HomeMy WebLinkAbout2010-213
RESOLUTION NO, 2010-213
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
CERTAIN AMENDMENTS TO THE 1998 HUD SECTION 108 LOAN
DOCUMENTS AND AUTHORIZING THE EXECUTION OF THE
CONTRACT FOR IMPLEMENTATION OF THE 1998-HUD SECTION
108 LOAN REFINANCING FOR LOAN GUARANTEE ASSISTANCE
UNDER SECTION 108 OF THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974, AS AMENDED, 42, U,S,c. ~5308 FOR
SERIES HUD 2010-A CERTIFICATES (CDBG SECTION 108
CONTRACT NO, B-96-MC-06-0539) (CENTRAL CITY NORTH
REDEVELOPMENT PROJECT AREA)
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WHEREAS, the City of San Bernardino (the "City") has determined that a high priority
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exists to create jobs for the City's low- and moderate income persons and to eliminate blight in
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the Downtown Area of the City; and
WHEREAS, the declining job base and economy within the City's Downtown Area
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necessitated the City to implement certain activities for job creation; and
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WHEREAS, to stimulate the downtown economy and thereby create jobs, the City
entered into a Disposition and Development Agreement (the "1996-DDA") with MDA-San
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Bernardino, L.L.C. ("MDA"), for the development and financing of a multi-screen cinema
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complex; and
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WHEREAS, as part of the transaction contemplated under the 1996-DDA, in 1998, the
U.S. Department of Housing and Urban Development ("HUD") approved a Section 108 Loan in
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the amount of $7,000,000 ("1998-HUD-108 Loan"); and
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Redevelopment Agency of the City of San Bernardino ("Agency") purchased the multi-screen
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cinema complex from MDA and assumed the 1998-HUD-108 Loan payments; and
WHEREAS, the Agency has continued to make the required semi-annual interest and
principle payments to HUD; and
WHEREAS, in May 2010, HUD notified the Agency of the opportunity to refinance
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2010-213
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1998-HUD-108 Loan Promissory Note ("Note") through the HUD's 2010 Public Offering; and
WHEREAS, the cost of refinancing the Note is approximately $19,300; and
WHEREAS, the amount outstanding on the original 1998-HUD Section 108 Loan is
$4,240,000 at a current interest rate of7.50%; and
WHEREAS, the projected interest rate from the 2010 Public Offering will be
approximately 0.64% saving approximately $846,581.02 in interest payments over the
remaining life of the Note.
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
FOLLOWS:
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Section 1.
The Mayor and Common Council hereby find and determine that the
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facts and circumstances set forth in the Recitals hereof are true and correct in all respects.
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Section 2.
The Mayor and Common Council hereby approve the refinancing of the
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Note at HUD's 2010 Public Offering.
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Section 3.
Tbe Mayor and Common Council hereby authorize the Mayor, the City
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Manager, or their designee, to execute the Contract for Loan Guarantee Assistance under
Section 108 of the Housing and Community Development Act of 1974, as Amended, 42, U.S.C.
95308, for implementation of the 1998-HUD Section 108 Loan refinancing as required to be
executed and delivered to HUD on behalf of the City.
Section 4. This Resolution shall take effect upon its adoption and execution in the
manner as required by the City Charter.
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2010-213
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
CERTAIN AMENDMENTS TO THE 1998 HUD SECTION 108 LOAN
DOCUMENTS AND AUTHORIZING THE EXECUTION OF THE
CONTRACT FOR IMPLEMENTATION OF THE 1998-HUD SECTION
108 LOAN REFINANCING FOR LOAN GUARANTEE ASSISTANCE
UNDER SECTION 108 OF THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974, AS AMENDED, 42, U,S.C. ~5308 FOR
SERIES HUD 2010-A CERTIFICATES (CDBG SECTION 108
CONTRACT NO, B-96-MC-06-0539) (CENTRAL CITY NORTH
REDEVELOPMENT PROJECT AREA)
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at aioint regular meeting thereof, held on the
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21st day of June
,2010, by the following vote to wit:
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Council Members:
Aves
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Navs
Abstain
Absent
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MARQUEZ
DESJARDINS
BRINKER
SHORETT
KELLEY
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X
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16 JOHNSON
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MC CAMMACK
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a~ iJ.~
Rachel G. Clark, City Clerk
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20 The foregoing Resolution is hereby approved this 22nd day of June
,2010.
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. Morris, Ma
an Bernardino
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Approved as to Form:
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James F. Penman, City Attorney
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