HomeMy WebLinkAboutRES NO 45-97RESOLUTION NO. 4 5 '* 9 7
RESOLUTION AUTHORIZING THE USE OF TAX
INCREMENT MONEYS TO HELP PAY THE ANNUAL DEBT
SERVICE ON CERTIFICATES OF PARTICIPATION ISSUED
TO CONSTRUCT THE CONVENTION CENTER EXPANSION
--ARENA PROJECT 1997.
WHEREAS, the City of Bakersfield (the "City") has previously acted pursuant to the
Community Redevelopment Law (Section 33000 and following, California Health and
Safety Code; hereafter referred to as the "Law") to establish a redevelopment agency of
the City to be known as the Central District Development Agency of the City of Bakersfield
(hereafter referred to as the "Agency"); and
WHEREAS, the Agency has previously completed proceedings pursuant to the Law
to (a) establish a redevelopment project area (the "Project Area"), (b) approve a
redevelopment plan (the "Redevelopment Plan") for the redevelopment of the Project Area,
(c) issue tax allocation bonds (the "Agency's Prior Bonds") to finance authorized
redevelopment activity, and (d) enter into a reimbursement agreement (the "Prior
Reimbursement Agreement") with the City, certain expenses incurred and to be incurred
by the City in furtherance of Redevelopment Plan implementation; and
WHEREAS, by cooperative efforts of the City and the Agency, there has been
established within the Project Area a complex of buildings and related facilities commonly
known as the Convention Center, and the City and the Agency now intend to expand the
Convention Center by construction of a multipurpose arena (the "Arena Project") adjacent
to the existing Convention Center complex, to be owned by the City and intended to
function as an additional component of the Convention Center; and
WHEREAS, by separate resolution proposed for adoption this same date, the City
Council proposes to authorize the issuance, sale and delivery of not to exceed $43.0
million principal amount of Certificates of Participation to finance, among other things (a)
the refunding of certain outstanding obligations of the City (the "City's Prior Certificates of
Participation") and the Agency's Prior Bonds and (b) a portion of the cost and expense of
construction of the Arena Project; and
WHEREAS, in connection with the City's proposed financing plan to refund the
Agency's Prior Bonds and to finance a portion of the cost and expense of the Arena
Project, construction of which is in furtherance of implementation of the Redevelopment
Plan for the Project Area in which the Convention Center and the Arena Project are
located, the City and the Agency intend to enter into an reimbursement agreement (the
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"Reimbursement Agreement") pursuant to which the Agency will pay to the City not to
exceed $1,200,000 annually from tax increment funds to be received by the Agency in
consideration for the City's refunding of the Agency's Prior Bonds and the City's financing
of the cost and expense of the Arena Project with proceeds of the Certificates and with
other funds of the City legally available for the Arena Project; and
WHEREAS, Section 33679 of the Law requires, as a condition precedent to the
Agency's proposed use of tax increment funds, as provided by the proposed
Reimbursement Agreement, to pay a portion of the cost of installation and construction of
any publicly owned building, such as the Arena Project, the City Council of the City must
(a) hold a noticed public hearing with respect to such proposed use of tax increment funds
and (b) make certain determinations prescribed by Section 33445 of the Law; and
WHEREAS, notice of the time and place of the public hearing has been given as
required by said Section 33679, and evidence of compliance with such notice
requirements is on file with the City Clerk of the City; and
WHEREAS, the public hearing has been opened, conducted and closed in
accordance with said notice, and a written summary containing the matters required by
said Section 33679 was made available to the public no later than the time of the first
publication of said notice and was made available to members of the public at said public
hearing; and
WHEREAS, on the basis of the information available this City Council believes that
the determinations required by Section 33445 are proper and are supported by such
information.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Bakersfield as follows:
SECTION 1.
The foregoing recitals are true and correct, and this City Council hereby so finds
and determines.
SECTION 2.
On the basis of the information available, which this City Council believes to be
reliable and complete, this City Council hereby makes the following determinations:
a) The Arena Project is of benefit to the Project Area.
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b) No other reasonable means of financing the Arena Project is available to
the community, including the City and the Agency.
c) Payment of tax increment funds to the City, in accordance with the
Reimbursement Agreement, will assist in the elimination of one or more blighting
conditions inside the Project Area by making it feasible for the City to issue the Certificates
on the most favorable terms and conditions with the lowest feasible borrowing cost
consistent with the financial condition of the City, with a portion of the proceeds of sale of
the Certificates being utilized to construct the Arena Project, and payment of such tax
increment funds is consistent with the Implementation Plan (the "Implementation Plan")
respecting the Redevelopment Plan, which Implementation Plan was adopted by the
Agency on November 7, 1994.
SECTION 3.
The City Clerk is hereby directed to transmit a certified copy of this resolution to the
Secretary of the Agency.
SECTION 4.
This Resolution shall take effect immediately upon its passage.
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I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on 14N~ I ~ 19q?
1997, by the following vote:
~ COUNC/LMEM~ER DeMOND, CARSON, Slt41TH, McdERMOTt, ROWLES, SULLIVAN, SALVAGGIO
N.!cS: COUNCILMEMBER . ~
ABSTAIN: COUNCILMEMBER .~
A~SENT: COUNCILMEMBER ~ ~ .
CITY CLERK and EX OFFICIO'of the
Council of the City of Bakersfield
APPROVED: ~ ! 2 1997
BOB/R~I~'~/~, M~/~R~"
CITY OF BAKERSFIELD
APPROVED AS TO FORM:
JUDY K. SKOUSEN
CITY ATTORNEY
$:~OUNCIL',RES~33679SS.RES
--March 7, 1997
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