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MV: 2/6101
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RESOLUTION NO. 2001- 001
A RESOLUTION OF THE INDUSTRIAL DEVELOPMENT
AUTHORITY OF THE CITY OF SANTA ANA, MAKING
CERTAIN FINDINGS WITH RESPECT TO APPROVING
THE SALE OF REAL PROPERTY LOCATED AT 3130
WEST HARVARD STREET
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE INDUSTRIAL
DEVELOPMENT AUTHORITY OF THE CITY OF SANTA ANA AS FOLLOWS:
Section 1. The Board of Directors of the Industrial Development Authority
hereby finds, determines and declares as follows:
A. The Industrial Development Authority of the City of Santa Ana (the
"Authority") is authorized by Ordinance No. NS-1559, duly adopted by the
City of Santa Ana on January 5, 1981, to exercise powers of acquiring,
constructing, and/or rehabilitating facilities and to enter into agreements for
the same.
B.
By Resolution No. 83-10-IAD, duly adopted on December 19, 1983, and in
conformance with the California Industrial Development Financing Act
(Government Code Sections 91500 et ~.) the Authority issued Industrial
Development Revenue Bond (Rexnord Inc. "Project"), in the aggregate
principal amount of $1 ,500,000.00 (the "Bond").
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C. The Bond was issued under a Trust Indenture dated as of December 22,
1983, between the Authority and M & I Marshall & IIsley Bank, as trustee.
D. The Authority entered into a loan agreement dated as of December 22, 1983
(the "Loan Agreement") with Rexnord Inc., for the purpose of enabling it to
acquire, construct, equip., install, repair, reconstruct and/or rehabilitate
property located at 3130 West Harvard, Santa Ana, California. The Loan
Agreement and all right, title, and interest of the Authority in any payments or
revenues delivered under the Loan Agreement have been assigned and
pledged to the Trustee under the Trust Indenture, which secures the bond.
The Bond was purchased by Chemical Bank, New York, under the terms of
the Indenture.
E. The Industrial Development Authority consented to the assignment of the
Loan Agreement to Fairchild Fasteners / Rosan ("Fairchild"), as the
successor-in-interest to Rexnord Incorporated.
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F.
Fairchild is in the process of selling the Santa Ana property located at 3130
West Harvard, Santa Ana, California.
IDA Resolution No. 2001-001
Page 1 of 3
G.
Pursuant to section 6.10 of the Loan Agreement, the Authority and Trustee
must consent to the sale or lease of the Project and any and all of its rights
therein. Any such sale or lease shall not relieve Company of prirnary liability
for payrnents due under this agreement and of the performance of all other
obligations under this agreement.
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H. The Industrial Development Authority, acting as a fiduciary, in order to
assure repayment of all outstanding debt remaining on the Project,
conditions its consent to the sale of 3130 West Harvard, Santa Ana,
California, upon proper receipt of a signed agreement evidencing that
sufficient proceeds frorn the sale of the Santa Ana property acquired under
the Loan Agreement shall be placed in escrow with M & I Marshall & IIsey
Bank, the Trustee appointed under the Trust Indenture, to satisfy all debt
service created under the Loan Agreement and all debt service due for pre-
payment of said indebtedness. Consent to the sale shall be evidenced by
signature of Industrial Development Authority upon correspondence dated
January 4, 2001, from Karen L. Schneckenburger to Industrial Development
Authority.
Section 2: Pursuant to section 6.10 of the Loan Agreement, the Industrial
Development Authority hereby approves the sale of the property located at 3130 West
Harvard Street, Santa Ana, California. This approval is made contingent upon proper
receipt, in a form approved by the Authority's Executive Director and general counsel, of a
signed agreement evidencing that sufficient proceeds from the sale of the Santa Ana
property acquired under the Loan Agreement shall be placed in escrow with M & I
Marshall & llsey Bank, the Trustee appointed under the Trust Indenture, to satisfy all debt
service created under the Loan Agreement and all debt service due for pre-payment of
said indebtedness.
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Section 3: The Executive Director of the Industrial Development Authority of the
City of Santa Ana is hereby delegated the authority to approve in writing on behalf of the
Authority assignments or sale of real property, where other loan agreements issued by the
Authority require the Authority's approval of any assignment or sale. The Authority's
general counsel shall approve as to form any such sale or assignment.
Adopted this 5th day of Februarv, 2001.
ATTEST:
C'
Patricia E. Healy
Secretary
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IDA Resolution No. 2001-001
Page 2 of 3
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BOARDMEMBERS:
Pulido Ave
McGuigan Ave
Alvarez Ave
Bist Ave
Christy Ave
Franklin Ave
Solorio Ave
APPROVED AS TO FORM:
Joseph W. Fletcher, Authority Counsel
By:--1Y\J,,- V ',6.ll
Michael VigliOI~
Deputy Authority Counsel
CERTIFICATE OF ORIGINALITY
I, PATRICIA E. HEALY, Secretary of the Industrial Development Authority, do hereby
certify the attached IDA Resolution No. 2001-001 to be the original resolution adopted
by the Industrial Development Authority of the City of Santa Ana on Februarv 5. 2001.
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Date:
d-Y-tJ)
Secretary of the Industrial Developmen A thority
City of Santa Ana
IDA Resolution No. 2001-001
Page 3 of 3
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