HomeMy WebLinkAbout2010-386
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(Note: Companion resolutions CDC/2010-63 & J-56)
RESOLUTION NO.
2010-386
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND
DETERMINATIONS PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33445.1 AND AUTHORIZING THE ISSUANCE BY THE SAN
BERNARDINO JOINT POWERS FINANCING AUTHORITY OF NOT TO
EXCEED $7,068,000 RECOVERY ZONE ECONOMIC DEVELOPMENT
BONDS AND $6,000,000 TAX ALLOCATION BONDS AND THE
BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO OF THE PROCEEDS THEREOF IN CONNECTION
WITH THE 4TH STREET CORRIDOR PROJECT AND NORTHWEST
REDEVELOPMENT PROJECT AREA INFRASTRUCTURE PROJECTS,
AUTHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS
RELATED THERETO AND AUTHORIZING AND DIRECTING THEIR
PREPARATION, EXECUTION AND DELIVERY
11 WHEREAS, the City of San Bernardino, California (the "City") is a municipal corporation
12 and charter city, duly organized and existing pursuant to the provisions of the constitution of the
13 State of California; and
14 WHEREAS, the Redevelopment Agency of the City of San Bernardino is a public body,
15 corporate and politic (the "Agency") duly organized and existing pursuant to the California
16 Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) (the "CRL"); and
17 WHEREAS, the City and the Agency have heretofore entered into a Joint Exercise of
18 Powers Agreement establishing the San Bernardino Joint Powers Financing Authority (the
19 "Authority") for the purpose of issuing bonds, the proceeds of which may be loaned to any of its
20 members to finance public capital improvements; and
21 WHEREAS, Congress passed the American Recovery and Reinvestment Act of 2009 (the
22 "Act") which amends the Internal Revenue Code of 1986 (the "Code") to authorize a city to
23 designate a "recovery zone" for the purpose of issuing Recovery Zone Economic Development
24 Bonds under Section 1400U-2 of the Code, and Recovery Zone Facility Bonds under Section
25 1400U-3 of the Code to promote economic recovery within the country; and
26 WHEREAS, pursuant to Resolution No. 2009-328 entitled the "Resolution of the Mayor and
27 Common Council of the City of San Bernardino Designating the City of San Bernardino as a
28 Recovery Zone for Purposes of Sections 1400U-1, 1400U-2 and 1400U-3 of the Internal Revenue
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P:\Agendas\Resolutions\Resolutions\2010\12-06-10 Recovery Zone Bond Issuance MeC Reso.docx
2010-386
1 Code of 1986," adopted on September 21,2009, the City designated the entire geographical area of
2 the City a "recovery zone," and the City has received an allocation from the State of California in
3 the amount of $7,068,000 for Recovery Zone Economic Development Bonds; and
4 WHEREAS, the Agency has requested that the Authority issue, and the Authority desires to
5 assist the Agency by the issuance of the not to exceed $7,068,000 San Bernardino Joint Powers
6 Financing Authority Tax Allocation Bonds, Series 2010A (4th Street Corridor Project - Federally
7 Taxable Recovery Zone Economic Development Bonds) (the "Series A Bonds") and the $6,000,000
8 Tax Allocation Bonds (Northwest Redevelopment Project Area Infrastructure Projects) (the "Series
9 B Bonds" and collectively with the Series A Bonds, the "Bonds"); and
10 WHEREAS, the proceeds of the Series A Bonds will be used to make certain loans to the
11 Agency to finance street and sidewalk improvements and other infrastructure improvements to the
12 4th Street Corridor within the downtown area of the City from "E" Street west to "H" Street and
13 from 2nd Street north to 5th Street and the proceeds of the Series B Bonds will be used to make
14 certain loans to finance Northwest Redevelopment Project Area infrastructure projects (collectively,
15 the "Project"); and
16 WHEREAS, the Bonds shall be issued pursuant to the Marks-Roos Local Bond Pooling Act
17 of 1985, codified at California Government Code Section 6584, et seq. (the "Act") and an Indenture
18 of Trust by and between the Authority and U.S. Bank National Association, as trustee, in form
19 similar to that currently on file with the Secretary ofthe Agency (the "Indenture"); and
20 WHEREAS, Kinsell, Newcomb & De Dios, Inc., as prospective purchaser of the Bonds (the
21 "Original Purchaser"), has informed the Authority that it intends to submit an offer to purchase the
22 Bonds and shall cause to be prepared a Preliminary Official Statement and an Official Statement, a
23 form of which Preliminary Official Statement is presently on file with the Secretary of the
24 Authority; and
25 WHEREAS, the Mayor and Common Council have duly considered the terms of such
26 transactions as contemplated herein and find that approval of the issuance of the Bonds at this time
27 is in the best interests of the City.
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2010-386
1 NOW, THEREFORE, THE MA YOR AND COMMON COUNCIL OF THE CITY OF SAN
2 BERNARDINO DO HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
3 Section 1. Findings and Determinations. The Mayor and Common Council hereby find and
4 determine that the Recitals contained hereinabove are true and correct and are incorporated herein
5 by this reference. The Mayor and Common Council hereby find and determine that pursuant to
6 Health and Safety Code Section 33445.1, the use of the tax increment revenues from the Agency's
7 Northwest Redevelopment Project Area for the repayment of the Bonds meets the requirements
8 thereof for the following reasons and further consents to the use of such tax increment revenues:
9 (1) the Project is of benefit to the Northwest Redevelopment Project Area, the
10 Central City Redevelopment Project Area, the Central City North Redevelopment Project Area, in
11 which the Project is located, the City, and Agency;
12 (2) no other reasonable means of financing of the improvements is available;
13 (3) the payment of tax increment revenues from the Northwest Redevelopment
14 Project Area to fund the Project will assist in the elimination of one or more blighting conditions
15 inside the Agency's Northwest Redevelopment Project Area; and
16 (4) the Project is consistent with the implementation plan adopted pursuant to
17 Community Redevelopment Law Section 33490; and
18 (5) that the Project is provided for in the redevelopment plan.
19 Section 2. Approval of the Bonds. The Mayor and Common Council hereby approve the
20 issuance by the Authority of the Series A Bonds in the total aggregate principal amount of not to
21 exceed $7,068,000 and the Series B Bonds in the total aggregate principal amount of not to exceed
22 $6,000,000, and the loan of the proceeds thereof to the Agency. Proceeds of the loan derived from
23 the Series A Bonds shall be applied to finance street and sidewalk improvements and other
24 infrastructure improvements to the 4th Street Corridor within the downtown area of the City from
25 "E" Street west to "H" Street and from 2nd Street north to 5th Street. Proceeds of the loan derived
26 from the Series B Bonds shall be applied to finance Northwest Redevelopment Project Area
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1ll1rastructure projects.
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2010-386
1 Section 3. Official Action. The Mayor and Cornmon Council, the City Clerk, and any and
2 all other officers ofthe City are hereby authorized and directed, on behalf of the City, to do any and
3 all things and to take any and all actions, including execution and delivery of assignments,
4 certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants, Bond
5 closing documents and other documents which any of such officers may deem necessary or
6 advisable in connection with the execution and delivery of the Bonds, and the borrowing by the
7 Agency of the proceeds derived therefrom and the consummation of the transactions described
8 herein and therein.
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Section 4.
Effective Date. This Resolution shall take effect upon its adoption and
10 execution in the manner as required by the City Charter.
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2010-386
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO MAKING CERTAIN FINDINGS AND
DETERMINATIONS PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33445.1 AND AUTHORIZING THE ISSUANCE BY THE SAN
BERNARDINO JOINT POWERS FINANCING AUTHORITY OF NOT TO
EXCEED $7,068,000 RECOVERY ZONE ECONOMIC DEVELOPMENT
BONDS AND $6,000,000 TAX ALLOCATION BONDS AND THE
BORROWING BY THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO OF THE PROCEEDS THEREOF IN CONNECTION
WITH THE 4TH STREET CORRIDOR PROJECT AND NORTHWEST
REDEVELOPMENT PROJECT AREA INFRASTRUCTURE PROJECTS,
AUTHORIZING THE FORM OF CERTAIN LEGAL DOCUMENTS
RELATED THERETO AND AUTHORIZING AND DIRECTING THEIR
PREPARATION, EXECUTION AND DELIVERY
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a joint regular
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meeting thereof,
held on the 6th day of December , 2010, by the following vote to wit:
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Council Members: Ayes Nays Abstain Absent
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MARQUEZ X
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DESJARDINS ~
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BRINKER X
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SHORETT X
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KELLEY X
18 JOHNSON
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19 MC CAMMACK X
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21 Racn G. Clark, City Clerk
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23 The foregoing Resolution is hereby approved this f'} day of December ,2010.
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~or
City of San Bernardino
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