HomeMy WebLinkAboutRES NO 136-83RESOLUTION NO. 136-~~
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BAKERSFIELD DECLARING ITS INTENT
TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE
BONDS IN CONNECTION WITH THE PROJECT OF
BAKERSFIELD HERITAGE HOTEL ASSOCIATES,
LTD. I.
WHEREAS, the City of Bakersfield (the "City") has full
legislative authority over municipal affairs pursuant to
California Constitution Article XI, Section 5(a), and the City
Charter; and
WHEREAS, the issuance of industrial development
revenue bonds on behalf of private, commercial entities for
economic development and the expansion of trade, commerce and
industry within the City, with resultant benefits to local
employment, constitutes a municipal affair; and
WHEREAS, by Ordinance No. 27~7 , the City Council has
adopted the City of Bakersfield economic development revenue
bond law ("Law") in order to promote economic development
within the City; and
WHEREAS, Aircoa, an Ohio corporation, has submitted a
request on behalf of Bakersfield Heritage Hotel Associates,
Ltd. I, a California limited partnership ("Company") for the
issuance by the City of industrial development bonds to provide
financing for construction by the Company of five stories
consisting of approximately 150 rooms of a ten-story hotel
project with adjacent restaurant and recreational facilities
generally located at the corner of Truxton Avenue and "Q"
Street in the City of Bakersfield ("Project"); and
WHEREAS, the City Council hereby finds that the
proposed Project, including related improvements, will promote
economic development within the City and encourage the
expansion of trade, commerce and industry, and lead to improved
employment opportunities within the City; and
WHEREAS, the City Council, as an inducement to the
Company to carry out the Project, desires to preliminarily
authorize and approve the issuance of bonds in an approximate
amount of $7,000,000 pursuant to the Law (the "Bonds"); and
WHEREAS, the City Council is the duly elected body
with the authority to approve the issuance of industrial
development Bonds and has held a duly noticed public hearing
with respect to the issuance of such Bonds to finance the
Project in accordance with Internal Revenue Code Section
103(k), as amended.
NOW, THEREFORE, the City Council of the City of
Bakersfield does hereby resolve as follows:
SECTION 1. In accordance with the Law, the City
Council hereby declares its present intention to issue the
Bonds and hereby approves the issuance of the Bonds on behalf
of the Company or some substitute successor or entity
acceptable to the City to finance the construction by or on
behalf of the Company or such substitute entity of the Project,
all as more fully described in the Company's request and in
accordance with the terms and provisions of this Resolution.
SECTION 2. The Bonds shall be issued in the
approximate, principal amount of $7,000,000. The Bonds shall
be for such term and shall bear interest at the rate or rates
to be determined prior to the sale of the Bonds.
SECTION 3. The Bonds shall be secured by the
Project and payments to be made by the Company in respect to
the Project, together with any additional security necessary to
insure the marketability of the Bonds.
SECTION 4. In no event shall the Bonds constitute a
pledge of the faith and credit of the City, the State of
California, or any political subdivision thereof, and the City
shall not be liable to make any appropriation for repayment of
the Bonds. The Bonds shall constitute a limited obligation to
the City repayable only out of the revenues provided for in the
loan agreement, trust indenture and Resolution of Issuance to
be provided for hereafter.
SECTION 5. The City presently intends to enter into
a loan agreement with the Company regarding the financing of
the Project; however, the actual issuance of the Bonds shall be
contingent upon the structuring and the issuance in a manner
satisfactory to the City, in the exercise of its sole
discretion. Bonds shall be issued only to the extent that, in
the opinion of bond counsel to the City, the interest on the
Bonds issued to finance the Project is exempt from federal
income taxation.
SECTION 6. It is the purpose and intent of the City
that this Resolution constitute official action towards the
issuance of obligations by the City for the Project in
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6684P/2160/04 -2-
accordance with the regulations and rulings promulgated by the
United States Department of Treasury under Section 103 of the
Internal Revenue Code of 1954, as amended, and that this
Resolution satisfy the public approval requirement set forth in
Section 103(k) of the Internal Revenue Code of 1954, as amended.
SECTION 7. The acceptance of the Company's request
to provide financing pursuant to the Law and this Resolution
shall not excuse or in any way affect the Company's obligation
to comply with all other requirements of state and local law
pertaining to the Project, including without limitation, the
California Environmental Quality Act of 1970, as amended, any
applicable zoning or building codes, or any other requirements
of law prerequisite to the accomplishment of the Project, nor
shall such acceptance by the City indicate any predispossession
of the City with respect to any other such local government
approvals which may be required in connection with the Project.
SECTION S. Whether any Bonds are issued or not, the
City shall not be put to any expense hereby and any and all
costs of this application shall be borne by the Company. The
Company shall indemnify and hold the City harmless from and
against any and all costs, expenses, claims, liabilities or
actions which may arise out of any nad all actions of the City
with respect to the provision of financing for the Project as
described in this Resolution.
PASSED, APPROVED, AND ADOPTED, this 15th day of
December, 1983, at a sDeci&l meeting of the City Council
of the City of Bakersfield by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor o f~he ~'~'~'-~-~~ ' '
CltV of Bake~s~leld
ATTEST:
Ass~s%an%.,~ity Clerk of the City of
Bakersfield
Approved as to form:
C/~Attorne~
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