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:
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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