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HomeMy WebLinkAboutORD NO 2675ORDINANCE NO. 2675 NEW SERIES AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD RELATING TO THE FINANCING OF THE REHABILITATION OF HISTORICAL PROPERTIES WITHIN SAID CITY IN THE INTERESTS OF THE PUBLIC HEALTH, SAFETY AND WELFARE. WHEREAS, properties and structures of historical or architectural significance are an essential resource of the City of Bakersfield and the preservation of such properties and structures serves a vital and compelling public interest of the City of Bakers- field and promotes the public health, safety and welfare of the City of Bakersfield by reducing the incidence of crime in deteriorating areas, preventing accidents to citizens occurring in and around deteriorating, delapidated and dangerous structures, alleviating the financial drain upon limited public and private resources for prevention of public nuisances and provision of public safety program, and enhancing the financial resources of the City of Bakersfield through increased property, taxes; and WHEREAS, the encouragement of properties and structures of historical sales and business license the preservation of and architectural significance within the City of Bakersfield serves a vital and compelling public interest of the City of Bakersfield and promotes the public health, safety and welfare of the City of Bakersfield by strengthening the economic well being of the City of Bakersfield as a whole, increasing its attractiveness, preserving historical knowledge and values for new generations of City of Bakersfield residents, by increasing the tax and revenue base and thereby enhancing the financial resources of the City of Bakersfield, and preventing deterioration and abandon- ment of the older commercial areas and buildings of historical importance to and within the City of Bakersfield. In addition, the City of Bakersfield's participation in the financing of such rehabilitation serves the public interest by insuring that such rehabilitation will reflect the needs and objectives of the community more so than if such rehabilitation was undertaken without City of Bakersfield's participation and will prevent properties and structures of historical and architectural significance from continuing to deteriorate at an accelerated rate because low-interest loans from private sources are not sufficiently available for their rehabilitation; and WHEREAS, the State legislature has not acted to place the public interest in rehabilitation of properties and structures of historical and architectural importance solely under State control or to prevent local action with respect thereto; and WHEREAS, in the past, efforts have been made to assist private enterprise by encouraging the rehabilitation of properties and structures of historical and architectural importance through State and Federal agencies directly or through State and Federal agencies acting through local government. However, such efforts, if funded at all, have been inadequately funded, unresponsive to the needs and objectives of the City of Bakersfield or have been unavailable to the City of Bakersfield, making such efforts unsatisfactory for the City of Bakersfield in effectuating the aforesaid public interests of the City of Bakersfield; and WHEREAS, the City of Bakersfield can promote the public interest in the rehabilitation of properties and structures of historical and architectural significance within the City of Bakers- field pursuant to this Ordinance, without adversely affecting areas outside the boundaries of the City of Bakersfield or transient residents of the State and without conflicting with or in any way impairing the efforts of the State to solve problems of legitimate Statewide concern; and WHEREAS, encouraging the rehabilitation of properties and structures of historical and architectural significance pursuant to this Ordinance, (1) will promote the health, safety and welfare of the City of Bakersfield, and will improve the social, moral, economic and physical condition of the City of Bakersfield, and (2) constitutes a municipal affair of the City of Bakersfield, a valid exercise of the police powers of the City of Bakersfield, and a public purpose in which the City of Bakersfield has a peculiar and unique interest. NOW, THEREFORE, Bakersfield as follows: BE IT ORDAINED by the Council of the City of ARTICLE I GENERAL PROVISIONS Section 1. Findings. Each of the foregoing recitals is true and correct and the Council so finds and determines. Section 2. Unless the context otherwise requires, the following definitions shall govern the construction of this Ordinance: (a) "Administrative Expenses" means the reasonable and necessary direct expenses incurred by the City of Bakersfield in the administration of the provisions of this Ordinance with respect to the Financing of the Rehabilitation of a particular Historical Property and the issuance of Bonds in connection therewith, including without limitation, fees and expenses of paying agents, trustees, bond counsel and other professional consultants and costs of printing and advertising. (b) "Bonds" means any bonds, notes, interim certificates, debentures, or other obligations issued by the City of Bakersfield pursuant to this Ordinance and which are payable exclusively from the Revenues. (c) (d) "City" means the City of Bakersfield, California. "Costs" with reference to the Rehabilitation of Historical Property, means any or all of the following: (~) obligations of the Participating Party incurred for labor and materials in connection with the Rehabilitation of Historical Property; (ii) the cost of acquisition of any property, whether real or personal, including franchise rights and other intangible property, and any interests therein, required for the Rehabilitation of Historical Property; (iii) the cost of demolishing, removing or relocating any building or structure, and the cost of making any relocation assistance payments required by law; (iv) of any buildin9 or structure; (v) the cost of contract bonds and all kinds that may be required or necessary during the costs of construction and reconstruction of insurance of the course of the Rehabilitation of Historical (vi) all costs of services, including the costs of Property; engineering, legal and consultant the Participating Party for surveys, estimates, plans and specifications and preliminary investigation therefor, and for supervising construction, as well as for the performance of all other duties required by or consequent upon the Rehabilitation of Historical Property; (vii) all costs incurred in connection with proceedings by the Participating Party necessary to comply with the California Environmental Quality Act; (viii) all amounts required to fund any reserve funds for Bonds and any interest on Bonds becoming due and payable during a period not exceeding the period of Rehabilitation of the Historical Property and twelve (12) months thereafter; (ix) all Administrative Expenses; (x) all costs which the Participating Party shall be required to pay, under the terms of any contract or contracts, for the Rehabilitation of the Historical Property; (xi) the refinancing of any existing indebtedness secured by an interest in any real property comprising any portion of the Historical Property; and (xii) any sums required to reimburse the Participating Party for advances made for any of the above items or for any other costs incurred and for work done which are properly chargeable to the Rehabilitation of the Historical Property. (e) "Council" means the Council of the City of Bakersfield. (f) "Financing" and its variants means the lending of money or any other thing of valu~ or the purchase of loans, for the purpose of paying any or all of the Costs. (g) "Historical Property" means any building or part thereof, structure, monument or other real property deemed of importance to the history, architecture, or culture of the City of Bakersfield of any area thereof as determined by the Council and listed on national, State or local historical registers or official inventories, such as the National Register of Historic Places and State Historical Landmarks. (h) "Participating Party" means any person, company, corporation, partnership, firm, association or other entity or group of entities requiring Financing for Rehabilitation pursuant to the provisions of this Ordinance. No elective officer of the City of Bakersfie~ shall be eligible to be a Participating Party under the provisions of this Ordinance. (i) "Rehabilitation" means the reconstruction, restoration, renovation or repair of the interiors or exteriors of Historical Property, the relocation of Historical Property for the purpose of restoring or preserving its historical or architectural authenticity, preventing its deterioration or destruction, continuing its use, providing for its feasible reuse, or providing for the safety of the occupants or passersby, and any acquisition and construction associated with said reconstruction, restoration, renovation, repair or relocation. "Rehabilitation" includes, but is not limited to, the repairing of architectural facades or ornamentation; removal of inappropriate additions or materials; replacement of facades, ornamentation or architectural elements previously removed; repairing of roofs, foundations and other essential structural elements; work done on a Historical Property in order to comply with Rehabilitation Standards; and any construction of parking facilities or other appurtenant and related improvements and facilities required by law or necessary to enable reuse of the Historical Property. "Rehabilitation" includes the purchase, acquisition, and personal (j) local or State Property. installation and restoration of fixtures, furnishings property. "Rehabilitation Standards" means the applicable standards for the Rehabilitation of Historical (k) "Revenues" means all amounts received as repayment of principal, interest, and all other charges received for, and all other income and receipts derived by, the City of Bakersfield from the Financing of Historical Rehabilitation, including moneys deposited in a sinking, redemption, or reserve fund or other fund to secure the Bonds or to provide for the payment of the principal of, or interest on, the Bonds and such other moneys as the Council may, in its discretion, make available therefor. ARTICLE II POWER AND PURPOSES Section 1. Powers. The City of Bakersfield is authorized and empowered: (a) To determine the location and character of any Historical Property and to Finance the Rehabilitation of such Historical Property by making or purchasing loans to Participating Parties therefor. (b) To issue Bonds for the purpose of Financing or otherwise assisting the Rehabilitation of Historical Property authorized by this Ordinance and for the purpose of funding or refunding Bonds. (c) To fix fees, charges and interest rates for Financing of the Rehabilitation of Historical Property, and to revise such fees, charges and interest rates from time to time, and to collect interest and principal on any loan made to a Participating Party together with such fees and charges incurred in such Financing, and to contract with any person, partnership, association, corpora- tion or public agency with respect thereto. (d) To hold deeds of trust and financing statements as security for Financing of the Rehabilitation of Historical Property and to pledge the same and any lien upon the Historical Property as security for repayment of Bonds issued therefor. (e) To establish the terms and conditions for the Financing of the Rehabilitation of Historical Property undertaken pursuant to this Ordinance. (f) To require that the full amount owed on any loan for the Financing of the Rehabilitation of Historical Property pursuant to this Ordinance shall be due and payable upon sale or other transfer of ownership of such Historical Property. (g) To acquire, by deed, purchase, lease, contract, gift, devise, or otherwise, any real or personal property, structures, rights, rights-of-way, franchises, easements, deeds of trust, mortgages and other interests in property located within the State necessary or convenient for the Financing of the Rehabilitation of Historical Property, upon such terms and conditions as it deems advisable, and to lease, sell or otherwise dispose of the same in such manner as may be necessary or desirable to carry out the objects and purposes of this Ordinance. (h) To employ or contract for such engineering, architectural, accounting, collection, economic feasibility, or other services in connection with the servicing of loans made to Participating Parties, as may be necessary in the judgment of the Council for the successful Financing of the Rehabilitation of Historical Property, to pay the reasonable costs of consulting engineers, architects, accountants, construction experts, and economic feasibility experts, if, in the judgment of the Council, such services are necessary to the successful Financing of the Rehabilitation of Historical Property and if the City of Bakersfield is not able to provide such services and to employ, contract for, and fix the compensation of financing consultants, bond counsel, and other advisers as may be necessary in its judgment to provide for the issuance and sale of Bonds. (i) In addition to all other powers specifically granted in this Ordinance, to do all things necessary or convenient to carry out the purposes of this Ordinance. Section 2. Non-operation. The City of Bakersfield shall not have the power to operate any Historical Property as a business. The City of Bakersfield shall take no more action with respect to any Historical Property than is necessary to promote the public interests of the City of Bakersfield. Section 3. Applications for Financing. Participating Parties may apply for financing pursuant to this Ordinance by filing an application with the City of Bakersfield in such form and with such person or office as shall be specified by the City of Bakers- field Manager of the City of Bakersfield. Applications shall set forth all information required to evaluate the financial reliability and stability of the Participating Party, the feasibility of the proposed Rehabilitation, and to verify and assure that the property proposed to be rehabilitated constitutes a Historical Property within the meaning and purpose of this Ordinance. Among all other information, agreements and undertakings required by the City Manager of the City of Bakersfield to be contained therein, applica- tions shall include an estimate of the maximum amount of bonds proposed to be issued, a description or itemization of the Costs of the proposed Rehabilitation, and an agreement to pay all Administrative Expenses incurred by the City of Bakersfield for the proposed Financing. Section 4. Acceptance of Applications. Upon receipt of an application containing all required information, agreements and undertakings, the Council shall at such time as is deemed convenient by it review such application and any staff recommendations with respect thereto. If the Council chooses to approve any application, it shall adopt a resolution in which it (1) finds and determines (a) that the property proposed to be rehabilitated constitutes a Historical Property, (b) that the Rehabilitation of said Historical Property will not adversely affect areas outside the boundaries of the City of Bakersfield or transient residents of the State, and (c) that the Rehabilitation of said Historical Property is in the public interests of the City of Bakersfield and constitutes a municipal affair of the City of Bakersfield, a valid exercise of the police powers of the City of Bakersfield, and a public purpose in which the City of Bakersfield has a peculiar and unique interest, and (2) accepts and approves such application and the participation of the City of Bakersfield in the Financing of the Rehabilitation of the Historical Property, subject to the provisions of this Ordinance, the conclusion of all proceedings undertaken to consummate such financing to the satisfaction of the City of Bakersfield, and such other matters as may be determined to be appropriate by the Council. ARTICLE III BONDS issue the Rehabilitation of Historical Ordinance. Every issue of Bonds the City of Bakersfield, payable the Revenues. Section 1. Authorization. The City of Bakersfield may its Bonds for the purpose of Financing or otherwise assisting Property authorized by this shall be a special obligation of solely from all or any part of Section 2. Issuance of Bonds. The Bonds may be issued as serial Bonds or as term Bonds, or the Council, in its discretion, may issue Bonds of both types. The Bonds shall be authorized by resolution of the Council and shall bear such date or dates, mature at such time or times, bear interest at such fixed or variable rate or rates, be payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America, at such place or places, and be subject to such terms of redemption as the resolution or resolutions of the Council may provide. The Bonds may be sold at either a public or private sale and for such prices as the Council shall determine. Pending preparation of the definitive Bonds, the City of Bakersfield may issue interim receipts, certificates, or temporary Bonds, which shall be exchanged for such definitive Bonds. Section 3. Terms of Bonds. Any resolution or resolutions authorizing any Bonds or any issue of Bonds may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of the Bonds: (a) The pledge of all or any part of the Revenues, subject to such agreements with Bondholders as may then exist. (b) The interest and principal to be received and other charges to be charged and the amounts to be raised each year thereby, and the use and disposition of the Revenues. (c) The setting aside of reserves or sinking funds and the regulation and disposition thereof. (d) Limitations on the purposes to which the proceeds of a sale of any issue of Bonds, then or thereafter issued, may be applied, and pledging such proceeds to secure the payment of the Bonds or any issue of Bonds. (e) Limitations on the issuance of additional Bonds, the terms upon which additional Bonds may be issued and secured, and the refunding of outstanding Bonds. (f) The procedure, if any, by which the terms of any contract with Bondholders may be amended or abrogated, the amount of Bonds the holders of which must consent thereto, and the manner in which such consent may be given. (g) Specification of the acts or omissions to act which shall constitute a default in the duties of the City of Bakersfield to holders of its obligations, and providing the rights and remedies of such holders in the event of default. (h) The mortgaging of land, assets owned by a Participating Party the Bondholders. improvements, or other for the purpose of securing (i) Such other terms and conditions pertaining to the issuance of the Bonds as are deemed advisable by the Council. Section 4. Trust Agreement. In the discretion of the Council, any Bonds ~ss~e~ ~n~e~~ ~h~ ~rov~$i©ns of this Ordinance may be secured by a trust agreement by and between the City of Bakersfield and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the State. Such trust agreement or the resolution providing for the issuance of such Bonds may pledge or assign the Revenues to be received or proceeds of any contract or contracts pledged, and may convey or mortgage any property. Such trust agreement or resolution providing for the issuance of Bonds may contain such provisions for protecting and enforcing the rights and remedies of the Bondholders as may be reasonable and proper and not in violation of law, including such provisions as may be included in any resolution or resolutions of the Council authorizing the issuance of Bonds pursuant to Section 3 of this Article III. Any bank or trust company doing business under the laws of the State 10. which may act as depositary of the proceeds of Bonds or o~ Revenues or other moneys may furnish such indemnity bonds or pledge such securities as may be required by the City of Bakersfield. Any such trust agreement may set forth the rights and remedies of the Bondholders and of the trustee or trustees, and may restrict the individual right of action by Bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Council may deem reasonable and proper for the security of the Bondholders. Section 5. Personal Liability. Neither the members of the Council nor any person executing the bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. Section 6. Refunding Bonds. The Council may provide for the issuance of Bonds all or any portion of which is to be used for the purpose of refunding outstanding Bonds, including the payment of the principal thereof and interest and redemption premiums, if any, thereon. The proceeds of Bonds issued to refund any outstanding Bonds may, in the discretion of the Council, be applied to the retirement of such outstanding Bonds at maturity, or the redemption (on any redemption date) or purchase of such outstanding Bonds prior to maturity, upon such terms and subject to such conditions as the Council shall deem advisable. Section 7. Repayment of Bonds. Revenues shall be the sole source of funds pledged by the City of Bakersfield for repayment of Bonds issued hereunder. Bonds issued hereunder shall not be deemed to constitute a debt or liability of the City of Bakersfied or a pledge of the faith and credit of the City of Bakersfield but shall be payable solely from Revenues. All Bonds shall contain on the face thereof a statement to the following effect: "Neither the faith and credit nor the taxing power of the City of Bakersfield is pledged to the payment of the principal of or interest on this Bond." The issuance of Bonds shall not directly, indirectly or contingently obligate the Council to levy or pledge any form of taxation or to make any appropriation for their payment. 11. ARTICLE IV FINANCING OF REHABILITATION Section 1. Authority to Assist Rehabilitation. The City of Bakersfield may provide Financing to any Participating Party for the Rehabilitation of any Historical Property, or otherwise assist the Rehabilitation of any Historical Property pursuant to this Ordinance. Section 2. Loan Agreements. The City of Bakersfield may enter into loan agreements with any Participating Party with respect to the Financing of the Rehabilitation of any Historical Property, which agreements may provide that the architectural and engineering design of the rehabilitated Historical Property shall be subject to such standards as may be established by the City of Bakersfield and that the Rehabilitation of any Historical Property shall be subject to such supervision as the City of Bakersfield deems necessary. The terms and conditions of such loan agreements may be as mutually agreed upon, but shall not be inconsistent with the provisions of this Ordinance. Any such loan agreement may provide the means or methods by which any deed of trust or mortgage taken by the City of Bakersfield shall be discharged, and it shall contain a covenant by the Participating Party to complete the Rehabilitation of the Historical Property whether or not Bond proceeds are sufficient therefor, and such other terms and conditions as the City of Bakersfield may require. The City of Bakersfield is authorized to fix, revise, charge, and collect interest and principal and all other rates, fees, and charges with respect to the Financing of the Rehabilitation of Historical Property. Such rates, fees, charges, and interest shall be fixed and adjusted so that the aggregate of such rates, fees, charges, and interest will provide funds sufficient with other revenues and moneys which it is anticipated will be available therefor, if any, to do all of the following: (a) Pay the principal of and interest on outstanding Bonds issued to finance such Project, as the same shall become due and payable. 12. (b) Create and maintain reserves required or provided for in any resolution authorizing such Bonds. A sufficient amount of the Revenues may be set aside at such regular intervals as may be provided by the resolution or trust agreement in a sinking or other similar fund, which shall be pledged to, and charged with, the payment of the principal of and interest on such Bonds as the same shall become due, and the redemption price of the purchase price of Bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time the pledge is made. The rates, fees, interest, and other charges, revenues, or moneys so pledged and thereafter received by the City of Bakersfield shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the City of Bakersfield, irrespective of whether such parties have notice thereof. Neither the resolution, the trust agreement nor any loan agreement by which a pledge is created need be filed or recorded except in the records of the City of Bakersfield. The 'use and disposition of moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution or trust agreement authorizing the issuance of such Bonds. (c) Pay Administrative Expenses to the extent not paid from proceeds of Bonds. Section 3. Trust Funds. All moneys received pursuant to the provisions of this Ordinance, whether proceeds from the sale of Bonds or Revenues, shall be deemed applied solely for the purposes of trust company in which such moneys to be trust funds to be held and this Ordinance. Any bank or are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes specified in this Ordinance, subject to the terms of the resolution or trust agreement authorizing the Bonds. ARTICLE V MISCELLANEOUS Section 1. Liberal Construction. This Ordinance, being necessary for the health, welfare and safety of the City of Bakersfield 13. and its residents, shall be liberally construed to effect its purposes. Furthermore, the Council hereby declares that this Ordinance is an exercise of the power granted to the City of Bakersfield by the City of Bakersfield Charter of the City of Bakersfield and the Constitution of the State of California and is an exercise by the City of Bakersfield of its powers as to municipal affalrs and its police powers, and this Ordinance shall be liberally construed to uphold its validity under the laws of the State. Section 2. Supplemental and Additional Powers. This Ordinance shall be deemed to provide a complete, additional, and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of Bonds under the provisions of this Ordinance need not comply with the requirements of any other law applicable to the issuance of bonds. Section 3. Actions to Determine Validity of Bonds and Proceedings. An action may be brought pursuant to Chapter 9 (commencing with Section 860 of Title 10 of Part 2 of the Code of Civil Procedure ) to determine the validity of Bonds and the legality and validity of all proceedings previously taken and, as provided in the Bond resolution, proposed to be taken for the authorization, issuance, sale, and delivery of the Bonds and for the payment of the principal thereof and interest thereon. Section 4. Amendment of Ordinance. This Ordinance shall not be amended so as to affect adversely the rights of the holders of any outstanding Bonds theretofore issued hereunder, or the rights of Participating Parties with respect fore been financed hereunder, without Bondholders and Participating Parties; to whom Projects have thereto- the written consent of such provided, however, that this Ordinance may be amended at any time (a) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision herein contained, as the City of Bakersfield may deem necessary or desirable; or (b) if such amendment does not materially impair or adversely affect the interests of any such Bondholder or Participating Party in the opinion of the Council; or (c) if such amendments apply solely to Bonds not theretofore 14. issued hereunder or Participating Parties with respect to whom Projects have not theretofore been financed hereunder. Section 5. Partial Invalidity. If any section, paragraph, sentence, clause or phrase of this Ordinance shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted this Ordinance and each and every other section, paragraph, sentence, clause or phrase hereof and authorized the proceedings authorized to be taken pursuant thereto irrespective of the fact that any one or more sections, paragraphs, sentences, clauses, or phrases of this Ordinance may be held illegal, invalid or unenforceable. Section 6. Effective Date of Ordinance. This Ordinance shall become effective thirty (30) days from and after the date of its passage. .......... 000 .......... 15. I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on the 28th day of October , 1981, by the following vote: CTT¥ CT,~.RK a.~.d ~.~ Off±¢'io Clerk of the Council of t~e C±ty of ~akeusf±eld APPROVED this 2~,~th day of October ' ~A~fO~~~o ~e Cit~ of~eld , 1981 APPROVED as to form: CITY ATTO~'t~he~Cl~of Bakersfield Aff av of osnng STATE OF CALIFORNIA, t County of Kern ss. PHILIP KELMAR, being duly sworn, deposes and says: That he is the duly appointed, acting and qualified City Clerk of the City of Bakersfield; and that oa ................................0...~..~..o...~...e_..r.._...2....9....~ ........................................................., 19..~...1..... he posted on the Bulletin Board at the City Hall, a full, true and correct copy of an ordinance passed by the Council of said City at a meeting thereof duly held on ..........................O...?.i.t...~..~..~...r.....~..§..~. ..............................19.....8....1..., which ordinance was numbere~.......~..~.~.:~. .......................New Series, and entitled: AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD RELATING TO THE FINANCING OF TttE REHABILITATION OF HISTORICAL PROPERTIES WITHIN SAID CITY IN THE INTERESTS OF THE PUBLIC HEALTH, SAFETY AND WELFARE. Ci/ty Clerk Subscribed and sworn to before me this ..... 29.~h... day of ......(~_~.~.l~.~.~/~ .....................,19.~.~ ~.