HomeMy WebLinkAboutReso 1985-12263 RESOLUTION NO. 12263
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE ISSUANCE AND SALE OF
$4,400,000 PRINCIPAL AMOUNT OF VARIABLE RATE
DEMAND CHARTER CITY REVENUE BONDS (THE HOME
DEPOT, INC. PROJECT), APPROVING INDENTURE OF
TRUST, LOAN AGREEMENT AND RELATED DOCUMENTS,
APPROVING PLACEMENT MEMORANDUM AND AUTHORIZING
OFFICIAL ACTION
The City Council of the City of Chula Vista does hereby resolve as follows:
WHEREAS, the City of Chula Vista (the "City") proposes to issue its
Variable Rate Demand Charter City Revenue Bonds {The Home Depot, Inc.
Project) in the aggregate principal amount of $4,400,000, (the "Bonds") under
and pursuant to the provisions of Chapter 3.48 of the Chula Vista Municipal
Code {the "Law") in order to provide funds to make a loan to The Home Depot,
Inc., a Delaware corporation, {the "Company") pursuant to a proposed Loan
Agreement dated as of December l, 1985, (the "Loan Agreement") by and among
the City, the Company and Dai-Ichi Kangyo Bank of California as trustee {the
"Trustee"), to finance the acquisition, construction and improvement of land
and an approximately 80,000 square foot home improvement retail shopping
facility and related property to be located at the southeast corner of the
intersection of Interstate 805 and H Street in the City; and
WHEREAS, the Bonds are to be issued under and pursuant to an
Indenture of Trust dated as of December l, 1985, {the "Indenture") by and
between the City and the Trustee, and are to be secured by an irrevocable
direct-pay letter of credit to be issued by Westpac Banking Corporation; and
WHEREAS, the Indenture provides that the Bonds are to be subject to
optional and mandatory tender by the owners thereof under certain
circumstances, and Security Pacific Capital Markets Group {Security Pacific
National Bank) has proposed to act as remarketing agent in connection with
such tenders, pursuant to a Remarketing Agreement dated as of December 1,
1985, (the 'Remarketing Agreement") by and between the City and said
remarketing agent; and
WHEREAS, the City has heretofore called and conducted a public
hearing on the issuance of the Bonds as required by Section 103(k) of the
Internal Revenue Code of 1954, as amended; and
WHEREAS, Security Pacific Capital Markets Group {Security Pacific
National Bank) as placement agent {the "Placement Agent") has proposed to
place the sale of the Bonds pursuant a Placement Agent Agreement dated as of
December 1, 1985, (the "Placement Agent Agreement") by and among the City, the
Placement Agent and the Company, and in connection with the marketing of the
Bonds the Placement Agent has caused to be prepared a Placement Memorandum
describing the Bonds and the financing to be accomplished thereby; and
WHEREAS, the City Council approves said transactions in the public
interests of the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chula Vista as follows:
Section 1. Issuance of Bonds; Indenture. The City Council hereby
authorize~uance of the Bonds pursuant to and in accordance with the
terms and provisions of the Law and the Indenture, all of which terms and
Provisions are incorporated herein by reference. The City Council hereby
approves and authorizes the delivery and performance of the Indenture in
substantially the form on file with the City Clerk together with any additions
thereto or changes therein deemed necessa~ or advisable by the Mayor. The
Mayor and the City Clerk are hereby authorized and directed to execute, attest
and affix the seal of the City to the Indenture for and in the name and on
behalf of the City.
Section 2. Loan Agreement. The City Council hereby approves and
authorizes th--~----delivery and performance of the Loan Agreement, in
substantially the form on file with the City Clerk together with any additions
thereto or changes therein deemed necessary or advisable by the Mayor. The
Mayor and the City are hereby authorized and directed to execute, attest and
affix the seal of the City to the Loan Agreement for and in the name and on
behalf of the City.
Section 3. Remarketin9 Agreement. The City Council hereby approves
and autho~ delivery and performance of the Remarketing Agreement, in
substantially the form on file with the City Clerk together with any additions
thereto or changes therein deemed necessary or advisable by the Mayor. The
Mayor and the City are hereby authorized and directed to execute, attest and
affix the seal of the City to the Remarketing Agreement for and in the name
and on behalf of the City.
Section 4. Placement of Bonds. The City Council hereby authorizes
the appo~ o--f Security Pacific Capital Markets Group (Security Pacific
National Bank) to act as placement agent of the City in connection with the
sale of the Bonds, pursuant to the Placement Agent Agreement in substantially
the form on file with the City Clerk. The Placement Agent Agreement is hereby
approved together with a~y additions thereto or changes therein deemed
necessary or advisable by the Mayor. The Mayor is hereby authorized and
directed to execute the Placement Agent Agreement upon the execution thereof
by the Placement Agent. The City Council hereby authorizes and directs the
sale and placement of the Bonds by the Placement Agent on behalf of the City
in accordance with the terms and provisions of the Placement Agent Agreement.
Section 5. Placement Memorandum. The City Council hereby approves
the Placement Memorandum describing the Bonds, in substantially the form
submitted by the Placement Agent and on file with the City Clerk, together
with any changes therein or additions thereto deemed advisable by the Mayor.
The City Council hereby authorizes the distribution of the Placement
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Memorandum by the Placement Agent in connection with the placement of the
Bonds. The Mayor is hereby authorized and directed to approve any changes in
or additions to a f~nal form of said Placement Memorandum deemed advisable by
the Mayor, and to execute the final form of said Placement Memorandum for and
in the name and on behalf of the City.
Section 6. Official Action. All actions heretofore taken by the
officers and agents of the City with respect to the issuance and sale of the
Bonds are hereby approved, confirmed and ratified. The Mayor, the Community
Development Director, the City Clerk, the Finance Director and any and all
other officers of the City are hereby authorized and directed, for and in the
name and on behalf of the City, to do any and all things and take any and all
actions, including execution and delivery of any and all assignments,
certificates, demands, requisitions, notices, consents, instruments of
conveyance, warrants and other documents, which they, or any of them, may deem
necessa~ or advisable in order to consummate the lawful issuance sale and
delivery of the Bonds pursuant to the documents described herein.
Section 7. Effective Date. This resolution shall take effect from
and after the date of its passage and adoption.
Presented by Approved as to form by
Paul G. D~esrochers
.. ~homas J. ~r~on, City Attorney
Community Development Director
WPC 1951H
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ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this, 26th day of November
19. 85 , by the following vote, to-wit:
AYES: C0uncilmembers SCott, McCandliss, Cox, Moore
NAYES: Councilmembers None
ABSTAIN: Counci lmembers None
ABSENT: Counci 1 members Malcolm
City of Chula Vista
city c er ' d
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, Calitornia,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 12263
,and /hat the same has not been amended or repealed.
DATED.
(seal) City Clerk
CC-660