HomeMy WebLinkAboutRDA Reso 2008-1994
RDA RESOLUTION NO. 2008-1994
RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA DECLARING THE INTENT TO
REFUND THE 2000 TAX ALLOCATION BONDS;
AUTHORIZING AND DIRECTING THE ISSUANCE AND
SALE OF NOT TO EXCEED $24 MILLION PRINCIPAL
AMOUNT 2008 TAX ALLOCATION REFUNDING BONDS
FOR THE MERGED REDEVELOPMENT PROJECT;
APPROVING DOCUMENTS; AUTHORIZING OFFICIAL
ACTIONS AND PROVIDING FOR OTHER MATTERS
PROPERLY RELATING THERETO
WHEREAS, the Redevelopment Agency of the City of Chula Vista (the Agency) is a
redevelopment agency duly created, established and authorized to transact business and exercise
its powers, all under and pursuant to the provisions of the Community Redevelopment Law of
the State of California (Part I of Division 24 of the Health and Safety Code of the State of
California, commencing with Section 33000) (the Redevelopment Law), including the power to
issue bonds for any of its corporate purposes, including the purpose of refunding bonds
previously issued by the Agency; and
WHEREAS, a Redevelopment Plan for the Town Centre II Redevelopment Project Area
in the City of Chula Vista (the Town Centre II Redevelopment Project) has been adopted and
subsequently amended in compliance with all requirements of the Redevelopment Law; and
WHEREAS, a Redevelopment Plan for the Otay Valley Road Redevelopment Project
Area in the City ofChula Vista (the Otay Valley Road Redevelopment Project) has been adopted
and subsequently amended in compliance with all requirements of the Redevelopment Law; and
WHEREAS, a Redevelopment Plan for the Southwest Redevelopment Project Area in the
City of Chula Vista (the Southwest Redevelopment Project) has been adopted and subsequently
amended in compliance with all requirements of the Redevelopment Law; and
WHEREAS, by ordinances of the City Council of the City of Chula Vista, the City has
duly taken action to merge the Town Centre II Redevelopment Project, the Oray Valley Road
Redevelopment Project and the Southwest Redevelopment Project into a single project area for
financial purposes pursuant to the Redevelopment Law, and as so merged and subsequently
amended in compliance with all requirements of the Redevelopment Law, such project areas are
referred to herein as the Merged Redevelopment Project; and
WHEREAS, the Agency has previously issued its $17,000,000 principal amount 2000
Tax Allocation Bonds (Merged Redevelopment Project) (the 2000 Bonds) pursuant to an
Indenture of Trust by and between the Agency and U.S. Bank National Association (the 2000
Indenture); and
RDA Resolution No. 2008-1994
Page 2
WHEREAS, in order to take advantage of prevailing market conditions and/or restructure
debt service for cash flow purposes, the Agency has determined at this time to issue its not to
exceed principal amount $24 million Redevelopment Agency of the City of Chula Vista, 2008
Tax Allocation Refunding Bonds (Merged Redevelopment Project) (the 2008 Bonds) pursuant to
the provisions of the Redevelopment Law for the purpose of providing funds to refund the 2000
Bonds and, in an amount up to $5 million, to reimburse costs of capital relating to certain
certificates of participation of the City, to repay certain loans made by the City to the Agency, to
payor repay the costs of redevelopment activity of the Agency for the Merged Redevelopment
Project, or other costs of financing and refinancing the Merged Redevelopment Project; and
WHEREAS, the 2008 Bonds shall be secured by a pledge of available tax increment of
the Agency for the Merged Redevelopment Project, and exclusive of all tax increment
chargeable to such housing fund to the extent not expressly pledged to the repayment of the 2008
Bonds in the Indenture, and on a basis junior to certain existing obligations of the Agency to the
extent set forth in the Indenture; and
WHEREAS, proceeds of the 2008 Bonds will be used (i) to pay or repay costs of
redevelopment activity ofthe Merged Redevelopment Project; (ii) to refund the 2000 Bonds; (iii)
to reimburse costs of capital relating to certain certificates of participation of the City, (iv) to
repay certain loans made by the City to the Agency, (v) to establish a reserve account for such
2008 Bonds; and (vi) to pay a portion of the costs of issuing such 2008 Bonds; and
WHEREAS, (a) the 2008 Bonds shall be sold to the Chula Vista Public Financing
Authority for concurrent resale to E.l. De La Rosa & Co.. Inc. (the Underwriter) pursuant to a
Bond Purchase Agreement and a Preliminary Official Statement for the 2008 Bonds, in
accordance with Article 4 of Chapter 5 of Division 7 of Title I of the California Government
Code (the lP A Law) (b) a portion of the net proceeds of the 2008 Bonds, together with other
available moneys, will be applied to the prepayment and defeasance of the 2000 Bonds and any
related obligations, pursuant to the terms of the Escrow Agreement approved pursuant to Section
6 hereof or other arrangements approved herein, and (c) the Agency will undertake to provide
certain continuing disclosures pursuant to the Continuing Disclosure Agreement approved
pursuant to Section 5 hereof, each in the form on file with the Executive Director, subject to
completion as approved pursuant to this resolution; and
WHEREAS, the Agency wishes at this time to declare its intent to refund the 200 Tax
Allocation Bonds, and to authorize the issuance of the 2008 Bonds for the purpose of providing
funds to refund the 2000 Bonds and to finance or refinance redevelopment activities and to pay
certain other costs related to the issuance of such 2008 Bonds.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of
Chula Vista does hereby declare as follows:
SECTION I. The Redevelopment Agency of the City of Chula Vista declares its intent
to refund the outstanding 2000 Tax Allocation Bonds.
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RDA Resolution No. 2008-1994
Page 3
SECTION 2. The sale of the 2008 Bonds in an aggregate principal amount of not to
exceed twenty four million dollars ($24 million) (or such lesser amount as may be specified in
the Bond Purchase Agreement as approved by the Chair) for purposes referenced in the recitals
hereto is hereby approved.
SECTION 3. The Preliminary Official Statement with respect to the 2008 Bonds (the
Preliminary Official Statement), in the form presented herewith, with such changes, insertions
and omissions as the officer or officers executing said documents may require or approve, is
hereby approved, such approval to be conclusively evidenced by the execution and delivery
thereof. The Executive Director of the Agency is hereby authorized to sign a certificate pursuant
to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 relating to the
Preliminary Official Statement. The Underwriter is hereby authorized to distribute copies of said
Preliminary Official Statement to persons who may be interested in the initial purchase of the
2008 Bonds. The Chair or Executive Director of the Agency are hereby authorized and directed
to execute, approve and deliver the final Official Statement in substantially the form of the
Preliminary Official Statement, upon execution as authorized below. The Underwriter is hereby
directed to deliver copies of any final Official Statement to all actual initial purchasers of the
2008 Bonds.
SECTION 4. The Indenture of Trust between the Agency and U.S. Bank National
Association for the 2008 Bonds (the Indenture) is hereby approved in substantially the form
presented, together with such changes thereto as may be approved by the Executive Director on
the advice of bond counsel, the Executive Director's execution thereof to be conclusive evidence
of such approval.
SECTION 5. The Bond Purchase Agreement (the Bond Purchase Agreement) by and
among the Agency, the Chula Vista Public Financing Authority (the Authority), and the
Underwriter providing for the sale of the 2008 Bonds to the Authority for concurrent resale to the
Underwriter is hereby approved in substantially the form presented, together with such changes
thereto as shall be approved by the Executive Director of the Agency upon the advice of bond
counsel, the Executive Director's execution thereof to be conclusive evidence of such approval.
In no event shall such Bond Purchase Agreement provide (i) for underwriter's discount
(exclusive of original issue discount) in excess of eighty-two hundredths of one percent (0.82%)
of the principal amount of the 2008 Bonds, (ii) for an interest rate in excess of six and one half
percent (6.5%) per annum in the case of the 2008 Bonds, or (iii) for principal amounts allocated
to purposes materially in excess of the amounts referenced in the recitals hereto and Section I
hereof.
SECTION 6. The form of the Continuing Disclosure Certificate applicable to the 2008
Bonds, respectively, (the Continuing Disclosure Certificate) is hereby approved in substantially
the form presented, together with such changes thereto as may be approved by the Executive
Director of the Agency upon the advice of bond counsel, the Executive Director's execution
thereof to be conclusive evidence of approval.
RDA Resolution No. 2008-1994
Page 4
SECTION 7. The form of the Escrow Agreement providing for the defeasance of the
2000 Bonds (the Escrow Agreement) among the Agency, the Authority, and U.S. Bank National
Association (or other entity as may be selected by the Executive Director to act as escrow bank),
as Escrow Agent, is hereby approved in substantially the form presented, together with such
changes thereto as may be approved by the Executive Director of the Agency upon the advice of
bond counsel, the Executive Director's execution thereof to be conclusive evidence of such
approval. The Executive Director may direct the Trustee to provide for the repayment of one or
more loans made by the City to the Agency pursuant to separate instructions.
SECTION 8. All actions heretofore taken by the officers and agents of the Agency with
respect to the issuance of the 2008 Bonds are hereby approved, confirmed, and ratified. The
Chair, the Executive Director, the Secretary, the Treasurer, or any of their written designees
(the Authorized Officers) and any and all other proper 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 which they, or any of them, may deem necessary or advisable
in order to consummate the purchase of the 2008 Bonds from the Agency and the sale and
delivery of the 2008 Bonds to the Underwriter and to carry out the transactions contemplated by
this resolution, the Indenture, the Escrow Agreement, the Continuing Disclosure Agreement, the
Bond Purchase Agreement, and the terms of any bond insurance and reserve surety bond
commitments authorized hereunder. Such actions may include execution and delivery by the
Authorized Officers, or any of them, of any agreements or other instruments with the City
confirming subordination by the City of any and all lien, right or interest of the City to tax
increment revenues related to (i) payment of statutory pass-throughs, if any, payable to the City
by the Agency pursuant to Health and Safety Code Sections 33607.5, 33607.7 or any related
statutes or, (ii) payments pursuant to any other loan, cooperation or other agreements between
the Agency and the City or the subordination of any required payments by the Agency to the
City to the lien and pledges provided pursuant to the Indenture for the 2008 Bonds and any
related obligations, to the extent determined by the Executive Director upon the advice of the
City Attorney to be reasonably necessary or convenient to facilitate the sale and delivery of the
2008 Bonds, the Authorized Officer's execution thereof to be conclusive evidence of such
approval. Without limiting the foregoing, the Authorized Officers, acting singly, are each
authorized to (i) solicit bids on a municipal bond insurance policy and/or surety for reserve,
(ii) negotiate the terms of such policy or policies, (iii) finalize, if appropriate, the form of such
policy or policies with a municipal bond insurer, and (iv) if it is determined that the policy or
policies will result in net savings for the Agency, pay the insurance premium of such policy or
policies from the proceeds of the issuance and sale of the 2008 Bonds.
SECTION 9. The Agency finds each and all of the Recitals provided herein are true and
correct and are a substantive part of this Resolution.
SECTION 10. The Secretary of the Agency shall certify as to the approval of this
Resolution and copies of the final form of the documents approved herein shall be placed in the
Secretary of the Agency's records and in the offices of the Agency.
RDA Resolution No. 2008-] 994
Page 5
SECTION ] ]. This Resolution shall take effect upon adoption.
Presented by
Approved as to form by
, ,~ ..-""
LL.-c
ia Kachadoorian
Finance Director
~'M'\\~\~~"
Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of
Chula Vista, California, this 3rd day of June 2008, by the following vote:
A YES: Agency Members: McCann, Ramirez, Rindone, and Cox
NA YS: Agency Members: None
ABSENT: Agency Members: None
ABSTAIN: Agency Members: Castaneda
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CheryICOX~ai~ rson
ATTEST:
6L6/
--- Eric Crockett, Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Eric Crockett, Secretary of the Chula Vista Redeve]opment Agency, do hereby certify that the
foregoing RDA Resolution No. 2008-]994 was duly passed, approved, and adopted by the
Redevelopment Agency at a regular meeting held on the 3rd day of June 2008.
Executed this 3rd day of June 2008.
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Eric Crockett, Secretary