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HomeMy WebLinkAboutCC Reso No 1994-64RESOLUTION NO. 94 64 A RESOLUTION OF THE CITY COUNCIL OF THE CTTY OF LAKE ELSINORE APPROVING THE BORROWiNG OF FUNDS BY THE REDEVELOPMENT AGENCY FROM THE PUBLIC FINANQNG AUTHORITY, CONFIRMING CERTAIN FINDINGS OF BENEFIT WITH RESPECT TO THE USE OF SUCH FUNDS, AUTHORIZING TERMINATION OF LEASE AGREEMENT AND AUTHORIZING AND APPROVING OTHIIi MA'ITERS PROPIIiLY RELATING THERETO WHEREAS, the City of Lake Elsinore (the "City") and the Redevelopment Agency of the City of Lake Elsinore (the "Agency") have heretofore entered into a Joint Exercise of Powers Agreement dated as of July 25,1989, establishing the Lake ELsinore Public Financing Authority (the "Authority") for the purpose of issuing its bonds, notes and other obligations to be used to provide financial assistance to the City and the Agency; WHEREAS, the Authority proposes to issue its 1995 Series A Subordinate Tax Allocation Revenue Notes (Lake Elsinore Redevelopment Projects) (the "Notes") for the purpose of providing funds to make three separate loans in the aggregate principal amount of not to exceed $20,000,000 (the "Loans") to the Agency pursuant to the loan agreements therefar (the "Loan Agreements") to finance and refinance various redevelopment activities of the Agency, the form of such Loan Agreements being on file with the City Clerk; WHEREAS, the proceeds of the Loans will be used, among other purposes, to finance and to refinance the costs of the Lake Elsinore Municipal Stadium Project and related public infrastructure improvements (the "Project"), the Project being located in the Rancho Laguna Redevelopment Project Area No. III, but, as heretofore determined, the Project is also of benefit to Rancho Laguna Redevelopment Project Area No. I and Rancho Laguna Redevelopment Project Area No. II (collectively, the "Project Areas"); WHEREAS, the Loans will be repaid from Tax Revenues (as defined in the Loan Agreements) allocated to each of the three Project Areas; WHEREAS, pursuant to Section 33679 of the Law, the City Council of the City and the Agency held a joint public hearing on August 5, 1993, on the commitment of the Agency to use Tax Revenues for the purpose of paying the cost of the Project; WHEREAS, upon the close at said public hearing, the City Council, by Resolution No. 93-56, adopted September 14, 1994, determined that (i) the Project is of benefit to each of the Project Areas and (ii) there was no reasonable means of financing the Project, except with the proceeds, among other means, of certain prior loans being refinanced with the proceeds of the Loans; WHEREAS, for the purpose of a prior refunding of the Project, the Authority and the City entered into a Lease Agreement, dated as of September 1, 1994 (the "1994 Lease Agreement") pursuant to which the Authority leased the Project to the City, the Cit}~s Lease Payments (the "Lease Payments") to be used to repay obligations of the Authority issued to acquire the Project; WHEREA$, to provide for reimbursement of the Lease Payments by the Agency to the City with the proceeds of Tax Revenues, the City and the Agency entered into three (3) separate Reimbursement Agreements, each dated as of September 1, 1994 and each relating to one of the three Project Areas (the "1994 Reixnbursement Agreements"); and WHEREAS, the Agency will use a portion of the proceeds of the Loans to pay in full its obligations under the 1994 Reimbursement Agreements, thus permitting the City to prepay in full to the Authority its Lease Payments under the 1994 Lease Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Councll of the City of Lake Elsinore that: Section 1. Apvroval of Loans. The City Council hereby approves the Loans in the combined principal amount of not to exceed $20,000,000 to be made by the Authority to the Agency pursuant to the Loan Agreements. Section 2. Confirmation of Determination of Benefit; Means of Financine. The City Council hereby confirms its earlier determination that (i) the Project is of benefit to Rancho Laguna Redevelopment Project Area No. I, Rancho Laguna Redevelopment Project Area No. II and Rancho Laguna Redevelopment Project Area No. III, prior and (ri) there was no reasonable means of financing the Project, except with the proceeds, among other means, of the prior loans being refinanced, as above described. Section 3. Termination of 1994 Lease Agreement. The Mayor, the City Manager, the City Clerk, the Finance Director and all other officers of the City are each authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, agreements, including an escrow deposit and trust agreement in customary form prepared by Bond Counsel providing for the application of Lease Payments to pay Authority obligations, noHces, consents, instruments of conveyance, including grant deeds, acceptances or grant deeds and deeds of reconveyance and other documents, which they or any of them might deem necessary or appropriate in order to consummate the payment in full of the 1994 Reimbursement Agreements and the termination of the 1994 Lease Agreement. Section 4. Contingency With Respect to Payment of 1994 Reunbursement Agreements. It is understood that the City staff and the Underwriter are currently negotiating with the Owners of the Authority's 1994 Revenue Bonds (Lake Elsinore Redevelopment Projects) (the "1994 Bonds") for the purpose of agreeing to a reasonable price for repurchase of the 1994 Bonds by the Authority. The proceeds of payment of the 1994 Reimbursement Agreement will be used by the City to prepay the 1994 Lease Agreement. The proceeds of prepayment of the 1994 Lease Agreement will be used by the Authority to pay the repurchase price of the 1994 Bonds. Accordingly, if a reasonable price for such repurchase is not agreed upon then the aggregate principal amount of the Loans, authorized in Section 1 hereof, shall be reduced by the appropriate amount. Secrion 5. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED this 20th day of December,1994, by the following vote: AYES: COUNCILMEMBERS: BENDER, BRINLEY, PAPE, WASHBURN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: ALONGI -Z- (SEAL) APPROVED AS TO FORM AND LEGALITY: ~ ~~~ John R. Ha er General unsel _~ STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,' ~ DO HEREBY CERTIFY that the foregoinq Resolution duly adopted by the City Council of the City of Lake Elsinore at a regular meeting of said Council on the 21st day of December, 1994, and that it was so adopted by the following vote: AYES: COUNCILMEMBERS:. BENDER, BRINLEY, PAPE, WASHBURN NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: ALONGI ABSTAIN: COUNCILMEMBERS: NONE VICKI•KASAD, C.TY CLERK CITY OF LAK.r] ELSINORE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE ) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of R~solution No. 94-64 of said Council, and that the same has not been amended or repealed. DATED: Urcember 22, 1994 VICK KASAD, C"_TY CLERK CITY OF LAK~ ~LSINORE (SEAL)