2000-053 - Loan Agreement By and Among the Industrial Development Authority of the City of Santa Ana

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285 O. It is intended that this Resolution shall constitute the approval of the Project and the loan from the Lender to the Authority and the Loan to the Borrower required by Section 147(f) of the Code and Section 91530(f) of the Act. Section 2. This City Council hereby expresses its full support for the Project to be undertaken by the Borrower. The City Council finds and determines that the Project is vital to the City's business community and will provide significant public benefits to residents of the Santa Ana Empowerment Zone. Section 3. The Authority is hereby designated as an issuer in an amount of the City's Empowerment Zone Ceiling equal to Twelve Million Dollars ($12,000,000.00) for the benefit of Borrower (the "Allocation"). Such allocation may only be used by the Authority for the Project, as specifically described above and represented in the Application. Any modification of the Project may require reconsideration by the City Council before the Allocation may be used for the Project. The Authority is not authorized to transfer the Allocation set forth herein to any other governmental unit in the State except the City. Section 4. Unless the City has extended the date by which the Allocation must be used by the Authority, the Allocation designated to the Authority herein shall automatically revert to the City unless the Authority has used the Allocation for the Project by the close of business on September 30, 2000. Section 5. The City Council hereby approves the Project, subject to fulfillment of ail requirements under the Act, and approves the loan from the Lender to the Authority and the Loan to the Borrower, which loans shall be tax-exempt and in an amount not to exceed $12,000,000 to finance costs of the Project. The loan from the Lender to the Authority and the interest thereon shall be paid from revenues received by the Authority from the Borrower pursuant to the Loan Agreement. This resolution shall constitute both "host" and "issuer" approval of the loan from the Lender to the Authority and the Loan to the Borrower within the meaning of Section 147(f) of the Code and shall constitute the approval of the Project and the loan from the Lender to the Authority and the Loan to the Borrower within the meaning of Section 91530(f) of the Act. Section 6. All actions heretofore taken by the officers, employees and agents of the City with respect to the approval of the loan from the Lender to the Authority and the Loan to the Borrower are hereby approved, confirmed and ratified, and the officers and employees of the City and their authorized deputies and agents are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all certificates and documents which they or special counsel may deem necessary or advisable in order to consummate the transactions referred to herein and otherwise to effectuate the purposes of this Resolution. Resolution No. 2000-053 Page 3 of 4