HomeMy WebLinkAboutCC Reso No 1993-60 Stadium~,..
RESOLUTION NO. g3-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DETERMINING TO IlVIPLEMENT A PLAN OF REFINANCING THE MULTI-
PURPOSE STADIUM PURSUANT TO AN ACQUISITION AND LEASE-BACH
ARRANGEMENT WI'iZi THE LAKE ELSINORE PUBL3C FINANCING
AUTHORITY AND PRAVIDING OTHER. MATTERS PROPERLY RELATING
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Wfi~REA.S, 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 (the "Agreement"), creating the Lake
Elsinore Public Financing Authority (the "Authority");
WfiEItEA.S, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California and the Agreement, the Authority is
authorized to issue bonds to provide financing and refinancing for public capital
improvements for projects of the City or the Agency whenever there are significant public
benefits, as determined by the City or the Agency, as applicable;
WHEREAS, the Authority on behalf of the Agency is proposing to issue its not to
exceed $10,500,000 principal amount of 1993 Series B Senior and Subordinate Taxable Tax
Allocation Notes for the purpose of providing funds to make loans to the Agency (the
"Agency Loans") to finance amulti-purpose stadium (the "Stadium Project") to be located
within the Agency's Rancho Laguna Redevelopment Project Area No. III;
WHEREtLS, the Agency Loans will mature in one year and the Agency will
require the assistance of the City in refinancing the Agency Loans at maturity;
WHEREAS, the City Council proposes to implement a refmancing plan for the
Stadium Project pursuant to which the Authority will issue its bonds (the "Authority
Bonds") to provide funds to acquire the Stadium Project from the Agency and the
Authority will then lease the Stadium Project to the City pursuant to a general fund lease
of the City;
yPHEREAS, the Agency will use the proceeds of the acquisition by the Authority to
repay the Agency Loans, and the Authority will use the proceeds of the City's lease
payments for the Stadium Project to repay the Authority Bonds;
WfIEREAS, pursuant to Section 33445 of the California Community
Redevelopment Law, the Agency will use tax revenues from its benefited redevelopment
project areas to reimburse the City for the amount of the City's lease payments for the
Stadium Project; and
WHEREAS, the City Council further intends to take such steps as shall be
required to cause the Authority Bonds to be directly or indirectly secured by a letter of
credit (the "Letter of Credit") issued by a financial institution having a sufficient credit
rating to permit the Authority Bonds to be assigned an investment grade rating by
Moods Investors Service or Standard & Poor's Corporation;
NOW, THEREFORE, BE TT RESOLVED by the City Council of the City of Lake
Elsinore, as follows:.
1. The City Council shall use its best efforts to implement the above-described
refinancing plan in order to permit the Authority to issue timely its Authority Bonds to
provide funds to the Agency to repay the Agency Loans, such Authority Bonds to be
repaid from general fund lease payments of the City for the Stadium Project (to be
reimbursed by the Agency) and such Authority Bonds to be secured, directly or indirectly,
by a Letter of Credit.
2. This Resolution shall take effect from and after the date of its passage and
adoption.
PASSED AND ADOPTED this 30th day of September,1993, by the following vote:
AYES: COUNCILMEMBERS: DOMINGUEZ, WINKLER, WASHBURN
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: ALONGI, CNERVENY
ABSTAIN: COUNCILMEMBERS: NONE
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G M. Washburn, Mayor
itv of Lake Elsinore
Vicki Kasad, City Clerk
City of"lake Elsinore
APPROVED AS TO FORM AND LEGALITY
John R. Harper, City At~o ey
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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 foregoing Resolution duly adopted by the
City Council of the City of Lake Elsinore at a regular meeting of
said Council on 30th day of September, 1993, and that it was so
adopted by the following vote:
AYES: COUNCILMEMBERS: DOMINGUEZ, WINKLER, WASHBURN
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: ALONGI, CHERVENY
ABSTAIN: COUNCILMEMBERS: NONE
VICKI FASAD, CITY CLERK
CITY OF-LAKE 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 Resolution No. 93-60 of said Council, and that the
same has not been amended or repealed.
DATED: October 13, 1993
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VICKI KASAD, CITY CLERK
CITY OF'LAKE.ELSINORE
(SEAL)