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HomeMy WebLinkAboutResolution No. 6649 (Mervyns Revenue Bonds)RESOLUTION NO. 6649 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL CONCERNING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR MERVYN'S DEPARTMENT STORE 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, Mervyn's Department Store (the "Participating Party") has requested the financial assistance of the City in connection with the construction of a department store in the City known as Mervyn's (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: oc RESOLUTION NO. 6649 Section 1. The City Council of the City finds and deter- mines that the financing of the Facility will be in furtherance of the public purposes set forth in the Ordinance by promoting 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 con- sumer 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 $8,000,000 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 Ctiy shall be pledged to the payment of the principal of or premium, if any, or interest on the Bonds. :W= RESOLUTION NO. 6649 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 S. 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 immediately upon its passage. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regu- larly introduced and adopted at a regular meeting of the Council of said City on Monday , the 3rd day of October 1983, by the following vote, to wit: AYES: COUNCILMEMBERS Breiner, Frugoli, Jensen & Acting Mayor Miskimen NOES: COUNCILMEMBERS None ABSENT: COUNCILMEMBERS:Mayor Mulryan JYEfA�NNNNE M. LEON I, City Clerk B REGIN A. B ��UC ANA., Deputy City Clerk - 3- ITS OF SAN RAFAEL '400 FIFTH AVENUE. P 0 BOX 60, SAN RAFAEL ALIFORNIA 94915-0060 PHONE (415) 456-1112 IJ Ay •W0AFNCE E A1ULR1 AN lAINr LMEMBERS Ls WO T H. L BNONFR FRUGOLI 14 If JF NSEN October 3, 1983 Mr. Arthur J. Smith, Assistant Treasurer Dayton -Hudson Corporation 777 Nicollet Mall Minneapolis, Minnesota 55402 Re: City of San Rafael Economic Development Revenue Bonds - Meryvn's Department Store 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 Mervyn's Department Store. By signing and returning the enclosed copy of this letter, you hereby agree to the following on behalf of The San Rafael Plaza (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 disburse- ments of bond counsel, fees and disbursements 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. Id 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 preparation of any studies, reports or other docu- ments 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. Mr. Arthur J. Sm n Page 2 October 3, 1983 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 proceeds 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, I el ROBERT r `- ROBERT F . BEYER City Manager CITY OF SAN RAFAEL ON CONFIRMED AND ACCEPTED: Dated: 33 B/26