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HomeMy WebLinkAboutCC Reso No 1984-16RESOLUTION No. 84-16 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, RIVERSIDE COUNTY, CALIFORNIA, APPROVING AGREEMENTS TO FINANCE CONSTRUCTION OF CERTAIN SCHOOL FACILITIES AND AUTHORIZING EXECUTION OF LEASE OF THE SCHOOL FACILITIES AND SUCH OTHER DOCUMENTS AS MAY BE APPROPRIATE WHEREAS, the Lake Elsinare School District (the "District") and the City of Lake Elsinore (the "City") have consistently cooperated to provide adequate school facilities for students in the community; and WHEREAS, the District and City have determined that it is in the best interest and for the common benefit of the citizens to cooperate in the financing and construction o£ the Jean Hayman Elementary School (the "School Facilities"); and WHEREAS, the Redevelopment Agency of the City of Lake Elsinore (the "Redevelopment Agency") has heretofore acquired a site (the "Site") suitable for construction of the Scho~l Facilities and desires to convey the Site to the City £or construction o£ the School Facilities; and WHEREAS, in ~rder to finance and construct the School Facilities on the Site, it is proposed that (i) the City enter into a Lease with option to purchase with City National Bank (the "Bank") whereby the Bank will advance funds to pay for construction o£ the School Facilities, (ii) the City secure repayment of the funds advanced by the Bank by a deed of trust on the Site and School Facilities, (iii) the District enter into a Sublease with the City whereby the District will use and occupy the School Facilities, and (iv) the District enter into an Agency Agreement with the Bank and City whereby the District will supervise construction of the School Facilities; and WHEREAS, under the above-mentioned financing of the School Facilities, the sublease payments made by the District to City will be equal to the lease payments made by the City to Bank and, at the end of the lease term, title to the School Facilities will vest in the City: NOW, THEREFORE, the City Council o£ the City of Lake Elsinore does hereby RESOLVE, DETERMINE AND ORDER as £allows: Section 1. The above recitals are all true and correct. Section 2. The City Council hereby appraves the dacuments specified as £ollows: (a) Lease with Option to Purchase the School Facilities between the Bank, as Lessor and City, as Lessee. (b) Sublease of Schoal Facilities between the City, as Sublessor and District, as Sublessee. (c) Agency Agreement between the Bank, City and District for supervision o£ construction of the School Facilities. (d) Deed of Trust on the Site and School Facilities to secure repayment to the Bank. (e) Assignment of contracts for construction o£ School Facilities to Bank. (f) Assignment af performance bond and labor and material bonds for construction of School Facilities to Bank. (g) Acceptance of Construction and Notice of Completion. 2. Section 3. The City Council hereby finds and determines as follows: (a) The City is statutorily authorized to cause the School Facilities to be constructed, to lease the Site and School Facilities as lessee and to enter into the agreements contemplated under the aforementioned financing of the School Facilities; (b) The Lease, Sublease and agreements contemplated under the aforementioned financing of the School Facilities is in furtherance of the public purposes of the City; (c) The proposed agreements shall create no immediate indebtedness for any aggregate payments which may become due under the Lease and the ~bligation of the City to pay rental and any other payments under the Lease shall constitute a current expense of the City, payable exclusively from Sublease revenues ar general funds of the City which are budgeted and appropriated by the City, or which are atherwise legally available, f~r the purpose af paying rental or any other payments due under the Lease as cansideration for actual use o£ the School Facilities during the fiscal year of the City for which such funds are budgeted and appro- priated or otherwise made legally available; and (d) Neither the City nor the Bank on its behalf, has pledged the credit of the City to the payment of rent ar any other payments due under the Lease and neither the Lease nor any other documents shall directly or contingently obligate the City to apply maney far, or 3. levy or pledge any form o£ taxation or other funds to, the payment of the rent or any other payments due under the Lease. Section 4. The Mayor and City Clerk are hereby authorized and directed to act in behalf of the City as follaws: (a) To execute and deliver the Lease, Slublease, Agency Agreement and such other documents as may be appropriate to complete the financing of the Schoal Facilities, in such form and subject to such terms and conditions as may be agreed upon with the Bank and City; (b) To consent to delivery of the School Facilities from the Bank to the District; and (c) To take such other action as may be appropriate to fulfill the intent and purpose of this Resolution. Section 5. The authority given under this Resolution shall be deemed retroactive and any and all acts authorized hereunder which may have been performed priar ta the passage of this Resolution are hereby deemed ratified and affirmed. Section 6. This Resolution shall take effect upon adoption. ADOPTED this 24th day of April, 1984. ATTEST: ~ City Clerk EAL) ARTA VALENZUELA, M ` R CITY OF LAKE ELSI E 4. STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) I, JO ANN MONEY, City Clerk of the City of Lake Elsinore, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 84-16 , was duly adopted by the City Council at a regular meeting o£ said City held on the 24th day of April, 1984, and that it was passed and adopted by the following vate: AYES: KNIGHT, MATSON, STRIGOTTE, VERMILLION, VALENZUELA NoES: NONE ABSENT: NONE ABSTAIN: NONE ' City Clerk - (SEAL)