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HomeMy WebLinkAbout2000-006 - Santa Ana Empowerment Zone Ceiling for Private Activity Bonds19 RESOLUTION NO. 2000-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TRANSFERRING A PORTION OF THE SANTA ANA EMPOWERMENT ZONE CEILING FOR PRIVATE ACTIVITY BONDS NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA: Section 1: The City Council hereby finds, determines and declares as follows: A. Pursuant to the Taxpayer's Relief Act of 1997 (the "Act"), the federal government has designated a portion of the City of Santa Ana ("City") as an urban empowerment zone (the "Santa Ana Empowerment Zone"). B Pursuant to the Act, among the tax incentives conferred upon the City is the ability to issue up to $130 million in tax-exempt enterprise zone facility bonds (the "Empowerment Zone Ceiling") to make loans to qualifying business borrowers to finance the cost of certain commercial, retail, industrial or other facilities qualifying as "enterprise zone facilities" as that term is defined in Section 1394 of the Internal Revenue Code of 1986, as amended (the "Code"). C. No portion of the City's Empowerment Zone Ceiling has been used as of the date of this Resolution. D. The City has received an application (the "Application") from the Gold Coast Baking Company, Inc. (the "Applicant") requesting the City to assist in the financing of the rehabilitation of the real property located in the Santa Aha Empowerment Zone and identified as 1590-B East St. Gertrude Place, Santa Ana, California 92705-5310 (the "Property"), and the acquisition and installation of certain manufacturing equipment at the Property to produce and distribute various bread products or for the production of other tangible personal property (collectively, the "Project") for the benefit of the Applicant and/or a related entity (the "Borrower"). E. The Applicant has requested that the City designate the California Infrastructure and Economic Development Bank, an entity within the Trade and Commerce Agency of the State (the "Issuer"), as an issuer of a portion of the City's Empowerment Zone Ceiling for the purpose of issuing bonds or other obligations (the "Bonds") to finance the Project for the benefit of the Borrower. F. 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, 2000-006 Page 1 of 3 2O G The City Council in evaluating the Project has relied upon the written facts and information represented in the Application by the Applicant, the Request For Council Action, and any public comments made before the City Council. H. It appears appropriate for the City Council to designate the Issuer as an issuer of a portion of the City's Empowerment Zone Ceiling in order to benefit the Project as described in the Application. I. The Board of Directors of the Santa Ana Empowerment Corporation, at its regular meeting of January 26, 1999, did unanimously recommend to the City Council that it approve the Application. 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 Issuer is hereby designated as an issuer of Bonds in an amount of the City's Empowerment Zone Ceiling equal to Five Million Dollars ($5,000,000.00) for the benefit of Borrower (the "Allocation"). Such Allocation may only be used by the Issuer for the issuance of the Bonds 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 Issuer 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 Issuer, the Allocation designated to the Issuer herein shall automatically revert to the City unless the Issuer has issued Bonds for the Project by the close of business on June 30, 2000. Section 5. The Issuer shall notify the City Council in writing within fifteen (15) days of the bond closing that the financing is complete and reporting the exact amount of Bonds issued. Any difference between the amount of Bonds issued and the amount of the Allocation designated in Section 2 shall automatically revert to the City. If at any time prior to June 30, 2000, the Issuer determines that all or part of the Allocation designated to the Issuer in Section 3 will not be used to issue the Bonds by that date, the Issuer shall take prompt action by resolution of its governing board and return such unneeded Allocation to the City. Section 6. The City Clerk is authorized and directed to transmit a copy of this Resolution to the Issuer together with a request that the Issuer retain a copy of this Resolution in the Issuer's official records. Resolution No. 2000-006 Page 2 of 3 21 ADOPTED this 7~ day of February, 2000. A'I-DEST: 15atdcia E. Healy Clerk of the Council COUNCILMEMBERS: Pulido Aye Lutz Aye Bist Aye Chdsty A_y_~ Franklin Abstained McGuigan Aye Moreno Aye APPROVED AS TO FORM: Joseph W. Fletcher City Attorney ~sns'~i sKtaaUnft~~~Aff/° r n' ey CERTIFICATE OF ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby certify the attached Resolution No. 2000-006 to be the original resolution adopted by the City Council of the City of Santa Ana on February 7, 2000. Clerk of the Council City of Santa Ana Resolution No, 2000-006 Page 3 of 3