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HomeMy WebLinkAbout92-007RESOLUTION NO. 92- 007 A RESOLUTION OF THIS CITY COUNCIL OF THE CITY OF SANTA ARA PROVIDING THAT PAYMENTS MADE BY THE CITY IN COHNECTION WITH THE PROPOSED POLICE ADMINISTRATION BUILDING AND HOLDING FACILITY ~APXTAL IMPROVEMENT PROJECT ARE TO BE MADE IN ANTICIPATION OF REIMBURSEMENT FROM THE PROCEEDS OF A PLANNED LEASE FXNAHCXR(3 WXTH CERTXFXCATES OF PARTXCXPATXON OR OTHER FINANCING MECHANISM TO BE ACCOMPLXEHED BY THE CITY AND AUTHORXZXNfl AHD DIRECTXRO CERTAIN ACTIONS WITH RESPECT THERETO WHEREAS, the City is proposing to proceed with a lease financing with certificates of participation or other financing mechanism (the 'Certificates'); and WHEREAS, in connection therewith, the city proposes to finance the construction of certain capital improvements, generally described in Exhibit attached hereto and by this reference incorporated herein (the 'Project") and wishes to assure that amounts expended for the Project may be reimbursed from the proceeds of the Certificates; and WHEBEAS, it is in the public interest, for public benefit and in furtherance of the public purposes of the City that the City Council provide preliminary approval of the lease financing for the aforesaid purposes; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA as follows: Section 1: The City hereby declares it intent to proceed with a lease financing with certificates of participation in a principal amount not to exceed $60,000,000 for the purpose of providing financing for the Project. Section 2: The City hereby declares its intent to use proceeds of the Certificates to pay for costs of the Project which are incurred after the date of delivery of the Certificates as well as to reimburse the city or others for amounts paid or incurred for the Project or the Certificates prior to delivery of the Certificates. Section 3: The City hereby determines that it will take all action necessary or advisable in connection with such lease financing and the execution and delivery of the Certificates. Section 4: The lease payments to be made by the City shall be general fund obligations and shall not constitute an indebtedness of the City or a loan of credit thereof within the meaning of any constitutional or statutory provisions. Section 5: The lease financing and the execution and delivery of the Certificates shall be upon such terms and condi- tions as may be subsequently determined by the City and shall be subject to completion of proceedings for execution, sale and delivery of the Certificates. Section 6: The proceeds of the Certificates shall include such related and necessary delivery costs, administrative expenses, debt service reserves and interest payments as may be required to accomplish the financing successfully. Section 7: The City Council hereby finds that the adoption of this resolution is a substantial inducement to the City and others to expend amounts Resolution No. 92- 007 Page two for the Project and the Certificates in advance of delivery of the Certificates and that the Project will further the public purposes of the City. ~gction 8: This Resolution is adopted solely for the purpose of assuring that the exclusion of interest paid with respect to the Certificates for federal income tax income purposes will not be adversely affected by reason of the use of proceeds of the Certificates for the reimbursement of costs paid or incurred in advance of delivery of the Certificates, and the action of the City Council in adopting this Resolution shall not vest in the City or in others a right to require reimbursement in the event that the City Council, in its sole discretion determines, in the course of proceedings for delivery of the Certificates, not to reimburse for costs paid or incurred in contemplation of delivery of the Certificates. ADOPTED this 21st ATTEST COUNCILMEMBERS __ day of January 1992. Mayor Young Aye Pulido ~ Acosta Aye Griset Ay~ McGuigan Norton ~ Richardson Ave APPROVED AS TO FORM: CERTIFICATE OF ORIGINALITY State of California County of Orange I, JANICE C. GUY, Clerk of the Council, do hereby certify the attached Resolution ~- o~.7 to be the original re~olution 2hhe city Council of the city of Santa Ana on of the Council, Date City of Santa Aha 113 EXHIBIT A GENEI~AL DESCRIPTION OF PROJECT The project consists of a police administration building of approximately 200,000 square feet and a holding facility of approximately 150,000 square feet, together with a secured 250- space police parking area. The project is to be located on an eight acre parcel bounded by Civic Center Drive, Shelton Street, Sixth Street and Flower Street, in the City of Santa Ana.