HomeMy WebLinkAboutRES NO 144-83RESOLUTION NO. ~_44-83
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD AUTHORIZING THE ISSUANCE, SALE AND
DELIVERY OF NOT TO EXCEED $7,000,000 PRINCIPAL
AMOUNT OF CITY OF BAKERSFIELD FLEXIBLE DEMAND
ECONOMIC REVENUE BONDS (HERITAGE HOTEL
PROJECT) 1983 SERIES A AND APPROVING CERTAIN
DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the City of Bakersfield (the "City") is a
municipal corporation duly organized and existing under and by
virtue of the Constitution and laws of the State of California
and its Charter; and
WHEREAS, the City has adopted its Ordinance No. 2737
("Act") establishing an Industrial Development Bond Program
regarding the financing of local development through the
issuance of bonds for the purposes of expanding employment
opportunities and trade and commerce within the City; and
WHEREAS, Bakersfield Heritage Hotel Associates, Ltd. I, a
general partnership ("Developer") has submitted an application
for construction and permanent financing of five stories
consisting of approximately 150 rooms of a ten story hotel
generally located at the corner of Truxtun Avenue and "Q"
street in the City ("Project");
WHEREAS, as an inducement to Developer to develop the
Project, the City adopted its Resolution No. 136-83 on
December 15, 1983, declaring its intent to issue approximately
$7,000,000 in bonds to provide financing in connection with the
Project and approving the provision of financing for the
Project following a duly noticed public hearing in accordance
with Section 103(k) of the Internal Revenue Code of 1954, as
amended; and
WHEREAS, the City Council desires to authorize the
issuance, sale and delivery of not to exceed $7,000,000
aggregate principal amount of City of Bakersfield Flexible
Demand Economic Revenue Bonds (Heritage Hotel Project) 1983
Series A (the "Bonds"); and
WHEREAS, the Bonds would be issued in accordance with this
Resolution and that certain Trust Indenture dated as of
December 30, 1983 substantially in the form presented to the
City Council at this meeting ("Trust Indenture"); and
WHEREAS, the proceeds of the Bonds would be used to make a
loan to provide permanent financing for the Project pursuant to
that certain Loan Agreement dated as of December 30, 1983
substantially in the form presentea to the City Council at this
meeting ("Loan Agreement"); and
WHEREAS, there has been presented to the City Council at
this meeting a form of a Bond Purchase Agreement (the "Bond
Purchase Agreement") regarding the purchase of the Bonds by and
among the City, Dean Witter Reynolds, Inc. and the Developer~
and
WHEREAS, there has been presented to this City Council the
form of a Contruction Fund Trust Agreement dated as of December
30, 1983 (the "Construction Fund Trust Agreement"); and
WHEREAS, the City Council hereby determines that it is
likely that the undertaking of the financing for the Project
will be a substantial factor in the accrual of public benefits
to the City from the use of the Project as proposed in the
Developer's application and that the Project is a qualified
activity under the Act and otherwise is in accordance for the
purposes and requirements of the Act; and
WHEREAS, the Act and the issuance of the Bonds provided for
herein will serve legitimate public purposes and municipal
affairs of the City by providing private enterprise with new
methods of financing capital improvement projects that are
beneficial to the City and its residents and by insuring that
economic development within the City reflects the community's
needs and objectives; and
WHEREAS, the Developer has represented to the City that a
major inducement in acquiring, renovating and rehabilitating
the Project is the source of permanent financing provided under
the Act.
NOW, THEREFORE, the City Council of the City Bakersfield
does hereby resolve as follows:
SECTION 1: The City Council hereby authorizes the
issuance, sale and delivery of Bonds under and subject to the
terms of this Resolution, the Trust Indenture and the Bond
Purchase Agreement for the purpose of providing funds for the
permanent financing of the Project. The Bonds will be
designated as the "City of Bakersfield Flexible Demand Economic
Revenue Bonds (Heritage Hotel Project) 1983 Series A".
SECTION 2: The Bonds issued pursuant to this Reolution
and in accordance with the Trust Indenture shall be in
substantially the form set forth in the Trust Indenture, with
such appropriate variations, omissions and assertions as are
permitted or required by this Resolution in accordance with the
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further provisions hereof. The to~al principal amount of the
Bonds for financing the Project shall be not to exceed
$7,000,000. Interest with respect to the Bonds shall be
payable at such rates and at such times as provided in the
Trust Indenture and shall be subject to such other terms and
conditions as set forth in the Trust Indenture, Loan Agreement
and the Bonds. The Bonds shall be executed on behalf of the
City by the manual facsimile signature of the Mayor, City
Manager or such other officer of the City acting on their
behalf, and attested by the manual facsimile signature of the
City Clerk and shall have the seal of the City affixed
thereon. The Bonds shall be authenticated by the Trustee in
the manner set forth in the Trust Indenture and the Bonds. The
Bonds may not be redeemed in whole or in part prior to the
maturity thereof except in accordance with the terms of the
Loan Agreement and the Trust Indenture. The principal of,
redemption premium, if any, and interest on the Bonds are
payable solely from the repayment of the Loan to the Developer
as provided under the Loan Agreement. The Bonds, the principal
of, redemption premium, if any, and interest thereon shall not
be deemed to constitute a debt or liability in the City or the
State of California for which is pledged the faith and credit
of the City or the State of California and shall not give rise
to any pecuniary liability to the City, or any of its officers,
agents or employees. The Bonds, redemption premium, if any,
and interest thereon do not constitute a charge, lien or
encumbrance, legal or equitable, upon any property in the City,
and the agreement of the City to perform to cause performance
of the covenants and other provisions contained in the Bonds,
the Trust Indenture and the Loan Agreement shall be subject at
all times to the availability of proceeds, income, repayments
or other funds furnished for such purpose an accordance with
the Loan Agreement and the Trust Indenture, sufficient to pay
all costs of such performance or the enforcement thereof.
SECTION 3: The forms of the proposed Bonds, the Trust
Indenture, the Loan Agreement, the Construction Fund Trust
Agreement and the Bond Purchase Agreement and exhibits thereto
are hereby approved in substantially the forms presented to the
City Council at this meeting, with such changes thereto or
changes therein as recommended or approved by bond counsel to
the City. The Mayor, City Manager or such other officer of the
City acting on their behalf are authorized and directed to
execute, acknowledge and deliver by manual facsimile signature,
the City Clerk of the City to attest the seal of the City to be
affixed thereon, the Trust Indenture, Bond Purchase Agreement,
the Construction Fund Trust Agreement and the Loan Agreement in
the name of and on behalf of the City and such other documents
as bond counsel shall consider appropriate in connection with
the issuance of the Bonds and such of the documents, agreements
and instruments as are necessary in the opinion of bond counsel
to be executed on behalf of the City by the appropriate
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official or staff person of the City to consummate the
transaction contemplated hereunder, including, but not limited
to, the City Attorney and the Redevelopment Administrator of
the City.
SECTION 4: The firm of Stradling, Yocca, Carlson &
Rauth, a Professional Corporation, is appointed Bond Counsel at
a fee of $25,000.00, plus out-of-pocket expenses; the fee is to
be paid by the Developer or from the proceeds of the bond issue
and the City does not assume any liability for the payment
thereof.
SECTION 5: This Resolution of issuance shall take
effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED at a special meeting of the
City Council of the City of Bakersfield held on the 28th day of
December, 1983, by the following vote, to-wit:
AYES: Couneilmen; Barton, Christensen,
Rockoff, Moore
NOES: none
Childs, Payne
ABSENT: Councilman: Ratty
ABSTAIN: none
ATTEST:
CITY OF BAKERSFr_E~,D
APPROVED AS TO FORM:
C~~ttorne~~y-
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