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HomeMy WebLinkAboutReso 1993-17297RESOLUTION NO. 17297 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING INSTITUTION OF PROCEEDINGS TO FINANCE PAYMENT REQUIRED TO BE MADE TO HOMART DEVELOPMENT COMPANY, IN CONNECTION WITH THE CONSTRUCTION OF PUBLIC PARKING FACILITIES IN THE TOWN CENTRE II REDEVELOPMENT PROJECT WHEREAS, the Redevelopment Agency of the City of Chula Vita (the "Agency") is obligated to pay the amount of $2,600,000 to Homart 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 Addendum to Disposition and Development Agreement between the Agency and the Developer; and, WHEREAS, in order to provide funds for the payment of such amount, the Agency and the City have proposed a financing structure the outlines of which are as follows: (a) the City will sell to the Agency an existing asset of the City for a purchase price which does not exceed the estimated fair market value of such asset, pursuant to an acquisition agreement to be entered into between the City and the Agency; (b) the Agency will lease such asset back to the City under a lease-purchase agreement whereby the City makes semiannual payments of rental, and under which title to such asset reverts to the City automatically upon the conclusion of the term of the lease; for the security of its lease payments, the City will guarantee such payments from motor vehicle in-lieu fees paid to the City by the State of California, in accordance with the authorization contained in the Revenue and Taxation Code; (d) in order to raise the funds required to purchase such asset from the City, the Agency arranges for the issuance of Certificates of Participation in an aggregate principal amount of not to exceed $3,500,000, pursuant to a trust agreement to be entered into among the City, the Agency and a trustee bank; and, the City will make the proceeds from the sale of such asset available to the Agency under a loan agreement, reimbursement agreement or similar arrangement whereby such proceeds are applied to satisfy the payment to the Developer and, in turn, the Agency is obligated to reimburse the City for its lease payments made under the lease-purchase agreement described above; and, Resolution No. 17297 Page 2 WHEREAS, the City Council wishes at this time t approve the financing plan outlined above (the "Financing Plan") and authorize City staff to proceed to implement the Financing Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: SECTION 1. Approval of Financing Plan. The City Council hereby approves the Financing Plan described above, and authorizes the City Manager, the Director of Finance and other appropriate officials of the City to institute proceedings for the implementation of the Financing Plan. Upon the preparation of all required documentation relating to the Financing Plan, such documentation shall be presented to the City Council for final approval and authorization. In the event that the Financing Plan does not result in the assignment of a rating from Standard & Poor's Corporation of "A" or better, proceedings to implement the Financing Plan shall be terminated unless and until re- instituted by resolution of the City Council. SECTION 2. Call for Hearing. In accordance with Section 33431 of the Health and Safety Code of the State of California, the City Council hereby calls for a public hearing to be held on the proposed leased to be entered into between the Agency and the City in conjunction with the Financing Plan, such hearing to be held on November 23, 1993 at 6:00 p.m. in the Council Chambers of the City of Chula Vista, 276 Fourth Avenue, Chula Vista, California. The City Clerk is hereby authorized and directed to cause a notice of such hearing to be published once a week for two successive weeks in the official newspaper of the City, the first publication to be not later than November 9, 1993. SECTION 3. Engagement of Professional Services. In connection with the implementation of the Financing Plan, the City Council hereby authorized the engagement of Jones Hall Hill & White, a professional law corporation, to act as special legal counsel to the City upon the terms and conditions set forth in the existing agreement with said firm dated August 1, 1985. The City Council hereby further designates the form of Dean Witter Reynolds Inc. to act as underwriter of the proposed certificates of participation from the first of First Interstate Bank of California to act as trustee for the proposed certificates of participation. Resolution No. 17297 Page 3 SECTION 4. Effective Date. This resolution shall take effect from and after the date of its passage and adoption. Presented by Director of Finance Approved as to by 'Bruce M. Boogaard/ City Attorney Resolution No. 17297 Page 4 PASSED, APPRQVED and ADOPTED by the City Council of the City of Chula Vista, California, this 2nd day of November, 1993, by the following vote: YES: Councilmembers: Fox, Horton, Moore, Rindone, Nader NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Beverly ~(. 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. 17279 was duly passed, approved, and adopted by the City Council held on the 2nd day of November, 1993. Executed this 2nd day of November, 1993.