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HomeMy WebLinkAboutCC RESO 2011-48RESOLUTION 2011 — 48 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING ISSUANCE OF BONDS BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY IN AN AMOUNT NOT TO EXCEED $45,000,000 WITH RESPECT TO THE NATIONAL CITY REDEVELOPMENT PROJECT WHEREAS, the Community Development Commission of the City of National City ("CDC") is a redevelopment agency and public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the California Health and Safety Code (the "Law"), including the power to issue bonds for any of its corporate purposes; and WHEREAS, a Redevelopment Plan for the redevelopment project designated the "National City Redevelopment Project" in the City of National City, California (the "Redevelopment Project"), has been adopted in compliance with all requirements of the Law; and WHEREAS, the CDC has previously issued its (i) $5,860,000 initial principal amount of Community Development Commission of the City of National City National City Redevelopment Project 2004 Tax Allocation Bonds, Series A (the "2004 Bonds") for the purpose of raising funds to provide financing of redevelopment projects of benefit to the Redevelopment Project; and (ii) $27,940,000 initial principal amount of Community Development Commission of the City of National City National City Redevelopment Project 2005 Tax Allocation Refunding Bonds, Series A, and $9,840,000 initial principal amount of 2005 Tax Allocation Refunding Bonds, Series B for the purpose of refunding taxable and tax-exempt bonds issued by the CDC in 2001; and WHEREAS, for the purpose of financing additional redevelopment activities, including for the purpose of financing low and moderate income housing, of benefit to the Redevelopment Project, the CDC proposes to issue its $45,000,000 aggregate principal amount of CDC National City Redevelopment Project 2011 Tax Allocation Bonds (the "Bonds"); and WHEREAS, Section 33640 of the Law requires the CDC to obtain the approval of the City Council prior to issuance of the Bonds; and WHEREAS, the City Council desires to approve the issuance of the Bonds as being in the public interests of the City of National City and of the CDC. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. Approval of Issuance of Bonds. The City Council approves the issuance of the Bonds by the CDC in the aggregate principal amount of not to exceed $45,000,000, as hereinabove described, and finds the issuance of the Bonds as being in the public interests of the City of National City and of the CDC. Resolution No. 2011 — 48 Page 2 Section 2. Subordination. Any obligation of the CDC to repay any loans, advances or indebtedness to the City or to make payments to the City pursuant to California Health and Safety Code Section 33607.5 or Section 33607.7 from tax increment revenues allocated to the Redevelopment Project shall be subordinate to the obligation of the CDC to use such tax increment revenues to pay debt service on the Bonds and any obligations issued on a parity with the Bonds. Section 3. Effective Date. This Resolution shall take effect from and after its adoption. PASSED, APPROVED and ADOPTED this 22nd of February, 2011. Ron Morrison, Mayor ATTEST: 4 4 Mic ael R. Dall City Clerk OVED AS T• FORM: Cis G. Silva City Attorney Passed and adopted by the Council of the City of National City, California, on February 22, 2011 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California Jerk of the City �f City y National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-48 of the City of National City, California, passed and adopted by the Council of said City on February 22, 2011. City Clerk of the City of National City, California By: Deputy