HomeMy WebLinkAboutCC Resolution 7195 (Hilton Inn Hotel)RESOLUTION NO. 7195
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN RAFAEL CONCERNING THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS FOR HILTON INN HOTEL
WHEREAS, the City Council of the City of San Rafael (the
"City") has, by Ordinance No. 1441 (the "Ordinance") adopted by
the City Council on October 4, 1982, enacted the City of San
Rafael Economic Development Revenue Bond Law (the "Law"), constit-
uting Title 3, Chapter 3.30 of the Municipal Code of the City,
authorizing and establishing the procedure for economic development
purposes, and authorizing the appropriate officers of the City to
take any and all actions and execute and deliver any and all
agreements and documents necessary or advisable to consummate the
lawful issuance and delivery of the bonds authorized by the Law;
and
WHEREAS, G.O.S., a joint venture (the "Participating
Party") has requested the financial assistance of the City in
connection with the construction of a Hotel in the City (the
"Facility") and has presented to the City plans for the Facility;
and
WHEREAS, the City desires to assist the Participating
Party in the financing of the Facility; and
WHEREAS, the Participating Party requires satisfactory
assurance from the City that the proceeds of the sale of bonds of
the City will be made available to it to assist in the financing
of the Facility, and the City requires satisfactory assurance from
the Participating Party that certain costs of issuing such bonds
will be paid by the Participating Party.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of San Rafael, as follows:
Section 1. The City Council of the City finds and
determines that the financing of the Facility will be in further-
ance of the public purposes set forth in the Ordinance including
without limitation the promotion of full and gainful employment of
residents of the City, the full and efficient utilization and
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RESOLUTION NO. 7
modernization of existing industrial, commercial and business
facilities; and the growth of the City's tax base through increased
property values and consumer purchasing, and that it is necessary
and essential and a proper public purpose and that the Facility be
financed at the earliest practicable date.
Section 2. The City Council states its present intent
to issue, at one time or from time to time, economic development
revenue bonds of the City (the "Bonds") in an aggregate principal
amount not to exceed $2.317 Million or, upon transfer by the
County of Marin of its allocation of $7.3 Million (approx), a total
of $10 Million for the Participating Party to finance the Facility,
prior to commencing the preparation of the documentation for the
issuance of the Bonds, the City and the Participating Party shall
have entered into a letter agreement in substantially the form
attached hereto, with such additions or deletions as are considered
necessary or appropriate by officers of the City and the Partici-
pating Party. The City Clerk of the City is hereby directed to
transmit said letter agreement in substantially the form attached
hereto to the Participating Party, and the City Manager of the
City (or his deputy) is hereby authorized to execute said letter
agreement and all other necessary implementation documents for and
in the name and on behalf of the City.
Section 3. The Bonds shall be payable solely from the
revenues to be received by the City pursuant to loans or other
agreement(s) to be entered into by the City and the Participating
Party in connection with the financing of the Facility, and shall
not be deemed to constitute a debt or liability of the City under
any constitutional, charter or statutory debt limitation. Neither
the faith and credit nor the taxing power of the City shall be
pledged to the payment of the principal of or premium, if any, or
interest on the Bonds.
Section 4. Issuance of the Bonds shall be subject to
the following conditions: (a) the City and the Participating
Party shall have first agreed to mutually acceptable terms for the
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RESOLUTION NO. )5
Bonds and the sale and delivery thereof and mutually acceptable
terms and conditions for the loans or other agreement(s) for the
financing of the Facility; and (b) all requisite governmental
approvals shall have first been obtained, or if they cannot be
obtained, the Participating Party shall demonstrate to the satis-
faction of the City that any remaining approvals are expected to
be obtained.
Section 5. It is the purpose and intent of the City
that this Resolution constitute official action toward the issuance
of obligations by the City for the Facility in accordance with
Section 1.103-8(a)(5) (iii) of the Regulations promulgated by the
United States Department of the Treasury under Section 103 of the
Internal Revenue Code of 1954, as amended.
Section 6. This Resolution shall take effect immed-
iately upon its passage.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael,
hereby certify that the foregoing resolution was duly and regularly
introduced and adopted at a regular meeting of the Council of said
City on Monday , the 16th day of September , 1985, by the
following vote, to wit:
AYES: COUNCILMEMBERS: Frugoli, Nave, Russom & Vice -Mayor Breiner
NOES: COUNCILMEMBERS: None
ABSENT: COUNC ILMEA1BERS : Mayor Mulryan
22 A/22
JE M. LEOCNI,�ityrk
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,SAN RAFAEL
400 FIFTH AVENUE. P.O. BOX 60, SAN RAFAEL
;ALIFORNIA 94915-0060 PHONE: (415) 456-1112
AAYOR
LAWRENCE E. MULRYAN
�OUNCIL MEMBERS
DOROTHY L BREINER
GARY R FRUGOLI
RICHARD P NAVE
JERRY RUSSOM
G. O. S . September 16, 1985
c/o Robert M. Levy
Kuhn, Thomas & Levy
35 Mitchell Blvd.
San Rafael, Ca. 94903
Re: City of San Rafael Economic Development
Revenue Bonds
Dear Mr. Levy:
The purpose of this letter is to set forth certain
terms and conditions under which the City of San Rafael (the
"City") will issue its economic development revenue bonds
(the "Bonds") to assist you in the financing of the Hilton
Inn Hotel.
By signing and returning the enclosed copy of this
letter, you hereby agree to the following on behalf of G.O.S.
(the "Participating Party").
1. The Participating Party agrees to pay all costs
involved in the issuance of the Bonds, including
by way of example and not limitation, fees and
disbursements of bond counsel, fees and disburse-
ments of any financial consultant, underwriter
or other experts engaged by the Participating
Party or by the City in connection with the
issuance of the Bonds, direct and indirect expenses
of the City, its officers, employees or agents
in connection with the issuance of the Bonds,
bond printing and other printing costs, publication
costs and costs incurred in order to obtain ratings
for the Bonds. Such costs may be paid from
proceeds of the Bonds. In the event that Bonds
are not issued for any reason, the Participating
Party agrees that it will reimburse the City for
all such costs and this agreement shall thereupon
terminate.
COPY
Page -- 2
2. The Participating Party agrees to pay the cost
of preparation of any studies, reports or other
documents necessary to be prepared by or for the
City to comply with the California Environmental
Quality Act or necessary to obtain any other
governmental approvals.
3. The Participating Party agrees to pay any and
all costs incurred by the City in connection with
(a) any legal action challenging the validity
of the issuance of the Bonds or use of the pro-
ceeds thereof, and (b) any legal action approved
by the Participating Party and brought by or on
behalf of the City to validate either the Bonds
or the City of San Rafael Economic Development
Revenue Bond Law (the "Bond Law") under which
the Bonds are to be issued.
Subject to the Participating Party's approval of a
legal action to be brought by or on behalf of the City to
validate either the Bonds or the Bond Law, the City agrees
to proceed with the planning and preparation of the necessary
proceedings for the offering of the Bonds for sale to finance
the Facility. The Participating Party understands that this
letter agreement does not exempt it from any requirements
of the City, or any department or agency thereof or other
governmental body, that would apply in the absence of the
proposed Bond financing, and compliance with such requirements
is an express precondition to the issuance of the Bonds by
the City.
If the foregoing is satisfactory, kindly execute the
two copies of this letter and return one copy to me, in which
case this letter will constitute an agreement between us
effective as of the date first written above.
Very truly yours,
U TED
City
City
A. GAEBLER
Manager
of San Rafael
CONFIRM AND ACCEPTED
By: r '.,.4
Dated: