HomeMy WebLinkAboutReso 1994-17423 NOT APPROVED
RESOLUTION NO. 17423
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AUTHORIZING INSTITUTION OF PROCEEDINGS TO
FINANCE FACILITIES TO BE USED IN CONNECTION WITH AN
OLYMPIC TRAINING CENTER TO BE DEVELOPED BY SAN DIEGO
NATIONAL SPORTS TRAINING FOUNDATION
WHEREAS, the San Diego National Sports Training Foundation, a nonprofit corporation
organized under the laws of the State of California (the "Foundation"), has been organized for
the purpose of financing the acquisition and construction of an Olympic Training Center to be
located within the City (the "Project"), and the Foundation has requested that the City assist
the Foundation in financing the acquisition, construction and improvement of certain facilities
relating to the Project; and,
WHEREAS, in order to provide such financial assistance, the Foundation and the City
have discussed a financing structure the outlines of which are as follows:
(a) the Foundation will enter into a lease agreement with the City under which the
Foundation agrees to construct the Project facilities and to lease the completed
facilities and the site thereof to the City, and under which the City agrees to
pay periodic rental payments from any source of legally available funds,
including the General Fund of the City;
(b) in order to raise the funds required to construct the Project facilities, the
Foundation will assign its rights to receive rental payments from the City under
the lease agreement referred to above, to a trustee bank which will execute and
deliver Certificates of Participation under a trust agreement to be entered into
among the City, the Foundation and such trustee bank; and,
(c) proceeds received from the sale of the Certificates of Participation will be
deposited in a Construction Fund to be held by the trustee bank and disbursed
upon requisitions submitted by the Foundation; and,
(d) in order to ensure that the Foundation, rather than the City, is ultimately liable
to make debt service payments on the financing, the City will either (i) sublease
the Project facilities and the site thereof back to the Foundation in return for
sublease payments which are sufficient to provide for payment of debt service,
and/or (ii) obtain guarantee agreements from the Foundation and other persons
who are interested in the Project and who are judged by the City to be of
sufficiently secure credit, and/or (iii) be secured by a deed of trust on the site
of the facilities being financed; and,
WHEREAS, the City Council wishes at this time to approve in concept the financing
plan outlined above (the "Financing Plan") and authorize City staff to consider this plan and
other financing alternatives,
Resolution No. 17423
Page 2
NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of
Chula Vista as follows:
SECTION 1. Approval of Financing Plan. The City Council hereby approves in concept 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 or any financing alternative, such
documentation shall be presented to the City Council for final approval and
authorization.
SECTION 2. Engagement of Professional Services. In connection with the implementation
of the Financing Plan, the City Council hereby authorizes 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 Dean Witter Reynolds Inc. to act as underwriter of the
Financing in accordance with an agreement to be entered into with said firm at
the time of sale of Certificates of Participation.
SECTION 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.
Presented by Approved as to form by
George Krempl Bruce M. Boogaard
Deputy City Manager City Attorney
Resolution No. 17423
Page 3
NOT PASSED, APPROVED and ADOPTED by the City Council of the City of Chula
Vista, California, this 22nd day of March, 1994. 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 A. Authelet, City Clerk