HomeMy WebLinkAbout2007-13 URA Refund 1994 loan agRESOLUTION NO. 2007-13
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
APPROVING THE ISSUANCE OF TAX ALLOCATION REFUNDING
BONDS BY THE UKIAH REDEVELOPMENT AGENCY TO REFUND A
1994 LOAN AGREEMENT
WHEREAS, the Ukiah Redevelopment Agency (the "Agency") has adopted the
redevelopment plan (the "Redevelopment Plan") for the Ukiah Redevelopment Project (the
"Redevelopment Project") under Part 1 of Division 24 of the Health and Safety Code of the State
of California (the "Redevelopment Law"); and
WHEREAS, in accordance with Articles 10 and 11 of Chapter 3 of Part I of Division 2 of
Title 5 of the California Government Code (commencing with Section 53550 thereof) (the
"Refunding Law"), the Agency is authorized to issue its bonds for the purpose of refunding its
bonds; and
WHEREAS, the Agency entered into a Loan Agreement, dated as of January 1, 1994,
between the Agency and the Redwood Empire Financing Authority ("REFA"), in the principal
amount of $6,935,000, of which $5,305,000 is presently outstanding (the "1994 Loan
Agreement");
WHEREAS, the Agency wishes at this time to issue its not-to-exceed $5,600,000 Ukiah
Redevelopment Agency (Ukiah Redevelopment Project) Tax Allocation Refunding Bonds,
Series 2007 (the "Series 2007 Bonds") for the purpose of refunding the 1994 Loan Agreement;
WHEREAS, prepaying the 1994 Loan Agreement will have the effect of causing the
redemption of a like principal amount of Redwood Empire Financing Authority Certificates of
Participation, 1993 Series B (the "1993 Certificates"), executed and delivered under a Trust
Agreement, dated as of January 1, 1994, among the Agency, First Interstate Bank of California,
as trustee, the City of Ukiah and the City of Sonoma (the "1994 Trust Agreement"); and
WHEREAS, the Redevelopment Law requires that the City Council approve the
issuance of the Series 2007 Bonds by reason of the pledge of said tax increment revenues as
security for the payment of the Series 2007 Bonds; and
WHEREAS, it is in the public interest, for the public benefit and in furtherance of the
public purpose of the City that the City approve the issuance of the Series 2007 Bonds by the
Agency for the aforesaid purposes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as
follows:
Section 1. The City Council of the City of Ukiah hereby approves the issuance of the
Series 2007 Bonds by the Agency under the Refunding Law for the purpose of refunding the
1994 Loan Agreement.
Section 2. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Ukiah at a regular meeting
thereof held on the 4th day of April, 2007.
AYES:
Councilmember Thomas, Crane, McCowen, Baldwin and Mayor Rodin
NOES: None
ABSENT: None
ABSTAIN: None
Mari Rodin, Mayor
ATTEST:
Gail Petersen, City Clerk
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