HomeMy WebLinkAboutRES NO 76-85RESOLUTION NO. 76-85
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BAKERSFIELD CONCERNING THE INITIAL APPROVAL
FOR THE ISSUANCE OF INDUSTRIAL DEVELOPMENT
REVENUE BONDS TO FINANCE THE NEWPORT FEDERAL
CONVALESCENT HOSPITAL.
WHEREAS, the City Council of the City of Bakersfield
(the "City") has, by Ordinance No. (the "Ordinance")
adopted by the City Council on enacted the City
of Bakersfield Economic Development and Revenue Bond Law (the
"Law), constituting Part of Chapter of the Municipal Code
of the City, authorizing and establishing the procedure for the
sale and issuance of revenue bonds by the City for the purpose of
providing financing to applicants for economic development purposes;
and
WHEREAS, Newport
has requested the financial
Federal (the "Participating Party")
assistance of the City in connection with
the construction of a 99 bed convalescent hospital to be located
on 5600 Auburn Street near Fairfax in the City (the "Facility") and
has presented to the City a general description of 'the Facility as
part of its application filed in accordance with the Ordinance; and
WHEREAS, the City desires to assist the Particpating
Party in the financing of the Facility; and
WHEREAS, the Participating Party requires satisfactory
assurance from the City that the proceeds of the sale of bonds of
the City will be made available to it to assist in the financing
of the Facility, and the City requires satisfactory assurance
from the Participating Party that certain costs of issuing such
bonds will be paid by the Participating Party; and
WHEREAS, the Participating Party's application has
been reviewed for compliance with the purposes of the Ordinance and
evaluated in terms of the public benefits expected to accrue from
the construction and operation of the Facility;
WHEREAS, a copy of said application, certified by the
City Clerk, shall be entered into the records of the City; and
~HEREAS, notice for a public hearing regarding the
Facility was duly published in the Bakersfield Californian
at least 14 days prior to the date set for such hearing; and
WHEREAS, said public hearing was held on June 12, 1985 at
7:00 P.M. before the Mayor and the City Council, at which time all
interested persons wishing to express their views on the issuance of
bonds or on the nature and location of the Facility were given an
opportunity to do so and all written comments submitted in advance of
the hearing were read.
NOW, THEREFORE, BE IT RESOLVED, by the City Council
of the City of Bakersfiel,~ as follows:
Section 1. The City Council of the City finds and
determines that the financing of the Facility will be in furtherance
of the public purposes set forth in the Ordinance by promoting the
long-term employment of local residents; and improvement and
expansion of health care services available to local residents; the
growth of the City'$ tax base through increased property values
and consumer purchasing; and that it is necessary and essential
and a proper public purpose that the Facility be financed at the
earliest practicable date.
Section 2. the City Council states its present intent
to issue, at one time or from time to time, industrial development
revenue bonds of the City (the "Bonds") in an aggregate principal
amount not to exceed $2,600,000 for the Participating Party to
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finance the Facility.
Section 3. The Bonds shall be payable solely from
the revenues to be received by the City pursuant to loans or
other agreement(s) to be entered into by the City and the
Participating Party in connection with the financing of the
Facility and shall not be deemed to constitute a debt or liability
of the City under any constitutional, charter or statutory debt
limitation. Neither the faith and credit nor the taxing power
of the City shall be pledged to the payment of the principal
or of premium, if any, or interest on the Bonds.
Section 4. Any cost or expense of the City incurred
in connection with the Facility described herein, or the
preparation for, or issuance of, Bonds shall be included in
the project costs and shall be reimbursed from the proceeds of
the Bonds to be issued, from payments from other parties to
no Bonds are issued, from the Participating
the financing, or if
Party.
Section 5.
with the Facility in
Section 6.
The City shall receive a fee in connection
an amount acceptable to the City.
Issuance of the Bonds shall be subject
to the following conditions: (a) the City and the Participating
Party shall have first agreed to mutually acceptable terms for
the Bonds and the sale and delivery thereof and mutually
acceptable terms and conditions for the loans or other
agreement(s) for the financing of the Facility; and (b) all
requisite governmental approvals shall have first been obtained,
or if they cannot be obtained, the Participating Party shall
demonstrate to the satisfaction of the City that any remain-
ing approvals are expected to be obtained.
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Section 7. It is the purpose of the City that
this Resolution constitute official action toward the issuance
of obligations by the City for the Facility in accordance with
Section 1.103-8(a) (5) (iii)
the United States Department
the Internal Revenue Code of
of the Regulations promulgated by
of Treasury under Section 103 of
1954, as amended, and that adoption
of this Resolution constitutes approval by the applicable
elected official in accordance with the terms of Section 103
of said Code.
Section 8.
immediately upon its
This Resolution shall take effect
passage.
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(k)
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 the 12th day of June,
1985, by the followinq vote: r
CITY CLERK and Ex Officio Clerk of
Council of the City of Bakersfield
the
APPROVED this 12th day of June, 1985
MAYOR of the City of ~akersfield
APPROVED as to form:
CITY ATTORNEY of t~e Cit~ of
Bakersfield
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