HomeMy WebLinkAboutResolution No. 6414 (El Marinero II Project Bonds)RESOLUTION NO. 6414
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN RAFAEL CONCERNING THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS FOR EQUIREAL DEVELOP-
MENT CORPORATION
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"), con-
stituting Title 3, Chapter 3.30 of the Municipal Code of the City,
authorizing and establishing the procedure for the sale and
issuance of revenue bonds by the City for the purpose of providing
financing to participating parties 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, EquiReal Development Corporation (the "Par-
ticipating Party") has requested the financial assistance of the
City in connection with the acquisition and construction of an
office building in the City known as E1 Marinero II Project (the
"Facility") and has presented to the City a general description of
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:
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'RESOLUTION NO. _14
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 by pro-
moting the full and gainful employment of residents of the City;
the full and efficient utilization and 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 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 $6,000,000 for the Participating Party to
finance the Facility; provided that, prior to commencing the
preparation of 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 Participating Party. The City
Clerk of the City is hereby directed to transmit said letter
agreement in substantially the form attached hereto to the Parti-
cipating 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.
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RESOLUTION NO. 6''4
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
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 Treasury under Section 103 of the
Internal Revenue Code of 1954, as amended.
Section 6. This Resolution shall take effect immedi-
ately 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 4th day of October 1982, by the
following vote, to wit:
AYES: COUNCILMEMBERS:Breiner, Frugoli, Jensen, Miskimen &
Mayor Mulryan
NOES: COUNCILMEMBERS:None
ABSENT: COUNCILMEMBERS:None
25 A/30
JE . LEONCINI, City Clerk
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CALIFORNIA 94915.0060 PHONE 1415) 456.1112
MAYOR
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October 4, 1.982
Mr. David L. Smith, President
EquiReal Development Corporation
801 12th Street
Sacramento, California 95819
Re: City of San Rafael Economic Development
Revenue Bonds
Dear. Mr. Smith:
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 an office buidling in the
City known as the E1 Marinero II Project (the "Facility").
By signing and returning the enclosed copy of this letter, you
hereby agree to the following on behalf of EquiReal Development
Corporation (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 dis-
bursements of any financial consultant, underwriter or other
experts engaged by the Participating .Party or by the City in con-
nection 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.
2. The Participating Party agrees to pay the cost of prepara-
tion of any studies, reports or other documents necessary to be
prepared by or for the City to comply with the California Environ-
mental Quality Act or necessary to obtain any other governmental
apprcivals.
Mr. David L. Smith
October •T, 1982
Page 2
3. The Participating Party agrees to
incurred by the City in connection with
challenging the validity of the issuance
the proceeds thereof, and (b) any legal
Participating Party and brought by or on
validate either thu Bonds or the City of
Development Revenue Bond Law (the "Lionel
Bonds are to be issued.
pay any: and all costs
(a) any legal action
of the Bonds or use of
action approved by the
behalf of the City to
San Rafael Economic
Law") under which the
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 plan-
ning and preparation of the necessary proceedings for the
offering of the Bonds foi 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 them to me, in which case this letter
will constitute an agreement between us effective as of the date
first written above.
Very truly yours,
J
R IIT I '' Y.
City Manager
CI'T'Y OF SAN il�F:11,L
RFBf1sd
cc: Robert P. Foyer
Orrick, Herrington & Sutcliffe
Jeanno Lconc in'i, City Clerk
CONFIRMED AND ACCEPTED:
By:
QUI REAL DEVELOPMENT COR1.,
Dated: /()h2