HomeMy WebLinkAbout2010-060 - Tax Allocation Bonds the Community Redevelopment AgencyJF 12/1/10
RESOLUTION NO. 2010-060
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
ANA APPROVING THE ISSUANCE AND SALE OF TAX ALLOCATION
BONDS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF SANTA ANA TO FINANCE AND REFINANCE
REDEVELOPMENT ACTIVITIES WITHIN OR FOR THE BENEFIT OF
THE AGENCY'S MERGED PROJECT AREA
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. the Community Redevelopment Agency of the City of Santa Ana (the
"Agency") is a public body, corporate and politic, duly established and
authorized to transact business and exercise powers under and pursuant
to the provisions of the Community Redevelopment Law of the State of
California, constituting Part 1 of Division 24 of the California Health and
Safety Code (the "Law"), including the power to issue 2010 Bonds for any
of its corporate purposes
B. the Agency adopted six redevelopment project areas between 1973 and
1989, including the Central City Redevelopment Project Area, the Inter-
City Commuter Station Redevelopment Project Area, the North Harbor
Boulevard Redevelopment Project Area, the South Harbor
Boulevard/Fairview Street Redevelopment Project Area, the South Main
Redevelopment Project Area, and the Bristol Corridor Redevelopment
Project Area (the "constituent Redevelopment Projects" or
"Redevelopment Projects");;
C. to allow tax increment revenues to be shared between Redevelopment
Projects and thereby facilitate redevelopment of the Redevelopment
Projects, the Redevelopment Projects were merged in 2004 in compliance
with all requirements of the Law, creating the Merged Project Area; and
D. the Redevelopment Projects continue to retain their respective
boundaries, time, and financial limits;;
Resolution No. 2010-060
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E. the Agency has determined that, due to financial conditions of the Agency
and prevailing financial market conditions, it is in the best interests of the
Agency at this time to finance and refinance redevelopment activities for
the benefit of the Redevelopment Projects and, in particular, to:
(a) refund, on a current basis, the outstanding Santa Ana Financing
Authority Refunding Revenue Bonds, 1998 Series A (City of Santa Ana
and South Harbor Boulevard/Fairview Street Redevelopment Projects)
(the "1998A Bonds"),
(b) refund, on a current basis, the outstanding Santa Ana Financing
Authority Refunding Revenue Bonds, 1998 Series B (City of Santa Ana
and South Harbor Boulevard/Fairvie w Street Redevelopment Projects)
(the "19988 Bonds"),
(c) refund, on a current basis, the outstanding Santa Ana Financing
Authority Refunding Revenue Bonds, 1998 Series C (Inter-City Commuter
Station Redevelopment Project) (the " 1998C Bonds"),
(d) refund, on a current basis, the outstanding Santa Ana Financing
Authority Refunding Revenue Bonds, 1998 Series D (MainPlace Project)
(the "1998D Bonds" and, with the 1998A Bonds, the 1998B Bonds and the
1998C Bonds, the "1998 Bonds"), and
(e) finance certain public parking and infrastructure improvements (the
"2010 Project");
F. to provide moneys to refund the 1998 Bonds and, if for any reason the
Agency ' is unable to issue or determines not to issue the 2010B Bonds
(hereinafter defined), to finance the 2010 Project, the Agency has
determined to issue its Community Redevelopment Agency of the City of
Santa Ana Tax Allocation Bonds (Merged Project Area), 2010 Series A, in
the aggregate principal amount of not to exceed $75,000,000 (the "2010A
Bonds"), under the provisions of Article 9 of Chapter 3 (commencing with
section 53570) of Division 2 of Title 5 of the California Government Code
and, if the 2010A Bonds include provision for the 2010 Project, under the
provisions of Part 1 of Division 24 of the California Health and Safety
Code, commencing with section 33640 of said Code;
G. the American Recovery and Reinvestment Act of 2009 (the "Federal
Stimulus Act"), added sections 14000-1 and 14000-2 to the Internal
Revenue Code of 1986 (the "Code"), authorizing state and local
governmental agencies to issue recovery zone economic development
bonds ("Recovery Zone Economic Development Bonds") upon compliance
with various requirements of the Code;
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H. among other requirements, the Code requires that the net proceeds of any
Recovery Zone Economic Development Bonds be used for a "qualified
economic development purpose," including to fund capital expenditures
paid or incurred with respect to property located in a "recovery zone;"
on August 17, 2009, the City Council of the City of Santa Ana (the "City")
adopted Resolution No. 2009-046, designating the City as a "recovery
zone" (the "Santa Ana Recovery Zone") for purposes of section 14000-
1(b) of the Code;
under the Federal Stimulus Act, the City has been allocated the authority
to issue up to $5,872,000 principal amount of Recovery Zone Economic
Development Bonds;
K. to finance the 2010 Project, which will promote development or other
economic activity in the Santa Ana Recovery Zone, as contemplated by
section 14000-2(c) of the Code, the Agency has determined to issue its
Community Redevelopment Agency of the City of Santa Ana Tax
Allocation Bonds (Merged Project Area-Taxable Recovery Zone
Economic Development Bonds), 2010 Series B, in the aggregate principal
amount of not to exceed $5,870,000 (the "201013 Bonds" and, with the
2010A Bonds, the "2010 Bonds"), under the provisions of the
Redevelopment Bond Law;
L. the 2010B Bonds will be issued as bonds the interest on which is not
excluded from gross income for purposes of federal income taxation;
M. the Agency expects to receive a cash subsidy payment from the United
States Treasury equal to 45% of the interest payable on the 2010B Bonds;
N. the 2010 Bonds will be secured by a pledge of and lien on certain tax
increment revenues allocated to the Agency for the Redevelopment
Projects; and
0. in accordance with the requirements of section 33640 of the California
Health and Safety Code, the City Council wishes at this time to approve
the issuance and sale of the 2010 Bonds by the Agency;
SECTION 2. Approval of the 2010 Bonds. The issuance and sale of the 2010
Bonds by the Agency to refund the 1998 Bonds and to finance the 2010 Project, is
hereby approved.
Resolution No. 2010-060
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SECTION 3. Effect. This Resolution shall take effect from and after the date of its
passage and adoption.
ADOPTED this 6th day of December 2010.
APPROVED AS TO FORM:
(Q?
Y
'4 ph . Fletcher
rity torney
Miguel A. Pulido
Mayor
YES: Councilmembers: Alvarez, Benavides, Bustamante, Tinajero
Sarmiento (5)
NOES: Councilmembers: None (0)
ABSTAIN: Councilmembers: None (0)
NOT PRESENT: Councilmembers: Martinez, Pulido 2
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUISAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2010-060 to be the original resolution adopted by the City Council of the
City of Santa Ana on December 6, 2010.
Date:
Clerk of the Council
City of Santa Ana
Resolution No. 2010-060
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