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HomeMy WebLinkAboutRDA Reso 2005-1907 RESOLUTION No. 1907 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORlZING AND DIRECTING EXECUTION OF LOAN AGREEMENT RELATING TO THE ISSUANCE OF CERTAIN BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY, APPROVING OFFICIAL STATEMENT RELATING TO SUCH BONDS AND AUTHORIZING AND APPROVING OTHER MA TIERS RELATING THERETO WHEREAS, the California Statewide Communities Development Authority (the "Authority") is a joint powers authority duly organized and existing under and pursuant to that certain "Amended and Restated Joint Exercise of Powers Agreement Relating to the California Statewide Communities Development Authority", dated as of June 1, 1988, and under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title I of the Government Code of the State of California (the "Act"), and is authorized pursuant to Article 4 of the Act (the "Bond Law") to issue bonds, notes and other obligations; and WHEREAS, the Redevelopment Agency of the City ofChula Vista (the "Agency") is a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of Part 1 of Division 24 of the Health and Safety Code of the State of California; and WHEREAS, Section 33681.15 of the California Health and Safety Code authorizes the Authority to issue bonds, notes or other obligations to provide funds to make loans to redevelopment agencies to make the payments required by Section 33681.12 of the California Health and Safety Code, namely payments to the applicable county auditor for deposit in the county's Educational Revenue Augmentation Fund (the "ERAF Payment"); and WHEREAS, in order to make loans for such purpose to redevelopment agencies, the Authority has determined to issue its California Statewide Communities Development Authority 2005 Taxable Revenue Bonds, Series A (CRAÆRAF Loan Program) in the aggregate principal amount of not to exceed $50,000,000 (the "Bonds"); and WHEREAS, in order to make its ERAF Payment for fiscal year 2004-05, the Agency desires to obtain a loan trom the Authority trom the proceeds of the Bonds in the amount of not to exceed $855,000 (the "Loan") pursuant to the terms and conditions set forth in the Loan Agreement, dated as of April I, 2005, by and between the Agency and the Authority (the "Loan Agreement"), a form of which Loan Agreement is on file with the Secretary of the Agency; and WHEREAS, the Agency is a member of the Authority; and WHEREAS, in connection with the issuance of the Bonds by the Authority, Section 6586 of the Act requires that the Agency make certain determinations with respect to the significant public benefits to the Agency resulting trom the issuance of the Bonds by the Authority, as hereinafter set forth; Resolution 1907 Page 2 WHEREAS, as a condition precedent to entering into the Loan Agreement, said Section 33681.15 requires that the Agency obtain the prior approval of the City Council of the City of Chula Vista (the "City"), by resolution (the "City Council Resolution") adopted by a majority of said Council that recites that a first lien will be created on property tax revenues of the City to secure repayment of the Loan; and WHEREAS, the City Council Resolution has been duly adopted in full compliance with the requirements of said Section 33681.15; and WHEREAS, the Authority has caused to be prepared a form of Official Statement describing the Bonds and containing, among other matters, information describing the Agency and the City, the form of which Official Statement is on file with the Secretary (the "Official Statement"), which will be used by Stone and Youngberg LLC, E J. De La Rosa & Co. Inc. and RBC Dain Rauscher Inc (together, the "Underwriters") in the sale of the Bonds; and WHEREAS, the Agency, with the aid of its staff, has reviewed the form of the Loan Agreement and the information in the Official Statement relating to the Agency and the City, and wishes at this time to approve the forgoing in the public interests of the Agency. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Redevelopment Agency of the City ofChula Vista as follows: Section 1. Determination of Significant Public Benefits. Based on the information provided to the Agency by Agency staff and others in connection with these proceedings, the Agency determines that there will be significant public benefits accruing to the Agency from the issuance of the Bonds by the Authority and the loan of portion of the proceeds thereof to the Agency, consisting of demonstrable savings in effective interest rates and financing costs resulting from (i) the efficiencies of pooling the Loan, together with the loans to other redevelopment agencies to be made from the proceeds of the Bonds, into one issuance of bonds by the Authority and (ii) the creditworthiness of the lien on the property tax revenues of the City under said Section 33681.15 to secure the repayment of the Loan by the Agency. Section 2. Approval of Loan Agreement. The Agency hereby authorizes and approves the making of the Loan to the Agency pursuant to the Loan Agreement in the amount of not to exceed $855,000. The Agency hereby approves the Loan Agreement in substantially the form on file with the Secretary together with any additions thereto or changes therein (including, but not limited to, the final principal amount of the Loan and the final payment schedule on the Loan) deemed necessary or advisable by the attorney of the Agency; provided that the average annual interest rate on the Bonds does not exceed seven percent (7.00%) per annum. The Executive Director is hereby authorized and directed to execute the final form of the Loan Agreement for and in the name and on behalf of the Agency and the execution thereof shall be conclusive evidence of the Agency's approval of any such additions and changes to the Loan Agreement. The Agency hereby authorizes the delivery and performance of the Loan Agreement. Resolution 1907 Page 3 Section 3. Official Statement. The Agency hereby approves the information that describes the Agency and the City contained in the form of the Official Statement on file with the Secretary. Distribution by the purchaser of the Bonds of the final Official Statement containing such information is hereby approved. Section 4. Officer's Certificate. The Executive Director (or in his absence, the Treasurer) is hereby authorized and directed to promptly execute and deliver, together with a certified copy of this Resolution, to Stone and Youngberg LLC, on behalf of the Underwriters, the Officer's Certificate in form attached hereto as Exhibit A and hereby made a part hereof, containing representations warranties of the Agency with respect to the making of the Loan and the issuance of the Bonds. The Agency understands that the Underwriters will rely on the representations and warranties contained in the Officer's Certificate in the sale and delivery of the Bonds by the Underwriters. Section 5. Official Actions. The Chair, the Executive Director, the Treasurer, the Agency Counsel, the Secretary and any and all other officers of the Agency are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions, and to execute and deliver all certificates and other documents, which they, or any of them, may deem necessary or advisable in order to consununate the sale, issuance and delivery of the Bonds by the Authority and the making of the Loan by the Authority to the Agency pursuant to the Loan Agreement. In the event the Executive Director shall be unavailable to execute the Loan Agreement, then the Treasurer is hereby authorized to act in the Executive Director's stead. Section 6. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. Presented by Approved as to form by "f\S¡¡(Q'\~-\~;"'í"~\Q \\ Ann Moore ' City Attorney Resolution 1907 Page 4 PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 22nd day of March, 2005 by the following vote: AYES: Members Castaneda, Davis, McCann, and Chair/Mayor Padilla NOES: None ABSENT: Member Rindone ABSTENTIONS: None 4~U~~ Chairman ATTEST: ?4/H~¿ Yì1J~ Laurie Madigan (/ Executive Secretary STATE OF CALIFORNIA) COUNTY OF SAN DIEGO) ss: CITY OF CHULA VISTA) I, Laurie Madigan, Executive Secretary to the Redevelopment Agency of the City of Chula Vista, California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution No. 1907 and that the same has not been amended or repealed. Dated: March 22, 2005 ~M~ Executive Secretary