HomeMy WebLinkAboutReso 1989-15309 Revised 10/4/89
RESOLUTION NO. 15309
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA CONSENTING TO ASSIGNMENT AND
ASSUMPTION AGREEMENTS NO. 1 AND NO. 2 AS PROPOSED
BY THE HOME DEPOT, INC. PURSUANT TO THE
$4,400,000 IN ORIGINAL PRINCIPAL AMOUNT OF CHULA
VISTA VARIABLE RATE DEMAND CHARTER CITY REVENUE
BONDS (HOME DEPOT, INC. PROJECT), SERIES 1985
WHEREAS, the City of Chula Vista (City) issued variable
rate revenue bonds in the amount of $4.4 million to the Home
Depot, Inc. (the Company) in support of the construction of a
commercial facility within the City of Chula Vista in 1985; and
WHEREAS, the Company wishes to affect a recapitalization
which requires a transfer of the assets of the Company to Home
Depot of Texas, Inc. a wholly-owned subsidiary of the Company in
return for 100% of the stock in the subsidiary as described in
Assignment and Assumption Agreement No. 1, attached hereto; and
WHEREAS, the Company wishes to further transfer the
a~sets in Home Depot of Texas, Inc. to a second subsidiary, Home
Depot U.S.A., Inc. in exchange for certain indebtedness of and
stock in the second subsidiary as described in Assignment and
Assumption Agreement No. 2 attached hereto; and
WHEREAS, pursuant to Section 6.02 of the Loan Agreement
for the variable rate revenue bonds, an opinion from a nationally
recognized bond counsel that the proposed recapitalization will
not cause the interest on the bonds to become subject to Federal
income taxation has been issued and received by the City; and
WHEREAS, Section 6.18 of the loan agreement requires
consent of the City of Chula Vista as Issuer of the variable rate
revenue bonds to be obtained in connection with the sale or other
disposition of the project, and
WHEREAS, the Company agrees to pay an assignment fee of
$5,500.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula Vista hereby acknowledges notice of, and
consents to the transfer of assets and to the terms of Assignment
and Assumption Agreements No. 1 and No. 2, attached hereto as
though fully setforth herein, dated September 6, 1989.
BE IT FURTHER RESOLVED that the Mayor is hereby
thorized to execute the form of consent to Assignment and
sumption Agreements No. 1 and No. 2, attached hereto.
Presented by Approved as to form by
on, Act /~ T]~omas J."~a~0n
t D
Comm y Developmen irector k ~gency A~torney
WPC 4211H
-2-
Resolution 15309
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 19th day of September, 1989 by the following vote:
AYES: Councilmembers: Malcolm, McCandliss, Moore, Nader
NOES: Councilmembers: None
ABSENT: Councilmembers: Cox
ABSTAIN: Councilmembers: None
Tim Nader, Mayor Pro Tempore
ATTEST
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do
hereby certify that the foregoing Resolution No. 15309 was duly passed,
approved, and adopted by the City Council of the City of Chula Vista,
California, at a regular meeting of said City Council held on the 19th day of
September, 1989.
Executed this 19th day of September,1989.