HomeMy WebLinkAbout1985-155
2,167-10/0504S/cmc
04/18/85
RESOLUTION NO. 85-155
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, MAKING
CERTAIN FINDINGS IN CONNECTION WITH A CERTAIN
COMMITMENT BY THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO FOR THE USE OF TAX
INCREMENT REVENUES TO PAY FOR THE INSTALLATION
AND CONSTRUCTION OF CERTAIN PUBLICLY OWNED
FACILITIES PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33679, AND IN CONNECTION WITH A CERTAIN
LEASE OF AGENCY PROPERTY PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33433
WHEREAS, the Redevelopment Agency of the City of San
Bernardino (the "Agency") proposes to enter into a certain lease
transaction with Security Pacific National Bank (the "Trustee"),
wi th respect to the issuance of the $3, 80D, DOO principa 1 amount of
the "1985 Certificates of Participation (Golf Course Facilities
Project), Evidencing a Proportionate Interest of the Holder Thereof
in Base Rental Payments to be Made by the Redevelopment Agency of
the City of San Bernardino, As the Rental for Certain Property
Pursuant to a Lease Agreement with the Lessor" (the "Certificates");
and
WHEREAS, it is proposed that the Agency and The First
National Bank of Saint Paul enter into a certain reimbursement
agreement by and between the Agency and The First National Bank of
Saint Paul (the "Reimbursement Agreement") whereby the Agency shall
pledge a portion of certain tax increment revenues available to the
Agency from the State College Project No.4 pursuant to Health and
Safety Code Section 33670(b) for reimbursement to The First National
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A.,. .
Bank of Saint Paul of amounts that may be advanced or deemed to be
advanced from time to time by The First National Bank of Saint Paul
for the lease payments to be made by the Agency pursuant to a
certain lease agreement (the "Lease Agreement") in connection with
the
installation
and construction of certain publicly owned
facilities, all as more fully described in said Lease Agreement; and
WHEREAS, Health and Safety Code Section 33679 requires that
a pUblic hearing be held prior to the commitment by a redevelopment
agency to use tax increment revenues for the purpose of paying all
or part of the value of the land for and the cost of the
installation and' construction of a pUblicly owned building, which
public hearing shall be held by the legislative bOdy of a city; and
WHEREAS, the Agency has approved a certain summary which
has been prepared in accordance with Health and Safety Code
Section 33679 regarding the installation and construction of said
publicly owned facilities, and a copy of said summary is on file
with the City Clerk; and
WHEREAS, the Agency has requested the Mayor and Common
Council of the City of San Bernardino, California (the "Council"),
to conduct __a public hearing concerning the commitment of the Agency
.
to use all or a portion of certain tax increment revenues from the
State College Project No.4 which may hereafter be allocated and
paid to the Agency for the purpose of paying all or part of the
value of the land for and the cost of the installation and
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construction of the publicly owned facilities, as more fully
described in said Lease Agreement; and
WHEREAS, the Council has adopted its Resolution dated
April 15, 1985, in which the Council set a public hearing in
accordance with Health and Safety Code Section 33679 for the purpose
of approving the terms of the Lease Agreement and the Reimbursement
Agreement and the commitment of the Agency thereunder; and
WHEREAS, the City Clerk has caused notice of said public
hearing to be duly published in accordance with applicable law; and
WHEREAS, pursuant to Health and Safety Code Section 33445,
the Agency may, with the consent of the Council, pay all or part of
the value of the land for and the cost of the installation and
construction of any building, facility, structure or other
improvement, including the Golf Course Facilities Project, which is
publicly owned either within or without the boundaries of a
redevelopment project area, if the Council determines: (1) that such
buildings, facilities, structures, or other improvements are of
benefi t to the project area or the immediate neighborhood in which
the project is located, regardless of whether such improvement is
within another project area or in the case of a project area in
which substantially all of the land is publicly owned that such
improvement is of benefit to an adjacent project area of the Agency,
and (2) that no other reasonable means of financing such buildings,
f aci li ties, structures, or other improvements, are avai lable to the
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communi ty, and such determinations by the Agency and the Counci 1
shall be final and conclusive; and
WHEREAS, Health and Safety Code Section 33433 requires that
before any property of the Agency acquired in whole or in part,
directly or indirectly, with tax increment moneys is sold or leased
for development pursuant to a redevelopment plan, such sale or lease
shall first be approved by the legislative body after a public
hearing; and
WHEREAS, the Agency has approved a certain summary which
has been prepared in accordance with Health and Safety Code
Section 33433 regarding the lease of property of the Agency pursuant
to the Lease Agreement, and a copy of such summary is on file with
the City Clerk; and
WHEREAS, the Agency has requested the Council to conduct a
public hearing concerning the lease of property of the Agency
pursuant to the Lease Agreement; and
WHEREAS, the Council has adopted its Resolution dated
April 15, 1985, in which the Council set a public hearing in
accordance with Health and Safety Code Section 33433 for the purpose
of approving the Lease Agreement; and
WHEREAS, the Ci ty Clerk has caused notice of said public
hearing to be duly published in accordance with applicable law; and
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WHEREAS, it is appropriate at this time for the Council to
make certain findings and take certain action with respect to the
Golf Course Facilities Project.
NOW, THEREFORE,
THE MAYOR AND COMMON
CALIFORNIA, AS FOLLOWS:
BE IT RESOLVED, DETERMINED AND ORDERED BY
COUNCIL OF THE CITY OF SAN BERNARDINO,
Section 1. The Council has duly conducted a full and
fair public hearing in accordance with the provisions of Health and
Safety Code Section 33679 and Section 33433 in connection with the
proposed Reimbursement Agreement, the proposed Lease Agreement and
the refinancing of the Golf Course Facilities project.
Section 2. The Council hereby accepts and approves
those certain summaries, dated as of April 15, 1985, as prepared by
the City Staff and the Staff of the Agency and on file with the City
Clerk in accordance with Health and Safety Code Sections 33433 and
33679 regarding the Golf Course Facilities Project.
Section 3. The Counci I hereby finds and determines the
Golf Course Facilities Project is located within the redevelopment
project area of the State College Project No.4 and benefits other
neighborhoods and areas in the City by virtue of the-greenbelt open
space areas and recreational facilities which shall be provided as a
result of said proj ecL The Counci I further finds and determines
that no other reasonable means of financing the construction,
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including the refinancing thereof,
Project are presently available
provided pursuant to the Lease
Agreement.
of the Golf
to the City
Agreement and
Course Facilities
except as may be
the Reimbursement
Section 4. Pursuant to Health and Safety Code
Section 33445, the Council hereby consents to the payment by the
Agency of all or part of the value of the land for and the cost of
the installation and construction of the Golf Course Facilities
Project in accordance with the Lease Agreement and the Reimbursement
Agreement.
Section 5. The Council hereby finds and determines that
the consideration of the proposed lease is not less than its fair
market value and, to the extent that such consideration may be less
than the fair market value thereof, that such lesser consideration
is necessary in order to effectuate the purposes of the
Redevelopment Plan for the State College Project No.4.
Section 6. Pursuant to Health and Safety Code
Section 33433, the Council hereby consents to the lease of property
of the Agency to the Trustee and the lease-back from the Trustee to
the Agency pursuant to the Lease Agreement for purposes of
refinancing the installation and construction of the Golf Course
Facilities Project.
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Section 7.
The Counci 1
hereby approves the Agency
entering
into
the
refinancing
and
lease-purchase
transaction
contemplated by the Lease Agreement, Trust Agreement and the
Reimbursement Agreement, and the issuance of the Certificates by the
Trustee for the refinancing of the Golf Course Facilities Project.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the
Mayor and Common
. reqular
adlourned/ meet1ng
Council of the City of
San
Bernardino at an
thereof, held on the 29th
day
of April
, 1985, by the following vote, to wit:
AYES:
Council Members Castaneda, Reilly. Hernandez,
Marks. Quiel, Strickler
NAYS:
None
ABSENT:
Council Member Frazier
City letk
The foregoing resolution is hereby
lIpr; 1 , 1985.
day
of
Approved as to form:
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SUMMARY AS PREPARED PORSt1AN'1' TO
HEALTH AND SAFETY CODE 8!CTIOH 3U33
FOR A CERTAIN PUBLICLY 0WNEIl FACILITY
The Re~evelopm.nt Agency of the City of San Bernardino (the
"Aqency") propo.e. to enter into a certain L.... A~reement for the
qroun~ lease of a certain publicly owned public qolf cour.e facility
within the State college Project Ro. 6 (the "FacUity") and an
Anignment and 'l'ru.t Aqreement (the "'l'ru.t Agreement") for the
authorization, inuance and delivery of the U,IOO,OOO U8S
Certificate. of Participation (Golf Courle Facilities Pro~ect),
!:Vi~enCling a Proportionate Interest of the Holder Thereof in la.e
Rental Payment. to be Made by the Redevelopment Aqency of the City
of San Bernardino A. the Rental for Certain Property Punuant to a
Lease Agreement with the Lessor (the "Certificate."). The Agency
al.o propol.. to .nter into a certain Reimbunement Agreement with
the purcha.er of the Certificate. whereby the Agency ahall reimbur..
the purchaser of the Certificates from the tax increment revenue.
ple~9'ed therefor on a subordinated basil for amounts advanced or
deemed to be advanced by the purchaser of the Certificate. or .hould
Pledged Revenue. be inlufficient for lease payment. pursuant to the
Lea.e Aqreement,
In accordance with Health and Safety Code Saction 33&33 the
followinq information i8 hereby made available for publio inspection
and copying:
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XEROX TELECOPIER 295; "4-23-85: 12:26 PM:
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Th. CO.t to the Aqency of the Lea.. Agre8ll\8nt doe. not
inclWSe any/and. acquhition co.t., cl.aranc. co.t. or relocation
costs, but does includ. approximately $500,000 of additional money.
to be mad. available throuqh the finanancing a. contemplated by the
L.... Agr.ement and the Inuanc. of Certificate of 'articipaUon
pursuant to the Trust Agre.ment, and. the int.r..t to be paid. or the
L.... Agreement, .uUII\inq the l.gal maxillNlll rate at int.r.st of
tvelve percent (12\) for twenty (20) years would be elIUal to
$9,120,000 on the principal amount of '3,800,000.
,
Th. Redevelopment Plan permits only the type of us.
intended. by the Facility, and, therefore, the value of the Facility
.. lea.ed by the Agency to the Tru.t.e and then lea.ed back from the
Tru.tee to the Agency as part of a refinancin9 tranl.ction or equal
to the amount. being refinanced by the L.... Agreement and the
CerUficate. of Participation to b. is.ued pursuant to the Trust
Agreement; (1.e., $3,800,00 being compris.d of U,300,000 for the
payment of prior lndebtedne.. incurred vith r.spect to the prior
financing. of the ".cility, and $500,000 of ac!ditlonal fund. for
admlnlltraUon exp.n... and. other expendi tun. vi th re.pect to the
Facility.
The e.Um.tes of the amount of tax increment revenue.
propoled to be u.ed by the Agency to pay for land, con.t~uction and
refinancing of the Pacility, including intue.t payment. for the
certifioate. that .hall b. inued. pursuant to the Tru.t Aireement
and. for the payment. to b. made by the A'8ncy a. r.imbursement
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payment. to the purch..er of the Certificat.. for tho.e rental
p.yments m.de by the purch..er of the Certificate. pur.uant to the
L.... Ainement shall b. in an amount which sh.ll Dot exceed the
total .stim.t.d d.bt .ervice in connection with the Certif icat.. .
Such amount is pre.ently ..Um.t.d not to exc.ed 112.920.000 baaed
upon . leial maximum rate of intere.t of twelve perc.nt U2\) par
annum for twenty (20) years plus the principal amount thereof;
The Agency St.ff and the City St.ff have determined th.t
there are no other viable mean. to acquire. con.truct. in.t.n and
refinance the Facilitie. .. contemplated pursuant to the L....
Aire_ent other th.n to h.ve the r.imbursement by the Aienay of .uch
\ amounts throuih the tax increment revenue. to the purchaser of the
Certificaull. The Aiency Staff and the City Staff have further
d.termlned that the purchaser of the Certificate. would not accept
the ...ignment of the lea.. payment. thereunder from the Le..or but
for the fact that the Aiency would reimburse the purch..er of the
Certificat.. for .11 .uch r.ntal payment.;
'!'he redevelopment purpo.e for which the tax incr8lllent
rev.nu.. .h.ll be uti1iled ln the payment of the land. con.truction
and refinancini of the publicly owned Facility 1s that the r.cility
haa and .h.ll oontinue to provide green belt open sp.ce .r... and
recreational facUitie. which .erve additionally as a ~uff.r zone
betw.en newer .ini1e and multifamily res1dential development and the
Interstate 215 Fre.way within the City and the redevelopment project
.re. of the Aiency known all the State Colleie Project No. ,.
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XEROX TEl.ECOPIEIl 29l1: ~-23-815: 12:26 PM:
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Additionally, redevelopment will be furthered by creating .uch green
belt area adjacent to .uch re.identia1 development within the
Shandon Hill. area of the State College Project Bo,. Which
additionally .erve. a. an aesthetically attractive gateway to the
City'. newly developing re.identia1 area. and light indu.tria1 park
area. within the State Colleqe Project No,.. !he FacUity al.o
.hall provide the Aqency with certain revenue. attdbutable to the
pre.ent operatinq agreement with the recently de.ignated operator of
the Facility. Iledevelopnent qoall of the Aqency will be furthered
by the reflnancinq of the ..acUity which has been de.ignated a. a
planned publicly owned qolf coune facUity since the inception of
the Redevelopment Plan for the State Colleqe Project Bo. .. The
parcell constitutinq the ..acility could only have been developed,
linanced and refinanced through the u.e of~.edevel>Opllent for the
purpo.es as set forth in the document. and aqreements relaUn; to
the i..uance of the Certificate..
':his SWlIIIary prepared pursuant to Health and safety Code
SecUon 33U3 is available for public in.pection, copying, comment
and review, and 1s dated as of the 15th day of April, ltaS,
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XEROX TELECOPIER 295: 4-23-8fj: 12:27 PM;
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SUMMARY AS PREPARE%> PUUUMT '1'0
HEALTH AND IAn:TY CODE SECTION 331"
!'Oll A CEllTAIN PUBLICLY OMNEJ) FACILI'l'Y
The Redevelopment Aqency of the City of San Bernardino (the
"Aqency") propo.e. to enter into a certain I..... Aqre_.nt for the
ground lease of a certain publicly owned public golf cour.e facility
within the State Colleqe Project Ho, . (the "Facility") and an
Auignment and Trust Aqre_ent (the "Tru.t Aqreement") for the
authorization, issuance and delivery of the U,IOO,OOO uas
Certificate. of Participation (Golf Cour.. Pacilitie. Project),
Evidencin., a Proportionate Intere.t of the Holder Thereof in Base
Rental paymenta to 1:Ie Made 1:Iy the Redevelopment A.,ency of the City
of San Bernardino AI the Rental for Certain Property Punuant to a
l Leue Aqreement with the Leuor (the "Certificates"). The Agency
also proposes to enter into a certain Reimbursement Aqreement with
the purcha.er of the Certificates where1:ly the Aqenay shall reimburse
the purchaser of the certificate. from the tax increment nvenue.
pledqed therefor on a .ubordinated !:laBis for amountl advanced or
deemed to be advanced by the purcbaser of the C.rtificate. or should
Pledq.d Rev.nue. be in.ufficient for lease payment. pur.uant to the
I..... Agr.ement.
In accordance with Health and Safety Code Seotion 33679 the
following information is hereby made available for public in.pection
and copying':
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(a) The e.Umate. of the amount of tax inc~ement revenue.
propo.e~ to be u.ed by the Aqency to pay for land, oon.t~uction aftd
reUnancinCJ of the F.cil1ty, inclu~ing inte~e.t p.)'IIIItDt. fo~ the
CerUficate. that .hall J:le b.ued pursuant to the T~u.t Aireement
and fo~ the p.ymenu to be ma~e by the Aqenay a. reimbursement
payment. to the purcha.er of the eertificate. for tho.e ~'ntal
payment. made or d..med to be made by the purcha.er of the
Certificate. pu~.uant to the L.... ACJreement, or .hould the Pledged
Revenue. of the ACJ.nay b. insufficient th.r.for, .hall be in an
UIOWlt which .hall not exceed the total e.timate~ debt .ervice in
connecUon wi th the Certificates. Such amoWlt is pre.ently
.stimated not to exceed $12,920,000 ba.ed upon a legal maximum rate
\ of int.rest of twelve p.rcent (12') per annum for twenty (20) year.
plus the principal UIOWlt thereof;
(b) The ACJency Staff and the City Staff have determined
that th.re are no oth.r viable mean. to ac~ir., con.truct, in.tall
and. ~efinance the "aciUtie. .. contemplated pursuant to the Le...
ACJreement other than to bave the reimbur.ement by the Agency of .uch
amount. thrOUCJh the tax increment revenue. to the purch..er of the
Certificate.. The Agency Staff and the City St.ff bav. further
d.termined that the purch..er of the C.rtificate. would not accept
the ...ignment of the Ie... paym.nt. thereunder from the Le.80r but
for the fact that the Allency woulcS r.lmbune the purch...r of the
Certificate. for all .uch rent.l paym.nts;
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(c) The redevelopllent purpo.e for which the tax increment
revenues .hall be utili.ed in the payment of the laDd, oonstruction
and refinancing of the publicly owned racility i. that the racility
ha. and .hall continue to provide green belt open space are.. and
recreaUonal facilides which serve adc!1tionally as a buffer aone
between newer ainqle aDd IllUltifamUy reddenUa1 developll8nt and the
Interstate 215 Freeway within the City and the redevelopllent project
area of the Agency known as the State Colleie Pro~ect Ho. 6.
Additionally, redevelopment will be furthered by creating such ,reen
belt area adjacent to such residential development within the
Shandon Hills area of the State Colleqe Project Ho, 6 which
additionally .erve. a. an ae.thetically attractive gateway to the
City's newly developing relidential area. and light industrial park
areas within the Sute College Project No.6. .The Facility allo
.hall provide the Agency with certain revenues attributable to the
pre.ent operating agreement with the recently de.ignated operator of
the racil1ty. aedevelopment goal. of the Agency will be furthered
by the refinancing of the FacUity which hu been designated a. a
planned publicly owned golf coune facUity aince the inception of
the Jledevelopment Plan for the State Colle;e Project .0. 6, The
patceh constituting the Fac:llity could only have been developed,
financed and refinanced through the u.. of redevelopment for the
purposes as set forth in the docUlllent. and agreements relating to
the i..uance of the Certificates.
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'l'hh SUIIII\ary prepared punuant to Health and Safety Co4e
Section 33679 18 available for public inspection, copyinv, cOlll!lent
and review, and 18 \Sated as of the 15th 4ay of April, 1185.
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