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RESOLUTION NO. CDC/2010-33
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND
AUTHORIZING CERTAIN AMENDMENTS TO THE 1998 HUD
SECTION 108 LOAN DOCUMENTS AND AUTHORIZE THE INTERIM
EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE
CONTRACT AND RELATED DOCUMENTS FOR IMPLEMENT A TION
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.e. ~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
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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
complex; and
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WHEREAS, as part of the transaction contemplated under the 1996-DDA, in 1998, the
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u.S. Department of Housing and Urban Development ("HUD") approved a Section 1 08 Loan in
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the amount of$7,000,000 ("1998-HUD-108 Loan"); and
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WHEREAS, in 2001, following the downturn m the cmema industry, the
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
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WHEREAS, the Agency has continued to make the required semi-annual interest and
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principle payments to HUD; and
WHEREAS, in May 2010, HUD notified the Agency of the opportunity to refinance
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CDC/2010-33
1998-HUD-108 Loan Promissory Note ("Note") through HUD's 2010 Public Offering; and
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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 of 7.50%; and
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WHEREAS, the projected interest rate from the 2010 Public Offering will be
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approximately 0.64% saving approximately $846,581.02 in interest payments over the
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remaining life of the Note.
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NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND
ORDER, AS FOLLOWS:
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Section 1.
The Community Development Commission hereby finds and determines
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that the facts and circumstances set forth in the Recitals hereof are true and correct in all
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respects.
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Section 2.
The Community Development Commission recognizes that the Mayor
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and Common Council have approved the refinancing of the Note at HUD's 2010 Public
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Offering.
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Section 3.
The Community Development Commission hereby authorizes the Interim
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Executive Director to execute the Contract for Loan Guarantee Assistance under Section 108 of
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the Housing and Community Development Act of 1974, as Amended, 42, U.S.C. 95308, and
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related documents for implementation of the 1998-HUD Section 108 Loan refinancing as may
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be required to be executed and delivered to HUD on behalf of the Agency.
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Section 4.
This Resolution shall take effect from and after its date of adoption by thi
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CDC/2010-33
2
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND
AUTHORIZING CERTAIN AMENDMENTS TO THE 1998 HUD
SECTION 108 LOAN DOCUMENTS AND AUTHORIZE THE INTERIM
EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE THE
CONTRACT AND RELATED DOCUMENTS 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 Community
joint
Development Commission of the City of San Bernardino at a regular meeting thereof, held
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on the 21st day of June
Commission Members: Ayes
MARQUEZ X
DESJARDINS ~
BRINKER X
SHORETT X
KELLEY X
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JOHNSON X
MC CAMMACK
-----X-
~'
_/
Secretary . . ~.-
, 2010, by the following vote to wit:
Abstain
Absent
Nays
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21 The foregoing Resolution is hereby approved this 22nd day of June
,2010.
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Approved as to F~
By: \ J/~~-
......./
Age C nsel
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