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HomeMy WebLinkAboutCC RESO 2004 - 73RESOLUTION NO. 2004 — 73 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO ENTER INTO A MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF NATIONAL CITY AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY WHEREAS, the City needs an additional $5 Million in funding for the construction of the fire station, public library and arts center projects and has no other reasonable means to raise these additional funds; and WHEREAS, the Community Development Commission ("CDC"), through its tax increment bonding capacity, may issue bonds to provide funding for the above - listed projects, and the CDC Board determined on December 16, 2003, to issue bonds in the amount that would net $5 Million for the aforementioned purpose; and WHEREAS, the $5 Million derived from the CDC's issuance of tax allocation bonds will be used in the following manner: • To reimburse the CDC for the $2,225,000 it will contribute from CDC cash reserves to bridge the financing gap for the construction of the City new fire station; • To pay up to $1,575,000 for the construction of the new arts center project, with any residual funding from the $5 Million bond issue being allocated to the new public library project for the purchase of collections and equipment. NOW, THEREFORE, BE IT RESOLVED that the City Council determines and finds as follows: 1. That the buildings, facilities, structures, or other improvements mentioned herein, are of benefit to the redevelopment project area or the immediate neighborhood in which the project is located. 2. That no other reasonable means of financing the buildings, facilities, structures, or other improvements mentioned herein are available to the community. 3. That the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements mentioned herein will assist in the elimination of one or more blighting conditions inside the project area and is consistent with the implementation plan adopted pursuant to Section 33490 of the California Health and Safety Code. Resolution 2004 — 73 May 4, 2004 Page Two BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute a Memorandum of Understanding with the CDC to provide for the allocation of $5 Million in proceeds from a CDC bond issue to provide funding for the new fire station, arts center and public library. PASSED and ADOPTED this 4t' day of May, 2004. ATTEST: Mic . el R. ' alla, ity Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney °a Nic "n in or