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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