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HomeMy WebLinkAboutRES NO 34-82RESOLUTION NO. 34-82 A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD CONCERNING THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS FOR KRESS BUILDING ASSOCIATES. WHEREAS, the City of Bakersfield (the "City") is a municipal corporation and charter city duly organized and existing under a freeholders' charter, pursuant to which the City has the right and power to make and enforce all laws and regulations in respect to municipal affairs and certain other matters in accordance with, and as more particularly provided in, Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 12 of the Charter of the City (the "Charter"); and WHEREAS, the City Council of the City found that the public interest and necessity require the establishment of a program for the authorization, sale and issuance of economic development revenue bonds by the City and, acting under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 12 of the Charter, adopted the City of Bakersfield Economic Development Revenue Bond Law (Ordinance No. 2737 ); andI WHEREAS, in connection with its proposed restoration of the Kress Building at 1401 19th Street in Bakersfield (the "Facility"), Kress Building Associates (the "Participating Party") has requested the financial assistance of the City and has presented to the City a general description of its Facility (Exhibit A); and WHEREAS, the City intends to assist the Participating 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 financing of its 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; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as follows: 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 Ordinance No. 2737'-and will promote the health, safety and welfare of the residents of the City, and that it is necessary and essential and a proper public purpose that the Facility be financed at the earliest practicable time. 2. The City Council of the City further finds the Facility is consistent with the General Plan of the City. 3. The City presently intends to issue, and shall proceed to prepare, or cause to be prepared, the documentation necessary for the City to issue, at one time or from time to time, economic development revenue bonds of the City, in an aggregate principal amount not to exceed $2,500,000 (the "Bonds") for the Participating Party to finance the Facility; provided, that mutually agreeable terms can be reached by the City and Participating Party. 4. The Bonds shall be issued subject to the conditions stated in Section 3, above, and that (i) the City, by resolution, shall have first agreed to acceptable terms and conditions for the Bonds (and for the sale and delivery thereof), and for the lease, loan or other agreement to be entered into by the City and the Participating Party with respect to the Facility; and (ii) all requisite governmental approvals shall have first been obtained. 5. 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 of or premium, if any, or interest on the Bonds. 6. The law firm of Orrick, Herrington & Sutcliffe, A Professional Corporation, is hereby designated as bond counsel to the City with respect to the Bonds, and the City Manager is hereby authorized to enter into an agreement with said firm for such bond counsel services. 7. It is the purpose and intent of the City that this resolution constitute official action toward the issuance of obliga- tions by the City for the Facility in accordance with Section 1,103-8(a) (5) (iii) of the Regulations promulgated by the United States Department of the Treasury under Section 103 of the Internal Revenue Code of 1954, as amended. o0o 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 14th day of April, 1982, by the following vote: AYES: COUNCILMEN: BARTON, CHRISTENSEN, MEANS, pAYNE, RATTY, ROCKOFF, N05S: COUNCItM~r',h "'71 ~ ~9 .:,,SSTAINING: COUNCILMEN: 1/~ ~ J C6uncil Of the Ci'ty of Bakersfield the APPROVED as -t~ form: IY~ATTORN~o~ the Cit~of B~kersfield mm 4. EXHIBIT A DescriptiOn of Facility The Facility is presently a vacant retail and warehouse building, known as the Kress Building, located at 1401 19th Street (Lot 1, Block 246) in Bakersfield, California. The building has three floors and a basement with total floor space of approximately 34,000 square feet. Kress Building ASsociates (the "Participating Party") proposes to renovate the interior and exterior of the building to provide offices for lease to the general public and, in the basement, file storage and possibly a restaurant. The renovation will include opening up the first floor and adding a mezzanine, a new second floor and an open courtyard.