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HomeMy WebLinkAboutReso 1995-17985 RESOLUTION NO. 17985 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUBSTITUTION OF PROJECT UNDER A LEASE AGREEMENT (TOWN CENTRE II PARKING PROJECT - PHASE TWO) AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS THEREWITH WHEREAS, the Redevelopment Agency of the City of Chula Vista (the "Agency") was obligated to pay the amount of $2,600,000 to Hornart Development Company (the "Developer") as a contribution towards the costs of constructing a public parking garage at the Chula Vista Center in the Town Centre II Redevelopment Project Area, pursuant to a First Addendure to Disposition and Development Agreement between the Agency and the Developer (the "Amended DDA"); and WHEREAS, to raise the funds necessary to make such payment, the City of Chula Vista (the "City") sold certain rnunicipal assets of the City to the Agency and leased such assets back, and the Agency assigned and transferred its rights under such lease between the Agency and the City, dated as of December 1, 1993 (the "Lease") to First Interstate Bank of California as trustee (the "Trustee") in consideration of the execution and delivery by the Trustee of 1993 Certificates of Participation (Town Centre II Parking Project - Phase Two) in the aggregate principal amount of $3,115,000 (the "Certificates"), each evidencing a direct, undivided fractional interest in the lease payments made by the City under the Lease; and WHEREAS, the Lease contains provisions, in Section 3.3, which allow the City to substitute property for the property originally leased under the Lease, so long as certain conditions are met; and WHEREAS, the Lease contains provisions, in Section 3.3, which allow the City to substitute property for the property originally leased under the Lease, so long as certain conditions are met; and WHEREAS, the City wishes to exercise its option to substitute property of the City and the Agency, consisting of a portion of Memorial Park, comprised of approximately 3.64 acres (the "Substitute Project") for Marina View Park, the property originally leased under the Lease (the "Former Project"); and WHEREAS, it is necessary and appropriate at this time for the City Council to authorize the execution and delivery of certain documents to accomplish said substitution; and WHEREAS, the City Council approves all of said transactions in furtherance of the public purposes of the City; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve as follows: Section 1. Approval of Substitution. The City Council approves the substitution of the Substitute Project for the Former Project. In accordance with Section 3.3 of the Lease, the Council makes the following representations and warranties: T Resolution No, 17985 Page 2 1) No event of Default has occurred under the Lease; 2) The Substitute Project serves the municipal purposes of the City and constitutes property which the City is permitted to lease under the laws of the State of California. 3) The Substitute Project does not cause the City to violate any of the covenants, representations or warranties made by the City under the Lease or the Trust Agreement; 4) The estimated fair market value of the Substitute Project is at least equal to the estimated fair market value of the Former Project, and the useful life of the Substitute Project is at least equal to the useful life of the Former Project. Section 2. Official Actions. The Mayor, the City Manager, the Director of Finance, the City Clerk and all other officers of the City each authorized and directed in the name and on behalf of the City to execute and deliver any and all site leases (with respect to the Substitute Project), termination agreements'~Z(with respect to the Former Project), assignments, certificates, requisitions, agreements, notices, consents, instrunqents of conveyance, warrants and other documents, including specifically the title insurance policy required by Section 3.3 of the Lease, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the Lease and substitution approved pursuant to this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. Section 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. A r d r : Presented by: ~ i~o f,o, by,~ ~ Bruce M. Boogaard Director of Finance City Attorney Resolution No. 17985 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 1 st day of August, 1995, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilia, Rindone, Horton NAYES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmecnbers: None ~orton, Mayor ATTEST: BeverlyTA.'Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17985 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 1 st day of August, 1995. Executed this 1st day of August, 1995. Beverly ~. Authelet, City Clerk