Loading...
HomeMy WebLinkAbout98-32 - Approval of lease agreement for Issuance of Bonds by the Costa Mesa Public Financing AuthorityD71-0 T-0 ,] RESOLUTION NO. 98-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, PROVIDING FOR APPROVAL OF A LEASE AGREEMENT IN CONNECTION WITH THE ISSUANCE OF CERTAIN BONDS BY THE COSTA MESA PUBLIC FINANCING AUTHORITY, APPROVING ISSUANCE AND SALE OF SUCH BONDS, APPROVING AN OFFICIAL STATEMENT, AND PROVIDING FOR OTHER MATTERS PROPERLY RELATING THERETO. WHEREAS, the City of Costa Mesa (the "City") and the Costa Mesa Redevelopment Agency (the "Agency") have formed the Costa Mesa Public Financing Authority (the "Authority") under and pursuant to a joint exercise of powers agreement dated as of August 1, 1990, by and between the City and the Agency under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the California Government Code (the "Act"); and WHEREAS, the Authority is authorized under the Marks -Roos Local Bond Pooling Act of 1985 (commencing with Section 6584 of the Act) to incur indebtedness to finance and refinance public capital improvements (as such term is defined in the Act) and to lease and lease back such public capital improvements to its members, as further provided in the hereinafter described First Amended and Restated Lease Agreement dated as of April 1, 1998, by and between the Authority and the City (the "Lease Agreement"); and WHEREAS, for the purpose of providing financing for the lease payment by the Authority to the City for lease to the Authority of the land and facilities commonly known as the Mesa Linda Municipal Golf Course and the Los Lagos Municipal Golf Course (the "Project"), the Authority has determined to issue its Costa Mesa Public Financing Authority Revenue Bonds, 1998 Series A (Public Facilities Project), in the aggregate principal amount of not to exceed $14,000,000.00 (the "Bonds"); and WHEREAS, the Authority desires to lease the Project back to the City pursuant to the Lease Agreement and the City desires to make lease payments (the "Lease Payments") for the Project pursuant to the Lease Agreement sufficient in amount to pay debt service payable on the Bonds; and WHEREAS, the City will use the proceeds of the Authority's lease payment for the Project to prepay in full its lease payment obligations under the Lease Agreement (the "Original Lease Agreement") dated as of October 1, 1990, by and between the City and the Authority relating to the City's and the Authority's initial lease and lease back of the Project; and WHEREAS, the Authority will use the proceeds of the City's prepayments to refund and pay in full its outstanding 1990 Lease Revenue Bonds (Public Facilities Projects); and WHEREAS, the City Council has, by Ordinance No. 90-11 adopted September 4, 1990, approved the act of entering into the Original Lease Agreement and the Lease Agreement constitutes the first amendment and restatement in full of the Original Lease Agreement approved by said Ordinance No. 90-11; and WHEREAS, in connection with such sale of the Bonds, Rod Gunn Associates, Inc., the Authority's Financing Consultant (the "Financing Consultant") has caused to be prepared an Official Statement (the "Official Statement") describing, among other things, the Authority, the City, the Lease Agreement, and the Bonds, a preliminary form of which is on file with the City Clerk; and WHEREAS, the City Council desires to approve the Lease Agreement, to approve the issuance of Bonds by the Authority and to approve the sale of Bonds and the Official Statement pertaining thereto, and for such purpose has, with the aid of its staff, reviewed the Lease Agreement, Official Statement, and the related proceedings; NOW, THEREFORE, IT IS HEREBY ORDERED AS FOLLOWS: SECTION 1. Approval of Lease Agreement. The City Council hereby approves the lease of the Project to the Authority and the lease back of the Project to the City pursuant to and in accordance with the Lease Agreement in substantially the form on file with the City Clerk, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor (upon the advice of the City Attorney or the Financing Consultant), whose execution thereof shall be conclusive evidence of approval of any such additions and changes. The Mayor is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest and affix the seal of the City to the final form of the Lease Agreement for and in the name and on behalf of the City. The City Council hereby authorizes the delivery and performance of the Lease Agreement. SECTION 2. Authority Bond Issue. The issuance of the bonds by the Authority and the sale of the Bonds by the Authority at public sale are hereby approved. SECTION 3. Official Statement; Continuing Disclosure Certificate. The City Council hereby approves the matters contained in the preliminary Official Statement describing the City and the Bonds in substantially the form submitted by the Financing Consultant and on file with the City Clerk, with such changes and modifications as shall be necessary or appropriate, and when completed to the satisfaction of the City Manager, the City Manager is authorized and directed, on behalf of the City to deem the preliminary Official Statement "final" pursuant to Rule 15c2-12 under the Security and Exchange Act of 1934. The City Council further approves distribution of the preliminary Official Statement by the purchaser of the Bonds at public sale to persons who may be interested in purchasing the Bonds. The City Council hereby approves the final Official Statement describing the Bonds. Distribution of the final Official Statement by the purchaser of the Bonds at public sale is hereby approved. The City Manager is hereby authorized and directed to approve any changes in or additions to the final form of said Official Statement to conform to the requirements of the Bonds, and the related proceedings. The City Manager is hereby authorized to execute and deliver the Continuing Disclosure Certificate relating to the Bonds appended to the Official Statement. SECTION 4. Official Action. The Mayor, City Manager, City Clerk, Finance Director, City Attorney, and any and all other officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, consents, instruments of conveyance, warrants, and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance, sale and delivery of the Bonds, and the refunding of the Prior Bonds (including the execution and delivery of an Escrow Deposit and Trust Agreement in customary form), and the lease of the Project to the Authority and the lease of the Project back to the City. Any officer of the City herein authorized or directed to take any action may designate another officer of the City to take such action on his or her behalf, such designation to be approved or ratified in writing upon the taking of the applicable action. SECTION 5. This Resolution shall be effective immediately upon adoption. PASSED AND ADOPTED this 20th day of April, 1998. Mayor of the City of s a Mesa ATTEST: Deputy City Cl 11 k of the City of Costa Mesa STATE OF CALIFORNIA COUNTY OF ORANGE ► ss CITY OF COSTA MESA I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. 98-32 was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 20th day of April, 1998, by the following roll call: AYES: Buffa, Monahan, Erickson, Cowan, Somers NOES: None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 21 st day of April, 1998. Deputy Ci Clerk and ex -officio Clerk of the City C ncil of the City of Costa Mesa 1