HomeMy WebLinkAbout05-84 - Authorizing Execution & Delivery of Lease Agreement (Tewinkle Park Athletic Field Complex)RESOLUTION NO 05-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, AUTHORIZING THE
EXECUTION AND DELIVERY OF A LEASE AGREEMENT
FOR CAPITAL IMPROVEMENTS FOR THE TEWINKLE
PARK ATHLETIC FIELD COMPLEX AND AUTHORIZING
AND DIRECTING CERTAIN ACTIONS IN CONNECTION
THEREWITH
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS
WHEREAS, the City of Costa Mesa (the "City") is a municipal corporation duly
organized and existing under and pursuant to the Constitution and laws of the State of
California; and
WHEREAS, the City desires to provide for financing in the approximate amount
of $3,450,000.00 for the acquisition and construction of certain real property
improvements to a recreational facility (the "Project"); and
WHEREAS, Municipal Finance Corporation (the "Corporation") has proposed a
cost-effective lease purchase financing arrangement at a 3.95% interest rate.
NOW, THEREFORE, it is resolved by the City Council of the City of Costa Mesa
as follows:
SECTION 1. Sublease/Option Agreement and Site Lease. The Mayor, the City
Manager or the Director of Finance (each, an "Authorized Officer") is hereby authorized
to enter into a Sublease/Option Agreement and Site Lease with the Corporation to
finance the Project, subject to approval as to form by the City Attorney.
SECTION 2. Attestations. The City Clerk or other appropriate City officer is
hereby authorized and directed to attest the signature of an Authorized Officer or of
such other person or persons as may have been designated by an Authorized Officer,
and to affix and attest the seal of the City, as may be required or appropriate in
connection with the execution and delivery of the Sublease/Option Agreement and the
Site Lease.
SECTION 3. Other Actions. An Authorized Officer and other officers of the City
are each hereby authorized and directed, jointly and severally, to do any and all things
and to execute and deliver any and all agreements, documents and certificates which
they may deem necessary or advisable in order to carry out, give effect to and comply
with the terms of this Resolution, the Sublease/Option Agreement and the Site Lease.
Such actions are hereby ratified, confirmed and approved.
SECTION 4. Qualified Tax -Exempt Obligations. The Sublease/Option
Agreement is hereby designated as "qualified tax exempt obligations" within the
meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code"). The City, together with all subordinate entities of the City, do not reasonably
expect to issue during the calendar year in which the Sublease/Option Agreement is
issued more than $10,000,000 of obligations which it could designate as "qualified tax-
exempt obligations" under Section 265(b) of the Code.
SECTION 5. Reimbursement of Prior Expenditures. The City declares its official
intent to be reimbursed from the proceeds of the Lease approved hereby for a
maximum principal amount of $3,450,000.00 of expenditures occurring no earlier than
sixty days prior to the adoption of this Resolution. All reimbursed expenditures will be
capital expenditures as defined in Section 1.150-1(b) of the Federal Income Tax
Regulations.
SECTION 6. Effect. This Resolution shall take effect immediately upon its
passage.
PASSED AND ADOPTED this 6th day of December, 2005, by the following vote:
ATTEST:
Depffty City Clerk of of Costa Mesa
Mayor of the City of Costa Mesa
APPROVED AS TO FORM:
City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, 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.
05-84 , was duly and regularly passed and adopted by the said City Council at a
regular meeting thereof held on the 6"' day of December, 2005, by the following roll call
vote:
AYES: Mansoor, Bever, Dixon, Foley, Monahan
NOES: Mone
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the
City of Costa Mesa this 7" day of December, 2005.
Depofy City Clerk and ex -officio Clerk
of the City Council of the City of Costa
Mesa