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HomeMy WebLinkAbout2011-06 URA BondsRESOLUTION NO. 2011-06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING ISSUANCE BY THE UKIAH REDEVELOPMENT AGENCY OF TWO SEPARATE SERIES OF BONDS WITH RESPECT TO THE UKIAH REDEVELOPMENT PROJECT OF THE AGENCY WHEREAS, the Ukiah Redevelopment Agency (the "Agency") 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 Health and Safety Code of the State (the "Law"), including the power to issue bonds for any of its corporate purposes; WHEREAS, a Redevelopment Plan for the redevelopment project, designated the "Ukiah Redevelopment Project", in the City of Ukiah, California (the 'Redevelopment Project"), has been adopted in compliance with all requirements of the Law; WHEREAS, the Agency has previously issued its $5,595,000 initial principal amount of Ukiah Redevelopment Agency Ukiah Redevelopment Project 2007 Tax Allocation Bonds for the purpose of financing of redevelopment projects of benefit to the Redevelopment Project; and; WHEREAS, for the purpose of financing additional redevelopment projects of benefit to the Redevelopment Project, the Agency proposes to issue its not to exceed $8,250,000 aggregate principal amount of Ukiah Redevelopment Agency Ukiah Redevelopment Project 2011 Tax Allocation Bonds (the "2011 Bonds"); WHEREAS, in addition, for the purpose of financing low and moderate income housing with respect to the Redevelopment Project the Agency proposes to issue on a federally taxable basis its not to exceed $3,250,000 aggregate principal amount of Ukiah Redevelopment Agency Ukiah Redevelopment Project 2011 Taxable Housing Tax Allocation Bonds (the "2011 Housing Bonds" and, together with the 2011 Bonds, the "Bonds"); WHEREAS, Section 33640 of the Law requires the Agency to obtain the approval of the City Council of the City of Ukiah prior to issuance of the Bonds; and WHEREAS, the City Council approves the issuance of the Bonds as being in the public interests of the City of Ukiah and of the Agency; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as follows: Section 1. Approval of Issuance of Two Series of Bonds. The City Council of the City of Ukiah approves the issuance of the 2011 Bonds by the Agency in the aggregate principal amount of not to exceed $8,250,000 and its 2011 Housing Bonds in the aggregate principal amount of not to exceed $3,250,000, as hereinabove described. Section 2. Subordination. Any obligation of the Agency to repay any loans, advances or indebtedness to the City or to make payments to the City pursuant to California Health & 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 Agency to use such tax increment revenues to pay debt service on the 2011 Bonds and any obligations issued on a parity with the 2011 Bonds. Section 3. Effective Date. This Resolution shall take effect from and after its adoption PASSED AND ADOPTED this 23`d day of February, 2011, by the following roll call vote: AYES: Councilmembers Landis, Thomas, Baldwin, and Mayor Rodin NOES: Councilmember Crane ABSTAIN: None ABSENT: None By: Mari Ro in, Mayor SEAL ATTEST: 0 By: JoAnne Currie, City Clerk ;l 2