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HomeMy WebLinkAboutRDA Reso 2006-1936 RDA RESOLUTION NO. 2006-1936 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING 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 MATTERS RELATING THERETO WHEREAS, the California Statewide Communities Development Authority (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 I, 1988, and under the provisions of Articles I through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title I of the Government Code of the State of California (Act), and is authorized pursuant to Article 4 of the Act (Bond Law) to issue bonds, notes and other obligations; and WHEREAS, the Redevelopment Agency of the City of Chula Vista (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 I 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 (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 2006 Taxable Revenue Bonds, Series A (CRNERAF Loan Program) in the aggregate principal amount of not to exceed $30,000,000 (Bonds); and WHEREAS, in order to make its ERAF Payment for fiscal year 2005-06, the Agency desires to obtain a loan from the Authority from the proceeds of the Bonds in the amount of not to exceed $1,100,000 (Loan) pursuant to the terms and conditions set forth in the Loan Agreement, dated as of April 1, 2006, by and between the Agency and the Authority (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 ITom the issuance of the Bonds by the Authority, as hereinafter set forth; and RDA Resolution No. 2006- I 936 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 (City), by resolution (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, in order to make a loan to the Agency (and other redevelopment agencies) to provide funds to make the payment required by said Section 33681.12 to be paid with respect to fiscal year 2004/2005, the Authority issued its $27,020,000 principal amount of California Statewide Communities Development Authority 2005 Taxable Revenue Bonds, Series A (CRA/ERAF Loan Program) (2005 Bonds); and WHEREAS, payment of the loan made to the Agency with the proceeds of the 2005 Bonds is secured by a first pledge and lien on the property taxes of the City on a parity with the first pledge and lien on such property taxes securing payment of the Loan, as further provided in 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 (Official Statement), which will be used by Stone and Youngberg LLC, E. J. De La Rosa & Co. Inc., and RBC Dain Rauscher Inc., doing business under the trade name RBC Capital Markets, (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 I. 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 trom 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 trom (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 $1,100,000. The Agency hereby approves the Loan Agreement in substantially the form RDA Resolution No. 2006-1936 Page 3 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 Executive Director of the Agency; provided that the average annual interest rate on the Bonds does not exceed eight percent (8.00%) 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. 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 consummate 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 IU)~ Mari Kachadoorian Fin ce Director ~<:N'.l\~ Ann Moore City Attorney RDA Resolution No. 2006-1936 Page 4 PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of Chula Vista, California, this 21 st day of March 2006, by the following vote: AYES: Agency Members: Chavez, McCann, and Padilla NAYS: Agency Members: None ABSENT: Agency Members: None ABSTAIN: Agency Members: :JlJ:;?~ Stephen C. Padilla, Chairman ATTEST: Cf~ if! ~ Dana M. Smith, S cretary STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Dana M. Smith, Secretary of the Chula Vista Redevelopment Agency, do hereby certifY that the foregoing Resolution No. 2006-1936 was duly passed, approved, and adopted by the Redevelopment Agency at a regular meeting held on the 21 st day of March 2006. Executed this 21 sl day of March 2006. Q~ t1( .p Dana M. Smith, Secretary RDA Resolution No. 2006-1936 Page 5 EXHIBIT A California Statewide Communities Development Authority 2006 Taxable Revenue Bonds, Series A (CRAlERAF Loan Program) OFFICER'S CERTIFICATE REGARDING CRAlERAF LOAN PROGRAM RECITALS: A. The California Statewide Communities Development Authority (Authority) is a joint powers authority authorized under Section 33681.15 of the California Health and Safety Code 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 (ERAF Payment); B. In order to make loans for such purpose to redevelopment agencies, the Authority has determined to issue its California Statewide Communities Development Authority 2006 Taxable Revenue Bonds, Series A (CRAlERAF Loan Program) (Bonds); and C. The Redevelopment Agency of the City of Chula Vista (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 I of Division 24 of the Health and Safety Code of the State of California (Redevelopment Law); and the Agency in order to make its ERAF Payment desires to obtain a loan (Loan) from the Authority from the proceeds of the Bonds pursuant to the terms and conditions set forth in the Loan Agreement, dated as of April I, 2006, by and between the Agency and the Authority (Loan Agreement), the form of which Loan Agreement is on file with the Secretary of the Agency; The undersigned hereby states and certifies: (i) that the undersigned is the duly appointed, qualified and acting [insert Executive Director or Treasurer] of the Redevelopment Agency of the City ofChula Vista, a public body, corporate and politic, duly organized and existing under the laws of the State of California (Agency) and as such, is familiar with the facts herein certified and is authorized to certifY the same; (ii) that the Agency has been duly created and authorized to transact business and exercise its powers under and pursuant to the Redevelopment Law and no action has been taken by the City Council (Council) of the City of Chula Vista, California (City) pursuant to the Redevelopment Law to dissolve said Agency or to suspend its powers; RDA Resolution No. 2006-1936 Page 6 (iii) that, by all necessary action, the Agency has duly authorized and approved the execution and delivery of, and the performance by the Agency of the obligations on its part contained in, the Loan Agreement; (iv) that no action is pending attacking or otherwise questioning the validity of the Agency or the authority of the Agency to obtain the Loan and to enter into the Loan Agreement or the authority of the City to approve the obtaining of the Loan by the Agency; (v) that the Agency and the City Council of the City have duly adopted the following respective resolutions relating to the Loan and the Loan Agreement (collectively, the "Resolutions"), which Resolutions were duly adopted by the members of the Agency or the City Council, as applicable, at open public meetings which were called, noticed and conducted in accordance with all applicable requirements of California law, at which a quorum was present and acting throughout, and the Resolutions have not been amended, modified, supplemented (except as noted below), rescinded or repealed and are in full force and effect as of the date hereof: (a) RDA Resolution No. 2006-1936, entitled "A Resolution of the Redevelopment Agency of the City ofChula Vista Authorizing And Directing Execution Of Loan Agreement Relating To The Issuance Of Certain Bonds By The California Communities Statewide Development Authority, Approving Official Statement Relating To Such Bonds And Authorizing And Approving Other Matters Relating Thereto", adopted March 21, 2006; and (b) Resolution No. 2006-086, entitled "A Resolution of the City Council of the City Of Chula Vista Approving the Borrowing of Funds By The Redevelopment Agency of the City of Chula Vista From the California Communities Statewide Development Authority And Providing Other Matters Relating Thereto", adopted March 21,2006; (vi) that the representations and warranties of the Agency contained in the approved form of the Loan Agreement are true and correct in all material respects as of the date hereof and the Agency and the Agency shall, concurrently with the delivery of the Bonds, reaffirm that such representations and warranties are true and correct in all material respects as of the date of delivery of the Bonds; (vii) that, as of the date hereof, the information relating to the Agency and the City in the form of the approved Preliminary Official Statement relating to the Bonds (the "Official Statement") does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (viii) that the Agency shall, concurrently with the delivery of the Bonds, reaffirm that no event affecting the Agency or the City has occurred since the date hereof which has not been disclosed therein or in any supplement or amendment thereto which event should be disclosed in the final Official Statement in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; j RDA Resolution No. 2006-1936 Page 7 (ix) that the Agency's Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the Redevelopment Law does not, on, the date hereof and will not on the date of delivery of the Bonds, contain an "excess surplus" (within the meaning of Section 33334.12 of the Redevelopment Law) that would cause the Agency to be subject to the sanctions contained in Section 33334.12(e)(1) of the Redevelopment Law; and (x) that the Agency does not on the date hereof have "major audit violations" (within the meaning of Section 33080.8(i) of the Redevelopment Law) so as to be subject to a court order prohibiting the activities set forth in Section 33080.8(e)(3) of the Redevelopment Law. Dated: March 21, 2006 Redevelopment Agency of the City of Chula Vista "y~uf 4 Dana M. Smith Assistant City Manager/ Director of Community Development