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RESOLUTION NO. 2010-308
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE ISSUANCE OF RECOVERY
ZONE FACILITY BONDS BY THE SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY FOR THE BENEFIT OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
7 WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation
8 and charter city, duly organized and existing pursuant to the provisions of the constitution of the
9 State of California; and
10 WHEREAS, the Community Development Commission of the City of San Bernardino (the
11 "Commission") is the governing body of the Redevelopment Agency of the City of San Bernardino
12 (the "Agency"), a public body, corporate and politic, established by the City and organized and
13 existing pursuant to the California Community Redevelopment Law (Health and Safety Code
14 Section 33000, et seq.) (the "CRL"); and
15 WHEREAS, the City and the Agency have heretofore entered into a Joint Exercise of
16 Powers Agreement establishing the San Bernardino Joint Powers Financing Authority (the
17 "Authority") for the purpose of issuing bonds, the proceeds of which may be loaned to any of its
18 members to finance public capital improvements; and
19 WHEREAS, Congress passed the American Recovery and Reinvestment Act of 2009 (the
20 "Act") which amends the Internal Revenue Code of 1986 (the "Code") to authorize a city to
21 designate a "recovery zone" for the purpose of issuing Recovery Zone Economic Development
22 Bonds under Section 1400U-2 of the Code, and Recovery Zone Facility Bonds under Section
23 1400U-3 of the Code to promote economic recovery within the country; and
24 WHEREAS, pursuant to Resolution No. 2009-328 entitled the "Resolution of the Mayor and
25 Common Council of the City of San Bernardino Designating the City of San Bernardino as a
26 Recovery Zone for Purposes of Sections 1400U-l, 1400U-2 and 1400U-3 of the Internal Revenue
27 Code of 1986," adopted on September 21, 2009, the City designated the entire geographical area of
28 the City a "recovery zone," and the City has received an allocation from the State of California in
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2010-308
1 the amount of $10,602,000 for Recovery Zone Facility Bonds which shall expire on December 31,
2 2010;and
3 WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"),
4 the issuance of the Bonds by the Authority must be approved by the City of San Bernardino ("City")
5 after a Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") public hearing; and
6 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the "Council")
7 is the elected legislative body of the City and is an applicable elected representative required to
8 approve the issuance of the Bonds under Section 147(f) of the Code; and
9 WHEREAS, the Authority has requested that the Council approve the issuance of the Bonds
10 by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code
11 and the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers
12 Agreement, dated as of June I, 1988 (the "Agreement"), among certain local agencies, including the
13 City; and
14 WHEREAS, the City has caused the timely publication of notice regarding the holding of a
15 public hearing in accordance with Section 147(f) of the Code in connection with the proposed
16 issuance of the not to exceed $10,602,000 the Authority Lease Revenue Bonds Series 2010 ("E"
17 Street Project - Exhibit "A") (Tax Exempt -Recovery Zone Facility Bonds) and now seeks to
18 approve the issuance of the bonds by the Authority pursuant to the public hearing conducted on that
19 date; and
20 WHEREAS, the proposed security for the Bonds will initially be certain pledged revenues of
21 the Redevelopment Agency of the City of San Bernardino and a deed of trust on the property, and
22 subsequently lease revenues generated from the tenants of the "E" Street Project, and including, but
23 not limited to, a developer guaranty and a deed oftrust on the property; and
24 WHEREAS, California Debt Limit Allocation Committee ("CD LAC") Regulations do not
25 require that California Environmental Quality Act ("CEQA") or zoning compliance be completed
26 prior to the holding of a public hearing for purposes of the CDLAC Regulations and City staff will
27 make a determination as to any zoning and CEQA requirements, and address those requirements,
28 prior to the final approval of the project and the issuance of bonds; and
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2010-308
1 WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following notice, duly
2 given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the
3 issuance of the Bonds by the Authority solely for the purpose of satisfying the requirement of said
4 Section 147(f) of the Code.
5 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED
6 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
7 FOLLOWS:
8 Section 1. The above Recitals are true and correct in all respects and are incorporated herein
9 by reference.
10 Section 2. The Mayor and Common Council have held a public hearing in accordance with
11 the provisions of Section 147(f) of the Code as commonly referred to as a TEFRA hearing, and have
12 considered all testimony and comments submitted in connection with the proposed issuance of the
13 Bonds. The City hereby approves the issuance of the Bonds pursuant to the TEFRA hearing.
14 Section 3. The Council hereby approves the issuance of the Bonds by the Authority for the
15 purposes of financing the acquisition, construction, and improvement of the "E" Street Project. It is
16 the purpose and intent of the Mayor and Common Council that this Resolution constitute approval
17 of the issuance of the Bonds by the Authority solely for the purposes of (a) Section 147(f) of the
18 Code by the applicable elected representative of the governmental unit having jurisdiction, in
19 accordance with said Section 1 47(f), and (b) Section 9 of the Agreement. The City assumes no
20 liability or responsibility of any nature whatsoever with respect to the Bonds and any aspects thereof
21 as to compliance with all applicable federal tax and securities laws when the Bonds are issued.
22 Section 4. The proceeds of the Bonds shall be applied by the Authority in part to reimburse
23 the City for the Reimbursement Expenditures with respect to the Projects.
24 Section 5. The Mayor of the City, and/or his designees are hereby authorized and directed,
25 jointly and severally, to do any and all things and to execute and deliver any and all documents that
26 they deem necessary or advisable in order to carry out, give effect to and comply with the terms and
27 intent of this Resolution and the financing transaction approved hereby.
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1 Section 6. This Resolution shall take effect upon its adoption and execution in the manner
2 as required by the City Charter.
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2010-308
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE ISSUANCE OF RECOVERY
ZONE FACILITY BONDS BY THE SAN BERNARDINO JOINT POWERS
FINANCING AUTHORITY FOR THE BENEFIT OF THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
joint regular
meeting
6 Common Council of the City of San Bernardino at a
day of September
18
, 2010, by the following vote, to wit:
Aves Navs
---.lL
x
x
x
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----1L.
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Abstain
Absent
~h.~
Rac eI G. Clark, City Clerk
~
19 The foregoing Resolution is hereby approved this q day of September
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,2010.
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Patric J. Morris, r
San Bernardino
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25 Approved as to Form:
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By:
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2010-308
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Proiect DescriDtion:
EXHIBIT" A"
Descriptions of Project to be Financed
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The Redevelopment Agency of the City of San Bernardino ("Agency") has selected two (2) suitable
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locations on the former commercial corridor located on "E" Street extending southerly from the
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Downtown area to the Hospitality Lane area of the city. The Agency will be acquiring several
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properties fronting on the west side of "E" Street north of Mill Street to be combined with the
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residual land that will be deeded back to the Agency pursuant to the prior disposition and
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development agreement. The Agency has also acquired a former governmental entity office
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structure also on the west side of "E" street south of Orange Show Road and intends to acquire
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additional properties from the abandoned car dealership to the south of this location. The land
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assembly will then allow the Agency to prepare sites and to entitle both of these project sites for
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new commercial/retail development. The agency would be the obligated party pursuant to the
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proposed bond financing and would utilize the bond proceeds to acquire and prepare sites for future
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development. It is expected that the Agency would then transfer the prepared sites to a developer
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who would then assurne the debt service payments with the Agency remaining contingently liable
credit enhancement in an effort to encourage the
17 on the financing to provide a form of
18 redevelopment of these selected properties.
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