HomeMy WebLinkAboutCC RESO 14,736RESOLUTION NO. 14,736
A RESOLUTION APPROVING THE ISSUANCE AND SALE
OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF NATIONAL CITY $5,375,000 DOWNTOWN REDEVELOPMENT
PROJECT SUBORDINATED TAX ALLOCATION BONDS, SERIES A
WHEREAS, the Community Development Commission of the City of
National City (the "Commission"), by proceedings duly had and taken, has
authorized the issuance and directed the sale of $5,375,000 principal amount of
its Downtown Redevelopment Project Subordinated Tax Allocation Bonds, Series
A (the "Bonds") for the purpose of providing funds to further aid in the
completion of the Downtown Redevelopment Project of the Commission;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of National City, as follows:
1. The issuance and sale by the Commission of $5,375,000 of its
Downtown Redevelopment Project Subordinated Tax Allocation Bonds, Series A,
is hereby approved.
2. This resolution shall take effect from and after its adoption and
approval.
ATTEST:
PASSED and ADOPTED this loth day of Septem1985.
e
Ione%Campbell, City C erk
APPROVED AS TO FORM:
AGeorge H. iser, III - City Attorney
Kile Morgan, M 'or
OFFICIAL NOTICE OF SALE
COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
S5,375,000 DOWNTOWN REDEVELOPMENT PROJECT
SUBORDINATED TAX ALLOCATION BONDS, SERIES A
Notice Is HEREBY LIVEN that sealed proposals will be received and opened by a representative of the Community Development
Commission of the City of National City (the "Commission-) at the office of PaineWebber Incorporated, 700 South Flower Street.
_ 20th Floor, Los Angeles. California 90071, financing consultant to the Commission, on'
TUESDAY, SEPTEMBER 10, 1985
at 11:00 o'clock A.M. for the purchase of $5,375,000 principal amount of subordinated tax allocation bonds of the Commission
designated "Community Development Commission of the Cih' of National City Downtown Redevelopment Project Subordinated Tax
Allocation Bonds, Series A" (the "Bonds") authorized to be issued under the provisions of the Community Redevelopment Law of the
State of California (being Part 1 of Division 24 of the Health and Safety Code of the State of California, as amended) and pursuant to
the provisions of Resolution No. 84-20 adopted by the Commission on April 17, 1984, as amended by Resolution No. 84-27 adopted by
the Commission on June 26, 1984 (the "Resolution") and of Resolution No. 85-40 subordinated thereto adopted by the Commission on
August 27, 1985 (the -Subordinated Resolution") (collectively the "Resolutions"). The Bonds are more particularly described in the
Resolutions (which arc incorporated herein by reference), and are generally described as follows:
ISSUE: 55,375,000 aggregate principal amount consisting of
fully registered bonds in the denomination of $5,000 or any
integral multiple thereof (not exceeding the principal amount
of Bonds maturing at any one time), all dated September 1,
1985.
I:vTEREST RATE: Maximum not to exceed twelve per cent
(12%) per annum, payable on December 1, 1985, and semi-
annually thereafter on June 1 and December 1 of each year.
Bidders must specify the rate or rates of interest which the
Bonds shall bear; provided that (i) all Bonds maturing by their
terms in any one year must bear the same rate of interest; (ii)
each interest rate specified must be in a multiple of %a or of
1% and a zero rate of interest cannot be specified; (iii) the
difference between the highest and lowest interest rates speci-
fied in any bid shall not exceed two per cent (270); (iv) no
Bond shall bear more than one rate of interest; and (v) each
Bond shall bear interest from its date to its stated maturity date
at the interest rate specified in the bid.
MATURITIES: The Bonds will mature as follows:
Maturity
-Date
June 1
Principal
Amount
Maturity
Date
June 1
Principal
Amount
1986 $100,000 1996 3250,000
1987 110,000 1997 ......... 27 0, 000
1988 120,000 1998...__.. _.____. 295,000
1989 135,000 1999 __ 325,000
1990 145.000 2000 355,000
1991 160,000 2001 38.5, 000
1992 175,000 2002 420,000
1993 190,000 2003 460,000
1994 205.000 2004 500.000
1995 225.000 2005 550,000
REDEMPTION: Bonds maturing by their terms on or after
June 1, 1996, are subject to redemption prior to their respective
matunty dates, as a whole or in part in integral multiples of
$5,000 in inverse order of maturity (and by lot within any one
matunty), at the option of the Commission, on any interest
payment date on or after June 1. 1995, from funds derived by
the Commission from any source. at the following redemption
prices (computed upon the principal amount of the Bonds or
the portions thereof called for redemption) together with
accrued interest to the date of redemption:
102 a if redeemed prior to June 1, 1996;
1011/2%s if redeemed thereafter and prior to June 1, 1997;
101% if redeemed thereafter and prior to June 1, 1998;
1001..470 if redeemed thereafter and prior to June 1, 1999;
and
1005 if redeemed thereafter and prior to maturity.
PAYMENT: The principal of and redemption premiums. if
any, on the Bonds are payable in lawful money of the United
States of America at the Corporate Trust Department of Bank
of America National Trust and Savings Association in Los
Angeles, California, the Fiscal Agent of the Commission.
Interest on the Bonds will be payable in like money by check
mailed to the registered owners of the Bonds shown on the
registration books of the Fiscal Agent fifteen (15) days prior to
each interest payment date.
REGISTRATION: The Bonds will be issued in fully regis-
tered form. and may be transferred or exchanged upon the
terms set forth in the Subordinated Resolution.
PURPOSE: The Bonds are being issued by the Commission
to provide funds to aid in the completion of the Downtown
Redevelopment Project of the Commission in the City of
National City, California.
SECURITY: The Bonds are subordinated and junior in
payment from the Tax Revenues (as that term is defined in the
Resolution) to the payment of the Downtown Redevelopment
Project Tax Allocation Bonds, Series A, of the Commission
issued under and pursuant to the Resolution. The Bonds are
special obligations of the Commission and are payable, u to
interest thereon, principal thereof and any premiums upon the
redemption thereof, exclusively from the Surplus Tax Revenues
(as that term is defined in the Subordinated Resolution), and
the Commission is not obligated to pay them except from the
Surplus Tax Revenues. Bidden are referred to the Resolutions
and the official statement for further particulars.
TAX EXEMPT STATUS: In the event that prior to the
delivery of the Bonds (a) the income received by any private
holder from bonds of the same type and character shall be
declared to be taxable (either at the time of such declaration or
at any future date) under any federal income tax laws, either
by the terms of such laws or by ruling of a federal income tax
authority or official which is followed by the Internal Revenue
Service or by decision of any federal court. or (b) any federal
income tax law is adopted which will have a substantial adverse
tax effect upon holders of the Bonds as such, the successful
bidder may, at its option, prior to the tender of the Bonds by the
Commission, be relieved of its obligation under the contract to
purchase the Bonds, and in such case the deposit accompanying
its bid will be returned.
LEGAL OPINION: The legal opinion of Orrick, Herrington
& Sutcliffe, of San Francisco, California, approving the validity
of the Bonds, will be furnished to the successful bidder without
charge. A copy of the legal opinion. certified by the official in
whose office the original is filed. will be printed on each Bond
without charge to the successful bidder.
TERMS OF SALE
Highest Bid: The Bonds will be awarded to the highest
bidder. considering the interest rate or rates specified and the
premium offered. if any, or the discount specified, if any. The
highest bid will be determined by deducting the amount of the
premium offered (if any) from, or by adding the amount e` - e
discount specified (if any) to and by adding the premium "`or
debt service insurance (if elected by the successful bidder, s
described in the paragraph captioned "Bond Insurance") t',
the total amount of interest which the Commission would be
required to pay from the date of the Bonds to their respective
maturity dates at the rates specified in the bid, and the award
will be made on the basis of the lowest net interest coat to the
Commission. The successful bidder must pay accrued interest
from the date of the Bonds to the date of delivery. All interest
will be computed on a 360-day year basis. The cost of printing
the Bonds will be borne by the Commission.
Form of Bid; Maximum Discount: Each bid must be for not
less than all of the Bonds hereby offered for sale and accrued
interest to the date of delivery, plus such premium as is offered
or less such discount as is specified in the bid; provided, that the
amount of discount specified in any bid shall not exceed two per
cent (2%) of the principal amount of the Bonds (without
reference to any premium for debt service insurance, as
described in the paragraphs captioned "Highest Bid" and
--Bond Insurance"), and any premium must be paid as part of
the purchase price, and no bid will be accepted which con-
templates the waiver of any interest or other concession by the
bidder as a substitute for payment in full of the purchase price
in immediately available funds. Each bid, together with
bidder's check, must be enclosed in a sealed envelope addressed
to the Community Development Commission of the City of
National City and delivered to its representative at the address
above mentioned with the envelope clearly marked: "Proposal
for Purchase of Community Development Commission of the
City of National City Downtown Redevelopment Project
Subordinated Tax Allocation Bonds, Series A."
Right of Rejection: The Commission reserves the right. in its
discretion. to reject any and all bids and to waive any irregula-
rity or informality in any bid.
Prompt Award: The Commission will take action awarding
the Bonds or rejecting all bids not later than 26 hours after the
expiration of the time herein prescribed for the receipt of
proposals, unless such time of award is waived by the successful
bidder. Notice of the award will be given promptly to the
successful bidder.
Bond Insurance: The Commission has applied for a com-
mitment for a policy of debt service insurance on the Bonds and
prior to the sale of the Bonds will advise on Munifacts whether
such commitment has been obtained. If it has been obtained,
any bidder may elect in its bid to have the Commission
purchase such insurance, provided that the premium for such
insurance shall be treated as a discount in determining the
highest bid for the Bonds, as described in the paragraph
captioned "Highest Bid. --
Delivery and Payment: Delivery of the Bonds will be made
to the successful bidder at the office of Bank of America
National Trust and Savings Association in Los Angeles, Califor-
nia. as soon as the Bonds can be prepared, which delivery date
is presently estimated to be within 15 days of the date of sale.
Payment for the Bonds must be made in funds immediately
available to the Commission in Los Angeles, California. Any
expense of providing immediate Los Angeles funds, whether by
transfer of Federal Reserve Bank funds or otherwise, shall be
borne by the successful bidder. The successful bidder shall
deliver to the Fiscal Agent five (5) business days prior to the
delivery date of the Bonds a notice stating the names of the
registered owners in whose names the Bonds are to be registered
(and their addresses for the mailing of interest payments) and
the denominations in which the Bonds of each maturity date
are to be initially issued. If the successful bidder fails to submit
to the Fiscal Agent such names, addresses and denominations
within the required time. one Bond will be issued for each
maturity date. in the full amount maturing on that maturity
date, and the Bonds will be registered in the name of the
successful bidder.
Right of Cancellation: The successful bidder shall have the
right. at its option. to cancel the contract of purchase'if the
Commission shall fail to execute the Bonds and tender the same
for delivery within 60 days from the date of sale thereof, and in
such event the successful bidder shall be entitled to the return
of the deposit accompanying its bid.
Bid Check: A certified or cashier's check drawn on a bank or
trust company transacting business in the State of California. in
the amount of 3100,000 payable to the order of the Commis-
sion, must accompany each proposal as a guaranty that the
bidder, if successful, will accept and pay for the Bonds in
accordance with the terms of its bid. The check accompanying
any accepted proposal shall be applied on the purchase price.
The check shall be cashed and the amount thereof retained by
the Commission if, after the award of the Bonds, the successful
bidder fails to complete the purchase on the terms stated in its
proposal. The check accompanying each unaccepted proposal
will be returned promptly. No interest will be paid upon the
deposit made by any bidder.
Statement of Net Interest Cost: Each bidder is requested.
but not required, to state in its bid the total net interest cost in
dollars to the Commission and the percentage net interest rate
determined thereby, which shall be considered as informative
only and not binding on either the bidder or the Commission.
No Litigation: There is no litigation pending concerning the
validity of the Bonds, the existence of the Commission or the
title of the officers thereof to their respective offices. and the
Commission will furnish to the successful bidder a no -litigation
certificate certifying to the foregoing as of and at the time of
delivery of the Bonds.
CUSIP Numbers: It is anticipated that CUSIP identification
numbers will be printed on the Bonds, but neither the failure to
print such number on any Bond nor any error with respect
thereto shall constitute cause for a failure or refusal by the
successful bidder to accept delivery of and pay for the Bonds in
accordance with the terms of the purchase contract. All
expenses in relation to the assignment of CUSIP numbers and
the printing of CUSIP numbers on the Bonds shall be paid for
by the Commission.
California Debt Advisory Commission Fees: .Attention of
bidden is directed to California Government Code Section
8856, which provides that the successful bidder for the Bonds
will be charged the California Debt Advisory Commission fee.
which is 1/40th of 1 per cent of the principal amount of the
Bonds.
Official Statement: The Commission has caused an official
statement to be prepared, copies of which (together with the
Resolutions) may be obtained at the offices of the Commission's
financing consultant, PaineWebber Incorporated, 100 Califor-
nia Street, 12th Floor, San Francisco, California 94111 (tele-
phone (415) 954-5997). The Commission at its expense will
provide 100 copies of the official statement to the successful
bidder.
Certificate: The Commission will provide to the successful
bidder for the Bonds a certificate, signed by an official of the
Commission, confirming to the successful bidder that. at the
time of the acceptance of the bid for the Bonds and at the time
of delivery thereof, to the best of the knowledge of said official,
the official statement does not contain any untrue statement of a
material fact or omit to state a material fact necessary in order
to make the statements made therein, in the light of the
circumstances under which they were made. not misleading,
and that there has been no material adverse change in the
financial condition or affairs of the Commission between the
date of sale and the date of delivery of the Bonds.
Dated: August 27, 1985.
ARNOLD A. PETERSON
Serretars of the
Community Development Commission
of the City. of National Cits