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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 -- Page 1 of 4 Pages -- "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. Page 2 of 4 Pages -- 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. -- Page 3 of 4 Pages -- 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 -- Page 4 of 4 Pages --