2007-063 - Aprroving the Industrial Development Authority of the City of Santa Ana

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RESOLUTION NO. 2007-063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF SANTA ANA ENTERING INTO A LOAN IN A PRINCIPAL AMOUNT NOT TO EXCEED $2,500,000 AND LENDING THE PROCEEDS OF SUCH LOAN TO INGARDIA BROS. PRODUCE, INC., AND ALLOCATING AN AMOUNT NOT TO EXCEED $2,500,000 OF THE SANTA ANA EMPOWERMENT ZONE CEILING FOR PRIVATE ACTIVITY BONDS FOR THE BENEFIT OF THE PROJECT TO BE FINANCED PURSUANT TO SUCH LOAN. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council hereby finds, determines and declares as follows: A. Pursuant to the Taxpayer's Relief Act of 1997 (the "Taxpayer's Relief Act"), the federal government has designated a portion of the City of Santa Ana (the "City") as an empowerment zone (the "Santa Ana Empowerment Zone"). B. Pursuant to the Taxpayer's Relief Act, among the tax incentives conferred on the City is the ability to issue up to $130 million in tax-exempt empowerment zone facility bonds (the "Empowerment Zone Ceiling") to make a Loan to qualifying business borrowers to finance the cost of certain commercial, retail, industrial or other facilities qualifying as "empowerment zone facilities" as that term is defined in Section 1394 of the Internal Revenue Code of 1986, as amended (the "Code"). C. As of the date of this Resolution, the City has utilized only Twenty-One Million Seven Hundred Thousand Dollars ($21,700,000) of the City's Empowerment Zone Ceiling, not counting other actions taking place this same date. D. The Industrial Development Authority of the City of Santa Ana (the "Authority") has accepted an application (the "Application") from Ingardia Bros. Produce, Inc., or a related entity, as applicable (the "Applicant"), requesting the Authority to issue its revenue bond and enter into a loan agreement pursuant to the California Industrial Development Financing Act, being Title 10 of the California Government Code, as supplemented and amended (the "Act"), to finance the acquisition of and equipping of certain facilities comprising equipment (the "Project") to be owned and operated by the Applicant, or a related entity and to be located at the Applicant's facility at 700 South Hathaway in the City of Santa Ana; and E. The Applicant has represented in the Application certain facts and information concerning the Project and the Applicant, including but not limited to the requirement that, after a two year start up period, 35% of the Applicant's employees shall be residents of the Santa Ana Empowerment Zone. Resolution No. 2007-063 Page 1 of 4