HomeMy WebLinkAbout1998-003 SAFA SANTA ANA FINANCING AUTHORITY
RESOLUTION NO. 98-003
RESOLUTION AUTHORIZING ISSUANCE OF REVENUE BONDS,
APPROVING, AND AUTHORIZING AND DIRECTING EXECUTION OF
CERTAIN BOND FINANCING DOCUMENTS AND AUTHORIZING
AND DIRECTING ACTIONS WITH RESPECT THERETO
RESOLVED, by the Board of Directors (the "Board") of the Santa Ana Financing
Authority (the "Authority"), as follows:
WHEREAS, the Community Redevelopment Agency of the City of Santa Ana (the
"Agency") has issued its Community Redevelopment Agency of the City of Santa Ana City of
Santa Ana Redevelopment Project 1989 Tax Allocation Refunding Bonds (MainPlace Project)
(the "Agency Bonds"), and the Agency has determined that it is in the best financial interests of
the Agency to provide for the refinancing of the Agency Bonds at this time; and
WHEREAS, in order to refinance the Agency Bonds on advantageous terms and
conditions, the Authority proposes to issue its revenue bonds (the "Bonds") and to use the
proceeds of the Bonds to purchase the Agency Bonds in lieu of the redemption of the Agency
Bonds; and
WHEREAS, the refinancing program will result in substantial interest rate savings to the
Agency; and
WHEREAS, the Board wishes at this time to authorize all proceedings on the part of the
Authority related to the issuance of the Bonds and the purchase of the Agency Bonds, and to
approve the execution and delivery by the Authority of all agreements and documents to which
it is a party relating thereto; and
WHEREAS, a Preliminary Official Statement containing information material to the
offering and sale of the Bonds has been prepared and is on file with the Secretary; and
WHEREAS, the other documents listed below are also on tile with the Secretary, and the
Board, with the assistance of Agency Staff and consultants, has reviewed said documents and
now desires to approve them so that the refinancing program can be consummated.
NOW, THEREFORE, it is hereby DECLARED, ORDERED and DETERMINED as
follows:
Section 1. Findings and Determinations. Pursuant to Article 4 (commencing with Section
6584) of Chapter 5 of Division 7 of Title 1 of the California Government Code (the "Bond
Law"), the Board hereby finds and determines that the issuance of the Bonds will result in
savings in effective interest rates, bond underwriting costs and bond issuance costs and thereby
result in significant public benefits to the Agency and the Authority within the contemplation of
Section 6586 of the Bond Law.
Section 2. Issuance of Bonds; Approval of Indenture. The Board hereby authorizes the
issuance of the Bonds under and pursuant to the Bond Law, in the maximum principal amount
of $24,000,000. The Bonds shall be issued pursuant to an Indenture of Trust dated as of
September 1, 1998 (the "Indenture") by arid between the Authority and Dai-Ichi Kangyo Bank
of California, as trustee (the "Trustee"). The Board hereby approves the Indenture in the form
on file with the Secretary, together with any changes therein or additions thereto approved by
the official of the Authority executing the Indenture, and the execution thereof by the Authority
shall be conclusive evidence of the approval of any such changes or additions The Board
hereby authorizes and directs the Chairman, the Executive Director or the Treasurer, each acting
alone, to execute, and the Secretary to attest and affix the seal of the Authority to, the final
form of the Indenture for and in the name of the Authority. The Board of Directors hereby
authorizes the delivery and performance by the Authority of the Indenture.
Section 3. Purchase of Agency Bonds. The Board hereby authorizes and approves the
purchase of the Agency Bonds from the Agency by the Trustee on behalf of the Authority
pursuant to and in accordance with the provisions of the Assignment Agreement by and among
the Agency, the Authority and the Trustee (the "Assignment Agreement"). The Board hereby
approves the Assignment Agreement in the form on file with the Secretary, together with any
changes therein or additions thereto deemed advisable by the official of the Authority executing
the Assignment Agreement, and the execution thereof by the Authority shall be conclusive
evidence of the approval of any such changes or additions. The Board hereby authorizes and
directs the Chairman, the Executive Director or the Treasurer, each acting alone, to execute, and
the Secretary to attest and affix the seal of the Authority to, the final form of the Assignment
Agreement for and in the name of the Authority. The Board hereby authorizes the delivery and
performance by the Authority of the Assignment Agreement.
Section 4. Sale of Bonds. The Board hereby approves the sale of the Bonds by
negotiation with Stone & Youngberg LLC (the "Underwriter"). The Bonds shall be sold
pursuant to a Purchase Agreement (the "Bond Purchase Agreement") by and between the
Authority and the Underwriter in the form on file with the Secretary, together with any changes
therein or additions thereto approved by the official of the Authority executing the Purchase
Agreement, whose execution thereof shall be conclusive evidence of his approval of any such
additions and changes. The Bond Purchase Agreement shall be executed in the name and on
behalf of the Authority by the Chairman, the Executive Director or the Treasurer, each acting
alone, upon submission of a proposal by the Underwriter to purchase the Bonds; provided,
however, that such proposal is acceptable to such official and is consistent with the
requirements of this Resolution. The amount of Underwriter's discount (without regard to any
original issue discount) shall be not more than one and seventy one-hundredths percent (1.70%)
of the par amount of the Bonds, and the net interest cost of the Bonds shall not exceed six and
one-half percent (6.50%) per annum.
Section 5. Approval of Related Documents. The Continuing Disclosure Certificate by
the Authority and as acknowledged by the Trustee, be and are hereby approved, and the
Chairman, the Executive Director or the Treasurer is hereby authorized and directed to execute
and deliver, for and on behalf of the Authority, said document in the form on file with the
Secretary together with such changes, insertions or deletions as may be approved by the official
executing such document upon consultation with the Authority's general counsel and Bond
Counsel, the approval thereof to be conclusively evidenced by the execution and delivery by the
Authority of the Continuing Disclosure Certificate. The Secretary is hereby authorized and
directed to attest such official's signature to such document.
Section 6. Preliminary Official Statement. The Authority hereby approves the
Preliminary Official Statement describing the financing in the form on file with the Secretary,
together with any changes therein or additions thereto deemed advisable by the Chairman, the
Executive Director or the Treasurer. The Authority authorizes and directs the Chairman, the
Executive Director or the Treasurer, on behalf of the Authority to deem "final" pursuant to Rule
15c2-12 under the Securities Exchange Act of 1934, the information relating to the Authority,
the Bond Law, the documents herein approved and the Bonds in the Preliminary Official
Statement prior to its distribution to prospective investors.
Section 7. Final Official Statement. The Chairman, the Executive Director or the
Treasurer, is authorized and directed to cause the Preliminary Official Statement to be brought
into the form of a final official statement (the "Final Official Statement") and to execute said
Final Official Statement, and a statement that the information relating to the Authority, the
Bond Law, the documents herein approved and the Bonds contained in the Final Official
Statement, and any supplement or amendment thereto (which shall be deemed an original part
thereof for the purpose of such statement ) were, at the time of sale of the Bonds, true and
correct in all material respects and that the Final Official Statement did not, on the date of sale
of the Bonds, and does not, as of the date of delivery of the Bonds, contain any untrue
statement of a material fact with respect to the information relating to the Authority, the Bond
Law, the documents herein approved and the Bonds or omit to state material facts with respect
thereto required to be stated where necessary to make any statements made therein not
misleading in the light of the circumstances under which they were made. The Chairman, the
Executive Director or the Treasurer shall take such further actions prior to the signing of the
Final Official Statement as are deemed necessary or appropriate to verify the accuracy thereof.
The execution of the Final Official Statement, which shall include such changes and additions
thereto deemed advisable by the Chairman, the Executive Director or the Treasurer, shall be
conclusive evidence of the approval of the Final Official Statement by the Authority.
The Final Official Statement, when prepared, is approved for distribution in connection
with the offering and sale of the Bonds.
Section 8. Appointment of Financial Advisor. The firm of Evensen Dodge, Inc., is hereby
appointed as Financial Advisor to the Authority in connection with the Bonds, and the Board
hereby authorizes the Executive Director or the Treasurer to execute, and the Secretary to attest,
an agreement for financial advisor services with said firm in a form acceptable to the officer of
the Authority executing such agreement.
Section 9. Appointment of Trustee. Dai-Ichi Kangyo Bank of California is hereby
designated as Trustee for the Bonds, and the Board hereby authorizes the Executive Director or
the Treasurer to execute, and the Secretary to attest, an agreement for Trustee services in a form
acceptable to the Treasurer.
Section 10. Appointment of Bond Counsel. The firm of Quint & Thimmig LLP is hereby
appointed as Bond Counsel in connection with the Bonds, and the Board hereby authorizes the
Executive Director or the Treasurer to execute, and the Secretary to attest, an agreement for
legal services with said firm in a form acceptable to Authority Counsel.
Section 11. Official Actions. The Chairman, the Executive Director, the Treasurer, the
Secretary, the Authority Counsel and any and all other officers of the Authority are hereby
authorized and directed, for and in the name and on behalf of the Authority, to do any and all
things and take any and all actions, including execution and delivery of any and all
assignments, certificates, requisitions, agreements notices, consents, instruments of conveyance,
warrants and other documents, which they, or any of them, may deem necessary or advisable in
order to consummate the issuance and sale of the Bonds and any of the other transactions
contemplated by the documents approved pursuant to this Resolution. Whenever in this
Resolution any officer of the Authority is authorized to execute or countersign any document or
take any action, such execution, countersigning or action may be taken on behalf of such officer
by any person designated by such officer to act on his or her behalf in the case such officer shall
be absent or unavailable.
Section 12. Effective Date. This Resolution shall take effect upon its adoption by the
Board.
PASSED, APPROVED AND ADOPTED this 17th day of August, 1998.
Santa An~aCFihnaianr~ian~ Authority
APPROVED AS TO FORM:
/~t ~ounsel to, the Authority
I, the undersigned Secretary of the Santa Ana Financing Authority, hereby certify that
the foregoing is a full, true and correct copy of a resolution duly adopted by the Board of
Directors of the Authority at a meeting thereof on the 17th day of August, 1998, by the
following vote of the members thereof:
AYES: Franklin, Lutz, McGuigan
NOES: None
ABSTAIN: Pulido
ABSENT: Espinoza, Moreno,
19022,02:J3909
8/5/98
Richardson
By //-/