HomeMy WebLinkAbout2001 03-22 CC AGENDA PKTAGENDA
OF A SPECIAL MEETING
OF THE
CITY COUNCIL OF THE CITY OF NATIONAL CITY
COUNCIL CHAMBERS
CIVIC CENTER
1243 NATIONAL CITY BOULEVARD
MARCH 22, 2001
3:00 P.M.
Please complete a REQUEST TO SPEAK FORM and submit it to the
City Clerk prior to the commencement of the meeting.
THE MAYOR AND THE COUNCIL MEMBERS ARE ALSO THE CHAIRMAN AND MEMBERS OF THE
NATIONAL CITY JOINT POWERS FINANCING AUTHORITY.
➢ ROLL CALL
➢ APPROVAL OF MINUTES — None.
➢ BUSINESS ITEMS
1. RESOLUTION NO. 2001-36 RESOLUTION OF THE NATIONAL CITY COUNCIL
OF THE CITY OF NATIONAL CITY APPROVING THE ISSUANCE OF TAX
ALLOCATION BONDS BY THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY IN THE MAXIMUM PRINCIPAL AMOUNT OF
$38,500,000.
➢ MEMBER COMMENT
➢ PUBLIC COMMENT
➢ ADJOURNMENT
City Council of the City of National City
March 22, 2001
AGENDA ITEM NO. 1
TO: Mayor and Councilmembers
FROM: Paul Desrochers, Executive Director
SUBJECT: RESOLUTION NO. 2001-36: RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE
ISSUANCE OF TAX ALLOCATION BONDS BY THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
NATIONAL CITY IN THE MAXIMUM PRINCIPAL AMOUNT OF
$38,500,000.
Recommendation:
Approve resolution that will approve the issuance of CDC Tax Allocation Bonds in the
amount not to exceed $38,500,000.
Fiscal Impact:
The current bonded indebtedness is $25,770,000; the new indebtedness will not exceed
$38,500,000.
Environmental Impact:
Not applicable.
Background:
National City has established a procedure for financing City and CDC projects through
the establishment of the Joint Powers Financing Authority. The purpose of the subject
resolution is for the City to approve the issuance of tax allocation bonds in the maximum
principal amount of $38,500,000.
State Community Development Law requires that the City Council be aware of and
approve all Redevelopment Agency financing arrangements. This is because, in some
cities Redevelopment Agencies (CDC in our situation) are separate from the City
Page 1 of 2
Council. While Tax Allocation Bond financing is secured by the tax roll, all obligations of
a Redevelopment Agency are assumed by the City when a redevelopment ceases to
exist.
Per the Official Statement:
...The Bonds are not a debt, liability or obligation of the City of National City, the
State of California, or any of its political subdivisions other than the Commission, and
neither the City, the State nor any of its political subdivisions, other than the
Commission, is liable therefore. The Principal of, premium, if any, and interest on the
Bonds are payable solely from Tax Revenues allocated to the Commission from the
Project Area and amounts in certain funds and accounts held under the indenture.
Neither the members of the Commission, not any persons executing the bonds are
liable personally on the Bonds by reason of their issuance.
Page 2 of 2
RESOLUTION NO. 2001-36
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY APPROVING THE
ISSUANCE OF TAX ALLOCATION BONDS BY THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF NATIONAL CITY IN THE MAXIMUM PRINCIPAL
AMOUNT OF $38,500,000
WHEREAS, the Community Development Commission of the City of National
City (the "Commission") has previously issued its 1998 Tax Allocation Bonds (National
City Downtown Redevelopment Project) in the aggregate principal amount of
$25,770,000 (the "1998 Bonds") for the purpose of raising funds to provide financing for
the National City Redevelopment Project (the "Redevelopment Project"); and
WHEREAS, the Commission proposes at this time to authorize the issuance and
sale of its National City Redevelopment Project 2001 Variable Rate Tax Allocation
Bonds in the aggregate principal amount of not to exceed $38,500,000 (the "Bonds"), to
be issued in two separate series for the purpose of providing funds to advance refund
and discharge the Commission's outstanding 1998 Bonds and to raise additional funds
to finance the Redevelopment Project; and
WHEREAS, in accordance with the requirements of Section 33640 of the Health
and Safety Code of the State of California, the City Council must approve the issuance
and sale of the Bonds by the Commission;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City that the issuance and sale of the Bonds by the Commission is hereby
approved.
PASSED AND ADOPTED by the City Council of the City of National City at a
regular meeting thereof held on the 22nd day of March, 2001.
Mitchell Beauchamp, Vice Mayor
ATTEST:
Michael Dalla, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City -CDC Attorney