HomeMy WebLinkAboutReso RDA 03-2006
RESOLUTION NO. 03-2006
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE ISSUANCE, SALE
AND DELIVERY OF TAX ALLOCATION BONDS,
AUTHORIZING THE EXECUTION AND DELIVERY OF
RELATED DOCUMENTS, AND APPROVING ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the Redevelopment Agency of the City of South San Francisco (the
"Agency") has adopted redeveloPlnent plans for the Gateway, EI Camino Corridor,
Downtown/Central and U.S. Steel/Shearwater Project Areas (the "Constituent Project Areas")
under Part 1 of Division 24 of the Health and Safety Code of the State of California (the
"Redevelopment Law"); and
WHEREAS, the Redeveloplnent Law, and particularly Chapter 6 thereof, authorizes
redevelopment agencies to incur indebtedness for any of their corporate purposes; and
WHEREAS, in order to finance various redeveloplnent projects in the Downtown/Central
Redeveloplnent Project Area, the Agency issued its $11,590,000 aggregate principal amount of
Redevelopment Agency of the City of South San Francisco Downtown/Central Redevelopment
Project 1997 Tax Allocation Bonds (the "1997 Downtown/Central Bonds"); and
WHEREAS, in order to finance various redevelopment projects in the Gateway
Redeveloplnent Project Area, the Agency issued its $28,045,000 aggregate principal mnount of
Redevelopment Agency of the City of South San Francisco 1999 Tax Allocation Bonds, Series A
(Gateway Redevelopment Project) (the "1999 Gateway Bonds"); and
WHEREAS, the City of South San Francisco CapitallInprovements Financing Authority
(the "Authority") issued its 1999 Revenue Bonds, Series A (South San Francisco Redevelopment
Projects) in the aggregate principal amount of $31,720,000 (the "1999 Authority Bonds")
pursuant to an Indenture of Trust (the "1999 Authority Indenture"), dated as of February 1, 1999,
between the Authority and The Bank of New York Trust COlnpany, N.A., as successor to U.S.
Bank National Association (the "1999 Trustee"); and
WHEREAS, $28,045,000 of the proceeds of the 1999 Authority Bonds were used to
purchase the 1999 Gateway Bonds, and $3,675,000 of the proceeds of the 1999 Authority Bonds
were used to purchase the Agency's $3,675,000 1999 Tax Allocation Bonds, Series B (Housing
Set-Aside Tax Revenues) (the "1999 Housing Set-Aside Bonds"); and
WHEREAS, attached as Exhibit B to the 1999 Authority Indenture is the mnortization
schedule for the 1999 Gateway Bonds and the 1999 Housing Set-Aside Bonds, and the 1999
Authority Bonds shown as maturing (or subject to mandatory redelnption) under the colulnn
"Gateway Bonds" in said Exhibit B are referred to herein as the "Refunded 1999 Authority
Bonds"; and
WHEREAS, the Agency has determined to refund and defease the 1997
Downtown/Central Bonds and the 1999 Gateway Bonds, but not the 1999 Housing Set-Aside
Bonds; and
WHEREAS, the refunding and defeasance of the 1999 Gateway Bonds will refund and
defease the Refunded 1999 Authority Bonds; and
WHEREAS, the 1999 Gateway Bonds and the Refunded 1999 Authority Bonds are
referred to herein as the "Prior Gateway Bonds", and the Prior Gateway Bonds and the 1997
Downtown/Central Bonds are referred to herein as the "Prior Bonds"; and
WHEREAS, effective June 30, 2005, the Agency caused the Constituent Project Areas to
be fiscally lnerged, as pennitted by the Redeveloplnent Law, such areas, subsequent to such
fiscallnerger, being referred to herein as the "Merged Project Area";
WHEREAS, the Agency hereby finds and declares that it is necessary, essential and a
public purpose for the Agency to issue tax allocation bonds of the Agency (the "Bonds", as
herein defined) to refund the Prior Bonds, and to finance various redeveloplnent activities in the
Merged Project Area in the City of South San Francisco (the "City"), and has detennined to
borrow lnoney for such purpose by the issuance of tax allocation bonds, as authorized by the
Redeveloplnent Law; and
WHEREAS, Jones Hall, A Professional Law Corporation, as disclosure counsel to the
Agency, has caused to be prepared a fonn of the Official Statelnent for the Series A Bonds (the
"Official Statelnent"), the fonn of which is on file with the Secretary; and
WHEREAS, the Agency, with the aid of its staff, has reviewed the Official Statelnent,
and the Agency wishes at this time to approve such documents in the public interests of the
Agency; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to
have been perfonned precedent to and in the issuance of the Series A Bonds as contelnplated by
this resolution and the doculnents referred to herein exist, have happened and have been
perfonned in due tilne, form and lnanner as required by the laws of the State of California,
including the Redeveloplnent Law.
NOW, THEREFORE, BE IT RESOLVED by the Redeveloplnent Agency of the City of
South San Francisco as follows:
1. Recitals True and Correct. The Agency hereby finds and declares that the above
recitals are true and correct.
2. Approval of Issuance of Bonds. Pursuant to the Redeveloplnent Law and the
Indenture (as defined in Section 3), bonds of the Agency, designated as "Redeveloplnent Agency
of the City of South San Francisco Merged Redeveloplnent Project Tax Allocation Revenue
Bonds, Series 2006A (the "Series A Bonds") are hereby authorized to be issued, so long as the
aggregate principal mnount of the Series A Bonds does not exceed $80,000,000.
3. Approval of Indenture of Trust. The Indenture of Trust (the "Indenture") pursuant
to which the Series A Bonds are to be issued, between the Agency and The Bank of New York
Trust Company, N.A., as trustee (the "Trustee") in the fonn presented to this meeting, is hereby
approved. The Chair and the Executive Director (the "Designated Officers") are, and each of
them acting alone is, hereby authorized and directed, for and in the nmne and on behalf of the
Agency, to execute and deliver the Indenture, and the Secretary is hereby authorized and
directed, for and in the name and on behalf of the Agency, to attest the Designated Officer's
signature to the Indenture, in said form, together with such additions thereto or changes therein
as are recommended or approved by the Designated Officer, upon consultation with bond
counsel to the Agency, including such additions or changes as are necessary or advisable in
accordance with Section 6 hereof; provided that no additions or changes shall: (i) authorize an
aggregate principal mnount of Series A Bonds in excess of $80,000,000; or (ii) result in an
average interest rate on the Series A Bonds in excess of 5.5% per annUln. The approval of such
additions or changes shall be conclusively evidenced by the execution and delivery by the
Agency of the Indenture. The date, lnaturity dates, aggregate principal mnount, annual maturity
mnounts, interest rate or rates, interest paYlnent dates, denominations, form, registration
privileges, lnanner of execution, place of paYlnent, tenns of redelnption and other terms of the
Series A Bonds shall be as provided in the Indenture as finally executed.
4. Approval of Escrow Deposit and Trust Agreelnents. The Escrow Deposit and
Trust Agreelnents (the "Escrow Agreelnents") pursuant to which the Prior Bonds are to be
defeased and refunded, between the Agency, the Authority (in the case of the Escrow Deposit
and Trust Agreelnent for the Prior Gateway Bonds) and The Bank of New York Trust COlnpany,
N.A., as escrow bank (the "Escrow Bank") in the fonns presented to this lneeting, are hereby
approved. The Designated Officers are, and each of them acting alone is, hereby authorized and
directed, for and in the nmne and on behalf of the Agency, to execute and deliver the Escrow
Agreelnents, and the Secretary is hereby authorized and directed, for and in the nmne and on
behalf of the Agency, to attest the Designated Officer's signature to the Escrow Agreements, in
said fonns, together with such additions thereto or changes therein as are recolnmended or
approved by the Designated Officer, upon consultation with bond counsel to the Agency. The
approval of such additions or changes shall be conclusively evidenced by the execution and
delivery by the Agency of the Escrow Agreelnents.
5. Sale of the Bonds. The Agency hereby approves the sale of the Series A Bonds by
negotiation with the Underwriter. The Bond Purchase Agreelnent, by and mnong the Authority,
Citigroup Global Markets Inc. (the "Underwriter") and the Agency, pursuant to which the
Agency agrees to sell the Series A Bonds to the Authority, for re-sale to the Underwriter, and the
Underwriter agrees to purchase the Series A Bonds frOln the Authority, are hereby approved, and
the Designated Officers are hereby separately authorized and directed to execute said document,
with such changes, insertions and Olnissions as lnay be approved by such official, so long as: the
aggregate principal amount of the Series A Bonds does not exceed $80,000,000, so long as the
average interest rate on the Series A Bonds does not exceed 5.5% per annum; and so long as the
Underwriter's discount (exclusive of original issue discount) on the Series A Bonds does not
exceed .5%.
6. Approval of Official Statelnent. The Official Statelnent, in the fonn presented to
this meeting, is hereby approved. The Designated Officers are, and each of them acting alone is,
hereby authorized and directed, for and in the name and on behalf of the Agency, to execute the
Official Statelnent in said form, together with such additions thereto or changes therein as are
recolnmended or approved by the Designated Officer, upon consultation with disclosure counsel
and bond counsel to the Agency, the approval of such additions or changes to be conclusively
evidenced by the execution and delivery by the Agency of the Official Statement.
The Underwriter is hereby authorized and directed to distribute copies of the Official
Statement to persons who express an interest in the purchase of the Series A Bonds, and the
Underwriter is directed to deliver such copies to all actual purchasers of the Series A Bonds. The
Underwriter is hereby authorized and directed to distribute copies of the preliminary official
statement relating to the Series A Bonds. The Designated Officers are, and each of them acting
alone is, hereby authorized to execute a certificate to the effect that such preliminary official
statement and the Official Statement, as of their respective dates, are deemed final by the Agency
for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934, as mnended.
7. Continuing Disclosure. The Continuing Disclosure Certificate (the "Continuing
Disclosure Certificate") to be executed by the Agency and dated the date of issuance and delivery
of the Series A Bonds, as originally executed and as they may be mnended from time to time in
accordance with the tenns thereof, in the fonn presented to this meeting, is hereby approved. The
Designated Officers are, and each of them acting alone is, hereby authorized and directed, for and
in the nmne and on behalf of the Agency, to execute and deliver the Continuing Disclosure
Certificate, and the Secretary is hereby authorized and directed, for and in the nmne and on
behalf of the Agency, to attest the Designated Officer's signatures to the Continuing Disclosure
Certificate, in said fonn, together with such additions thereto or changes therein as are
recolnlnended or approved by the Designated Officer, upon consultation with bond counsel to the
Agency. The approval of such additions or changes shall be conclusively evidenced by the
execution and delivery by the Agency of the Continuing Disclosure Certificate. The Agency
represents that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate.
8. Municipal Bond Insurance~ Reserve Fund Surety. If the Designated Officers
detennine it to be in the best interests of the Agency, bond insurance and/or a reserve fund surety
bond shall be obtained with respect to all or a portion of the Series A Bonds. If bond insurance
and/or a reserve fund surety bond with respect to all or a portion of the Series A Bonds is
obtained, the Designated Officers are hereby authorized upon consultation with bond counsel to
the Agency, to Inake such changes to the documents approved by this Resolution as such
Designated Officers Inay approve as being in the best interests of the Agency and to enter into
any agreeInents or execute any certificates or other doculnents as required under the COInInihnent
for such bond insurance and/or reserve fund surety bond, such action to be conclusively
evidenced by the execution and delivery thereof.
9. Official Action. All actions heretofore taken by the officers and agents of the
Agency with respect to the preparation of the Official StateInent and the Indenture, and the sale
and issuance of the Series A Bonds, are hereby approved, confinned and ratified, and the proper
officers of the Agency, including the Designated Officers, are hereby authorized and directed, for
and in the nmne and on behalf of the Agency, to do any and all things and take any and all
actions and execute and deliver any and all certificates, agreeInents and other doculnents which
they, or any of theIn, may deeIn necessary or advisable in order to consummate the lawful
issuance and delivery of the Series A Bonds in accordance with this Resolution and resolutions
heretofore adopted by the Agency, including but not limited to those certificates, agreeInents and
other documents described in the Indenture and the other documents herein approved and any
certificates, agreeInents or documents as Inay be necessary to further the purpose hereof or
provide additional security for the Series A Bonds, but which shall not create any obligation or
liability of the Agency other than with respect to the tax revenues pledged as security for the
Bonds in the Indenture and assets derived frOln the proceeds of the Series A Bonds.
10. Effective Date. This resolution shall take effect imInediately upon its adoption.
*
*
*
*
*
I hereby certify that the foregoing resolution was regularly introduced and adopted at a
regular Ineeting of the Redevelopment Agency of the City of South San Francisco held on the
22nd day of February, 2006, by the following vote:
AYES:
Boardmembers Mark N. Addiego, Pedro Gonzalez and Karyl Matsumoto,
Vice Chairman Richard A. Garbarino and Chairman Joseph A. Femekes
NOES:
ABSTAIN:
ABSENT:
ATTEST: