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HomeMy WebLinkAboutResolutions 88-352 N.C.S. 10/24/1988~ ~~~~a ~~~~ ~eso(utior~ No. 8s-352 NC.S. °' ~~f the Citti~ cif Pc,t~~lum~. Califori~i~~ RESOLUTION OF THE CITY COUNCIL OF THE. CITY OF PETALUMA, CALIFORNIA, APPROVING THE ISSUANCE BY THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION OF ITS PETALUMA COMMUNITY DEVELOPMENT PROJECT, TAX ALLOCATION NOTES, SERIES 1988, IN AN AGGREGATE PRINCIPAL AMOUNT APPROXIMATELY EQUAL TO $4,195,000, AND MAKING CERTAIN DETERMINATIONS RELATING THERETO WHEREAS, the Petaluma Community Development Commission (the "Commission"), is a redevelopment agency (a public body, corporate and politic) duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law (Part 1. of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California) (the "Law") and the powers of the Commission include the power to issue notes for any of its corporate purposes; and WHEREAS, a Redevelopment Plan known as the "Redevelopment Plan for the Petaluma Community Development Project" has been adopted and approved by the second reading of Ordinance No. 1725 N.C.S. of the City of Petaluma, California (the "City"), which became effective on August 17, 1988, and all requirements of law for and precedent to the adoption and approval of said Redevelopment Plan have been duly complied with; and Page 1 of 4 88-352. Res. No........_ ..................... V.C.S. WHEREAS, the Commission has adopted its Resolution entitled: RESOLUTION OF THE PETALUMA COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF AN AGGREGATE PRINCIPAL AMOUNT APPROXIMATELY EQUAL TO $4,195,000 OF TAX ALLOCATION NOTES OF SAID COMMISSION TO FINANCE A PORTION OF THE COST OF A REDEVELOPMENT PROJECT KNOWN AS PETALUMA COMMUNITY DEVELOPMENT PROJECT (the "Resolution of Issuance"); and WHEREAS, under and pursuant to the above Resolution, the Commission has authorized the issuance of the Petaluma Community Development Commission, Petaluma Community Development Project, Tax Allocation Notes, Series 1988, in an aggregate principal amount approximately equal to $4,195,000 (the "Notes"); and WHEREAS, the Commission has authorized the sale of said Notes by negotiated .sale in accordance with the Law and as permitted by Government Code Section 5903(b); and WHEREAS, in connection with the issuance of the Notes the Commission desires to lend periodically certain funds to the revolving fund in connect-ion with the Petaluma Community Development Project (the "Revolving Fund") commencing in the 1988-89 fiscal year from any source of legally available funds of the Commission; and Page 2 of 4 88-352 WHEREAS, the Commission intends to repay such loans to the Revolving Fund from certain tax increment revenues which may become available to the Commission from the Petaluma Community Development Project (the "Project") by adoption of an appropriate Resolution; and WHEREAS, such loans from the Commission to the Revolving Fund will enable the Commission to meet its obligations pursuant to the terms of the Resolution of Issuance; and WHEREAS, it is the intent of the Commission that such loans shall not be and shall not be deemed to be the creation of any debt or other obligation within the meaning of any constitutional or statutory debt limitation or restriction; and WHEREAS, it is appropriate at this time that the City Council of the City of Petaluma, California (the "City Council°') determine that the interest payable on the Notes to be issued by the Commission will be .subject to federal income tazation under the law in existence on the date of issuance or pending on the date of issuance with an effective date preceding the date of issuance pursuant to Government Code Section 5903, all as further provided in the Resolution of Issuance. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF PETALUMA, CALIFORNIA, AS FOLLOWS: Page 3 of 4 88-352 Section 1. Approval of Issuance of Notes. The issuance and sale of a principal amount approximately equal to $4,195,000 of "Petaluma Community Development Commission, Petaluma Community Development Project, Tax Allocation Notes, Series 1988", for the corporate purposes of the Commission aiding in~the financing of the Petaluma Community Development Project, and for other purposes related thereto, all of which constitute a "redevelopment activity", as such term is defined in Health and Safety Code Section 33678, is hereby authorized and approved, pursuant to Health and Safety Code Section 33640. The City Council hereby acknowledges and determines that the interest payable on the Notes to be issued by the Commission will be subject to federal income taxation in accordance with Government Code Section 5903. Section 2. Subordination. It is hereby acknowledged, agreed and stipulated by the City that any loans or advances heretofore or hereafter made by the City to the Commission shall at all times be subordinate to the Notes. Effective Date, This Resolution shall take effect upon adoption. PET00005-15/0325P Under the power and authority conferred upon this Council by th,e Charter of said City. REFERENCE: I ~m~' ~rtifY ~ foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a (Regular) (Adjourned) (S meeting form. 24 .October , 19„ °8b the on the »....._.._»...»...... day of ...._....»»....»....» ............. ...».. Y following vote: ..... ....................................... City Attorney AYES: Cavanagh. Tencer, Woolsey, Balshaw, Vice Mayor Davis NOES: None ABSENT: S bel a ~ r Hilligoss Page 4 of 4 ATTEST : ........................................:...........................».............. ity Clerk oouacil Ftla....._.._ ....................... Res. Na ......:..... .... .... v.C,S. 88-352 <_ M yor