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HomeMy WebLinkAboutPCDC Resolution 2003-12 08/18/2003 I~SOLIJTION 2003-12 PETALUMA COMMUNITY DEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE AND THE SALE OF NOT TO EXCEED $30,000,000 PRINCIPAL AMOUNT OF PETALUMA COMMUNITY DEVELOPMENT COMMISSION PETALUMA COMM><.JNITY DEVELOPMENT PROJECT TAX ALLOCATION BONDS, SERIES 2003A; AUTHORIZING THE SALE OF SUCH BONDS ON CERTAIN TERMS AND CONDITIONS PURSUANT TO A COMPETITIVE SALE; APPROVING PREPARATION AND DISTRIBUTION OF THE OFFICIAL STATEMENT, AUTHORIZING CERTAIN OTHER OFFICIAL ACTION IN CONNECTION THEREWITH AND MAKING BENEFIT FINDINGS WHEREAS, the Petaluma Community Development Commission (the "Commission") is a redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law, being Section 33000 and following of the Health and Safety Code of the State of California (the , "Law"), and the powers of the Commission include the power to issue bonds for any of its ~orporate purposes; and, WHEREAS, a redevelopment plan, known as the Redevelopment Plan for the Petaluma Community Development Project (the "Plan"), has been adopted and approved in accordance with the Law; and, WHEREAS, the Plan provides that the Commission is specifically authorized to provide for the financing and refinancing of certain public improvements consistent with the Plan for the Petaluma Community Development Project (the "Project"); and, WHEREAS, the Commission has previously issued its Petaluma Community Development Project Tax Allocation Bonds, Series 1992A pursuant to an indenture, dated as of January 1, 1992 (the "Indenture"); and, WHEREAS, the Commission has previously issued its Petaluma Community Development Project Tax Allocation Bonds, Series 2000A pursuant to the Indenture and a first supplemental indenture, dated as of June 1, 2000; and, WHEREAS, the Commission has previously issued its Petaluma Community Development Project Refunding Tax Allocation Bonds, Series 2001A pursuant to the Indenture and a second supplemental indenture, dated as of June 1, 2001; and, WHEREAS, the Indenture permits the issuance of Additional Bonds (as defined therein) pursuant to supplemental indentures; and, WHEREAS, the Commission has determined to issue not to exceed $30,000,000 aggregate principal amount of its Petaluma Community Development Project Tax Allocation PCDC Resolution 2003-12 Page 1 Bonds, Series 2003A (the "Series 2003A Bonds") for the purposes of (i) financing and refinancing the Project, (ii) funding a bond reserve account and (iii) paying the costs of issuing the Series 2003A Bonds; and, WHEREAS, in accordance with Section 33445 of the Law and for the reasons and based on the information set forth in Exhibit A hereto and presented to this Commission at this meeting, this Commission has determined that the. use of the proceeds of the Bonds to finance the Project, includirig the capital improvements described in Exhibit A, are of benefit to the project area for the Project (the "Project Area") or the immediate neighborhood in which such improvements will be located and no other reasonable means of financing such improvements are available to the Commission or otherwise, and the payment of funds for such improvements will assist in the elimination of one or more of the blighting conditions inside the Project Area; and WHEREAS, there has been presented at this meeting a form of Third Supplemental Indenture providing for the issuance of the Series 2003A Bonds; and, WHEREAS, the Commission has determined that it is desirable sell the Series 2003A Bonds by a competitive sale. NOW, THEREFORE, BE IT RESOLVED by the Petaluma Community Development Commission, as follows: Section 1. The Commission will proceed with the issuance and sale of not to exceed $30,000,000 aggregate principal amount of Petaluma Community Development Commission Petaluma Community Development Project Tax Allocation Bonds, Series 2003A in order to finance and refinance the Project. The Series 2003A Bonds are authorized to be executed by the manual or facsimile signature of the Chairperson of the Commission and the seal of the Commission is authorized to be affixed or imprinted thereon and attested by the manual or facsimile signature of the Secretary of the Commission. The seal of the Commission may be produced in facsimile form. The Series 2003A Bonds, when so executed, are authorized to be delivered to the Trustee for authentication. Section 2. The form of Third Supplemental Indenture, dated as of September 1, 2003 (the "Third Supplemental Indenture"), presented at this meeting, is hereby approved, and the Chairperson or Vice Chairperson or the Executive Director and the Secretary are hereby authorized and directed, for and in the name of and on behalf of the Commission, to execute, acknowledge and deliver the Third Supplemental Indenture in substantially the form presented at this meeting with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. The date, maturity date or dates, interest rate or rates, interest payment dates, terms of redemption and other terms of the Series 2003A Bonds shall be as provided in the Third Supplemental Indenture as finally executed. Section 3. The financial advisor of the Commission, Kelling; Northcross & Nobriga (the "Financial Advisor"), will receive proposals for the purchase of the Series 2003A PCDC Resolution 2003-12 Page 2 ~ , Bonds by competitive sale, and the Executive Director or the Treasurer or the designee of either are hereby authorized and directed to select the bidder submitting a bid to purchase the Series 2003A Bonds that provides the lowest true interest cost for the Series 2003A Bonds; provided that the true interest cost of the Series 2003A Bonds shall not be in excess of 7.5% per annum. Section 4. The principal amount of Series 2003A Bonds to be sold shall be established by the Executive Director or the Treasurer, in consultation with the Financial Advisor, but shall not exceed $30,000,000. Section 5. The Commission authorizes the preparation of a notice of intention to sell the Series 2003A Bonds. Said notice shall be substantially in the form presented to this meeting, with such changes, additions and completions therein as the Executive Director or Treasurer of the designee of either may approve with the advice of counsel. When the form of said notice of intention to sell. have been approved by the Executive Director or the Treasurer or the designee or either, the Financial Advisor is authorized to arrange for publication of said notice in such financial publications as are desirable to notify potential bidders of the sale of the Series 2003A Bonds, the cost of printing of said notice to be borne by the Commission but reimbursable from Series 2003A Bond proceeds. Section 6. The Commission authorizes an official statement and an official notice of sale relating to the Series 2003A Bonds to be prepared by Orrick, Herrington & Sutcliffe LLP, as disclosure counsel and bond counsel. Said official statement and official notice of sale shall be substantially in the form presented to this meeting, with such changes, additions and completions therein as the Executive Director or the Treasurer or the designee or either may approve with the advice of counsel. When the form of said official statement and official notice of sale have been approved by the Executive Director or the Treasurer or the designee or either, the Executive Director or the Treasurer or the designee of either may authorize the distribution of said official statement and official notice of sale, the cost of printing and mailing said official statement and official notice of sale to be borne by the Commission but reimbursable from Series 2003A Bond proceeds. Section 7. The Chairman, the Executive Director, the Treasurer, the Secretary and the Commission General Counsel are each hereby authorized and directed in the name and on behalf of the Commission to take any and all steps and to issue and deliver any and all certificates, requisitions, agreements, notices, consents, and other documents, which they are any of them might deem necessary or appropriate in order to obtain credit ratings for the Series 2003A Bonds, to obtain bond insurance for the Series 2003A Bonds if such insurance is deemed to be in the financial interest of the Commission as determined by the Executive Director or the Treasurer or the designee of either in consultation with the Financial Advisor, and to consummate the lawful issuance, sale and delivery of said Series 2003A Bonds. PCDC Resolution 2003-12 Page 3 1, Section 8. The Commission hereby adopts as findings of benefit the information contained in Exhibit A, attached hereto and incorporated herein, pursuant to Section 33445 of the Health and Safety Code. Section 9. This resolution shall take effect immediately upon adoption. ADOPTED this 18th day of August, 2003, by the following voter Commissioner Aye No Absent Recused Glass X Canevaro X Harris X Healy X Moynihan X O'Brien X Torliatt X 0 David Glass, Chairperson TEST:. O~ Gayle Petersen, Recording Secretary APPROVED AS TO FORM: Rich udnansky, ener Counsel PCDC Resolution 2003-12 Page 4 rr EXHIBIT A Central Business District Projects Funded by Petaluma Community Development Project Bond Issue Proiect 1:Water Street & Turning Basin River Walk ($7.7 Million): The project will involve constructing abicycle/pedestrian walkway along the river in the historic downtown area. Water Street will be constructed so that utilities are undergrounded, parking is pulled back from the river's edge so that a pathway can be built. The pathwaywill allow people to walk down the river through the Petaluma Community Development ("PCD") project area. Proiect 2: Downtown Streetscape Improvements ($5.75 Million) The project will involve installing historic-type streetlighting, benches, trees, bike wracks, sidewalks, and street paving. This will occur as a first phase along Petaluma Blvd and Kentucky Street -typically called the historic downtown. Proiect 3: Central Petaluma Specific Plan Implementation/Theater District ($7.4 Million) The project will involve the development of public infrastructure over a 5-block area resulting in a mixed use development project of $75 million. Proiect 4: Parking Structure in CBD Proiect Area ($2.1 Million) Funds will be contributed for the construction of a public/private parking garage in the Central Business District Area Proiect 5: Railroad Depot ($1.0 Million) The project involves the rehab of 8,200 square feet of space outside and inside the three Depot buildings. Main Benefits to PCD Project Area: ® Traffic Reduction/Circulation Improvements: The projects link PCD Project Area with the downtown CBC project area (People who normally drive downtown will be able to walk or ride their bikes. This will relieve traffic congestion in both the PCD project area and in the CBD downtown.) ® Enhanced Economy: With the project improvements, the businesses located on Water Street will be able to turn their businesses toward the river. Right now, Water Street is an ugly parking lot. The improvements will allow the businesses to "double load" with restaurants on Water Street and retail establishments facing Petaluma Blvd. This will create economic vitality that will benefit businesses located in the PCD project area since so many are interdependent in serving downtown businesses. The Streetscape improvements in the downtown will attract more residents and visitors alike to a clean charming district. ® Sales Leakage: By creating a vibrant and. attractive downtown, the City will prevent residents from leaving town to spend discretionary recreational funds. In this way, funds maintained downtown can be recirculated to other businesses in the PCD project area. PCDC Resolution 2003-12 Page 5 ® Economic Interdependence of CBD and PCD project areas: Both areas have businesses that are interdependent. For example, services businesses renting office or commercial space in the PCD project area depend on successful thriving businesses in the downtown CBD for their livelihood. These include accountants, plumbers, attorneys, suppliers and insurance brokers. ® Jobs: The project will bring additional jobs due to the economic expansion resulting from the double loading of buildings and from longer store hours. ® Sense of Place: The project will enhance the downtown ambiance and create a vital center of civic and social life. The PCD Project Area is the gateway to this center and will thrive in support of the downtown. Many businesses that choose to locate in Petaluma, do so for its ambiance and sense of identity. This in turn gives them their corporate identity. This is particularly true among high-tech industries located in the PCD project area. ® The River is a Key Identifier: Work along the Petaluma River will enhance the River as an important key attribute that gives the rest of the City its identity. The PCD project area depends on a strong Petaluma identity. • Depot is the Gateway: The Depot side is across the street from the PCD project area and serves as an important gateway to the historic downtown CBD. It will provide recreational space to the entire community-both the PCD and CBD through a conference center located in the freight building. The smaller depot building will likely house the Petaluma Visitors Bureau-which serves the entire community and is the main instrument for attracting visitors to the community. People will come to the Bureau for literature on the community as well as use the public restrooms. • Tourism: Improvements along the River and downtown will attract residents from the PCD Project Area and other areas outside the CBD. They will also attract tourists who will spend money in both the PCD and CBD project areas and will. chose to stay in hotels located in the PCD project area. PCDC Resolution 2003-12 Page 6