds, shall be approved by the applicable governmental unit and that such issue shall be treated as approved by such governmental unit if such issue is approved by the appl icable elected representati ve of such governmental unit after holding a public hearing following reasonable public notice in connection wi th the issuance of such bonds; and - 3 - WHEREAS, the Mayor and Common Council, as the elected legislative body of the City and as the applicable governmental unit with respect to the Agency and as defined in said Section 147(f) has been requested by the Agency to hold a public hearing pursuant to said Section 147(f) of the Code for the issuance and sale of tax allocation refunding bonds by the Agency to provide funds for the refunding of the 1982 Bonds; and WHEREAS, it is desirable that the Mayor of the City as an. elected official of the City, be designated as the "applicable elected representative" wi th respect to the Ci ty for purposes of approving the Issuance of said refunding bonds pursuant to Section 147(f) of the Code; and WHEREAS, the Ci ty Clerk has caused not ice of such publ ic hearing to be published in The Sun by at least two (2) insertions one of which was not less than fourteen (14) days prior to said public hearing; and WHEREAS, it is desirable at this time that the Mayor make the necessary findings and determinations required to be made in connection with said public hearing and pursuant to S.ection 147(f) of the Code and to approve the issuance of the tax allocation refunding bonds of the Agency. - 4 - 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. Approval of Publication of Notice. Pursuant to the requirements of Section 147(f) of the Code, the Mayor hereby ratifies and approves the publication of notice of the public hearing by the City Clerk in connection with the issuance of the refunding bonds of the Agency referred to in the recitals hereof to be held in accordance with said Section 147(f) of the Code for the purpose of considering the public benefits and public purposes to be furthered by the financing contemplated by the Agency for the issuance by the Agency of tax allocation refunding bonds (the "Bonds") pursuant to the Law and the provisions of Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Refunding Bond Law"). The Mayor hereby ratifies and approves the action of the City Clerk, which City Clerk caused to be published by at least two (2) insertions, one of which was not less than fourteen (14) days prior to said hearing in The Sun, a notice of said public hearing. Section 2. Appointment of Elected Official. The Mayor of the City is hereby appointed as the elected official to approve the issuance of the Bonds by the Agency pursuant to Section 147(f) - 5 - of the Code at such time as the Agency shall have approved the other appropriate bond financing documents. Section 3. Public Purposes Furthered by Issuance of Bonds. The Mayor hereby finds and determines that, due to the evidence presented at this meeting concerning the lowered borrowing costs for the Agency and the financing terms of such Bonds and the decrease In the debt service requirements of the Agency together with the corresponding increase in the debt service savings to the Agency, the public purposes to be furthered by the issuance of said refunding bonds and the refinancing of the Central City North Redevelopment Project Area (the "Project") will accomplish the necessary public purpose by providing a realization of present value debt service savings to the Agency in connection with the Issuance of the Bonds due to the savings attributable to the lower interest rates on such Bonds. Section 4. Findings and Determinations. The Mayor, after having conducted a public hea~ing, notice of which was duly published in a newspaper of general circulation within the City as said public hearing is required pursuant to Section 147(f) of the Code, does hereby find and determine that the purposes and intent.of the Law and the Refunding Bond Law will be furthered by the issuance of the Bonds for the express purpose of providing financing to refund the 1982 Bonds of the Agency in order to obtain better financing terms and to lower the borrowing costs for the Agency. - 6 - . ~ The total principal amount of the Bonds which shall be issued to refund the 1982 Bonds shall be approximately Seven Million Four Hundred Thousand Dollars ($7,400,000). The Bonds shall be issued upon such terms and conditions as shall be set forth in the Bond Purchase Agreement by and between Miller & Schroeder Financial, Inc. (the "Underwriter"), and the Agency and such other documents prepared in connection with the issuance and delivery of the Bonds, shall be issued solely for the purpose of refunding such 1982 Bonds of the Agency but in any event such Bond Purchase Agreement and other applicable documents shall clearly state that the funds of the City are not liable nor shall be pledged for the repayment of the Bonds. Section 5. Intent of Resolution. It 1S intended that this Resolution shall constitute the making of certain "findings and determinations" in connection with the public hearing held for the issuance of the Bonds wi thin the meaning of Section 147(f) of the Code. Section 6. Obligation of Agency. The Bonds shall be and are special obligations of the Agency and are secured by an irrevocable pledge of, and are payable as to principal, redemption - 7 - . .. premium, if any, and interest from the tax increment revenues received by the Agency from the Project as further described in the resolution of the Agency authorizing the issuance of the Bonds (the "Resolution of Issuance"). The Bonds are not a debt of the Ci ty, the State of California or any of its political subdivisions, and neither the City, the State, nor any of its political subdivisions is liable thereon, nor in any event shall the Bonds be payable out of any funds or properties other than those of the Agency as set forth in the Resolution of Issuance. The Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Section 7. Approval of Issuance of Bonds. The issuance of not to exceed $7,400,000 principal amount of "Redevelopment Agency of the City of San Bernardino, Central City North Redevelopment Project Area, Tax Allocation Refunding Bonds, Issue of 1988," for the corporate purposes of the Agency aiding In the financing of Central City North Redevelopment Project Area and for other purposes related thereto, including the refunding of previously issued bonds, all of which constitute a "redevelopment activity", as such term is defined in Health and Safety Code Section 33678, is hereby authorized and approved pursu~nt to Health and Safety Code Section 33640. - 8 - '. Section 8. Effective Date. This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the foregoing adopted by the Mayor and Common Council San Bernardino at a regnlnr held on the 15th day of F~brllnry the following vote, to wit: resolution was duly of the Ci ty of meeting thereof, 19 88 , by AYES: Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller NAYS: None ABSENT: None 4f?/b/?a:~~ Ci (y Clerk day of The foregoing February resolution is hereby approved this , 1988. /7c'L r Approved as to form and legal content: BY:~ /City Att ey - 9 -