HomeMy WebLinkAboutAgenda Statement 1980/05/20 Item 14
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COUNCIL AGENDA STATEMENT
Item 14
Meeting Date 5/20/80
ITEM TITLE:
RESOLUTlON/p/t?O Authorizing the Issuance of Industrial
Development Bonds -Pullman,' Inc., -
~ (4/5ths Vote: Yes_ No~)
SUBMITTED BY: Director of Community Development ~
The Pullman/Standard Company, a subsidiary of Pullman,' Inc. isexplor,ing the possibility
of constructing a Research and Development facility in the Bayfront Project. The firm
asks that the City consider the sale of Industrial Development Bonds, under the State
of California provisions, as a possible alternative to Mortgage Revenue' Bonds which
the Redevelopment Agency will be asked to consider this evening. Therefore, it is my
RECOMMENDATION: That the Council adopt the Resolution.
BOARDS AND COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The Pullman, Inc. has asked the Redevelopment Agency/City Council to explore the
possibility of publicly backed Industrial Development Bonds to finance'their proposed
Bayfront development. The Redevelopment Agency will be asked to consider a similar
resolution relative to the issuance of S899 Mortgage Revenue Bonds this evening as
well.
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Our Bond Counsel,Jones, Hall, Hill & White, report that City type bonds may be less
costly and therefore more reasonable to the obligee, which in this case is the
Pullman/Standard Company. At the present time the State of California 'allows for the
issuance of such instruments by Charter Cities. The obligations are similar to those
of the Redevelopment Agency under the provisions of SB99 Mortgage Reve~ue Bonds--
that is, no liability of the tssuing entity.
While allowed under State Statutes the procedure has only been validated by a Superior
Court ruling on behalf of the City of San Bernardino. Our Bond Counsel recommends
that an Appellate Court decision would be more substantial and does not advise issuance
of such instruments unti 1 such a rul ing is received. The fi rm advises 'that the City
of Napa will soon seek such a validation, however. :
The passage of the subject resolution only initiates the process and does not in any
way obligate the City. It is an expression of intent. Paragraph 2 cl~arly states
that such a sale must be duly authorized by another resolution. Should such bonds
be sold the same criteria as approved by the Redevelopment Agenoy;,is suggested to be
followed--further it is proposed that the use of such bonds be limited ~o Redevelopment
Projects only.
FISCAL IMPACT: Not applicable
PGO:rd
_~(~;b' -
by the; City COll,leil of
Chula Vista', C",li!amia
)0100
Form A-113 (Rev. 11/79)
Dated
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EXHIBITS
Agreement____ Resolution~ Ordinance____ Plat____ Notification List
Other
ENVIRONMENTAL DOCUMENT: Attached
Submitted on
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