HomeMy WebLinkAboutRDA Reso 2006-1945
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RDA RESOLUTION NO 2006-1945
RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA AUTHORIZING THE
ISSUANCE AND SALE OF TAX ALLOCATION REFUNDING
BONDS, IN TWO OR MORE SERIES, IN THE AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED $28,500,000 IN
CONNECTION WITH THE BA YFRONT/TOWN CENTRE
REDEVELOPMENT PROJECT, AND APPROVING RELATED
DOCUMENTS AND ACTIONS
WHEREAS, in connection with the Redevelopment Agency of the City ofChula Vista's
activities related to its merged Bayfront Redevelopment Project and Town Centre
Redevelopment Project (collectively, the "Redevelopment Project"), and pursuant to the
Community Redevelopment Law of the State of California, the Redevelopment Agency of the
City of Chula Vista (the "Agency") has issued its BayfrontlTown Centre Redevelopment Project
1994 Senior Tax Allocation Refunding Bonds, Series A in the initial aggregate principal amount
of $14,810,000 (the "1994A Bonds"), its BayfrontlTown Centre Redevelopment Project 1994
Subordinate Tax Allocation Refunding Bonds, Series C in the initial aggregate principal amount
of $8,195,000 (the "1994C Bonds") and its BayfrontlTown Centre Redevelopment Project 1994
Senior Tax Allocation Refunding Bonds, Series 0 in the initial aggregate principal amount of
$5,680,000 (the "19940 Bonds," the 1994A Bonds, the 1994C Bonds and the 19940 Bonds are
collectively referred to as the "1994 Bonds"); and
WHEREAS, in order to refinance the 1 994 Bonds with resulting debt service savings, the
Agency has determined at this time to issue its not to exceed $14,500,000 aggregate principal
amount of Redevelopment Agency of the City of Chula Vista, BayfrontlTown Centre
Redevelopment Project 2006 Senior Tax Allocation Refunding Bonds, Series A (the "Series A
Bonds"), and its not to exceed $14,000,000 aggregate principal amount of Redevelopment
Agency of the City of Chula Vista, Bayfront/Town Centre Redevelopment Project 2006
Subordinate Tax Allocation Refunding Bonds, Series B and Series C, (to the extent provided
under Section &1 hereof) (collectively, the "Series B Bonds") under the provisions of the
Community Redevelopment Law of the State of California (constituting Part I of Division 24 of
the California Health and Safety Code) (the "Law"); and
WHEREAS, the principal of and interest on the Series A and Series B Bonds will be
payable from the tax increment revenues received by the Agency from the Redevelopment
Project to the extent described in the Senior Indenture and the Subordinate Indenture described
below; and
WHEREAS, it is intended that the Bonds be sold at a negotiated sale to the underwriter
identified herein pursuant to the authority of Articles 10 and 1 I of Chapter 3, Part I, Division 2
of Title 5 of the Cahfornia Government Code on the terms set forth in the Bond Purchase
Agreement described below, and in connection with the offering thereof the Agency has caused
to be prepared an Official Statement describing the Bonds, the preliminary form of which is on
file with the Secretary; and
WHEREAS, the Agency has duly considered the transactions described above and to
authorize proceedings for the issuance and sale of the Bonds.
RDA Resolution No. 2006- 1945
Page 2
NOW THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the
Redevelopment Agency of the City ofChula Vista as follows:
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Section I Issuance of the Bonds: Approval of the Senior Indenture and the
Subordinate Indenture.
(a) The Agency hereby authorizes the issuance of the Series A Bonds in the
aggregate principal amount of not to exceed $ I 4,500,000 The Bonds shall be issued pursuant to
the Law and pursuant to an Indenture of Trust dated as of July I, 2006 (the "Senior Indenture"),
by and between the Agency and U.S. Bank National Association, as trustee (the 'Trustee"). The
Agency hereby approves the Senior Indenture in the form on file with the Secretary, together
with such additions thereto and changes therein as the Chairman shall deem necessary, desirable
or, appropriate, and the execution thereof by the Chairman shall be conclusive evidence of the
approval of any such additions and changes. The Chairman is hereby authorized and directed to
execute, and the Secretary is hereby authorized and directed to attest and affix the seal of the
Agency to, the final form of the Senior Indenture for and in the name and on behalf of the
Agency The Agency hereby authorizes the delivery and performance of the Senior Indenture.
(b) The Agency hereby authorizes the issuance of the Series B Bonds in the
aggregate principal amount of not to exceed $ I 4,000,000 The Bonds shall be issued pursuant to
the Law and pursuant to an Indenture of Trust, dated as of July I, 2006 (the "Subordinate
Indenture"), by and between the Agency and U.S Bank National Association, as trustee (the
"Trustee"). The Agency hereby approves the Subordinate Indenture in the form on file with the
Secretary, together with such additions thereto and changes therein as the Chairman shall deem
necessary, desirable or appropriate, and the execution thereof by the Chairman shall be
conclusive evidence of the approval of any such additions and changes. The Chairman is hereby
authorized and directed to execute, and the Secretary is hereby authorized and directed to attest
and affix the seal of the Agency to, the final form of the Subordinate Indenture for and in the
name and on behalf of the Agency The Agency hereby authorizes the delivery and performance
of the Subordinate Indenture.
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Section 2. Escrow Agreement The Escrow Agreement (the "Escrow Agreement")
by and between the Agency and U.S Bank National Association, as Escrow Agent, with respect
to the 1994 A Bonds and 1994 D Bonds, on the one hand, and the 1994C Bonds on the other hand,
~ hereby approved in substantially the form presented, together with such changes therein or
additions thereto as the Executive Director shall deem necessary desirable or appropriate, the
Executive Director's execution thereof to be conclusive evidence of such approval.
Section 3 Bond Purchase Agreement The .Bond J'urchase Agreements (the
"Purchase Agreement") by and among the Agency and EJ De la Rosa & Co., Inc. (the
"Underwriter") with respect to the Series A Bonds, on the one hand and the Series B Bonds on
the other hand, are hereby approved in substantially the form presented, together with such
changes therein or additions thereto as the Executive Director shall deem necessary, desirable or
appropriate, the Executive Director's execution thereof to be conclusive evidence of sbch
approval. In no event shall such Purchase Agreements provide for underwriter's discount
(exclusive of original issue discount) in excess of 0.9% of the principal amount of the Bonds that
have a AAA rating, I ] % of the principal amount of the Bonds that have a BBB rating, or 1.55%
of the principal amount of Bonds that do not have a rating, or for an average interest rate for any
series in excess of 6.5% per annum. Moreover, the sale of the Bonds shall result in net present
value interest sav1llgs to the Agency in an amount at least equal to $4 million.
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RDA Resolution No. 2006-1945
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Section 4 Official Statements. The Agency hereby authorizes the Executive
Director to approve and deem final within the meaning of Rule 15c2-12 of the Securities
Exchange Act of 1934, except for permitted omissions, a form of Official Statement describing
the Series A Bonds in the preliminary form on file with the Secretary and a form of Official
Statement describing the Series B Bonds in the preliminary form on tile with the Secretary
Distribution of such preliminary Official Statements by the Underwriter to prospective
purchasers of the Bonds, with such modifications as may be approved by the Executive Director,
is hereby approved. The Executive Director is hereby authorized to execute the final form of
each of the Official Statements, including as each may be modified by such additions thereto and
changes therein as the Executive Director shall deem necessary, desirable or appropriate, and the
execution of the final Official Statements by the Executive Director shall be conclusive evidence
of the approval of any such additions and changes. The Agency hereby authorizes the
distribution of the final Official .Statements by the Underwriter The final Official Statements
shall be executed in the name and on behalf of the Agency by the Executive Director
The Executive Director is hereby authorized to execute a certificate or certificates to the
effect that each of the Official Statements and such preliminary official statements were deemed
"final" as of their respective dates for purposes of Rule 15c2-12 of the Securities Exchange Act
of 1934, and is authorized to so deem such statements final.
Section 5 Deliverv of the Bonds. The Bonds, when executed, shall be delivered to
the Trustee for authentication. The Trustee is hereby requested and directed to authenticate the
Bonds by executing the Trustee's certificate of authentication and registration appearing thereon,
and to deliver the Bonds, when duly executed and authenticated, upon the written instructions
executed on behalf of the Agency by the Executive Director, which instructions such officer is
hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and
deliver to the Trustee. Such instructions shall provide for the delivery of the Bonds to the
purchaser thereof upon payment of the purchase price therefor
Section 6. Continuing Disclosure Certificate. The Continuing Disclosure Certificate
for the Series A Bonds and the Series B Bonds, in the forms on file with the Secretary, are
hereby approved. The Executive Director is hereby authorized and directed, for and in the'name
of and on behalf of the Agency, to execute and deliver each Continuing Disclosure Certificate in
said form, with such additions thereto or changes therein as are deemed necessary, desirable or
appropriate by the Executive Director, the approval of such changes to be conclusively
evidenced by the execution and delivery by the Executive Director of the Continuing Disclosure
Certificate.
Section 7 Official Actions. The Chairman, the Executive Director, the Treasurer
and the Secretary of the Agency, and any and all other officers of the Agency, are hereby
authorized and clirected, for and in the name and on behalf of the Agency, to do any and all
things and take any and all actions; including execution and delivery of any and all assignments,
certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and
other documents which they, or any of them, may deem necessary or advisable in order to
consummate the lawful issuance and sale of the Bonds, as described herein. Such actions may
include, but shall not be limited to, negotiating investment agreement(s) relative to funds to be
invested pursuant to the Indenture, the obtaining of bond insurance if available at a net present
value savings to the Agency and the obtaining of a surety for reserve to be issued by a major
bond insurer in lieu of a cash-funded reserve relative to the Bonds if in the judgment of the
Executive Director such s!ITety is financially advantageous to the Agency If a surety for reserve
is obtained, the Executive Director may execute a reimbursement agreement relative to such
surety in a form required by such insurer, subject to the approval as to form by Bond Counsel.
RDA Resolution No. 2006-1945
Page 4
The Series B Bonds authorized herein may be divided in to two series comprised of a Series B 0
and Series C to be delivered at different times. to the extent the Executive Director determines it
is necessary or appropriate to the timely, efficient refunding of the 1994 Bonds or any of them.
Such respective Series B Bonds and Series C Bonds shaJl be secured on a parity with each other,
and each of the Series B Indenture, the applicable Bond Purchase Agreement, Continuing
Disclosure Certificate, Official Statement and Escrow Agreement shaJl be modified to reflect the
terms of such revised Series B Bonds and additional Series C Bonds. Whenever in this
resolution any officer of the Agency is authorized to execute or countersign any document or
take any action, such execution, countersigning or action may be taken on behalf of such officer
by any person designated by such officer to act ori his or her behalf in the case such officer shaJl
be absent or unavailable.
Section 8. Effective Date. The Secretary shall certify to the passage and adoption of
this Resolution, which shall take effect immediately upon its adoption.
Z]n d by_
Maria achadoorian
Direct r of Finance/Treasurer
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Approved as to form
~1\\~d~I'<J}\
Ann Moore
Agency Counsel
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of
Chula Vista, this nnd day of June 2006, by the foJlowing vote:
AYES
Agency Members: Chavez, McCann, Rindone, and Padilla
NAYS
Agency Members: None
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ABSENT
Agency Members:
::~c;J~ 1L
Stephen C"tp-adilla. Chair
ABSTAIN
Agency Members:
ATTEST ~
c;d ct-+-- U(
Dana M. Smith, Secretary
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
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I, Dana M. Smith, Secretary of the Redevelopment Agency of the City of Chula Vista,
California, do hereby certify that the foregoing Redevelopment Agency Resolution No 2006-
1945 was duly passed, approved, and adopted by the Redevelopment Agency at an adjourned
regular meeting of the Redevelopment Agency held on the 22nd day of June 2006.
Executed this 22nd day of June 2006.
9~6 th.~
Dana M. Smith. Secretary
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