HomeMy Public PortalAboutA1986-07-30 LRA_sp:% L LYNWOOD REDEVELOPMENT AGENCY
11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262 (213) 603 -0220
AGENDA
LYNWOOD REDEVELOPMENT AGENCY
JULY 30, 1986
SPECIAL MEETING
5:00 P.M
LYNWOOD CITY HALL, 1330 BULLIS ROAD
.F I-
71 171
W FIN
AGENCY STAFF
CHARLES G. GOMEZ
.� • �� �� � :+yam �;. �
A. Call Meeting to Order.
B. Roll Call. (BYOW- MORRIS - VEILS- HjNvING)
1. TAX ALLOCATION BOND ISSUE.
Conments:
E. L. MORRIS
NfflMR
f_!ef �C�►�Z i���17�i1
y n
Pursuant to the Agency's desire to issue tax allocation bonds, the
Agency is requested to adopt resolutions approving the form and
distribution of the Notice Inviting Bids and the Preliminary Official
Statement and related matters.
Recommendation
Adopt the attached Resolutions.
2. OFFER TO ACQUIRE - 3208 SANBORN AVaffjE.
Comments
Pursuant to the Agency's desire to acquire the property known as
Sanborn Avenue, Lynwood, owned by Pair. Floyd J. Head, for the purpose of
assembling a developable site to allow for the development of the
Proposed Lynwood Towne Center (Hopkins), the Agency is requested to
authorize staff to submit the Statutory Offer in ccsapliance with the
California Redevelopment Law.
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Reconarendation
Authorize the submittal of the Statutory Offer to Mr. Head.
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Motion to adjourn to a Regular P4eeting of the Lynwood Redevelopment Agency, to
be held August 5, 1986, in the Council Chambers of City Hall, 11330 Bullis Road,
Lynwood, California.
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AGENDA ITEM
TO:
FROM:
Re:
Date:
M E M O R A N D U M
Board of Directors, Lynwood Redevelopment Agency
Vicente C. Mas, Community Development Director
TAX ALLOCATION BONDS OF AGENCY
July 28, 1986
Purpose:
Approval of that certain resolution of the
Redevelopment Agency authorizing the form and distribution of
the Notice Inviting Bids and the Preliminary official Statement
prepared in connection with the Agency's $4,550,000 Tax
Allocation Bonds, and certain other matters.
Background
Pursuant to the Community Redevelopment Law, the
Agency has the power to issue bonds secured by tax increments
generated by its respective project areas. In 1976, the Agency
issued $2,000,000 in bonds secured by revenues from Project
Area A. Subsequent to the amendments to the Project Area in
1980, the Agency is now in a position to issue bonds again from
Project Area A secured on a parity with the 1976 bonds. The
proceeds of the bonds can be used for the redevelopment
purposes of the Agency in Project Area A, including the
relocation of the corporate yard, provision of certain public
improvements to eliminate the impact of blight, and the
acquisition of certain real property.
Bond counsel has advised staff that pending changes in
federal tax law relating to tax exempt bonds make it
advantageous for the Agency to issue its bonds before September
1, 1986. Specifically, pending changes in federal tax law
would restrict the purposes for which the Agency could issue
bonds, and would make the authorization for the issuance of the
bonds more difficult. While there is no assurance that these
changes will become law, staff believes it is advantageous to
move forward with the sale of the bonds at this time.
In early July, the Agency approved the publication of
notice inviting bids for the bonds in accordance with law. At
this time, it is requested that the Agency approve the form of
the notice inviting bids and the preliminary official statement
Board of Directors, Lynwood Redevelopment Agency
July 28, 1986
Page Two
to be furnished to bidders in connection with the sale of the
bonds. With this approval, the bonds can be sold on August 6,
1986, with the Agency approval to occur that same evening.
Thereafter, the bond issue would close sometime before
September 1. The proceeds of the bond issue would be used to
pay the costs of issuance and future redevelopment cost.
Analysis
The size of the bond issue (i.e., $4,550,000) has been
computed by the Agency's financial consultant so as to maximize
available bond proceeds for the Agency. In order to secure
bond insurance for-the issue, as well to attract bidders, the
issue has been sized so as to provide the bond holders with tax
increment coverage of 1.25 times regular debt service. To be
on the safe side, the issue has been further reduced to account
for monies which may be payable to the County pursuant to the
County's agreement for reimbursement of tax increment revenues
approved in 1983.
In 1983, following discussions between the Agency and
the County, the Redevelopment Agency approved a resolution and
a form of pass- through agreement which provided for
reimbursement to the County of certain tax increment monies
otherwise payable to the Agency. The County never approved
this agreement (in fact they objected to it), and the County
has taken no steps to implement this agreement. However, in
order to be sure that no misrepresentations are made to
bondholders and in order to provide the - Agency sufficient
comfort that it will have the revenues to pay its bonds, the
size of the bond issue has been reduced to account for the
maximum annual amount which staff estimates could be paid to
the County if the pass- through agreement were construed to be
applicable. Although Agency counsel believes that the Agency
may have no obligation to reimburse the County for any of these
monies, the size of the bond issue has been reduced by the
amount which may be payable to the County in order to be on the
safe side.
As currently drafted, the bond issue does not account
for any Agency obligation to set aside tax increment monies for
low and moderate income housing. In connection with the
adoption of Ordinance No. 1111 in 1980, the Agency made the
appropriate findings pursuant to Health and Safety Code 33334.2
to exempt the Agency from the requirements of this statute.
Further action will need to be
Board of Directors, Lynwood Redevelopment Agency
July 28, 1986
Page Two
taken by the Agency in August in order to complete this.
However, on the assumption that no low and moderate housing set
aside obligation is applicable to the Agency, the bond issue
does not contemplate that any monies will be set aside for low
and moderate income housing.
Although all other consultants required in connection
with this bond issue have been retained, Stradling, Yocca,
Carlson & Rauth have not been formally approved as bond counsel
(as opposed to Agency counsel) at this time. The proposed.
resolution formally accepts bond counsel's proposal.
Recommendation
That the Agency adopt the attached Resolutions
approving the form and the distribution of the Notice Inviting
Bids and the Preliminary Official Statement, and certain other
matters.
RESOLUTION NO.
RESOLUTION OF THE LYNWOOD REDEVELOPMENT
AGENCY APPROVING THE FORM AND DISTRIBUTION
OF A NOTICE INVITING BIDS AND A PRELIMINARY
OFFICIAL STATEMENT REGARDING TAX ALLOCATION
BONDS OF THE AGENCY IN THE APPROXIMATE
PRINCIPAL AMOUNT OF FOUR MILLION FIVE
HUNDRED FIFTY THOUSAND DOLLARS ($4,550,000)
FOR THE PROJECT AREA A PROJECT, AND
APPROVING CERTAIN OTHER MATTERS
WHEREAS, the Lynwood Redevelopment Agency (herein
sometimes referred to as the "Agency "), 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 `l of Division 24 (commencing with
Section 33000) of the Health and Safety Code of the State of
California) and the powers of the Agency include the power to
issue bonds for any of its corporate purposes; and
WHEREAS, the Agency wishes to sell at this time not more
than $4,550,000 in the aggregate principal amount of the Tax
Allocation Bonds to provide financing in connection with the
Project Area A on a parity with the Agency's Series 1976 bond
issue; and
WHEREAS, the Agency is required by law to sell the Bonds
at competitive bid following publication of notice of intention
to sell such securities.
NOW, THEREFORE, THE LYNWOOD REDEVELOPMENT AGENCY DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1 . Sale Authorized The sale of an aggregate
principal amount of not to exceed Four Million Five Hundred
Fifty Thousand Dollars ($4,550,000) (or such lesser amount as
may be specified in the notice of sale as approved by the
Director) of the LYNWOOD REDEVELOPMENT AGENCY, Lynwood
Redevelopment Agency, Redevelopment Project Area "A ", as
amended, Tax Allocation Bonds, Series 1986, describing in the
published notices as $6,000,000 LYNWOOD COMMERCIAL CENTER
PROJECT TAX ALLOCATION BONDS, Series 1986 (herein sometimes
referred to as the "Bonds "), in accordance with law, is hereby
authorized.
Section 2. Publication of Notice of Inte
Securit es. The Notice Inviting Bids attache
Exhi b 'A" , and the form of the Preliminary
Statement attached hereto as Exhibit "B ", are
in,substantially the form presented; subject
requested by Bond Counsel and approved by the
Director.
ntion to Sell
d hereto as
Official
hereby approved
to such changes as
Executive
Section 3 Furnishing of Notice Inviting Bids and
official Statement. The Director of the Agency and the
Financial Consultant are hereby authorized and directed to
cause to be furnished to prospective bidders a reasonable
number of copies of the Notice Inviting Bids (including the bid
form) and a reasonable number of copies of the Official
Preliminary Statement.
Section 4. Bond Counsel Stradling, Yocca, Carlson &
Rauth is hereby approved as bond counsel for the proposed
issuance of bonds on the terms summarized in the letter
proposal previously submitted to staff.
Section 5. Effective Date. This Resolution shall take
effect upon adoption.
ADOPTED AND APPROVED this day of
1986 by the following vote:
AYES:
NOES:
ABSENT:
Chairman, Lynwood Redevelopment
Agency
(SEAL)
ATTEST:
Secretary, Lynwood Redevelopment
Agency
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RESOLUTION NO.
RESOLUTION OF`THE LYNWOOD REDEVELOPMENT AGENCY
AUTHORIZING THE ISSUANCE OF PARITY TAX
ALLOCATION BONDS OF SAID AGENCY TO FINANCE A
PORTION OF THE COST OF A REDEVELOPMENT PROJECT
KNOWN AS REDEVELOPMENT PROJECT A,AIN A
PRINCIPAL AMOUNT OF NOT TO EXCEED FOUR MILLION
FIVE HUNDRED FIFTY THOUSAND DOLLARS ($4A 50,000)
11
RESOLUTION NO.
0
RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY
AUTHORIZING THE ISSUANCE OF PARITY TAX
ALLOCATION BONDS OF SAID AGENCY TO FINANCE A
PORTION OF THE COST OF A REDEVELOPMENT PROJECT
KNOWN AS REDEVELOPMENT PROJECT A,AIN A
PRINCIPAL AMOUNT OF NOT TO EXCEED FOUR MILLION
FIVE HUNDRED FIFTY THOUSAND DOLLARS
($4,f55 000 )
TABLE OF CONTENTS
Page
Section
1.
Definitions
Section
2.
Amount, Issuance and Purpose of Bonds
Section
3.
Nature of Bonds
Section
4.
Description of Bonds
Section
5.
Interest
Section
6.
Place of Payment
Section
7.
Forms of Bonds
Section
8.
Execution of Bonds
Section
9.
Registration and Exchange of Bonds
A
Section
i
10.
Bond Register
Section
11.
Call and Redemption and Purchase of Bonds
Prior to Maturity
A. Optional Redemption
B. Special Early Redemption
C. Sinking Account Redemption
D. Call and Redemption, Notice of
Redemption
(i)
Page
(ii)
E. Redemption Fund
F. Partial
Redemption of Bonds
G. Effect of
Redemption
H. Purchase
of Bonds
Section 12.
Funds
Section 13.
Sale of Bonds;
Disposition of Bond
Proceeds; Redevelopment
Fund
Section 14.
Tax Revenues
Section 15.
Special Fund
Section 16.
Deposit and
Investment of Moneys in Funds
Section 17.
Issuance of
Parity Bonds
Section 18.
Covenants of
the Agency
Covenant 1.
Complete Redevelopment Project;
Amendment to Redevelopment Plan
Covenant 2.
Use of Proceeds, Management and
Operation of Properties
Covenant 3.
No Priority
Covenant 4.
Punctual Payment
Covenant 5.
Payment of Taxes and Other
Charges
Covenant 6.
Books and Accounts; Financial
Statements
Covenant 7.
Eminent Domain Proceeds
Covenant 8.
Disposition of Property
Covenant 9.
Protection of Security and
Rights of Bondholders;
No Arbitrage
Covenant 10.
Compliance with Law
Covenant 11.
Limitation on Indebtedness
(ii)
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P_ age
Section
19.
Taxation of Leased Property
Section
20.
Fiscal Agent and Paying Agents
Section
21.
Lost, Stolen, Destroyed or Mutilated Bonds
Section
22.
Cancellation of Bonds
Section
23.
Amendments
A. Calling Bondholders' Meeting
B. Notice of Meeting
C. Voting Qualifications
D. Issuer -Owned Bonds
E. Quorum and Procedure
F. Vote Required
Section
24.
Proceedings Constitute Contract; Events of
Default and Remedies of Bondholders
A. Events of Default
B. Certain Remedies of Bondholders
C. Non - Waiver
D. Actions by Fiscal Agent as
Attorney -in -Fact
E. General
Section
25.
CUSIP Numbers
e
Section
26.
Severability
Section
27.
Effective Date
Exhibit A Form of Bond
(iii)
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RESOLUTION NO.
E
RESOLUTION'OF THE LYNWOOD REDEVELOPMENT AGENCY
AUTHORIZING THE ISSUANCE OF PARITY TAX
ALLOCATION BONDS OF SAID AGENCY TO FINANCE A
PORTION OF THE COST OF A.REDEVELOPMENT PROJECT
KNOWN AS REDEVELOPMENT PROJECT A /\IN A
PRINCIPAL AMOUNT OF NOT TO EXCEED FOUR MILLION
FIVE HUNDRED FIFTY THOUSAND DOLLARS
($4,1,5 000 )
WHEREAS, the Lynwood Redevelopment Agency (the "Agency "),
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), and the powers of the Agency include the power
to issue bonds for any of its corporate purposes; and
WHEREAS, a redevelopment plan for a redevelopment project
known and designated as the "Project Area A" has been adopted
and approved, and all requirements of law for and precedent to
the adoption and approval of the Redevelopment Plan have been
duly complied with; and
WHEREAS, the Agency has previously issued by Resolution No.
LRA 76 -10 (the "1976 Bond Resolution ") $2,000,000 of its tax
allocation bonds (the "1976 Bonds "), for the purpose of
carrying out the redevelopment plan for its Project Area A
previously known as the Commercial Center Project and
WHEREAS, the Agency is in compliance with all conditions of
the 1976 Bond Resolution for the issuance of additional bonds
on a parity with the 1976 Bonds; and
WHEREAS, the Agency's redeveloRment. will be
accomplished by issuing at this time such additional tax
allocation bonds in a principal amount of Not to Exceed Four
Million Five Hundred Fifty Thousand Dollars ($4 550,000)
pursuant to this Resolution providing for the issuance of
"Lynwood Redevelopment Agency, ,Redevelopment Project Area "A
As Amended Tax Allocation Bonds, Series 1986," (the "Bonds ")
the proceeds of which will be used to finance the costs of
implementing the Project Area A, to fund a debt service reserve
fund and pay costs of issuing the Bonds; and
NOW, THEREFORE, THE LYNWOOD REDEVELOPMENT AGENCY DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
0
Section 1 Definitions
following terms shall have the
context otherwise requires:
As used in this Resolution, the
following meanings, unless the
"Bond" or "Bonds" means the "Lynwood Redevelopment
Agency, edevelopment Project Area "A," as Amended, Tax
Allocation Bonds, Series 1986," authorized by this
Resolution.
"Bond Insurer" means [Bond Insurer], a
stock insurance corporation, doing business in California
as Insurance Company, and its successor or
successors.
"Bond Year" means the twelve (12) month period of each
year commencing on the initial date of the Bonds.
"Bondholder" or "Owner of Bonds," or any similar term,
means any person who shall be the registered owner or his
duly authorized attorney, trustee, or representative. For
the purpose of Bondholders' voting rights or consents,
Bonds owned by or held for the account of the Agency, or
the City, directly or indirectly, shall not be counted.
"Business Day" shall mean any day other than (i) a
Saturday or Sunday or legal holiday or a day on which
banking institutions in the city in which the principal
office of the Trustee is located are authorized to close,
or (ii) a day on which the New York Stock Exchange is
closed.
"City" means the City of Lynwood, California.
"Federal Securities" means United States Treasury
notes, bonds, bills or certificates of indebtedness or
those for which the faith and credit of the United States
are pledged for the payment of principal and interest;
obligations issued by banks for cooperatives, federal land
banks, federal intermediate credit banks, federal home loan
banks, the Federal Home Loan Bank Board, the Tennessee
Valley Authority; all as and to the extent that such
securities are eligible for the legal investment of Agency
funds.
"Fiscal Agent" means the fiscal agent appointed by the
Agency pursuant to Section 20 hereof, its successors and
assigns, and any other corporation or association which may
at any time be substituted in its place, as provided in
this Resolution.
"Independent Financial Consultant," "Independent
Engineer," "Independent Certified Public Accountant" or
"Independent Redevelopment Consultant" means any individual
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or firm engaged in the profession involved, appointed by
the Agency, and who, or each of whom, has a favorable
reputation in the field in which his/her opinion or
certificate will be given, and: -
(1) is in fact independent and not under
domination of the Agency; and
(2) does not have any substantial interest,
direct or indirect, with the Agency, other than as
original purchaser of the Bonds; and
(3) is not connected with the Agency as an
officer or employee of the Agency, but who may be
regularly retained to make reports to the Agency.
"Law" means the Community Redevelopment Law of the
State of California as cited in the recitals hereof.
"Maximum Annual Debt Service" means the largest of the
sums obtained for any Bond Year after the computation is
made, by totaling the following for each such Bond Year:
(1) The principal amount of all serial Bonds and
serial Parity Bonds, if any, payable in such Bond
Year; and
(2) The interest which would be due during such
Bond Year on the aggregate principal amount of Bonds
and Parity Bonds which would be outstanding in such
Bond Year if the Bonds and Parity Bonds outstanding on
the date of such computation were to mature or be
redeemed in accordance with the maturity schedules for
the serial Bonds and serial Parity Bonds. At the time
and for the purpose of making such computation, the
amount of term Bonds and term Parity Bonds already
retired in advance of the above- mentioned schedules
shall be deducted pro rata from the remaining amounts
thereon.
"Minimum Reserve Requirement" means the interest on
the Bonds, the 1976 Bonds and any additional bonds coming
due during the next ensuing 12 month period.
"1976 Bonds" shall mean the $2,000,000 Lynwood
Redevelopment Agency Commercial Center Project Tax
Allocation Bonds, Series 1976, authorized by Resolution No.
LRA 76 -10, adopted on June 15, 1976.
"1976 Bond Resolution" means Resolution No. LRA 76 -10
adopted on June 15, 1976.
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"Opinion of Counsel" means a written opinion of an
attorney or firm of attorneys of favorable reputation in
the field of municipal bond law. Any opinion of such
counsel may be based upon, insofar as it is related to
factual matters, information which is in the possession of
the Agency as shown by a certificate or opinion of, or
representation by, an officer or officers of the Agency,
unless such counsel knows, or in the exercise of reasonable
care should have known, that the certificate, opinion or
representation with respect to the matters upon which his
or her opinion may be based, as aforesaid, is erroneous.
"Parity Bonds" means any additional tax allocation
bonds (including, without limitation, bonds, notes, interim
certificates, debentures or other obligations) issued by
the Agency as permitted by Section 17 of this Resolution
and Secion 17 of the 1976 Bond Resolution.
"Paying Agent" means any paying agent provided by the
Agency pursuant to this Resolution.
"Redevelopment Agency" or "Agency" means the Lynwood
Redevelopment Agency.
"Redevelopment Plan" means the Redevelopment Plan for
the Redevelopment Project Area A, approved and adopted by
the City by Ordinance No. 945, as amended, and includes any
amendment thereof heretofore or hereafter made pursuant to
the Law.
"Redevelopment Project" means the project of carrying
out, pursuant'to the Law, the Redevelopment Plan for the
Redevelopment Project Area.
"Redevelopment Project Area" means the project area
described and defined in said Ordinance No. 945, as
amended, which project area is known and designated as
"Redevelopment Project Area A. "^
"Regular Record Date" means the fifteenth day
preceding any interest payment date or if such day is not a
Business Day, then the following Business Day.
"Reserve Requirement" means, as of the date of issue
of the Bonds, an amount equal to Maximum Annual Debt
Service on the Bonds net of the amount attributable to debt
service on a portion of the Term Bonds equal in principal
amount to the amounts then on deposit in the Escrowed
Proceeds Fund.
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e
"Pledged.Tax Revenues" or "Tax Revenues" means that
portion of taxes levied upon taxable property in the
Redevelopment Project Area and received by the Agency on or
after the date of issue of the Bonds, for the Redevelopment
Project Area of the Agency pursuant to Article 6 of Chapter
6 of the Law and Section 16 of Article XVI of the
Constitution of the State of California. [Provided,
however, that Pledged Tax Revenues shall not include that
portion of taxes allocated to and received by the Agency
for deposit in the low and moderate income housing fund
required by Section 17 of the Redevelopment Plan and
Section 33334.2 of the Law and any tax revenues which are
required to be passed through to certain taxing entities
pursuant to agreements entered into pursuant to Section
33401 of the Law.) [Delete]
"Treasurer" or "Treasurer of the Agency" means the
officer who is then performing the functions of Treasurer
of the Agency.
Section 2 Amount, Issuance and Purpose of Bonds Under
and pursuant to the Law and this Resolution, Bonds of the
Agency in a principal amount of Four Million Five Hundred Fifty_
Thousand Dollars ($4 shall be issued by the Agency for
the corporate purposes of the Agency by providing funds for the
financing of a portion of the cost of implementing the
Redevelopment Plan which constitutes a "redevelopment activity"
as such term is defined in Health and Safety Code Section
33678; and such issue of Bonds is hereby authorized. .
Section 3 . Nature of Bonds The Bonds shall be and are
special obligations of the Agency and are secured by an
irrevocable pledge of, and are payable as to principal,
interest and premium, if any, from Pledged Tax Revenues and
other funds as hereinafter provided. The Bonds, interest and
premium, if any, thereon are not a debt of the City, the State
of California or any of its political subdivisions, and neither
the City, the State nor any of its political subdivisions is
liable on them. In no event shall the Bonds, interest thereon
and premium, if any, be payable out of any funds or properties
other than those of the Agency as set forth in this
Resolution. The Bonds do not constitute an indebtedness within
the meaning of any constitutional or statutory debt limitation
or restriction. Neither the members of the Agency nor any
persons executing the Bonds are liable personally on the Bonds
by reason of their issuance.
The Bonds shall be and are equally secured, together with
the 1976 Bonds, by an irrevocable pledge of the Pledged Tax
Revenues and other funds as hereinafter provided, without
priority for number, date of sale, date of execution or date of
delivery, except as expressly provided herein.
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The validity of the Bonds is not and shall not be dependent
upon: (a) the completion of the Redevelopment Project or any
part thereof, or (b) the performance by anyone of his/her
obligations relative to the Redevelopment Project Area, or (c)
the proper expenditures of the proceeds of the Bonds.
Nothing in this Resolution shall preclude: (a) the payment
of the Bonds from the proceeds of refunding bonds issued
pursuant to the Law, or (b) the payment of the Bonds from any
legally available funds. Nothing in this Resolution shall
prevent the Agency from making advances of its own funds,
however derived, to any of the uses and purposes mentioned in
this Resolution.
If the Agency shall cause to be paid, or shall have made
provision to pay upon maturity or upon redemption prior to
maturity, to the Bondholders the principal of, premium, if any,
and interest to become due on the Bonds, through setting aside
trust funds or setting apart in a reserve.fund or special trust
account created pursuant to this Resolution or otherwise, or
through the irrevocable segregation for that purpose in some
sinking fund or other fund or trust account with a fiscal agent
or otherwise, moneys sufficient therefor, including, but not
limited to, interest earned or to be earned on Federal
Securities, then the lien of this Resolution, including,
without limitation, the pledge of the Pledged Tax Revenues, and
all other rights granted hereby, shall cease, terminate and
become void and be discharged and satisfied, and the principal
of, premium, if any, and interest on the Bonds shall no longer
be deemed to be outstanding and unpaid; provided, however, that
nothing in this Resolution shall require the deposit of more
than such Federal Securities as may be sufficient, taking into
account both the principal amount of such Federal Securities
and the interest to become due thereon, to implement any
refunding of the Bonds. Bonds, the principal of or interest on
which has been paid by the Bond Insurer shall not be deemed to
have been paid or caused to be paid by the Agency, and shall
remain outstanding until paid by the Agency.
In the event of such a defeasance of the Bonds, the Agency
shall cause an accounting for such period or periods to be
prepared and filed with the Fiscal Agent, and the Fiscal Agent,
upon the request of the Agency, shall release the rights of the
Bondholders under this Resolution and execute and deliver to
the Agency all such instruments as may be desirable to evidence
such release, discharge and satisfaction, and the Fiscal Agent
shall pay over or deliver to the Agency all moneys or
securities held by it pursuant to this Resolution which are not
required for the payment or redemption of Bonds not theretofore
surrendered for such payment or redemption.
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Provision shall be made by the Agency, satisfactory to the
Fiscal Agent, for the mailing of a notice to the Owners of such
Bonds that such moneys are so available for such payment.
Section 4 Description of Bonds The Bonds shall be
issued in a principal amount of Four Million Five Hundred Fifty
Thousand Dollars ($4,&50,000) and shall be designated "LYNWOOD
DEREVELOPMENT AGENCY, tREDEVELOPMENT PROJECT AREA "A " TAX
ALLOCATION/%BONDS, SERIES 1986." The Bonds shall be initially
issued in the form of fully registered bonds in denominations
of $5,000 each or any whole multiple thereof. The Bonds shall
beAterm bondsnand shall mature on July 15 2015 and shall bear
interest at the rat per annum
Section 5 . Interest The Bonds shall bear interest at the
ratenset forth above per annum payable semiannually on each
January 15 and July 15, commencing January 15, 1987. Each Bond
shall bear interest until its principal sum has been paid;
provided, however, that if funds are available for the payment
thereof in full accordance with the terms of this Resolution,
such Bond shall then cease to bear interest. Interest is
calculated on the basis of a 360 day year composed of twelve 30'
day months.
The Bonds shall be numbered by the Fiscal Agent as the
Fiscal Agent or the Agency shall determine and shall be dated
as of the date of their authentication, except that Bonds
issued upon exchanges and transfers of other Bonds shall be
dated so that no gain or loss of interest shall result from the
exchange or transfer, and Bonds issued before the first Regular
Record Date shall be dated as of Auguste, 1986. Each Bond
shall bear interest from the interest payment date next
preceding the date thereof unless (i) it is'dated as of an
interest payment date, in which event it shall bear interest
from that interest payment date, or (ii) it is dated after.a
Regular Record Date and before the following interest payment
date, and if the Agency shall not default in the payment of
interest due on such interest payment date, in which event it
shall bear interest from such interest payment date, or (iii)
it is dated prior to the first Regular Record Date, in which
event it shall bear interest from'the date of the Bonds.
Interest on Bonds shall be paid by the Fiscal Agent (out of the
appropriate funds) by check or draft mailed by first class mail
on the interest payment date to the registered owner as his/her
name and address appear on the register kept by the Fiscal
Agent on the Regular Record Date preceding the interest payment
date.
Section 6 . Place of Payment The principal of the Bonds
and any premiums upon the redemption thereof prior to maturity
shall be payable in lawful money of the United States of
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America and shall be payable at the corporate trust office. of
the Fiscal Agent in Los Angeles, California.
Section 7 . Forms of Bonds The Bonds shall be --
substantially in the form annexed hereto as Exhibit "A ". Such
form is hereby approved and adopted as the form of the Bonds
and of the redemption, exchange, registration and assignment
provisions pertaining to them, with necessary or appropriate
variations, omissions, and insertions, as permitted or required
by this Resolution and by any subsequent supplemental
resolution of the Agency.
Any Bonds issued pursuant to this Resolution may be
initially issued in temporary form exchangeable for definitive
Bonds when the same are ready for delivery. The temporary
Bonds may be printed, lithographed or typewritten, shall be of
such denominations as may be determined by the Agency, and may
contain references to any of the provisions of this Resolution
as may be appropriate. Every temporary Bond shall be executed
by the Agency and be issued by the Fiscal Agent upon the same
conditions and in substantially the same form and manner as the
definitive fully registered Bonds. If the Agency issues
temporary Bonds, it will execute and furnish definitive Bonds
without delay, and, thereupon, the temporary Bonds shall be
surrendered for cancellation at the principal office of the
Fiscal Agent in Los Angeles, California, or at such other place
in California as the Agency may approve. The Fiscal Agent
shall deliver in exchange for the surrendered temporary Bonds _
an equal aggregate principal amount of definitive Bonds of
authorized denominations of this same issue. Until exchanged,
the temporary Bonds shall be entitled to the same benefits
under this Resolution as definitive Bonds of this same issue,
except no accrued interest shall be paid on the temporary Bonds
until the exchange has been accomplished.
Section 8 . Execution of Bonds The Bonds shall be signed
on behalf of the Agency by its Chairman by facsimile signature
and by its Secretary by facsimile signature, and the seal of
the Agency shall be impressed, imprinted or reproduced
thereon. The foregoing officers are hereby authorized and
directed to sign the Bonds in accordance with this Section. If
any Agency member or officer whose facsimile signature appears
on the Bonds ceases to be a member or officer before delivery
of the Bonds, his/her signature is as effective as if he or she
had remained in office.
The Fiscal Agent shall authenticate the Bonds on
registration and /or exchange to effectuate the registration and
exchange provisions set forth in Section 9, and only those
Bonds that have endorsed' on them a certificate of
authentication, substantially in the form set forth in the form
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of Bond, duly executed by the Fiscal Agent, shall be entitled
to any rights, benefits or security under this Resolution. No
Bonds shall be valid or obligatory for any purpose unless and
until the certificate of authentication has been duly_ executed
by the Fiscal Agent. The certificate of the Fiscal Agent upon
any Bond shall be conclusive and the only evidence required
that the Bond has been duly authenticated and delivered under
this Resolution. The Fiscal Agent's certificate of
authentication on any Bond shall be deemed to have been duly
executed if signed by an authorized officer of the Fiscal
Agent, but it shall not be necessary that the same officer sign
the certificate of authentication on all of the Bonds that may
be issued hereunder.
Section 9 Registration and Exchange of Bonds The Bonds
shall be issued only in fully registered form. Fully
registered Bonds may be exchanged for other Bonds of equal
aggregate denominations and of like maturity. Transfer of
ownership of a Bond or Bonds shall be made by exchanging the
same for a new Bond or Bonds. All exchanges shall be made in
such a manner and upon such reasonable terms and conditions as
may be determined and prescribed by the Agency and the Fiscal
Agent. The person, firm or corporation requesting the exchange
shall pay any tax or governmental charge that may be imposed in
connection with the exchange. Each Bond issued pursuant to
this Resolution shall be of a denomination which is $5,000 or a
whole multiple thereof and shall be of the same maturity.
Section 10 . Bond Register The Fiscal Agent will keep at
its principal office in the-City of Los Angeles, California, or
at such other place in California as the Agency may approve,
sufficient books for the registration and transfer of the.
Bonds. The books shall at all times during reasonable business
hours be open to inspection by the Bond Insurer and the Agency;
and, upon presentation for such purpose, the Fiscal Agent shall
under such reasonable regulations as it may prescribe, register
or transfer, or cause to be registered or transferred, on the
register, the Bonds as hereinbefore provided.
Section 11 Call and Redemption and Purchase of Bonds
Prior to Maturity The Bonds maturing on or before July 15,
1996, are not subject to call and redemption prior to maturity.
A. Optional Redemption The Bonds maturing on or after
July 15, 1997 may be called before maturity and redeemed at
the option of the Agency, in whole or in part from the proceeds
of refunding bonds or other source of available funds, on
July 15, 1996 or on any interest payment date thereafter, prior
to maturity, in inverse order of maturity and by lot within any
maturity. The interest payment date on which Bonds are to be
presented for redemption is sometimes referred to as the
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�J
"redemption date." Bonds called for redemption shall be
redeemed at the redemption prices (expressed as a percentage of
the principal amount of Bonds to be redeemed) plus accrued
interest to the redemption date as shown in the following table:
Redemption Dates
Redemption Price
July
15,
1996
and'January
15,
1997
102%
July
15,
1997.and
January
15,
1998
101 -1/2%
July
15,
1998
and
January
15,
1999
101%
July
15,
1999
and
January
15,
2000
100 -1/2%
July
15,
1000
and
thereafter
100%
B. Special Early Redemption [The Bonds are subject to
special redemption in whole or in part, by lot at a redemption
price of 100% of the principal amount thereof plus accrued
interest to the redemption date without premium, (i) on July 15,
1989 to the extent of any moneys remaining in the Escrowed
Proceeds Fund on June 15, 198A
For the purpose of selecting Bonds by lot, Bonds in excess
of $5,000 will be assigned a separate number for each $5,000 of
principal they represent.
C. Sinking Account Redemption The Bonds will be subject
to minimum sinking fund redemption at a redemption price equal
to 100% of the principal amount thereof, plus accrued interest,
if any, to the redemption date, without premium, on July 15 in
each of the following years and amounts:
Year
2002
2003
2004
2005
2006
2007
2008
2009
Amount
Year
Amount
2010
2011
2012
2013
2014
2015
2016
ID. Call and Redemption; Notice of Redemption The Agency
may (and, if required by Section 15 hereof, shall) by
resolution direct the call and redemption prior to maturity of
Bonds by the Fiscal Agent pursuant to Section 11A hereof in
such amounts as there are funds available for use in redemption
and shall give notice to the Fiscal Agent of the redemption at
least thirty (30) days prior to the redemption date. No such
notice shall be required with respect to redemption pursuant to
Sections 11B or ITC hereof.
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0
E
Notice of redemption prior to maturity shall be given by
first class mailing, postage prepaid not less than ten (10) nor
more than sixty (60) days prior to the redemption date, (i) to
the original purchaser(s) of the Bonds from the Agency (in the
case of a syndicate, to the manager thereof), and (ii) to the
registered owner, of each such Bond at the address shown on the
registration books of the Fiscal Agent. Neither the failure to
receive such notice nor any immaterial defect in any notice
mailed shall affect the sufficiency of the proceedings for the
redemption of any Bonds. The notice of redemption shall (a)
state the redemption date; (b) state the redemption price; (c)
state the numbers of the Bonds to be redeemed; provided,
however, that whenever any call for redemption includes all of
the outstanding Bonds, the numbers of the Bonds need not be
stated; (d) state, as to any Bonds redeemed in part only, the
Registered Bond numbers and the principal portion thereof to be
redeemed; and (e) state that interest on the principal portion
of the Bonds designated for redemption shall cease to accrue
from and after the redemption date and that on the redemption
date there shall become due and payable on each of such Bonds
the redemption price for each Bond.
The actual receipt by the Owner of any Bond of notice of
redemption shall not be a condition precedent'to redemption,
and failure to receive notice shall not affect the validity of
the proceedings for the redemption of the Bonds or the
cessation of interest on the redemption date. Notice of
redemption of Bonds shall be given by the Fiscal Agent on
behalf of the Agency and at the expense the Agency.
A certificate by the Fiscal Agent that notice of redemption
has been given in accordance with this Resolution shall be
conclusive as against all parties, and no Bondholder whose Bond
is called for redemption may object to the redemption or the
cessation of interest on the redemption date by claiming or
showing that he failed to receive actual notice of call and
redemption.
E. Redemption Fund Prior to the mailing of notice as
required above, the Fiscal Agent shall establish, maintain and
hold in trust a separate fund which is hereby created for the
purpose of this Resolution entitled "Lynwood Redevelopment
Agency, ARedevelopment Project Area "A ", as Amended Tax
Allocation Bonds, Series 1986, Redemption Fund" (hereinafter
referred to as the "Redemption Fund "). There shall be set
aside in the Redemption Fund prior to mailing notice of
optional or mandatory redemption, moneys for the purpose of and
sufficient to redeem, at the premiums, if any, payable as
provided in this Resolution, the Bonds designated in the notice
of redemption. The moneys must be set aside in the Fund solely
for that purpose and shall be applied on or after the
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redemption date to the payment (principal and premium, if any)
of the Bonds to be redeemed upon presentation and surrender of
the Bonds. In the event moneys transferred to the Redemption
Fund from the Escrowed Proceeds Fund exceed the amount required
to redeem the Bonds, such monies shall be transferred to the
Special Fund.
F. Partial Redemption of Bonds Upon surrender of any
Bond redeemed in part only, the Agency shall execute and the
Fiscal Agent shall authenticate and deliver to the registered
owner, at the expense of the Agency, a new Bond or Bonds of
authorized denominations equal in aggregate principal amount to
the unredeemed portion of the Bond surrendered and of the same
interest rate and same maturity.
G. Effect of Redemption Notice of redemption having
been duly given as provided above, and moneys for payment of
the principal of, premium, if any, and interest payable upon
redemption of the Bonds being set aside as provided above, the
Bonds, or parts thereof, called for redemption shall, on the
redemption date, become due and payable at the redemption price
specified in the notice. Interest on the Bonds, or parts
thereof, as the case may be, called for redemption shall cease
to accrue. The Bonds, or parts thereof redeemed, shall cease
to be entitled to any lien, benefit or security under this
Resolution, and the owners of the Bonds shall have no rights
except to receive payment of the redemption price upon
surrender of the Bonds, and, in the case of partial redemption
of Bonds, also to receive a new Bond or Bonds for the
unredeemed balance as provided above.
H. Purchase of Bonds In lieu of redemption or
otherwise, the Fiscal Agent, on behalf of the Agency and upon
its direction, is hereby authorized to purchase Bonds on the
open market at any time at a price not to exceed the principal
amount of the Bonds plus the applicable premium and accrued
interest, if any, to the date of purchase plus brokerage fees,
if any.
Section 12 . Funds There is hereby created with the
Treasurer a special,trust fund called the Project Area "A"
Redevelopment Fund" (hereinafter sometimes called the
"Redevelopment Fund "). There is herebyAcontinued with the
Fiscal Agent a special trust fund Adenominated in the 1976
Resolution the "Commercial Center Project Special Fund" to be
redesignated herein the "Redevelopment Pro ject A rea "A ", as
n e. aea cno ,mot FimA in which there are Aco nt,nttPd special
trust accounts
Account" and the
with the Fiscal
Fund called the
fu called the
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mown as the "Interest Account ", "Principal
"Reserve Account." There is hereby created
Agent a special trust account in the Special
"Cost of Issuance Account" and a special trust
"Escrowed Proceeds Fund."
-12-
So long as any of the Bonds, or any interest on them,,
remain unpaid by the Agency, the moneys in the foregoing Funds
shall be used for no purposes other than those required or
permitted by this Resolution, the 1976 Resolution and -the Law.
Section 13 Sale of Bonds; Disposition of Bond Proce
velopment Fund The Agency may provide by resolution
sale of the Bonds in the manner provided by the Law.
A. Upon the delivery of the Bonds to the purchasers, the
Fiscal Agent, on behalf of the Agency and upon its direction,
shall receive the proceeds from the sale of the Bonds, and
shall dispose of the proceeds and moneys as follows:
(1) Deposit in the Interest Account accrued interest
and premium, if any, paid by the purchasers of the Bonds;
plus an amount which when added to the sum of the accrued
interest and premium, if any, and anticipated investment
earnings on the total amount deposited in the Interest
Account will equal the interest due on the Bonds on January
15, 1987 net of that portion of interest due on monies
deposited in the Escrowed Proceeds Fund;
(2) Deposit in the Reserve Account a sum equal to the
Reserve Requirement net of an amount equal to debt service
(calculated at the rate borne by the Bonds) attributable to
monies deposited in the Escrowed Proceeds Fund;
(3) Deposit in the Cost of Issuance Account, the -
amount necessary to pay expenses, including bond insurance
premiums, if any, in connection with the issuance and sale
of the Bonds and fees of the Fiscal Agent and Paying Agents;
(4) Deposit in the Escrowed Proceeds Fund the sum of
(5) After making the above deposits, the balance of
the proceeds from the sale of the Bonds, if any, shall be
transferred to the Treasurer who shall place the same in
the Redevelopment Fund.
B. The moneys set aside in the Escrowed Proceeds Fund
shall be transferred to the Redevelopment Fund from time to
time upon receipt by the Fiscal Agent of a certificate or
opinion of an Independent Financial Consultant that Pledged Tax
Revenues to be received by the Agency during such Fiscal Year,
based upon the most recent assessed valuation of taxable
property in the Redevelopment Project Area, furnished by the
appropriate officer of the County of Lynwood, will be at least
equal to 1.25 times the current bond year's debt service on the
Bonds less the current bond year's debt service on that portion
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of the Bonds which will remain in the Escrowed Proceeds Fund
immediately following any such transfer. Any moneys remaining
in the Escrowed Proceeds Fund on June 15, 1989 shall be
transferred to the Redemption Fund and applied to the -
redemption of
ABonds pursuant to Section 11B. Upon transfer of
moneys from the Escrowed Proceeds Fund to the Redevelopment
Fund, the Fiscal Agent shall give notice to each Bondowner by
first class mail postage prepaid that such transfer has been
made and that the Bonds are no longer subject to Special
Mandatory Redemption pursuant to Section 11B hereof.
C. The moneys set aside in the Redevelopment Fund shall
remain there until from time to time expended for the purpose
of financing a portion of the costs of the Redevelopment
Project and other related costs, and also including in such
costs:
(1) The payment of an amount of money in lieu of
taxes as authorized by Section 33401 of the Law in any year
during which the Agency owns property in the Redevelopment
Project Area, to any city, county, city and county,
district or other public corporation which would have
levied a tax upon such property had it not been exempt;
(2) The cost of any lawful activities in connection
with the implementation of the Redevelopment Project Area,
including, without limitation, those activities authorized
by Section 33445 of the Law; and
(3) The necessary expenses in connection with the
issuance and sale of the Bonds and fees of the Fiscal Agent
and Paying Agents not otherwise paid under paragraph B
above.
If any sum remains in the Redevelopment Fund after the full
accomplishment of the objects and purposes for which the Bonds
were issued as determined by resolution of the Agency, that sum
shall be transferred to the Special Fund.
All of the above uses constitute a "redevelopment activity"
as that term is defined in Health and Safety Code Section 33678.
Section 14 Tax Revenues As provided in the
Redevelopment Plan, pursuant to Article 6 of the Law and
Section 16 of Article XVI of the Constitution of the State of
California, taxes levied upon taxable property in the
Redevelopment Project Area each year by or for the benefit of
the State of California, any city, county, city and county,
district, or other public corporation (herein sometimes
collectively called "taxing agencies ") after the effective date
of the Ordinance approving the Redevelopment Plan (being
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0
E
Ordinance No. 945 of the City of Lynwood, which was adopted'on
July 10, 1973, which ordinance became effective on August 9,
1973) and upon taxable property added by an ordinance amending
the Redevelopment Plan (being Ordinance No. 960, adopted by the
City Council of the City of Lynwood on December 27, 1973, which
ordinance became effective on January 26, 1974) and upon
taxable,property added by an ordinance amending the
Redevelopment Plan (being Ordinance No. 990, adopted by the
City Council of the City of Lynwood on August 19, 1975, which
ordinance became effective on September 18, 1975), and upon
taxable property added by an ordinance amending the
Redevelopment Plan (being Ordinance No. 1111, adopted by the
City Council of the City of Lynwood on December 16, 1980, which
ordinance became effective on January 15, 1981 less such
property removed by an ordinance from the Redevelopment Plan
(being Ordinance No. 1000 adopted by the City Council of the
City of Lynwood on June 1, 1976, which ordinance will become
effective on July 1, 1976), shall be divided as follows:
(a) That portion of the taxes which would be produced
by the rate upon which the tax is levied each year by or
for each of the taxing agencies upon the total sum of the
assessed value of the taxable property in the Redevelopment
Project Area as shown upon the assessment roll used in
connection with the taxation of such property by such
taxing agency last equalized prior to August 9, 1973 (being
the effective date of the Ordinance No. 945 referred to
above),- with reference to property described in the
Redevelopment Plan approved by that Ordinance, and the
taxable property in the Redevelopment Project Area as shown
upon the assessment roll used in connection with the
taxation of such property by such taxing agency last
equalized prior to January 26, 1974 (being the effective
date of the amending Ordinance No. 960), with reference to
property described in the Amendment to the Redevelopment
Plan approved by said amending Ordinance, and the taxable
property in the Redevelopment Project Area as shown upon
the assessment roll used in connection with the taxation of
such property by such taxing agency last equalized prior to
September 18, 1975 (being the effective date of the
amending Ordinance No. 990), with reference to property
described in the Amendment to the Redevelopment Plan
approved by said amending Ordinance, and the taxable
project in the Redevelopment Project Area as shown upon the
assessment roll used in connection with the taxation of
such property by such taxing agency last equalized prior to
January 15, 1981 (being the effective date of the amending
Ordinance No. 1111), with reference to property described
and added in the amendment to the Redevelopment Plan
approved by said amending Ordinance, and shall be allocated
to and when collected shall be paid into the funds of the
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F`Ati�
0
•
respective taxing agencies as taxes by or for the taxing
agencies on all other property are paid; and
(b) That portion of the levied taxes each year in
excess of such amount shall be allocated to and when
collected shall be paid into the Special Fund of the
Agency. This portion of the levied taxes (plus State
reimbursed amounts for certain property tax exemptions
including but not limited to those related to business
inventory and homeowners exemptions, to the extent
received), are herein referred to as "Pledged Tax Revenues"
and any tax revenues which are required to be passed
through to certain taxing entities.
The foregoing provisions of this Section are a portion of
the provisions of Article 6 of the Law as applied to the Bonds
and shall be interpreted in accordance with Article 6, and the
further provisions and definitions contained in Article 6 are
incorporated by reference herein and shall apply.
The Pledged Tax Revenues received by the Agency on or after
the date of issue of the Bonds are hereby irrevocably pledged
to the payment of the principal of, premium, if any, and
interest on the Bonds and the 1976 Bonds, and until all of the
Bonds and all interest thereon, have been paid (or until moneys
for that purpose have been irrevocably set aside), the Pledged
Tax Revenues (subject to the exception set forth in Section
15(d)) shall be applied solely to the payment of the Bonds and
the 1976 Bonds plus premium if any, and the interest thereon.as
provided in this Resolution. This allocation and pledge is for
the exclusive benefit of the Owners of the Bonds and the 1976
Bonds and shall be irrevocable.
Section 33645 of the Health and Safety Code provides, in
applicable part as follows: "The resolution, trust indenture,
or mortgage shall provide that tax increment funds allocated to
an agency pursuant to Section 33670 shall not be payable to a
trustee on account of any issued bonds when sufficient funds
have been placed with the trustee to redeem all outstanding
bonds of the issue." This Resolution is intended to comply
with the above quoted provision and shall be so construed.
Section 15 . Special.Fund The Agency shall pay or cause
to be paid to the Fiscal Agent for deposit in the Special Fund
in accordance with this Section all Pledged Tax Revenues and
other moneys identified herein, and the Agency will, so far as
permitted by law, authorize and direct the payment of the
Pledged Tax Revenues by the respective taxing entities directly
to the Fiscal Agent. The interest on the Bonds until maturity
shall be paid by the Fiscal Agent from the Special Fund. At
the maturity of any of the Bonds, and, after all interest then
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due on the Bonds then outstanding has been paid or provided
for, moneys in the Special Fund shall be applied to the payment
of the principal of any of such Bonds.
Without limiting the generality of the foregoing and for
the purpose of assuring that the payments referred to above
will be made as scheduled, the Pledged Tax Revenues accumulated
in the Special Fund shall be used in the following priority;
provided, however, to the extent that deposits have been made
in any of the'Funds referred to below from the proceeds of the
sale of the Bonds or otherwise, the deposits below need not be
made:
(a) Interest Account Deposits shall be made into
the Interest Account so that the balance in the Account on
each interest payment date shall be equal to interest due
on the then outstanding Bonds on such interest payment
date. Moneys in the Interest Account shall be used solely
for the payment of interest on the Bonds as interest
becomes due, including accrued interest on any Bonds
purchased or redeemed prior to maturity.
(b) Principal Account After the deposits have been
made pursuant to subparagraph (a) above, deposits shall
next be made into the Principal Account so that the balance
in the Account on or prior to each July 15 is equal to the
principal coming due on such date on the then outstanding
- serial- Bonds. All monies in -the Principal Account shall be
used and withdrawn by the Fiscal Agent solely for the
purpose of paying principal installments on the Bonds as
they shall become due and payable.
(c) Reserve Account After deposits have been made
pursuant to subparagraphs (a) and (b) above, deposits shall
be made to the Reserve Account, if necessary, in order to
, cause the amount on deposit therein to equal the Reserve
Requirement. Moneys in the Reserve Account shall be
transferred to the Interest Account or Principal Account to
pay interest on and principal of the Bonds either (i) as it
becomes due to the extent Pledged Tax Revenues are
insufficient therefor or (ii) at the final maturity of the
Bonds. Any portion of the Reserve Account which is in
excess of the Reserve Requirement shall be transferred at
least semiannually to the Interest Account.
(d) Surplus It is the intent of this Resolution:
(i) that the deposits in subparagraphs (a) and (b) above to
the Interest Account and the Principal Account,
respectively, shall be made as scheduled, and (ii) that the
deposits in subparagraph (c) above to the Reserve Account
shall be made as necessary to maintain a balance equal to
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0 0
the Reserve Requirement, if and only if the Pledged Tax
Revenues are sufficient therefor. Should it be necessary
to defer all or part of any deposits referred to in
subparagraph (c) above, such deferred deposits shall be
cumulative and shall be made when the Pledged Tax Revenues
are sufficient to make the deposits required by
subparagraphs (a) and (b) and thereafter make the deposits
required by subparagraph (c).
If: (i) the above transfers have been made so that the
required amounts as of that time are in the above mentioned
Accounts, and (ii) the Pledged Tax Revenues to be received
by the Agency in the current Fiscal Year, based upon the
most recent assessed valuation of taxable property in the
Redevelopment Project Area, furnished by the appropriate
officer of the County of Lynwood are at least equal to 1.25
times the Maximum Annual Debt Service on all Bonds, Parity
Bonds and any loans, advances or indebtedness payable from
Pledged Tax Revenues on a parity with the Bonds pursuant to
Section 33670 of the Law, as shown by the certificate or
opinion of an Independent Financial Consultant employed by
the Agency, and (iii) there has been no material change in
the status of the Redevelopment Project which in the
opinion of an Independent Redevelopment Consultant, said
opinion having been filed with the Fiscal Agent, would be
likely to result in diminution of increment in the
succeeding fiscal year, any balances in the Special Fund
may be used and applied by the Agency for any lawful
purpose, including without limitation, the purchase and /or
call and redemption of Bonds and Parity Bonds.
Section 16 Deposit and Investment of Moneys in Funds
Subject to the provisions of Covenant 9 of Section 18 hereof,
all moneys held by the Agency in the Redevelopment Fund, except
such moneys which are at the time invested in obligations in
which the Agency is authorized to make investments, and by the
Fiscal Agent in the Special Fund which are not otherwise
invested pursuant to this Section shall be held in time or
demand deposits in any bank or trust company authorized to
accept deposits of public funds (including the banking
department of the Fiscal Agent) and all of such deposits shall
be secured at all times by bonds or other obligations which are
authorized by law as security for public deposits, of a market
value at least equal to the amount required by law
Moneys in the Redevelopment Fund shall from time to time be
invested by the Agency, and moneys in the Special Fund may be
invested by the Fiscal Agent and upon request of the Agency
shall be invested in Federal Securities,/"ject to the
following restrictions:
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(,a) Moneys in the Redevelopment Fund shall be
invesfed only in obligations which will by their terms
mature not later than the date the Agency estimates the
moneys represented by the particular investment - will be
needed for withdrawal from the Fund.
j Moneys in the Interest and Principal Account of
the Special Fund shall be invested only in obligations
which will by their terms mature on such dates as to ensure
that before each interest and principal payment date, there
will be in such Account, from matured obligations and other
moneys already in such Account, cash equal to the interest
and principal, payable on such payment date.
(F) Moneys in the Reserve Account shall be invested
in obligations which will by their terms mature on or
before the date of the final maturity of the Bonds or five
(5) years from the date of investment, whichever is earlier.
( Moneys in the Escrowed Proceeds Fund shall be
investM in accordance with the investment agreement as
described in (f) below or otherwise in Federal Securities
which mature on or before July 15, 1989. Any monies
remaining in the Escrowed Proceeds Fund after July 1, 1989
shall be used to redeem theABonds on July 15, 1989 in
accordance with Section 11B of this Resolution.
Except as otherwise provided in Section 13 hereof,
obligations purchased as an investment of moneys in any of the
Funds or Accounts shall be deemed at all times to be a part of
such respective Fund or Account and the interest accruing
thereon and any gain realized from an investment shall be
credited to such Fund or Account and any loss resulting from
any authorized investment shall be charged to such Fund or
Account without liability to the Agency or the members and
officers thereof or to the Fiscal Agent. The Agency or the
Fiscal Agent, as the case may be, shall sell at the best price
obtainable or present for redemption any obligation purchased
whenever it shall be necessary to do so in order to provide
moneys to meet any payment or transfer from such Fund as
required by this Resolution. The investment constituting a
part of the Fund shall be valued at the then estimated or
appraised market value of the investment or face amount
thereof, whichever is lower; provided, however, that
investments in the Interest Account and the Principal Account
shall be valued at the face amount thereof. All interest
earnings received on any monies invested in the Interest
Account, Principal Account or Reserve Account, to the extent
they exceed the amount required to be in such account, shall be
transferred to the Special Fund. All interest earnings on
monies invested in the Redevelopment Fund shall be retained in
such fund and applied to the costs of the Project.
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Section 17 Issuance of Parity Bonds If at any time
the Agency determines it needs to do so, the Agency may provide
for the issuance of, and sell, Parity Bonds in such principal
amounts as it estimates will be needed. The issuance - and sale
of any Parity Bonds shall be subject to the following
conditions precedent:
(a) The Agency shall be in compliance with all
covenants in this Resolution and the 1976 Resolution
including any conditions to the issuance of additional
,1A..
(b) The Parity Bonds shall be on such terms and
conditions as may be set forth in a supplemental
resolution, which shall provide for (i) bonds substantially
in accordance with the Resolution, (ii) the deposit of
moneys into the Reserve Account in an amount sufficient,
together with the balance of the Reserve Account, to equal
the Reserve Requirement on all Bonds expected to be
outstanding including the outstanding Bonds and Parity
Bonds, (iii) the disposition of Surplus Pledged Tax
Revenues in substantially the same manner as Section 15(d)
hereof;
(c) Receipt of a certificate or opinion of an
Independent Financial Consultant showing:
(i) For the current and each future fiscal year
the debt service for each such Bond year with respect
to all Bonds and Parity Bonds reasonably expected to
be outstanding following the issuance of the Parity
Bonds;
(ii) For the then current fiscal year, the
Pledged Tax Revenues.to be received by the Agency
based upon the most recent assessed valuation of
taxable property in the Project Area provided by the
appropriate officer bf the County of Lynwood (and
exclusive of any anticipated business inventory
subvention revenues); and
(iii) That for the then current fiscal year, the
Pledged Tax Revenues referred to in item (ii) were at
least equal to 1.25 times the maximum annual debt
service referred to in item (i) above (excluding debt
service with respect to any portion of the Parity
Bonds deposited in an escrowed proceeds account), and
that the Agency is entitled under the Law and the
Redevelopment Plan to receive taxes under Section
33670 of the Law in an amount sufficient to meet
expected debt service with respect to all Bonds and
Parity Bonds.
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(d) The Parity Bonds shall mature on and interest
shall be payable on the same dates as the Bonds (except the
first interest payment may be from the date of the Parity
Bonds until the next succeeding January 15 or Jury 15).
(e) Receipt of written consent of the Bond Insurer to
the issuance of Parity Bonds if the Parity Bonds are to
bear interest at a variable rate.
If the Parity Bonds are to be applied under Section 33334.2
of the Law, Pledged Tax Revenues for purposes of such
Parity Bonds shall include that portion of taxes allocated
under Section 33670 of the Law for payment of the Parity
Bonds which are required to be set aside under Section
33334.2.
Section 18 Covenants of the Agency As long as the
Bonds are outstanding and unpaid, the Agency shall (through its
proper members, officers, agents or employees) faithfully
perform and abide by all of the covenants, undertakings and
provisions contained in this Resolution or in any Bond issued
hereunder, including all covenants of the Agency set forth in
the 1976 Resolution and the following covenants and agreements
for the benefit of the Bondholders which are necessary,
convenient and desirable to secure the Bonds and will tend to
make them more marketable; provided, however, that the
Covenants do not require the Agency to expend any funds other
than the Pledged Tax Revenues: - - -- -
Covenant 1 Complete Redevelopment Project;
Amendment to Redevelopment Plan The Agency covenants and
agrees that it will diligently carry out and continue to
completion in a sound and economical manner, with all
practicable dispatch, the Redevelopment Project in accordance
with its duty to do so under and in accordance with the Law and
the Redevelopment Plan. The Redevelopment Plan may be amended
as provided in the Law but no amendment shall be made unless it
will not substantially impair the security of the Bonds or the
rights of the Bondholders, as shown by an Opinion of Counsel
addressed to the Agency, Fiscal Agent and Bond Insurer, based
upon a certificate or opinion of an Independent Financial
Consultant appointed by the Agency and unless the Bond Insurer
shall have consented thereto in writing.
Covenant 2 Use of Proceeds, Management and
Operation of Properties The Agency covenants and agrees that
the proceeds of the sale of the Bonds will be deposited and
used as provided in this Resolution and that it will manage and
operate all properties owned by it comprising any part of the
Redevelopment Project Area in a sound and businesslike manner.
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Covenant 3 . No Priority The Agency covenants, and
agrees that it will not issue any obligations payable, either
as to principal or interest, from the Pledged Tax Revenues
which have any lien upon the Pledged Tax Revenues prior or
superior to the lien of the Bonds herein authorized. Except as
permitted by Section 17 hereof, it will not issue any
obligations, payable as to principal or interest, from the
Pledged Tax Revenues, which have any lien upon the Pledged Tax
Revenues on a parity with the Bonds authorized herein.
Notwithstanding the foregoing, nothing in this Resolution shall
prevent the Agency (i) from issuing and selling pursuant to
law, refunding obligations payable from and having any lawful
lien upon the Pledged Tax Revenues, if such refunding
obligations are issued for the purpose of, and are sufficient
for the purpose of, refunding all of the outstanding Bonds or
Parity Bonds, or (ii) from issuing and selling obligations
which have, or purport to have, any lien upon the Pledged Tax
Revenues which is junior to the Bonds, or (iii) from issuing
and selling bonds or other obligations which are payable in
whole or in part from sources other than the Pledged Tax
Revenues. As used herein "obligations" shall include, without
limitation, bonds, notes, interim certificates, debentures or
other obligations.
Covenant 4 Punctual Payment The Agency covenants
and agrees that it will duly and punctually pay or cause to be
paid the principal of and interest on each of the Bonds on the
date, at the place and in the manner provided in the Bonds.
Covenant S Payment of Taxes and Other Charges
The Agency covenants and agrees that it will from time to time
pay and discharge, or cause to be paid and discharged, all
payments in lieu of.taxes, service charges, assessments or
other governmental charges which may lawfully be imposed upon
the Agency or any of the properties then owned by it in the
Redevelopment Project Area, or upon the revenues and income
therefrom, and will pay all lawful claims for labor, materials
and supplies which if unpaid might become a lien or charge upon
any of the properties, revenues or income or which might impair
the security of the Bonds or the use of Pledged Tax Revenues or
other,legally available funds to pay the principal of and
interest on the Bonds, all to the end that the priority and
security of the Bonds shall be preserved; provided, however,
that nothing in this covenant shall require the Agency to make
any such payment so long as the Agency in good faith shall
contest the validity of the payment.
Covenant 6 Books and Accounts; Financial
Statements The Agency covenants and agrees that it will at
all times keep, or cause to be kept, proper and current books
and accounts (separate from all other records and accounts) in
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which complete and accurate entries shall be made of all
transactions relating to the Redevelopment Project and the Tax
Revenues and other funds relating to the Project. The Agency
will prepare within one hundred and eighty (180) days after the
close of each of its fiscal years a complete financial
statement or statements for the year, in reasonable detail
covering the Redevelopment Project Pledged Tax Revenues and
other funds, accompanied by an opinion of an Independent
Certified Public Accountant appointed by the Agency, and will
furnish a copy of the statement or statements to the Fiscal
Agent, the Bond Insurer and any rating agency which maintains a
rating on the Bonds, and, upon written request, to any
Bondholder.
Covenant 7 Eminent Domain Proceeds The Agency
covenants and agrees that if all or any part of the
Redevelopment Project Area should be taken from it without its
consent, by eminent domain proceedings or other proceedings
authorized by law, for any public or other use under which the
property will be tax exempt, it shall take all steps necessary
to adjust accordingly the base roll of the Project Area.
Covenant S Disposition of Property The Agency
covenants and agrees that it will not dispose of more than ten
percent (10 %) of the land area in the Redevelopment Project
Area (except property shown in the Redevelopment Plan in effect
on the date this Resolution is adopted as planned for public
use; or property to be used for public streets, public
offstreet parking, sewage facilities, parks, easements or
right -of -way for public utilities, or other similar uses) to
public bodies or other persons or entities whose property is
tax exempt, unless such disposition will not result in the
security of the Bonds or the rights of Bondholders being
substantially impaired, as shown by an Opinion of Counsel
addressed to the Agency, the Fiscal Agent and the Bond Insurer,
based upon the certificate or opinion of an Independent
Financial Consultant appointed by the Agency.
Covenant 9 Protection of Security and
rs; No Arbitrage; No Consumer Loan Bond_
covenants and agrees to preserve and protect a security of
the Bonds and the rights of the Bondholders and to contest by
court action or otherwise (a) the assertion by any officer of
any government unit or any other person whatsoever against the
Agency that (i) the Law is unconstitutional or (ii) that the
Pledged Tax Revenues pledged hereunder cannot be paid to the
Agency for the debt service on the Bonds, or (b) any other
action affecting the validity of the Bonds or diluting the
security therefor, or (c) any assertion by the United States of
America or any department or agency thereof or any other person
that the interest received by the Bondholders is taxable under
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federal income tax laws by reason of any action of the Agency.
The Agency covenants and agrees to take no action which, in the
Opinion of Counsel would result in (a) the Pledged Tax Revenues
being withheld unless the withholding is being contested in
good faith, and (b) the interest received by the Bondholders
becoming taxable under federal income tax laws. The Agency
covenants and agrees that it will make no use of the proceeds
of the Bonds at any time during the term thereof which will
cause the Bonds to be "arbitrage bonds" within the meaning of
Section 103(c) or "consumer loan bonds" within the meaning of
Section 103(0) of the United States Internal Revenue Code of
1954, as amended, and applicable regulations adopted thereunder
by the Internal Revenue Service, and the Agency hereby assumes
the obligation to comply with Section 103(c) and Section 103(o)
and the regulations throughout the term of the Bonds.
Covenant 10 Compliance with Law The Agency
covenants that it will comply with the requirements of the
Law. Without limiting the generality of the foregoing, the
Agency covenants and agrees to file all required statements and
hold all public hearings required under Section 33334.6 and
33675 of the Law to assure compliance by the Agency with its
covenants hereunder.
Covenant 11 Limitation on Indebtedness The Agency
covenants and agrees that is has not and will not incur any
loans, obligations or indebtedness from Pledged
Revenues such that the total aggregate debt service on said
loans, obligations or indebtedness incurred from and after the
date of adoption of the Redevelopment Plan, when added to the
total aggregate debt service on the Bonds, will exceed the
maximum amount of Pledged Revenues to be divided and allocated
to the Agency pursuant to the Redevelopment Plan.
Section 19 Taxation of Leased Property Whenever any
property in the Redevelopment Project Area has been redeveloped
and thereafter is leased by the Agency to any person or persons
(other than a public agency), or whenever the Agency leases
real property in the Redevelopment Project Area to any person
or persons (other than a public agency) for redevelopment, the
property shall be assessed and taxed in the same manner as
privately owned property, as required by Section 33673 of the
Law, and the lease or contract shall provide (a) that the
lessee shall pay taxes upon the assessed value of the entire
property and not merely upon the assessed value of his or its
leasehold interest, and (b) that if for any reason the taxes
levied on the property in any year during the term of the lease
or contract are less than the taxes which would have been
levied if the entire property had been assessed and taxed in
the same manner as privately owned property, the lessee shall
pay such difference to the Agency within (30) days after
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the taxes for the year become payable to the taxing agencies
and in no event later than the delinquency date of such taxes
established by law. All such payments shall be treated as
Pledged Tax Revenues, and when received by the Agency be
used as provided herein.
Section 20 Fiscal Agent and Paying Agents The Agency
hereby appoints as Fiscal Agent
hereunder, to act as the agent, trustee and depositary of the
Agency for the purpose of receiving Pledged Tax Revenues and
other funds in trust as provided in this Resolution, to hold,
allocate, use and apply the Pledged Tax Revenues and other
funds in trust as provided in this Resolution, and to perform
the other duties and powers of the Fiscal Agent as are
prescribed in this Resolution.
The Agency may remove the Fiscal Agent initially appointed,
or any successor, and shall forthwith appoint a successor
thereto, with written notice to the Bond Insurer, but any
successor shall be a bank or trust company doing business and
having an office in the City of Los Angeles, having a combined
capital and surplus of at least $50,000,000. The Fiscal Agent
or any substituted Fiscal Agent may at any time resign by
filing written notice thereof with the Agency and the Bond
Insurer. Upon a resignation in writing, the Agency shall
forthwith appoint a substitute Fiscal Agent with notice to the
Bond Insurer, and the resignation shall become effective upon
appointment. In the event that the Fiscal Agent or any
successor becomes incapable of acting as such, the Agency shall
forthwith appoint a substitute Fiscal Agent. Any bank or trust
company into which the Fiscal Agent may be merged or with which
it may be consolidated shall become the Fiscal Agent without
action of the Agency. The Fiscal Agent may become the owner of
any of the Bonds authorized by this Resolution with the same
rights it would have had if it were not the Fiscal Agent.
The Fiscal Agent shall have no duty or obligation to
enforce the collection of or to exercise diligence in the
enforcement of the collection of funds assigned to it
hereunder, or as to the correctness of any amounts received,
but its liability shall be limited to the proper accounting for
the funds that it actually receives.
The recitals of fact and all promises, covenants and
agreements herein and in the Bonds shall be taken as
statements, promises, covenants and agreements of the Agency,
and the Fiscal Agent assumes no responsibility for the
correctness of them, and makes no representations as to the
validity or sufficiency of this Resolution or of the Bonds, and
shall incur no reponsibility in respect thereof, other than in
connection with the duties or obligations herein or in the
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Bonds assigned to or imposed upon the Fiscal Agent. The Fiscal
Agent shall not be liable in connection with the performance of
its duties hereunder, except for its own negligence or default.
Section 21 Lost, Stolen, Destroyed or Mutilated Bonds
In the event that any Bond is lost, stolen, destroyed or
mutilated, the Agency will cause to be issued a new Bond(s) on
reasonable terms and conditions, including the payment of costs
and the posting of a surety bond if the Agency deems a surety
bond necessary, as may from time to time be determined and
prescribed by resolution. The Agency may authorize the new
Bond to be signed and authenticated in a manner as it
determines in the resolution.
Section 22 Cancellation of Bonds All Bonds
surrendered to the Fiscal Agent or any Paying Agent for payment
at maturity or, in the case of call and redemption prior to
maturity, at the redemption date, shall upon payment therefor
be cancelled immediately and transmitted to the Treasurer or
destroyed by the Fiscal Agent at the direction of the Agency,
If Bonds are destroyed a certificate of destruction shall
forthwith be transmitted to the Treasurer. Any Bonds purchased
by the Fiscal Agent shall be cancelled immediately and
transmitted to the Treasurer or destroyed. All of the
cancelled Bonds not destroyed shall remain in the custody of
the Treasurer until destroyed pursuant to due authorization.
Section 23 . Amendments This Resolution, and the rights
and obligations of the Agency and of the Owners of the Bonds
may be modified-or - amended at any time by supplemental
resolution adopted by the Agency: (a) without the consent of
Bondholders, if the modification or amendment is for the
purpose of adding covenants and agreements further to secure
Bond payment, to prescribe further limitations and restrictions
on Bond issuance, to surrender rights or privileges of the
Agency, to make modifications not affecting any outstanding
series of Bonds only with the consent of the Fiscal Agent, for
the purpose of curing any ambiguities, defects or inconsistent
provisions in this Resolution or to insert such provisions
clarifying matters or questions arising under this Resolution
as are necessary and desirable to accomplish the same, provided
that the modifications or amendments do not adversely affect
the rights of the Owners of any outstanding Bonds; (b) for any
purpose with the written consent of the Bond Insurer and
consent of the Bondholders holding sixty percent (60%) in
aggregate principal amount of the outstanding Bonds, exclusive
of Bonds, if any, owned by the Agency or the City, and obtained
as hereinafter set forth; provided, however, that no
modification or amendment shall, without the express consent of
the registered owner of the Bond affected, reduce the principal
amount of any Bond, reduce the interest rate payable on it,
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extend its maturity or the times for paying interest, change
the monetary medium in which principal and interest is payable,
or create a mortgage pledge or lien upon the revenues superior
to or on a parity with the pledge and lien created for the
Bonds and any Parity Bonds or reduce the percentage of consent
required for amendment or modification.
Any act done pursuant to a modification or amendment
consented to by the Bondholders shall be binding upon the
Owners of all of the Bonds and shall not be deemed an
infringement of any of the provisions of this Resolution or of
the Law, whatever the character of the act may be, and may be
done and performed as fully and freely as if expressly
permitted by the terms of this Resolution, and after consent
has been given, no Bondholder, whether attached to a Bond or
detached therefrom, shall have any right or interest to object
to the action, to question its propriety or to enjoin or
restrain the Agency or its officers from taking any action
pursuant to a modification or amendment.
A. Calling Bondholders' Meeting If the Agency shall
desire to obtain the Bondholders consent, it shall duly adopt
a resolution calling a meeting of the Bondholders for the
purpose of considering the action for which consent is desired.
B. Notice of Meeting Notice specifying the purpose,
place, date and hour of a Bondholders' meeting shall be mailed
postage prepaid, to the respective registered owners at their
addresses appearing on the bond register as maintained by the
Fiscal Agent. The notice shall be mailed not less than sixty
(60) days nor more than ninety (90) days prior to the date
fixed for the meeting, and said notice shall set forth the
nature of the proposed action for which consent is desired.
The place, date and hour of the meeting and the date or dates
of mailing the notice shall be determined by the Agency in its
discretion.
The actual receipt by any Bondholder of notice of any
Bondholders' meeting shall not be a condition precedent to the
holding of the meeting, and failure to receive notice shall not
affect the validity of the proceedings at the meeting. A
certificate by the Secretary of the Agency approved by
resolution of the Agency, that the meeting has been called and
that notice has been given as provided herein, shall be
conclusive as against all parties and no Bondholder shall have
the right to show that he failed to receive actual notice of
the meeting.
C. Voting Qualifications The Fiscal Agent shall prepare
and deliver to the chairman of the meeting a statement of the
names and addresses of the registered owners of the Bonds.
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This statement shall show maturities, serial numbers and
principal amounts_ so that voting qualifications can be
determined. No Bondholders shall be entitled to vote at the
meeting unless their names appear upon the statement. No
Bondholders shall be permitted to vote with respect to a larger
aggregate principal amount of Bonds than is set against their
names on the statement.
D Issuer -Owned Bonds The Agency covenants that it will
present at the meeting a certificate, signed and verified by
one of its member and by the Treasurer, stating the serial
numbers, maturities and principal amounts of all Bonds owned
by, or held for account of, the Agency or the City, directly or
indirectly. No person shall be permitted at the meeting to
vote or consent with respect to any Bond appearing upon the
certificate, or any Bond which is established at or prior to
the meeting to be owned by the Agency or the City, directly or
indirectly, and no such Bond (in this Resolution referred to as
"issuer -owned Bonds ") shall be counted in determining whether a
quorum is present at the meeting.
E. Quorum and Procedure A representation of at least
sixty percent (60%) in aggregate principal amount of the Bonds
then outstanding (exclusive of issuer -owned Bonds, if any)
shall be necessary to constitute a quorum at any meeting of
Bondholders, but less than a quorum may adjourn the meeting
from time to time, and the meeting shay be held as adjourned
without further notice, whether such adjournment shall have
been held by a quorum or by less than a quorum. 'The Agency
shall, by an instrument in writing, appoint a temporary
chairman of the meeting,'and the meeting shall be organized by
the election of a permanent chairman and secretary. At any
meeting each Bondholder shall be entitled to one vote for every
$5,000 principal amount of Bonds with respect to which he shall
be qualified to vote as set forth above, and the vote may be
given in person or by proxy duly appointed by an instrument in
writing presented at the meeting. The Agency and /or the Fiscal
Agent by their duly authorized representatives and counsel, may
attend any meeting of the Bondholders, but shall not be
required to do so.
F. Vote Required At any Bondholders' meeting there
shall be submitted for the consideration and action of the
Bondholders a statement of the proposed action for which
consent is desired. If the action is consented to and approved
by Bondholders holding at least sixty percent (60 %) in
aggregate principal amount of the Bonds then outstanding
(exclusive of issuer -owned Bonds), the chairman and secretary
of the meeting shall so certify in writing to the Agency. The
certificate shall constitute complete evidence of consent of
the Bondholders under the provisions of this Resolution. A
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certificate signed and verified by the chairman and the
secretary of any Bondholders' meeting shall be conclusive
evidence and the only competent evidence of matters stated in
the certificate relating to proceedings taken at the - meeting.
Section 24 Proceedings Constitute Contract; Events of
Default and Remedies of Bondholders The provisions of this
Resolution, of the resolutions providing for the sale of the
Bonds and awarding the Bonds and fixing the interest rate or
rates thereon, and of any other resolution supplementing or
amending this Resolution, shall constitute a contract between
the Agency, the Bond Insurer and the Bondholders. The
provisions of any amendment shall be enforceable by the Bond
Insurer and any Bondholder for the equal benefit and protection
of all Bondholders similarly situated by mandamus, accounting,
mandatory injunction or any other suit, action or proceeding at
law or in equity that is now or may hereafter be authorized
under the laws of the State of California in any court of
competent jurisdiction. This contract is made under and is to
be construed in accordance with the laws of the State of
California. The following provisions shall not limit the
generality of the foregoing.
A. Events of Default Each of the following shall
constitute an event of default:
(1) Default in the due and punctual payment by
the Agency of any installment of interest on any Bond
when the interest installment becomes due and payable;
(2) Default in the due and punctual payment by
the Agency of the principal and premium, if any, of
any Bond when the principal becomes due and payable,
whether at maturity, by declaration or otherwise;
(3) Default made by the Agency in the observance
of any of the covenants, agreements or conditions
contained in this Resolution or in the Bonds, where
the default continues for a period of thirty (30) days
following written notice to the Agency: or
(4) The Agency shall file a petition seeking
reorganization or arrangement under the federal
bankruptcy laws or any other applicable law of the
United States of America, or if a court of competent
jurisdiction shall approve a petition, filed with or
without the consent of the Agency, seeking
reorganization under the federal bankruptcy laws or
any other applicable law of the United States of
America, or if, under the provisions of any other law
for the relief or aid of debtors, any court of
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competent jurisdiction shall assume custody or control
of the Agency or of the whole or any substantial part
of its property;
In each event of default described in (1) or (2) above the
Fiscal Agent shall, and in each case of default described in
(3) or (4) above, the Fiscal Agent shall upon written request
of the Bond Insurer or if requested by the owners of not less
than a majority of the aggregate principal amount of the Bonds
at the time outstanding ( such request to be in writing to the
Fiscal Agent and to the Agency) with the consent of the Bond
Insurer, declare the principal of all of the Bonds then
outstanding and the interest accrued thereon, to be due and
payable immediately; provided, however, if a policy of bond
insurance insuring the payments of principal and interest shall
be in force, and if the Agency and /or the insurer shall have
promptly paid Bond interest and principal when due, then no
such acceleration of maturities shall occur unless requested in
writing by the Bond Insurer. Upon any such declaration the
Bonds shall become and shall be immediately due and payable,
anything in this Resolution or in the Bonds to the contrary
notwithstanding.
The declaration may be rescinded by the Bond Insurer if
such declaration resulted from a request of the Bond Insurer or
otherwise by the owners of not less than a majority of the
Bonds then outstanding provided the Agency cures the default or
defaults and deposits with the Fiscal Agent a sum sufficient to
pay all principal on the Bonds matured prior to the declaration
and all matured installments of interest (if any) upon all the
Bonds, with interest at the rate of twelve percent (12%) per
annum on the overdue installments of principal and, to the
extent the payment of interest on interest is lawful at that
time, on such overdue installments of interest,, so that the
Agency is currently in compliance with all payment, deposit and
transfer provisions of this Resolution, and any expenses
incurred by the Fiscal Agent in connection with the default.
B. Certain Remedies of Bondholders Any Bondholder with
the consent of the Bond Insurer or the Bond Insurer shall have
the right, for the equal benefit and protection of all
Bondholders similarly situated—
(1) by mandamus, suit, action or proceeding, to
compel the Agency and its members, officers, agents or
employees to perform each and every term, provision
and convenant contained in this Resolution and in the
Bonds, and to require the carrying out of any or all
covenants and agreements of the Agency and the
fulfillment of all duties imposed upon it by the Law;
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(2) by suit, action or proceeding in equity, to
enjoin any acts or things which are unlawful, or the
violation of any of the Bondholders' rights; or
(3) upon the happening of any event of default
(as defined in this Section), by suit, action or
proceeding in any court of competent jurisdiction, to
require the Agency and its members and employees to
account as if it and they were the trustees of an
express trust.
C. Non - Waiver Nothing in this Section or in any other
provisions of this Resolution, or in the Bonds, shall affect or
impair the obligation of the Agency, which is absolute and
unconditional, to pay the principal of and interest on the
Bonds to the respective Owners of the Bonds at the respective
dates of maturity from Pledged Tax Revenues, as herein
provided, or affect or impair the right, which is also absolute
and unconditional, of the Owners to institute suit to enforce
the payment by virtue of the contract embodied in the Bonds.
No remedy conferred upon any Bondholder or Bond Insurer by
the Resolution is intended to be exclusive of any other remedy,
but each remedy is cumulative and in addition to every other
remedy and may be exercised without exhausting and without
regard to any other remedy conferred by the Law or any other
law of the State of California. No waiver of any default or
breach of any duty or contract by any Bondholder or Bond
Insurer shall affect any subsequent default or breach of any
duty or contract or shall impair any rights or remedies on the
subsequent default or breach. No delay or omission of any
Bondholder or Bond Insurer to exercise any right or power
accruing upon any default shall impair any such right or power
or shall be construed as a waiver of any default or
acquiescence therein. Every substantive right and every remedy
conferred upon the Bondholders or Bond Insurer may be enforced
and exercised as often as may be deemed expedient. In case any
suit, action or proceeding to enforce any right, or exercise
any remedy, shall be brought and should said suit, action or
proceeding be abandoned, or be determined adversely to the
Bondholders, then, and in every such case, the Agency and the
Bondholders shall be restored to their former positions, rights
and remedies as if the suit, action or proceeding had not been
brought or taken.
D. Actions by Fiscal Agent as Attorney -in -Fact Any
suit, action or proceeding which any Owner of Bonds shall have
the right to bring to enforce any right or remedy hereunder may
be brought by the Fiscal Agent for the equal benefit and
protection of all Owners of Bonds similarly situated and the
Fiscal Agent is hereby appointed (and the successive respective
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"SaM�-
registered owners of the Bonds issued hereunder, by taking and
holding the same, shall be conclusively deemed so to have
appointed it) the true and lawful attorney -in -fact of the
respective registered owners of the Bonds for the purpose of
bringing any suit, action or proceeding and to do and perform
any and all acts and things for and on behalf of the respective
registered owners of the Bonds as a class or classes, as may be
necessary or advisable in the opinion of the Fiscal Agent as
attorney -in -fact; provided that provision is made•to indemnify
the Fiscal Agent for all expenses, including attorneys fees.
E. General After the issuance and delivery of the
Bonds, this Resolution, and any supplemental resolutions
hereto, shall be irrepealable, but shall be subject to
modification or amendment to the extent and in the manner
provided in this Resolution, but to no greater extent and in no
other manner.
Section 25 . CUSIP Numbers CUSIP identification numbers
will be imprinted on the Bonds, but numbers shall not
constitute a part of the contract evidenced by the Bonds and no
liability shall attach to the Agency or any of the officers or
agents because of or on account of said numbers. Any error or
omission with respect to the numbers shall not constitute cause
for refusal by the successful bidder to accept delivery of and
pay for the Bonds.
Section 26 . Severability If any covenant, agreement or
provision, or any portion thereof, contained in this
Resolution, or the application thereof to any person or
circumstance, is held to be unconstitutional, invalid or
unenforceable, the remainder of this Resolution and the
application of any covenant, agreement or provision, or portion
thereof, to other persons or circumstances, shall be deemed
severable and shall not be affected, and this Resolution and
the Bonds issued pursuant hereto shall remain valid and the
Bondholders shall retain all valid rights and benefits accorded
to them under this Resolution and the Constitution and the laws
of the State of California. If the provisions relating to the
appointment and duties of a Fiscal Agent are held to be
unconstitutional, invalid or unenforceable, the duties shall be
performed by the Treasurer.
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0
0
Section 27 . Effective Date This Resolution shall take
effect upon adoption.
ADOPTED AND APPROVED the day of 1986.
AYES:
NOES:
ABSENT:
Chairman
ATTEST:
Secretary
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i
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF LYNWOOD
C
SECRETARY'S CERTIFICATE
)ss. RE ADOPTION OF RESOLUTION
I, , Secretary of the Lynwood
Redevelopment Agency, DO HEREBY CERTIFY that the foregoing
Resolution was duly adopted by the Agency at a regular meeting
of the Agency held on the day of , 1986,
and that the same was passed and adopted by the following vote:
AYES: Members
NOES: Members
ABSENT: Members
ABSTAIN: Members
Secretary of the Lynwood
Redevelopment Agency
(SEAL)
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF LYNWOOD
SECRETARY'S CERTIFICATE
)ss. OF AUTHENTICATION
I, Secretary of the Lynwood
Redevelopment Agency, DO HEREBY CERTIFY that the above and
foregoing is a full, true and correct copy of Resolution
No. of the Agency and that the Resolution was adopted
at the time and by the vote stated on the above certificate,
and has not been amended or repealed.
Secretary of the Lynwood
Redevelopment Agency
(SEAL)
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EXHIBIT A
[FORM OF BOND]
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF LYNWOOD
LYNWOOD REDEVELOPMENT AGENCY
COMMERCIAL CENTER PROJECT
TAX ALLOCATION PARITY BOND, SERIES 1986
Registered
f ?.I 7
The LYNWOOD REDEVELOPMENT AGENCY (hereinafter sometimes
called the "Agency "), a public body, corporate and politic,
duly organized and existing under the laws of the State of
California, for value received, hereby promises to pay (but
solely from the funds hereinafter mentioned) to the registered
owner specified above or registered assigns, herein sometimes
referred to as "registered owner" (subject to the right of
prior redemption hereinafter mentioned), the principal sum
specified above on the maturity date stated above, and to pay
such registered owner by check or draft mailed thereto, at his
address as it appears on the register kept by the Fiscal Agent
at the close of business on the fifteenth day preceding the
interest payment date (the "regular record date "), interest on
such principal sum at the rate specified above from the
interest payment date next preceding the date hereof (unless
(i) the date hereof is prior to January 15, 1987 in which event
from August( —, 1986 (ii) it is dated after a regular record
date and bdf=e the following interest payment date, and if the
Agency shall not default in the payment of interest due on such
interest payment date, in which event it shall bear interest
from such interest payment date or (iii) it is dated as of an
interest payment date, in which event it shall bear interest
from such date) until the principal hereof shall have been paid
or provided for in accordance with the Resolution hereinafter
referred to, at the rate or rates above indicated, payable
semiannually on January 15 and July 15 in each year, commencing
on January 15, 1987. Both principal and interest and any
premium upon the redemption prior to the maturity of all,or
part hereof are payable in lawful money of the United States of
America, and (except for interest which is payable by check or
draft as stated above) are payable at the principal corporate
trust office of , Fiscal Agent
for the Agency, in Los Angeles, California.
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y:Y..
This Bond, the interest hereon and any premium due upon
the redemption of this Bond prior to maturity are not a debt of
the City of Lynwood, the State of California or any of its
political subdivisions, and neither said City, said - State nor
any of its political subdivisions is liable hereon, nor in any
event shall this Bond, said interest or said premium be payable
out of any funds or properties other than the funds of the
Agency as set forth in the Resolution hereinafter mentioned.
This Bond does not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or
restriction. Neither the members of the Agency nor any persons
executing the Bond are liable personally on this Bond by reason
of its issuance.
This Bond is one of a duly authorized issue of bonds of
the Agency designated "Lynwood Redevelopment Agency,
ARedevelopment Project Area "A" as Amended Tax Allocation n
Bonds, Series 1986" (hereinafter called Bonds ") in aggregate
principal amount of $4 all of like tenor (except for
bond numbers, maturity dates and differences, if any, in
interest rates) and all of which have been issued pursuant to
and in full conformity with the Constitution and laws of the
State of California and particularly the Community
Redevelopment Law (Part 1 of Division 24 of the Health and
Safety Code of the State of California) for the purpose of
aiding in the financing of the Redevelopment Project above
designated, and are authorized by and issued pursuant to
Resolution No. adopted by the Agency on _,
1986 (said resolution being hereinafter referred to as the
"Resolution ") and all of the Bonds are equally secured in
accordance with the terms of the Resolution, reference to which
is hereby made for a specific description of the security
therein provided for said Bonds, for the nature, extent and
manner of enforcement of such security, for the covenants, and
agreements made for the benefit of the Bondholders, and for a
statement of the rights of the Bondholders, and by the
acceptance of this Bond the registered owner hereof assents to
all of the terms, conditions and provisions of said
Resolution. In the manner provided in the Resolution, said
Resolution and the rights and obligations of the Agency and of
the Bondholders, may (with certain exceptions as stated in said
Resolution) be modified or amended with the consent of the
Holders of sixty percent (60 %) in aggregate principal amount of
outstanding Bonds, exclusive of issuer -owned bonds, unless such
modification or amendment is for the purpose of curing
ambiguities, defects, etc., in which case no Bondholder's
consent is required.
The Bonds are issued on a parity with the $1,605,000
outstanding Commercial Center Project Tax Allocation Bonds,
Series 1976 (the "1976 Bonds ") originally authorized to be
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e
issued by Resolution No. LRA 76 -10 (the "1976 Resolution "), of
the Agency adopted on July 15, 1976. _
The principal of this Bond and the interest hereon are
secured by an irrevocable pledge o£, and are payable solely
from, the Pledged Tax Revenues (as such term is defined in said
Resolution) and certain other funds, all as more particularly
set forth in the Resolution. Said Resolution is adopted under
and this Bond is issued under and is to be construed in
accordance with the laws of the State of California.
The outstanding Bonds maturing on or after July 15, 1997,
may be called before maturity and redeemed at the option of the
Agency in whole or in part from any source of funds on July 15,
1996, or on any interest payment date thereafter prior to
maturity. If less than all of the Bonds outstanding are to be
redeemed at any one time, the Bonds to be redeemed shall be
redeemed in inverse order of maturity, and by lot within a
maturity. Bonds called for redemption shall be redeemed at a
redemption price (expressed as a percentage of the principal
amount of Bonds to be redeemed) plus accrued interest to the
redemption date as shown in the following table:
Redemption Dates
Redemption Price
July
15,
1996
or January
15,
1997
102%
July
15,
1997
or January
15,
1998
101 -1/2%
July
15,
1998
or January
15,
1999
101%
_. _. July
15,
1999
or January
15,
2000
100 -1/2%
July
15,
2000
and thereafter
100%
The Bonds are subject to special early redemption in whole
or in part, by lot at a redemption price of 100% of the
principal amount thereof plus accrued interest to the
redemption date without premium, (i) on July 15, 1989 to the
extent of any moneys remaining in the Escrowed Proceeds Fund on
June 15, 1989; (ii) on any interest payment date prior to July
15, 1989 in the event that state law is modified to alter the
'generation of Pledged Tax Revenues in a manner that lowers
Pledged Tax Revenues to the level that the Agency determines
will prohibit the transfer of all funds from the Escrowed
Proceeds Fund; and (iii) on the interest payment date next
succeeding the date the Agency determines that current market
conditions prohibit the investment of all or a portion of the
proceeds remaining in the Escrowed Proceeds Fund at a rate at
least equal to the true interest rate on the Special Term Bonds
The Bonds are also subject to minimum sinking fund
redemption on July 15 of the following years in the following
amounts:
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Year
2002
2003
2004
2005
2006
2007
2008
2009
Amount
Year
2010
2011
2012
2013
2014
2015
2016
0
Amount
For the purpose of selecting Bonds by lot, Bonds in excess
of $5,000 will be assigned a separate number for each $5,000 of
principal they represent.
This Bond is issued in fully registered form and may be
exchanged for a like aggregate principal amount of Bonds of
other authorized denominations of the same issue, all as more
fully set forth in the Resolution. This Bond is transferable
by the registered owner hereof, in person or by his attorney
duly authorized in writing, at the principal office of the
Fiscal Agent in Los Angeles, California, but only in the
manner, subject to the limitations and upon payment of the
charges provided in the Resolution, upon surrender and
cancellation of this Bond. Upon such transfer a new registered
Bond of authorized denomination or denominations for the same
aggregate principal amount of the same issue will be issued to
the transferee in exchange therefor.
The Agency, the Fiscal Agent and any Paying Agent may treat
the registered owner hereof as the absolute owner hereof for
all purposes, and the Agency, the Fiscal Agent and any Paying
Agent shall not be affected by any notice to the contrary.
This Bond shall not be entitled to any benefit under the
Resolution, or become valid or obligatory for any purpose,
until the certificate of authentication hereon endorsed shall
have been signed by the Fiscal Agent.
It is hereby recited, certified and declared that any and
all acts, conditions and things required to exist, to happen
and to be performed precedent to and in the issuance of this
Bond exist, have happened and have.been performed in due time,
form and manner as required by the Constitution and laws of the
State of California.
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IN WITNESS WHEREOF, the Lynwood Redevelopment Agency has
caused this Bond to be signed on its behalf by its Chairman by
his facsimile signature and by its Secretary by her facsimile
signature and the seal of said Agency to be imprinted, hereon.
Registration Date:
Chairman of the Lynwood
Redevelopment Agency
(SEAL]
Secretary of the Lynwood
Redevelopment Agency
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(FORM OF CERTIFICATE OF AUTHENTICATION ON
FULLY REGISTERED BONDS]
This is one of the Fully Registered bonds described in the
within - mentioned Resolution.
Fiscal Agent
By:
Authorized Officer
[FORM OF ASSIGNMENT OF FULLY REGISTERED BONDS]
For value received hereby
sells, assigns and transfers unto
the within - mentioned Bond and hereby irrevocably constitutes
and appoints attorney, to
transfer the same on the books of the 71 scal Agent with full
power of substitution in the premises.
Dated:
NOTE: The signature to this Assignment must correspond with
the name as written] on the face of the within Bond in
every particular, without alteration or. enlargement or
any change whatsoever.
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0
NOTICE INVITING BIDS
$4,550,000
LYNWOOD REDEVELOPMENT AGENCY
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
TAX ALLOCATION BONDS
SERIES 1986
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of Four
Million Five Hundred Fifty Thousand Dollars ($4,550,000) aggregate principal
amount of tax allocation bonds (as designated herein) of the Lynwood
Redevelopment Agency (the "Agency ") will be received by the Agency up to the
time and at the place specified below: •
Time: 11:00 A.M. (Pacific Time)
Wednesday, August 6, 1986
Place: Offices of Stradling, Yocca, Carlson & Rauth
Wells Fargo Bank Building
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
Mailed Bids: Mailed bids should be addressed to:
_Lynwood Redevelopment Agency
c/o Stradling, Yocca, Carlson & Rauth
Wells Fargo Bank Building
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
Attn: E. Kurt Yeager, Esquire
OPENING OF BIDS: The bids will be received at the above place, will be
opened at the above time by the Financial Consultant and Bond Counsel and will
be presented to the Agency for its consideration and action at its meeting to
be held later in the day on which bids are received. If bids are not accepted
by the Agency on August 6, 1986, the Bonds will be sold at the same time and
place on August 12, 1986, or August 19, 1986, until bids are accepted.
ISSUE: Four Million Five Hundred Fifty Thousand Dollars ($4,550,000),
designated "Lynwood Redevelopment Agency, Redevelopment Project Area "A ", As
Amended, Tax Allocation Bonds, Series 1986" (the "Bonds "), consisting of fully
1
,N :r'
registered Bonds, in den inations of five thousand dollars ($5,000) each or
any integral multiple thereof, dated as of August 1, 1986, and numbered
consecutively upward in order of issuance.
MATURITY: The Bonds will mature on July 15, 2016.,
INTEREST: The Bonds will bear interest at a rate to be fixed upon the
sale thereof but not to exceed twelve percent (12 %) per annum, payable
semiannually on February 1 and July 15 in each year, commencing on January 15,
1987.
PAYMENTS: The principal of, premium, if any, and interest on the Bonds
are payable in lawful money of the United States of America; interest being
payable by check or draft mailed to the registered Owner of the Bond at his
address as shown on the registration books of the Fiscal Agent on the 15th day
prior to any interest payment date, and principal being payable at the
principal corporate trust office of Security Pacific National Bank, Fiscal
Agent for the Agency, in Los Angeles, California.
TRANSFER AND EXCHANGE: Transfer of ownership of a Bond or Bonds
will be made by exchanging the same for a new Bond or Bonds and transferring
the registration of such Bond or Bonds on the registration books of the Fiscal
Agent.
CALL AND REDEMPTION: The outstanding Bonds, or any of them,, may or
will, as the case may be, be called before maturity and redeemed as follows:
(a) The Bonds may be called before maturity and, redeemed, at the
option of the Agency, in whole from the proceeds of refunding bonds and other
available funds, or in whole or in part from any other source of funds, on
July 15, 1996, or on any interest payment date thereafter prior to maturity.
Bonds so called for redemption will be redeemed on the following redemption
dates and at the following redemption price (expressed as a percentage of the
principal amount of Bonds to be redeemed) plus accrued interest to the
redemption date:
Redei
July 15, 1996
July 15, 1997
July 15, 1998
July 15, 1999
July 15, 2000
npti!
and
and
and
and
and
m Date
January
January
January
January
thereaf
15, 1997
15, 1998
15, 1999
15, 2000
:er
Redemption
2
U
Price
. . . . . . 102 % ,
. . . . . " . 101 %:
. . . . . . 101
. . . . . . 100 %:
. . . . . 100
0 0
(b) The Bonds will be subject to mandatory redemption from minimum
sinking account payments on July 15, 2002, and on each July 15 thereafter
prior to maturity in accordance with the schedule set forth herein under the
caption "Successful Bidder; Bond Printing." The Bonds to be so redeemed will
be determined by lot. Bonds so called for redemption will be redeemed at a
redemption price for each redeemed Bond equal to the principal amount thereof,
plus accrued interest to the redemption date, without premium.
Special Early Redemption The Bonds are subject to special redemption in
part, by lot at a redemption price of 100% of the principal amount thereof
plus accrued interest to the redemption date, without premium, (i) on August
1, 1989 to the extent of any moneys remaining in the Escrowed Proceeds Fund on
July 1, 1989. '
PURPOSE OF ISSUE: The Bonds are to be issued by the Agency under and
pursuant to the Community Redevelopment Law of the State of California (Part 1
of Division 24 of the Health and Safety Code) to aid in the financing of a
redevelopment project in the City of Lynwood, California, known as the
Redevelopment 'Project Area "A ", As Amended, pursuant to a Resolution, to be
adopted by the Agency, providing for the issuance of the Bonds (the
"Resolution "), to which reference is made for further particulars.
SECURITY: The Bonds are being issued on a parity with the Agency's
outstanding Redevelopment Project Area "A ", Tax Allocation Bonds, Series 1976
and are payable, as to both principal and interest, solely from Tax Revenues
(as defined in the Resolution). The Bonds are not a debt of the City of
Lynwood, the State of California or any of its political subdivisions-.
TERMS OF SALE ----- ' -
Interest Rate: The rate bid, may not exceed twelve percent (12 %) per
annum, payable semiannually on January 15 and July 15 in each year, commencing
on January 15, 1987.. The rate bid must be a multiple of one - eighth of one
percent (1/8 %) or one - twentieth of one percent (1/20 %). All Bonds must bear
the same interest rate. No Bond may bear more than one interest rate, and
each Bond must bear interest at the rate specified in the bid from its date to
its fixed maturity date.
Sale of Bonds: The Bonds will be sold for cash only and all bids must be
for not less than all of the Bonds hereby offered for sale. Each bid shall
state: (1) that the bidder offers accrued interest from the date of the Bonds
to the date of delivery, (2) the purchase price, which shall not be less than
ninety -seven percent (97 %) of the principal amount thereof, and (3) the
interest rate, not to exceed that specified herein, at which the bidder offers
to buy the Bonds. Each bidder shall state in his bid the total interest cost
in dollars and the net interest rate determined thereby, which will be
considered informative only and not a part of the bid.
3
0
�1 I
Successful Bidder; Bond Printing: The Bonds will be awarded to the
responsible bidder or bidders considering the interest rate specified and the
premium or discount offered, if any. The successful bid will be determined by
deducting the amount of the premium (if any) from, or adding the amount of the
discount (if any) to, the total amount of interest which the Agency would be
required to pay from the date of the Bonds to the maturity date thereof at the
rate specified in the bid, and the award will be made on the basis of the
lowest net interest cost to the Agency. If two or more bids provide the same
lowest net interest cost, the Agency will determine by lot which bid will be
accepted, and such determination will be final. The purchaser must pay
accrued interest from the date of the Bonds to the date of delivery thereof
computed on a 360 -day year basis. The cost of printing the Bonds will be
borne by the Agency. For the purposes of determining interest cost, the Bonds
maturing on July 15, 2016 will be deemed to mature on July 15 in the amounts
and in the years as follows:
Right of Rejection: The Agency reserves the right, in its discretion, to
reject any and all bids and, to the extent not prohibited by law, to waive any
irregularity or informality in any bid.
Award of Bonds: The Agency will take action awarding the Bonds or
rejecting all bids not later than twenty -six (26) hours after the time herein
prescribed for the receipt of bids; provided that the award may be made after
the expiration of such specified time if the bidder has not given to the
Agency notice in writing of the withdrawal of such bid. Notice of the award
will be given promptly to the successful bidder.
Form of Bid: Each bid, together with the bid check, must be in a sealed
envelope addressed to the Agency, with the envelope and bid clearly marked
"Bid for the purchase of $4,550,000 Lynwood Redevelopment Agency,
Redevelopment Project Area "A ", As Amended, Tax Allocation Bonds, Series
1986. Each bid must be unconditional and in accordance with the terms and
conditions set forth or permitted herein and must be submitted on, or in
substantial accordance with, the bid form provided by the Agency.
4
Principal
Principal
July 15
Amount
July 15
Amount
2002
$175,000
2010
$310,000
2003
185,000
2011
335,000
2004
200,000
2012
360,000
2005
215,000
2013
385,000
2006
230,000
2014
415,000
2007
250,000
2015
450,000
2008
270,000
2016 (maturity)
480,000
2009
290,000
Right of Rejection: The Agency reserves the right, in its discretion, to
reject any and all bids and, to the extent not prohibited by law, to waive any
irregularity or informality in any bid.
Award of Bonds: The Agency will take action awarding the Bonds or
rejecting all bids not later than twenty -six (26) hours after the time herein
prescribed for the receipt of bids; provided that the award may be made after
the expiration of such specified time if the bidder has not given to the
Agency notice in writing of the withdrawal of such bid. Notice of the award
will be given promptly to the successful bidder.
Form of Bid: Each bid, together with the bid check, must be in a sealed
envelope addressed to the Agency, with the envelope and bid clearly marked
"Bid for the purchase of $4,550,000 Lynwood Redevelopment Agency,
Redevelopment Project Area "A ", As Amended, Tax Allocation Bonds, Series
1986. Each bid must be unconditional and in accordance with the terms and
conditions set forth or permitted herein and must be submitted on, or in
substantial accordance with, the bid form provided by the Agency.
4
0
0
CUSIP: CUSIP identification numbers maybe imprinted on the Bonds, but
such numbers will not constitute a part of the contract evidenced -by the Bonds
and no liability will attach to the Agency or any of the officers or agents
thereof because of or on account of said numbers. Any error or omission with
respect to said numbers will not constitute cause for refusal by the
successful bidder to accept delivery of and pay for the Bonds.
Delivery and Payment: Delivery of the Bonds will be made to the
successful bidder at such place as may be agreed upon by the successful bidder
and the officer of the Agency making delivery. Payment for the Bonds must be
made in funds immediately available to the Agency in Los Angeles, California.
Form of Delivery; Cancellation for Late Delivery: The Bonds are scheduled to
be delivered to the successful bidder within thirty (30) days following the
sale thereof. If the Agency fails to execute the Bonds and tender them for
delivery by twelve o'clock noon on the 60th day following 'the date of sale or
the first business day thereafter if said 60th day is not a business day, the
successful bidder may (subject to the conditions set forth below under the
heading "Good Faith Check "), on that day or any time thereafter until delivery
of the Bonds, withdraw his bid by serving notice of cancellation, in writing,
on the undersigned, in which event the Agency will promptly return the good
faith check. The Agency expects to deliver the Bonds in the form of
definitive bonds, but reserves the right to make such delivery in the form of
temporary bonds, exchangeable for definitive bonds, at no cost to the
purchaser. Accrued interest to the date of delivery of the Bonds will be paid
by the purchaser at the time of delivery.
- - Good Faith Check: A certified or cashier's check drawn on a responsible
bank or trust company in the amount of fifty thousand dollars ($50,000)
payable to the order of the Agency, must accompany each bid as a guaranty that
the bidder, if successful, will accept and pay for the Bonds in accordance
with the terms of his bid. No interest will be allowed on such good faith
checks, and good faith checks of unsuccessful bidders will be promptly
returned to each bidder's representative by hand delivery or registered mail.
The good faith check accompanying any accepted bid will be cashed and the
proceeds thereof applied to the purchase price. If such bid is accepted but
not performed, unless such failure or performance is caused by any act or
omission of the Agency, the proceeds of the good faith check accompanying any
accepted bid will be retained by the Agency.
Change in Tax Exempt Status: At any time before the Bonds are tendered
for delivery, the successful bidder may disaffirm and withdraw the bid if the
interest on bonds of the same type and character as the Bonds are declared to
be taxable under present federal income tax laws, either by a ruling of the
Internal Revenue Service or by a decision of any federal court, or are
declared taxable by the terms of any federal income tax law enacted subsequent
to the date of this notice.
5
y y 9•`
F
Legal Opinion: The opinion of the Bond Counsel firm of Stradling, Yocca,
Carlson & Rauth, A Professional Corporation, Newport Beach, California,
approving the validity of the Bonds and stating that under existing statutes,
regulations, rulings and court decisions, interest on the Bonds is exempt from
present federal income taxation and from present State of California personal
income taxes, will be furnished to the successful bidder at the time of
delivery of the Bonds at the expense of the Agency. A copy of such opinion,
certified by an officer of the Agency by his facsimile signature, will be
printed on the back of each Bond. No charge will be made to the purchaser for
such opinion, printing or certification.
Closing Documents: In addition to the opinion of Bond Counsel referred
to above, at the time of payment for the delivery of the Bonds, the Agency
will furnish the successful bidder the following documents, all to be dated as
of the date of delivery:
1. Arbitrage Certificate -- A certificate of an appropriate officer of
the Agency certifying that, on the basis of facts, estimates and
circumstances in effect at the time of delivery of the Bonds, it is
not expected that the proceeds of the Bonds will be used in a manner
that will cause the Bonds to be arbitrage bonds.
2. No Litigation Certificate -- A certificate of an appropriate officer of
the Agency certifying that there is no litigation pending or, to the
best of such officer's knowledge, threatened against the Agency
affecting the validity of the Bonds.
3. Signature Certificate -- A certificate of appropriate officers of the
Agency indicating that they have signed the Bonds by manual or
facsimile signature and that they were duly authorized to execute
the same.
4. Fiscal Agent's and Treasurer's Receipts , -- The receipts of the Fiscal
Agent and the Treasurer of the Agency showing that the purchase
price of the Bonds, including accrued interest to the date of
delivery, if any, has been received by the Agency and the Fiscal
Agent, respectively.
5. Certificate Concerning Official Statement -- A certificate of an
appropriate officer of the Agency, acting in such person's official
and not personal capacity, to the effect that at the time of the
sale of the Bonds and at all times subsequent thereto up to and
including the time of delivery of the Bonds, the Official Statement
relating to -the Bonds did not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they
were made, not misleading.
0
0
Official Statement: The Agency will furnish to the successful bidder, at
no charge, such number of copies of the Official Statement as said bidder may
reasonably request (but not to exceed 750) for use in connection with any
resale of the Bonds.
- Insurance: The Agency has applied to AMBAC Indemnity Corporation,
Financial Guaranty Insurance Company, Municipal Bond Insurance Association,
USF &G Financial Security Company and Bond Investors Guaranty to issue an
insurance commitment, to be purchased by the Agency, on or prior to the
delivery of the Bonds. The insurer chosen, if any, will be announced prior to
the sale of the Bonds through the Munifacts wire service.
INFORMATION AVAILABLE: Requests for copies of the Official Statement
pertaining to the Bonds, the Official Bid Form, or for other information
concerning the Agency, should be addressed to Miller & Schroeder Financial,
Inc., 505 Lomas Santa Fe Drive, Solana Beach, ,California 92075, telephone
(619) 481 -5894.
GIVEN by resolution of the Agency adopted on July 22, 1986.
/s/ Charles Gomez
Executive Director of the
Lynwood Redevelopment Agency
7
Q
OFFICIAL BID FORM
BID
FOR THE PURCHASE OF
$4,550,000
LYNWOOD REDEVELOPMENT AGENCY
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
TAX ALLOCATION BONDS
SERIES 1986
August 6, 1986
Lynwood Redevelopment Agency
Lynwood, California
On behalf of a group which we have formed consisting of
and pursuant to the Notice Inviting Bids, we offer to purchase Four Million
Five Hundred Fifty Thousand Dollars ($4,550,000) principal amount, all or
none, of the Bonds designated as "Lynwood Redevelopment Agency, Redevelopment
Project Area "A ", As Amended, Tax Allocation Bonds, Series 1986 ", particularly
described in the Notice Inviting Bids, at the interest rate of % and
to pay therefor the aggregate sum of $ *, plus accrued
interest on such Bonds to the date of delivery thereof.
This bid is subject to all of the terms and conditions of the Notice
Inviting Bids, all of which terms and conditions are hereby accepted by us and
are made a part hereof as though set forth fully in this bid.
a
a
Except as otherwise specified in the Notice Inviting Bids, this bid is
subject to acceptance not later than twenty -six (26) hours after the
expiration of the time for the receipt of bids, and the opinion of the Bond
Counsel firm of Stradling, Yocca, Carlson & Rauth, A Professional Corporation,
Newport Beach, California, approving the validity of the Bonds, being
furnished us (if we are the successful bidder) at the time of delivery of the
Bonds at the expense of the Agency.
There is enclosed herewith a ** check in the
amount of fifty thousand dollars, ($50,000), payable to the order of the
Lynwood Redevelopment Agency.
* $4,550,000 plus premium or less discount, if any (discount not to exceed
three percent 0W.
** Insert "certified" or "cashier's ".
There is submitted herewith a "Memorandum of Interest Cost" (which
shall not constitute a part of this bid), stating the total interest cost in
dollars on the Bonds during the life of the issue under this bid and the net
interest rate determined thereby.
Respectfully submitted,
Name:
Account Manager
By:
Address:
City:
State: _
Telephone:
The
assuming
t
is
MEMORANDUM OF INTEREST COST
total interest cost on the
minimum sinking account
and the net
Bonds during the
payments, under
interest rate
life of the issue,
the above bid is
determined thereby
#,_.
0
PRELIMINARY OFFICIAL STATEMENT DATED JULY 31, 1986
RATINGS: "
1
$4,550,000
LYNWOOD REDEVELOPMENT AGENCY
REDEVELOPMENT PROJECT AREA - A% AS AMENDED
TAY ALLOCATION BONDS
SERIES 1986
Dated: August L, 1986
"
Due: July 15, 2016
The Bonds will be issued in fully registered form in denominations of $5,000 or
any integral multiple thereof. The Bonds are payable at the principal corporate
trust office of the Fiscal Agent for the Agency, Security Pacific National Bank,
Los Angeles, California. Interest on the Bonds is payable semiannually on January
15 and July 15 in each year, commencing on January L5, 1987, by check or draft
mailed to the registered owner thereof.
The Bonds maturing on July L5, 2016 are subject to mandatory redemption from
minimum sinking account payments in part, by lot, on July 15, 2002 and on each July
15 thereafter at a redemption price equal to the principal amount thereof plus
accrued interest to the redemption date.
The Bonds are subject to optional redemption prior to maturity, in whole or in
part, on July 15, 1996 and on each interest payment date thereafter, at a
redemption price equal to the principal amount thereof plus accrued interest to the
redemption date, plus a premium, as described herein. The Bonds are also subject
to special early redemption, in part, from moneys remaining on deposit in the
Escrowed Proceeds Fund on August 1, 1989, as described herein.
MATURITY SCHEDULE
$4,550,000 - _% Term Bonds due July 15, 2016 Yield -_%
(Plus accrued interest)
The Bonds are being issued on a parity with the Agency's previously issued
$2,000,000 Redevelopment Project Area "A ", Tax Allocation Bonds, Series 1976 (the
"1916 Bonds ") and are payable from and secured by the Tax Revenues as defined
herein to be derived from the Project Area. Taxes levied on the property within
the Project Area on that portion of the taxable valuation over and above the
taxable valuation of the base year property tax roll (1972 -73 for the original
Project Area and 1975 -76 and 1980 -81 for the amended portions of the Project Area),
shall be deposited in the Special Fund, administered by the Fiscal Agent for the
payment of principal of and interest on the Bonds and the 1976 Bonds.
Payment of the principal of and interest on the Bonds will be guaranteed by a
municipal bond insurance policy to be issued by
simultaneously with the delivery of the Bonds, as described herein.
Attention is hereby directed to certain Risk Factors more fully described herein.
The Bonds are not a debt of the City of Lynwood, the State of California or any
of its political subdivisions, and neither said City, said State or any of its
political subdivisions is liable therefor. The principal of and interest on the
Bonds are payable solely from the Tax Revenues allocated to the Agency from the
Project Area as defined herein and in the Resolution.
The date of this Official Statement is August _, 1986.
TABLE OF CONTENTS
0
Page
Introductory Statement . .
Source and Uses of Funds .
The Bonds .
Authority for Issuance .
Description of the Bonds .
Redemption and Purchase of Bonds . .
Security for the Bonds . .
The Resolution .
Allocation of Bond Proceeds
Escrowed Proceeds Fund
Tax Revenues - Application . . . . . . . . . . . .
Investment of Moneys in Funds and Accounts .
Issuance of Parity Bonds .
Covenants of the Agency . .
Events of Default and Remedies .
Amendments .
The Lynwood Redevelopment Agency . . . . . . . . . .
Members and Officers . . . . . . . . . . . . .
Agency Powers .
Financing . . . . . . . . . . .
Factors Affecting Redevelopment Agencies Generally . .
Other Redevelopment Projects .
Risk Factors . . . . . . . . . . . . . . . .
Reduction of Tax Revenues .
Article XIII A of the State Constitution . . . . .
Business Inventory Exemption . .
Pending Federal Legislation Concerning Tax- Exempt Obligations
Redevelopment Project Area "A ", As Amended . .
Background .
Agreement for Reimbursement of Tax Increment Revenues . . .
Tax Revenues . . . . . . . . . . . . . . .
Historical Tax Revenues . . . . . . . . . . .
Projected Tax Revenues .
New Development . . . . . . . . . . . . .
Annual Debt Service . . . . . . . . . . .
Debt Service Coverage . . . . . . . . . .
Concluding Information . .
Financial Consultant . . . . . . . . . . . . .
Underwriting .
Legal Opinion . . . . . . . . . . . .
Tax Exempt Status . . . . . . . . . . .
Legality for Investment in California . . .
Bond Insurance . . . . . . . . . . . . .
Rating .
Miscellaneous . . . . . .
Supplemental Information - The City of Lynwood . . . .
1
3
3
3
4
4
5
7
7
8
8
9
11
. 12
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. 16
. 17
. 17
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No dealer, broker, salesman or other person has been authorized to give any
information or to make any representations, other than'those contained in this Official
Statement, and, if given or made, such information or representations must not be relied
upon as having been authorized by the Agency. The information and expressions of
opinion stated herein are subject to change without notice. The delivery of this Official
Statement shall not, under any circumstances, create any implication that there has been
no change in the affairs of the Agency or the Project Area since the date hereof.
LYNWOOD REDEVELOPMENT AGENCY
Robert Henning, Chairman
Louis Thompson Evelyn Wells
E. L. Morris John D. Byork
Charles Gomez, Executive Director
Vicente Mas, Deputy Executive Director
Mary Wright, Treasurer
E. Kurt Yeager, Agency Counsel
CITY OF LYNWOOD, CALIFORNIA
CITY COUNCIL
Robert Henning, Mayor
Louis Thompson Evelyn Wells
E. L. Morris John D. Byork
Charles Gomez, City Manager
Donald J. Fraser, Acting Assistant City Manager
Andrea L. Hooper, City Clerk
Mary Wright, Treasurer
E. Kurt Yeager, City Attorney
SPECIAL SERVICES
Bond Counsel
Stradling, Yocca, Carlson & Rauth
A Professional Corporation
Newport Beach, California
Fiscal Agent
Security Pacific National Bank
Los Angeles, California
Fiscal Consultant
Katz, Hollis, Coren & Associates, Inc.
Los Angeles, California
Financial Consultant
Miller & Schroeder Financial, Inc.
Solana Beach, California
r
OFFICIAL STATEMENT
$4,550,000
LYNWOOD REDEVELOPMENT AGENCY
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
TAX ALLOCATION BONDS
SERIES 1986
This Official Statement, including the cover page, is provided to furnish
information in connection with the sale by the Lynwood Redevelopment Agency
(the "Agency ") of $4,550,000 aggregate principal amount of the Agency's
Redevelopment Project Area "A ", As Amended, Tax Allocation Bonds, Series 1986
(the "Bonds "). The Bonds are being issued pursuant to the Constitution and
laws of the State of California (the "State "), including the Community
Redevelopment Law (Part 1, Division 24, commencing with Section 33000 of the
Health and Safety Code of the State) (the "Law "), Resolution No. LRA76 -10
adopted by the Agency on June 15, 1976 for the 1976 Bonds (the "1976 Bond
Resolution ") and Resolution No. adopted by the Agency on August
1986 (the "Resolution ").
The City of Lynwood (the "City ") is located in Los Angeles County (the
"County ") and is situated in the Los Angeles Basin, midway between downtown
Los Angeles and downtown Long Beach. The City was incorporated on July 11,
1921 and operates as a general law city under the Council- Manager form of
government. The City encompasses an area of approximately 4.84 square miles
with an average elevation of 89 feet above sea level. The 1986 population of
the City is estimated to be 53,000.
The Agency was established by the City Council with the adoption of
Ordinance No. 932 on April 9, 1973. The five members of the City Council
serve as the governing body of the Agency, and exercise all rights, powers,
duties and privileges of the Agency. The Mayor serves as Chairman of the
Agency.
The Redevelopment Plan for Redevelopment Project Area "A ", As Amended (the
"Redevelopment Plan ") was approved by Ordinance No. 945 adopted by the City
Council on July 10, 1973 and amended by Ordinance No. 960 adopted by the City
Council on December 27, 1983, Ordinance No. 990 adopted by the City Council on
August_ 19, 1975 and Ordinance No. 1111 adopted by the City Council on December
16, 1980.
The Redevelopment Project Area "A ", As Amended (the "Project Area ")
originally consisted of 20.8 acres encompassing approximately 1% of the total
area of the City and was amended in 1976 and again in 1981 increasing the
total size of the Project Area to 564 acres or approximately 18% of the City's
total area.
The Law authorizes the financing of redevelopment projects through the use
of tax increment revenues. This method provides that the taxable valuation of
the property within a project area on the property tax roll last equalized
1
prior to the effective date of the ordinance which adopts the redevelopment
plan becomes the "base year" valuation. The increase, if any, in taxable
valuation in subsequent years over the base year valuation becomes the
incremental valuation upon which taxes can be levied by the County and other
taxing agencies and the resulting tax increment revenues are allocated to the
Agency. All taxes thereafter collected thereafter upon the incremental
valuation (the increase in taxable valuation over the base year valuation)
plus State reimbursed amounts for certain property tax exemptions which are
allocated to the Agency may be pledged to the payment of debt service on
obligations issued by the Agency.
The Bonds are being issued on a parity with the 1976 Bonds and are payable
from and are secured by a pledge of the Tax Revenues (described herein under
the section entitled "SECURITY FOR THE BONDS "). The Agency has no power to
levy and collect taxes, and any legislative property tax de- emphasis or
provision of additional sources of income to taxing agencies having the effect
of reducing the property tax rate must necessarily reduce the amount of Tax
Revenues that would otherwise be available to pay the principal of and
interest on the Bonds. Likewise, broadened property tax exemptions could have
a similar effect.
The 1986 -87 Tax Revenues of $478,000 will provide 125% coverage of the
estimated Maximum Annual Debt Service on the 1976 and $3,340,000 principal
amount of Bonds. The Bond proceeds in excess of $3,340,000 will be initially
deposited in the Escrowed Proceeds Fund, held by the Fiscal Agent and released
pursuant to a formula described on page 8 herein.
The Agency has received a commitment from
(" ") to issue, effective as of the date th,
delivered, a policy of insurance guaranteeing the payment, when
principal of and interest on the Bonds. The insurance extends for
the Bonds and cannot be cancelled by
Bonds are
due, of the
the life of
Brief descriptions of the Bonds, the Resolution, the Agency and the City
are included in this Official Statement. Such descriptions and information do
not purport to be comprehensive or definitive. All references herein to the
Resolution, the Law, the Constitution and the laws of the State as well as the
proceedings of the Agency and the City are qualified in their entirety by
reference to such documents. References herein to the Bonds are qualified in
their entirety by reference to the form thereof included in the Resolution and
the information with respect thereto included herein, copies of which are all
available for inspection at the offices of the Agency. During the period of
the offering of the Bonds, copies of the forms of all documents are available
at the offices of the Financial Consultant, Miller & Schroeder Financial,
Inc., 505 Lomas Santa Fe Drive, Solana Beach, California 92075.
2
SOURCE AND USES OF FUNDS*
�'
The estimated source and uses of funds, excluding accrued interest on the
Bonds, is summarized as follows:
Source
Principal Amount of Bonds . .
Uses
Underwriter's Discount
Reserve Account (2) .
Costs of Issuance Accol
Bond Insurance Premium
Redevelopment Fund .
Escrowed Proceeds Fund
Total Uses . . .
4.550.000
(1) . . . . . . . . . . . $ 136,500
. . . . . . . . . . . 340,120
int . . . . . . . . . . . . 100,000
. . . . . . . . . . .. . 125,486
. . . . . . . . . . 2,637,894
(3) . . . . . . . . . . . 1,210,000
. . . . . . . . . . . 4.550.000
(1) Underwriter's discount estimated at three percent (3 %).
(2) An amount which when added to the moneys on deposit in the Reserve Account
for the 1976 Bonds will be equal to Maximum Annual Debt Service on the
Bonds and the 1976 Bonds.
(3) An amount of Bonds, the Maximum Annual Debt Service of which is in excess
of that currently supported by 125% of Tax Revenues.
*Preliminary, subject to change.
THE BONDS
Authority for Issuance
The Lynwood Redevelopment Agency, Redevelopment Project Area "A ", As
Amended, Tax Allocation Bonds, Series 1986, in an aggregate principal amount
of $4,550,000 (the "Bonds "), were authorized for issuance pursuant to
Resolution No. LRA76 -10 adopted by the Agency on June 15, 1976 for the 1976
Bonds (the "1976 Bond Resolution ") and Resolution No. , adopted by the
Agency on August , 1986 (the "Resolution ").
Pursuant to the 1976 Bond Resolution, if at any time the Agency determines
that it will not have sufficient moneys available from other sources to pay
the costs of the Redevelopment Project, the Agency may provide for the
issuance of, and sell, additional tax allocation bonds in such principal
amount as it estimates will be needed, for such purpose, subject to the
following conditions precedent to such sale:
(a) The Agency shall be in compliance with all covenants set forth
in the 1976 Bond Resolution.
(b) The Reserve Account must be increased, if necessary by an amount
sufficient to maintain the Minimum Reserve Requirement with reference to
the Bonds and any additional bonds.
3
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(c) The additional bonds must mature on July 15, of each year, and
interest thereon is to be payable January 15 and July 15 of each year,
except the first year's interest may be payable at the end of that year.
(d) Tax Revenues received or to be received from the most recent
equalized assessed valuation of taxable property located in the
Redevelopment Project Area are to be at least equal to 1.20 times the
combined debt service of the then outstanding Bonds plus the assumed
aveiage annual debt service (computed on the basis of approximately equal
annual payments of principal plus interest) on all series of outstanding
Bonds and additional bonds, with reference to any future fiscal year, as
opined to by an independent municipal finance consultant employed by the
Agency.
For purposes of this computation, taxable property shall include assessed
valuations of property exempt from local property taxation by reason of the
homeowners' and business inventories exemptions to the extent that in lieu
payments are made to the Agency for such exemptions.
(e) The Agency must have received all required approvals of any
governmental authority having jurisdiction over the additional bonds or
their terms.
Description of the Bonds
The Bonds will be issued in the form of fully registered bonds in
denominations of $5,000 each or any integral multiple thereof. The Bonds will
be dated August 1, 1986 and mature on July 15, 2016. The Bonds will bear
interest at a rate to be fixed upon the sale thereof, but not to exceed twelve
percent (12 %) per annum, payable semiannually on January 15 and July 15 in
each year commencing on January 15, 1987 by check' or draft mailed to the
registered owners thereof.
Redemption and Purchase of Bonds
Optional Redemption The Bonds are subject to redemption at the option of
the Agency, in whale from the proceeds of refunding bonds and other available
funds, or in whole or in part by lot from any other source of funds, on July
15, 1996 or on any interest payment date thereafter prior to maturity. Bonds
called for redemption will be redeemed.on the following redemption dates and
at the following redemption price (expressed as a percentage of the principal
amount of Bonds to.be redeemed) plus accrued interest to the redemption date:
4
Redemption Date
Redemption Price
July
15,
1996
and
January
15,
1997
102 %
July
15,
1997
and
January
15,
1998
101 Y:
July
15,
1998
and
January
15,
1999
101
July
15,
1999
and
January
15,
2000
100 Y:
July
15,
2000
and
thereafter
100
4
E
u
Sinking Account Redemption The Bonds will be subject to mandatory
redemption, on each July 15, commencing on July 15, 2002, at a redemption
price equal to the principal amount thereof together with accrued interest
thereon to the redemption date, without premium, from minimum sinking account
payments made by the Agency in the years and amounts as follows:
Year
Amount
Year
Amount
2002
$175,000
2010
$310,000
2003
185,000
2011
335,000
2004
200,000
2012
360,000
2005
215,000
2013
385,000
2006
230,000
2014
415,000
2007
250,000
2015
450,000
2008
270,000
2016 (maturity)
480,000
2009
290,000
Special Early Redemption The Bonds are subject to special redemption in
part, by lot at a redemption price of 100% of the principal amount thereof
plus accrued interest to the redemption date, without premium, on August 1,
1989 to the extent of any moneys remaining in the Escrowed Proceeds Fund on
July 1, 1989.
. Notice of Redemption As provided in the Resolution, notice of redemption
will be mailed by first class mail, not less than ten (10) nor more than sixty
(60) days prior to the redemption date, to the registered owners of the Bonds
designated for redemption at their addresses appearing on the registration
books of the Fiscal Agent, but neither failure to mail such notice nor any
defect in the notice so mailed will affect the sufficiency of the proceedings
for redemption.
The Fiscal Agent, at the direction of the Agency, may purchase Bonds on
the open market, on behalf of the Agency, at any time at a price not to exceed
the principal amount of the Bonds, the applicable premium and accrued
interest, if any, to the date of purchase plus brokerage fees, if any.
SECURITY FOR THE BONDS
Under the provisions of the State Constitution, the Law and the
Resolution, taxes on all taxable property in the Project Area levied by or for
the benefit of any taxing agency after the effective date of the Ordinance
approving the Redevelopment Plan (being Ordinance No. 945 of the City of
Lynwood, which was adopted on July 10, 1973, which ordinance became effective
on August 9, 1973) and upon taxable property added by an ordinance amending
the Redevelopment Plan (being Ordinance No. 960, adopted by the City Council
of the City of Lynwood on December 27, 1973, which ordinance became effective
on January 26, 1974) and upon taxable property added by an ordinance amending
the Redevelopment Plan (being Ordinance No. 990, adopted by the City Council
of the City of Lynwood on August 19, 1975, which ordinance became effective on
5
• � o
September 18, 1975), and upon taxable property added by an ordinance amending
the Redevelopment Plan (being Ordinance No. 1111, adopted by the City Council
of the City of Lynwood on December 16, 1980, which ordinance became effective
on January 15, 1981 less such property removed from the Redevelopment Plan by
an ordinance (being Ordinance No. 1000 adopted by the City Council of the City
of Lynwood on June 1, 1976, which ordinance became effective on July 1, 1976),
shall be divided as follows:
(a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the taxing
agencies upon the total sum of the assessed value of the taxable property
in the Project Area as shown upon the assessment roll used in connection
with the taxation of such property by such taxing agency last equalized
prior to August 9, 1973 (being the effective date of the Ordinance No. 945
referred to above), with reference to property described in the
Redevelopment Plan approved by that Ordinance, and the taxable property in
the Project Area as shown upon the assessment roll used in connection with
the taxation of such property by such taxing agency last equalized prior.
to January 26, 1974 (being the effective date of the amending Ordinance
No. 960), with reference to property described in the Amendment to the
Redevelopment Plan approved by said amending Ordinance, and the taxable
property in the Project Area as shown upon the assessment roll used in
connection with the taxation of such property by such taxing agencies last
equalized prior to September 18, 1975 (being the effective date of the
amending Ordinance No. 990), with reference to property described in the
Amendment to the Redevelopment Plan approved by said amending Ordinance,
and the taxable project in the Project Area as shown upon the assessment
roll used in connection with the taxation of such property by such taxing
agency last equalized prior to January 15, 1981 (being the effective date
of the amending Ordinance No. 1111), with reference to property described
and added in the amendment to the Redevelopment Plan approved by said
amending Ordinance, and shall be allocated to and when collected shall be
paid into the funds of the respective taxing agencies as taxes by or for
the taxing agencies on all other property are paid; and
(b) That portion of the levied taxes each year in excess of such
amount, less any amount required to be paid to the other taxing agencies
pursuant to existing agreements entered into with such taxing agencies
under Section 33401 of the Health & Safety Code, shall be allocated 'to and
when collected shall be paid into the Special Fund of the Agency. This
portion of the levied taxes (plus State reimbursed amounts for certain
property tax exemptions, including but not limited to business inventory,
to the extent received), are herein referred to as "Tax Revenues."
The Bonds and the 1976 Bonds are payable from and are specifically secured
by a first lien upon and irrevocable pledge of the Tax Revenues derived from
the Project Area, and interest earnings on funds held on deposit in trust for
the Bondowners by the Fiscal Agent. The Agency has no power to levy and
collect taxes, and any legislative property tax de— emphasis or provision of
additional sources of income to taxing agencies having the effect of reducing
0
,iY 2Y
Q
the property tax rate must necessarily reduce the amount of Tax Revenues that
would otherwise be available- to pay the principal of and interest on the
Bonds. Likewise, broadened property tax exemptions could have a similar
effect.
Conversely, any increase in the tax rate or taxable valuation, or any
reduction or elimination of present exemptions, would necessarily increase. the
amount of Tax Revenues that would be available to pay the principal of and
interest on the Bonds.
The Bonds are not a debt of the City of Lynwood, the State of California
or any of its political subdivisions, and neither said City, s.:id State or any
of its political subdivisions is liable therefor. The Bonds do not constitute
an indebtedness within the meaning of any constitutional or statutory debt
limitation or restriction.
THE RESOLUTION
The following is a summary of certain provisions of the Resolution and
does not purport to be complete. Reference is hereby made to the Resolution
for further particulars. Copies of the Resolution are available from the
Agency upon request. All capitalized terms used herein and not otherwise
defined shall have the same meaning-as used in the Resolution.
Allocation-of Bond Proceeds
The Resolution provides for the continuation by the Treasurer of the
Agency of a special trust fund redesignated the "Redevelopment Project Area
"A ", As Amended, Redevelopment Fund" (the "Redevelopment Fund ").
The Resolution provides for the continuation by the Fiscal Agent of a
special trust fund redesignated the "Redevelopment Project Area "A ", As
Amended, Special Fund" (the "Special Fund "), comprised of the following
special trust accounts: the "Interest Account ", the "Principal Account ", the
"Cost of Issuance Account" and the "Reserve Account." There is also created
by the Fiscal Agent a special trust fund called the "Escrowed Proceeds Fund."
The Fiscal Agent, on behalf of the Agency, will receive the proceeds from
the sale of the Bonds, upon the delivery of the Bonds to the purchasers
thereof and will dispose of such proceeds and transfer moneys as follows:
(1) Deposit in the Interest Account accrued interest and premium, if
any, paid by the purchasers of the Bonds.
(2) Deposit in the Reserve Account an amount equal to the Maximum
Annual Debt Service on the Bonds and the 1976 Bonds (the "Reserve
Requirement ").
(3) Deposit in the Cost of Issuance Account the amount necessary to
pay expenses in connection with the issuance and sale of the Bonds,
including bond insurance premiums, if any, and fees of the Fiscal Agent.
7
(4) Deposit in the Escrowed Proceeds Fund the sum of $
(5) Transfer the balance of the proceeds of the Bonds, after making
the above deposits, to the Trea "surer of the Agency for deposit in the
Redevelopment Fund.
The moneys set aside and placed in the Redevelopment Fund will remain
therein until from time to time expended solely for the purpose of financing a
portion of the costs of the Redevelopment Project and other costs related
thereto, and also including in such costs:
(a) The payment, in any year during which the Agency owns property
in the Project Area, to any city, county, city and county, district or
other public corporation which would have levied a tax upon such property
had it not been exempt;
(b) The cost of any lawful activities in connection with the
Redevelopment Project including, without limitation, those activities
authorized by Section 33445 of the Law; and
(c) The necessary expenses in connection with the issuance and sale
of the Bonds and fees of the Fiscal Agent.
If any sum remains in the Redevelopment Fund after the full accomplishment
of the objects and purposes for which said Bonds were issued, said sum will be
transferred to the Special Fund.
Escrowed Proceeds Fund
The moneys set aside in the Escrowed Proceeds Fund shall be transferred to
the Redevelopment Fund from time to time upon receipt by the Fiscal Agent of a
certificate or opinion of an Independent Financial Consultant that Tax
Revenues to be received by the Agency during such Fiscal Year, based upon the
most recent assessed valuation of taxable property in the Project Area,
'furnished by the appropriate officer of the County of Los Angeles, will be at
least equal to 125% of the current Bond Year's debt service on that portion of
the Bonds less the current Bond Year's debt service on that portion of the
Bonds which will remain in the Escrowed Proceeds Fund immediately following
any such transfer. Any moneys remaining in the Escrowed Proceeds Fund on
August 1, 1989 shall be transferred to the Redemption Fund and applied to the
redemption of the Bonds pursuant to the Resolution.
Tax Revenues - Application
Tax Revenues will be deposited by the Fiscal Agent in the Special Fund.
The principal of and interest on the Bonds and the 1976 Bonds through maturity
will be paid by the Fiscal Agent from the Special Fund.
Without limiting the generality of the foregoing and for the purpose of
assuring that the payments referred to above will be made as scheduled, the
Tax Revenues accumulated in the Revenue Account of the Special Fund will be
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used in the following priority; provided, however, that to the extent that
deposits have been made in any of the Accounts referred to below from the
proceeds of the sale of the Bonds or otherwise, the deposits below need not be
made:
(a) Interest Account. On or before July 1 deposits will be made
into the Interest Account so that the balance in said Account will be
equal to the interest becoming due and payable on the Bonds and the 1976
Bonds on the next following July 15th and January 15th. Moneys in the
Interest Account will be used for the payment of interest on the Bonds and
the 1976 Bonds as the same becomes due.
(b) Principal Account After the deposits have been made pursuant
to (a) above, deposits will next be made into the Principal Account so
that the balance in said Account on or prior to July 1 of each year is
equal to the principal coming due on the then outstanding 1976 Bonds or,
thereafter, the amount of the minimum sinking account payments due on the
Bonds on such date. Moneys in the Principal Account will be used for the
purpose of making principal on the 1976 Bonds and minimum sinking account
payments on the Bonds as the same become due and payable.
(c) Reserve Account. After deposits have been made pursuant to (a)
and (b) above, deposits
necessary, will next be made to the Reserve Account if
so that the amount on deposit therein is equal to Maximum
Annual Debt Service on the Bonds and the 1976 Bonds. Moneys in the
Reserve Account will be transferred to the Interest Account or the
Principal Account in the event moneys on deposit in said Accounts are
insufficient therefor. Moneys in the Reserve Account which are in excess
of Maximum Annual Debt Service on the Bonds and the 1976 Bonds will be
transferred at least semiannually to the Interest Account. Moneys in the
Reserve Account may be used to pay the principal of and interest on the
last outstanding maturity of the Bonds.
(d) Surplus. It is the intent of the Resolution that: (i) the
deposits to the Interest Account and the Principal Account, respectively,
will be made as scheduled, and (ii) the deposits to the Reserve Account
will be made as scheduled if, and only if, the Tax Revenues are sufficient
therefor. Any moneys remaining in the Special Fund may be transferred to
and used by the Agency for any lawful purpose if: (1) after the above
transfers have been made, the required amounts as of that time are in the
above mentioned Accounts, (2) Tax Revenues to be received by the Agency
are at least equal to 125% of Maximum Annual Debt Service on the Bonds and
the 1976 Bonds, as shown by the certificate or opinion of an Independent
Financial Consultant, and (3) there has been no material change in the
status of the Redevelopment Project.
Investment of Moneys in Funds and Accounts
Subject to the provisions of the Resolution and the 1976 Bond Resolution,
all moneys held by the Agency in the Redevelopment Fund and by the Fiscal
Agent in the Special Funds or any Accounts thereof, except such moneys which
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are at the time invested, which are not otherwise invested, shall be held in
time or demand deposits in any bank or trust company authorized to accept
deposits of public funds (including the banking department of the Fiscal
Agent) and all of such deposits shall be secured at all times by bonds or
other obligations which are authorized by law as security for public deposits,
of a market value at least equal to the amount required by law.
Moneys in the Redevelopment Fund may from time to time be invested by the
Agency, and moneys in the Special Fund may, and, upon request of the Agency,
will, be invested by the Fiscal Agent as provided in the Resolution and the
1976 Bond Resolution, subject to the following restrictions:
(a) Moneys in the Redevelopment Fund will be invested only in
Federal Securities which will by their terms mature not later than the
date the Agency estimates the moneys represented by the particular
investment will be needed for withdrawal from such Fund.
(b) Moneys in the Interest Account, Principal Account and Reserve
Account of the Special Fund will be invested only in Federal Securities
which will by their terms mature on such dates as to ensure that before
each interest payment date there will be in such Accounts, from matured
Federal Securities and other moneys already in such Accounts, cash equal
to the principal and interest payable on such date.
(c) Moneys in the Escrowed Proceeds Fund shall be invested in
Federal Securities which mature on or before August 1, 1989. Any moneys
remaining in the Escrowed Proceeds Fund after July 1, 1989 shall be used
to redeem the Term Bonds on August 1, 1989 in accordance with the
Resolution. Interest earnings on the Escrowed Proceeds Fund shall be
transferred at least semiannually to the Interest Account.
Federal Securities purchased as an investment of moneys in any of said
Funds or Accounts will be deemed at all times to be a part of such Fund or
Account, and the interest accruing thereon and any gain realized from such
investment will be credited to such Fund or Account and any loss resulting
from any such authorized investment will be charged to such Fund or Account
without liability to the Agency or the members and officers thereof or to the
Fiscal Agent. The Fiscal Agent will sell at the best price obtainable or
present for redemption any Federal securities so purchased whenever it will be
necessary to do so in order to provide moneys to meet any payment or transfer
from such Fund or Account as required by the Resolution. For the purpose of
determining at any given time the balance in any such Fund or Account, any
such investment constituting a part of such Fund or Account will be valued at
the then estimated or appraised market value of such investment or face amount
thereof, whichever is lower; provided, however, that investments in the
Interest Account and the Principal Account will be valued at the face amount
thereof.
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Issuance of Parity Bonds
If at any time the Agency determines it needs to do so, the Agency may
provide for the issuance of, and sell, Parity Bonds in such principal amount
as it estimates will be needed. The issuance and sale of any Parity Bonds
will be subject to the following conditions precedent:
(a) The Agency will be in compliance with all covenants set forth in
the Resolution and the 1976 Bond Resolution;
(b) The Parity Bonds will be on such terms and conditions as may be
set forth in a supplemental resolution, which will provide for (i) bonds
substantially in accordance with the Resolution and the 1976 Bond
Resolution, (ii) the deposit of moneys into the Reserve Account in an
amount sufficient, together with the balance of the Reserve Account, to
equal Maximum Annual Debt Service on all Bonds expected to be outstanding
including the Outstanding Bonds and Parity Bonds, and (iii) the
disposition of Surplus Tax Revenues in substantially the same manner as
set forth in the Resolution and the 1976 Bond Resolution;
(c) Receipt of a certificate or opinion of an Independent Financial
Consultant showing:
(i) For the then current and each future Bond Year the debt
service for each such Bond Year with respect to all Bonds and Parity
Bonds reasonably expected to be outstanding following the issuance of
the Parity Bonds;
(ii) For the then current fiscal year, the Tax Revenues
(excluding Business Inventory Reimbursement) to be received by the
Agency based upon the most recent valuation of taxable property in
the Project Area as shown by the appropriate officer of the County of
Los Angeles; and
(iii) That for the then current fiscal year, the Pledged Tax
Revenues referred to in item (ii) were at least equal to 125% of the
amaximum annual debt service referred to in item (i) above (excluding
debt service with respect to any portion of the Parity Bonds
deposited in an escrowed proceeds account), and that the Agency is
entitled under the Law and the Redevelopment Plan to receive taxes
under Section 33670 of the Law in an amount sufficient to meet
expected debt service with respect to all Bonds and Parity Bonds.
(d) The Parity
on the same dates as
from the date of the
July 15).
Bonds shall mature
the Bonds (except
Parity Bonds until
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on and interest shall be payable
the first interest payment may be
the next succeeding January 15 or
Notwithstanding the foregoing, if the Agency is in compliance with all
covenants set forth in this Resolution, the Agency may issue and sell junior
lien obligations pursuant to the Law, having a lien on the Tax Revenues which
is junior to the Bonds and payable solely from "Surplus ".
Covenants of the Agency
As long as the Bonds are outstanding and unpaid, the Agency will (through
its proper members, officers, agents or employees) faithfully perform and,
abide by all of the covenants, undertakings and provisions contained in the
Resolution and the 1976 Bond Resolution or in any Bond, including the
following covenants and agreements for the benefit of the Bondowners which are
necessary, convenient and desirable to secure the Bonds and will tend to make
them more marketable; provided, however, that said covenants do not require
the Agency to expend any funds other than the Tax Revenues.
Covenant 1. Complete Redevelopment Project; Amendment to Redevelopment
Plan. The Agency covenants and agrees that it will diligently carry out and
continue to completion, with all practicable dispatch, the Redevelopment
Project in accordance with its duty to do so under and in accordance with the
Law and the Redevelopment Plan and in a sound and economical manner. The
Redevelopment Plan may be amended as provided in the Law but no amendment will
be made unless it will not substantially impair the security of the Bonds or
the rights of the Bondowners, as shown by an Opinion of Counsel, based upon a
certificate or opinion of an Independent Financial Consultant appointed by the
Agency.
Covenant 2. Use of Proceeds; Management and Operation of Properties. The
Agency covenants and agrees that the proceeds of the sale of the Bonds will be
deposited and used as provided in the Resolution and that it will manage and
operate all properties owned by it comprising any part of the Project Area in
a sound and businesslike manner.
Covenant 3. No Priority. The Agency covenants and agrees that it will
not issue any obligations, payable either as to principal or interest from the
Tax Revenues, which have any lien upon the Tax Revenues prior or superior to
the lien of the Bonds. Except as permitted in the Resolution, it will not
issue any obligations, payable as to principal or interest, from the Tax
Revenues, which have any lien upon the Tax Revenues on a parity with the
Bonds. Notwithstanding the foregoing, nothing in the Resolution will prevent
the Agency (i) from issuing and selling pursuant to law refunding obligations
payable from and having any lawful lien upon the Tax Revenues; if such
refunding obligations are issued for the purpose of, and are sufficient for
the purpose -of, refunding all of the Outstanding Bonds, (ii) from issuing and
selling obligations which have, or purport to have, any lien upon the Tax
Revenues which is junior to the Bonds, or (iii) from issuing and selling bonds
or other obligations which are payable in whole or in part from sources other
than the Tax Revenues. As used in the Resolution, "obligations" include,
without limitation, bonds, notes, interim certificates, debentures or other
obligations.
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Covenant 4. Punctual Payment, The Agency covenants and agrees that it
will duly and punctually pay or cause to be paid the principal of and interest
on each of the Bonds on the date, at the place and in the manner provided in
the Bonds.
Covenant 5. Payment of Taxes and Other Charges. The Agency covenants and
agrees that it will from time to time pay and discharge, or cause to be paid
and discharged, all payments in lieu of taxes, service charges, assessments or
other governmental charges which may lawfully be imposed upon the Agency or
any of the properties then owned by it in the Project Area, or upon the
revenues and income therefrom, and will pay all lawful claims for labor,
materials and supplies which if unpaid might become a lien or charge upon any
of said properties, revenues or income or which might impair the security of
the Bonds or the use of Tax Revenues or other legally available funds to pay
the principal of and interest thereon, all to the end that the priority and
security of the Bonds will be preserved; provided, however, that nothing in
this Covenant will require the Agency to make any such payment so long as the
Agency in good faith contests the validity thereof.
Covenant 6. Books and Accounts; Financial Statements. The Agency
covenants and agrees that it will at all times keep, or cause to be kept,
proper and current books and accounts (separate from all other records and
accounts) in which complete and accurate entries will be made of all
transactions relating to the Redevelopment Project and the Tax Revenues and
other funds relating to the Project Area, and will prepare within one hundred
twenty (120) days after the close of, each of its fiscal years a complete
financial statement or statements for such year in reasonable detail covering
such Redevelopment Project, Tax Revenues and other funds, accompanied by an
opinion of an Independent Certified Public Accountant appointed by the Agency,
and will furnish a copy of such statement or statements to the Fiscal Agent
and any rating agency which maintains a rating on the Bonds, and, upon written
request, to any Bondowner.
Covenant 7. Eminent Domain Proceeds. The
that if all or any part of the Project Area
eminent domain proceedings or other proceedings
public or other use under which the property wi]
all steps necessary to adjust accordingly the
Project Area.
Agency covenants and agrees
should be taken from it, by
authorized by law, for any
1 be tax exempt,'it will take
base year valuation of the
Covenant 8. Disposition of Property. The Agency covenants and agrees
that it will not dispose of more than ten percent (10 %) of the land area in
the Project Area (except property shown in the Redevelopment Plan in effect on
the date the Resolution is adopted as planned for public use, or property to
be used for public streets, public offstreet parking, sewage facilities,
parks, easements or rights -of -way for public utilities, or other similar uses)
to public bodies or other persons or entities whose property is tax exempt,
unless such disposition will not result in the security of the Bonds or the
rights of Bondowners being substantially impaired, as shown by an Opinion of
Counsel, based upon the certificate or opinion of an Independent Financial
Consultant appointed by the Agency.
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Covenant 9. Protection of Security and Rights of Bondowners; No
Arbitrage; No Consumer Loan Bonds. The Agency covenants and agrees to preserve
and protect the security of the Bonds and the rights of the Bondowners and to
contest by court action or otherwise (a) the assertion by any officer of any
government unit or any other person whatsoever against the Agency that (i) the
Law is unconstitutional or (ii) the Tax Revenues pledged under the Resolution
cannot be paid to the Agency for the debt service on the Bonds, (b) any other
action affecting the validity of the Bonds or diluting the security therefor,
or (c) any assertion by the United States of America or any department or
agency thereof or any other person that the interest received by the
Bondowners is taxable under federal income tax laws by reason of any action of
the Agency. The Agency covenants and agrees to take no action which, in the
opinion of Counsel would result in (aa) the Tax Revenues being withheld unless
the withholding thereof is being contested in good faith, and (bb) the
interest received by the Bondowners becoming taxable under federal income tax
laws. The Agency covenants and agrees that it will make no use of the proceeds
of the Bonds at any time during the term thereof which will cause such Bonds
to be "arbitrage bonds" within the meaning of Section 103(c) or "consumer loan
bonds" within the meaning of Section 103(o) of the Internal Revenue Code of
1954, as amended, of the United States of America and applicable regulations
adopted thereunder by the Internal Revenue Service, and the Agency hereby
assumes the obligation to comply with Sections 103(c) and 103(o) and such
regulations throughout the term of the Bonds.
Covenant 10. Compliance with Law The Agency covenants that it will
comply with the requirements of the Law. Without limiting the generality of
the foregoing, the Agency covenants and agrees to file all required statements.
and hold all public hearings required under the Law to assure compliance by
the Agency with its covenants hereunder.
Covenant 11. Limitation on Indebtedness The Agency covenants and agrees
that is has not and will not incur any loans, obligations and indebtedness
repayable from Tax Revenues such* that the total aggregate debt service on said
loans, obligations or indebtedness incurred from and after the date of
adoption of the Redevelopment Plan, when added to the total aggregate debt
service on the Bonds, will exceed the maximum amount of Tax Revenues to be
divided and allocated to the Agency pursuant to the Redevelopment Plan.
Taxation of Leased Property Whenever any property in the Project Area
has been redeveloped and thereafter is leased by the Agency to any person or
persons (other than a public agency) or whenever the Agency leases real
property in the Project Area to any person or persons '(other than a public
agency) for redevelopment, the property shall be assessed and taxed in the
same manner as privately owned property (as required by Section 33673 of the
Law), and the lease or contract shall provide (a) that the lessee shall pay
taxes upon the assessed value of the entire property and not merely upon the
assessed value of his or its leasehold interest, and (b) that if for any
reason the taxes levied on the property in any year during the term of the
lease or contract shall be less than the taxes which would have been levied if
the entire property had been assessed and taxed in the same manner as
privately owned property, the lessee shall pay such difference to the Agency
14
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within thirty (30) days after the taxes for such year become payable to the
taxing agencies and in no event later than the delinquency date of such taxes
established by law. All such payments shall be treated as Tax Revenues and
shall be used as provided in the Resolution.
Single Sum Payments in Lieu of Taxes As an alternative to payment to the
Fiscal Agent pursuant to subsection (b) above, the new owner or owners of
property becoming exempt from taxation may elect to make payment to the Fiscal
Agent in a single sum equal to the amount estimated by an Independent
Financial Consultant to be receivable by the Agency from taxes on said
property from the date of said payment to the maturity date of the Notes, less
a reasonable discount value. All such single sum payments in lieu of taxes
shall be treated as Tax Revenues and shall be transferred to the Fiscal Agent
for deposit in the Special Fund.
Events of Default and Remedies
Each of the following shall constitute an event of default under the
Resolution:
(1) Default in the due and punctual payment by the Agency of- any
installment of interest on any Bond when the interest installment becomes
due and payable;
(2) Default in the due and punctual payment by the Agency of the
principal of any Bond when the principal becomes due and payable, whether
at maturity, by declaration or otherwise;
(3) Default made by the Agency in the observance of any of the
covenants, agreements or conditions contained in the Resolution or in the
Bonds, and where the default continues for a period of thirty (30) days
following written notice to the Agency; or
(4) The Agency shall file a petition seeking reorganization or
arrangement under the federal bankruptcy laws or any other applicable law
of the United States of America, or if a court of competent jurisdiction
shall approve a petition, filed with or without the consent of the Agency,
seeking reorganization under the federal bankruptcy laws or any other
applicable law of the United States of America, or if, under the
provisions of any other law for the relief or aid of debtors, any court of
competent jurisdiction shall assume custody or control of the Agency or of
the whole or any substantial part of its property.
In each event of default described in (1) or (2) above the Fiscal Agent
will, and in each event of default described in (3) or (4) above, the Fiscal
Agent will if requested by the Owners (such request to be in writing) of not
less than a majority of the principal amount of Bonds then Outstanding,
declare the principal of the Bonds then Outstanding and the interest thereon
to be due and payable immediately.
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Such declaration may be rescinded by the Owners of not less than a
majority of the Bonds then Outstanding provided the Agency cures the default
and deposits with the Fiscal Agent a sum sufficient to pay all principal and
installments of interest (if any) matured on the Bonds prior to the
declaration, with interest at the rate of 12% per annum, so that the Agency is
in compliance with all payment, deposit and transfer provisions of the
Resolution, and has paid or provided for the payment of any expenses incurred
by the Fiscal Agent in connection with the default.
Remedies available to any Bondowner under the Resolution concerning events
of default by the Agency are as follows:
(1) Mandamus, suit, action or proceeding, to compel the Agency and
its members, officers, agents or employees to perform each and every term,
provision and covenant contained in the Resolution and in the Bonds, and
to require the carrying out of any or all such covenants and agreements of
the Agency and the fulfillment of all duties imposed upon it by the Law;
(2) Suit, action or proceeding in equity, to enjoin any acts or
things which are unlawful, or the violation of any of the Bondowners'
rights; or
(3) Upon the happening of any event of default (as defined in the
Resolution and summarized above), by suit, action or proceeding in any
court of competent jurisdiction, to require the Agency and its members and
employees to account as if it and they were trustees of an express trust.
Amendments
The Resolution may be modified or amended at any time by supplemental
resolution adopted by the Agency:
(a) without the consent of Bondowners, if the modification or
amendment is for the purpose of adding covenants and agreements further to
secure Bond payment, to prescribe further limitations and restrictions on
Bond issuance, to surrender rights or privileges of the Agency, to make
modification not affecting any outstanding series of Bonds with the
consent of the Fiscal Agent, for the purpose of curing any ambiguities,
defects or inconsistent provisions in the Resolution or to insert
provisions clarifying matters or questions arising under the Resolution,
provided that the modifications or amendments do not adversely affect the
rights of the Owners of any Outstanding Bonds; or
(b) for any purpose with the consent of the Owners of 60% of all
Bonds then Outstanding (exclusive of Bonds owned by the Agency or the
City) provided, however, that no modification or amendment will reduce the
principal amount of any Bond, reduce the interest rate payable thereon,
extend the maturity or the time for paying interest thereon, change the
monetary medium in which principal and interest is payable, or create a
mortgage pledge or lien on the revenues superior to or on a parity with
the pledge or lien created pursuant to the Resolution or reduce the
percentage of consent required for amendment or modification.
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06
THE LYNWOOD REDEVELOPMENT AGENCY
The Agency was established by the City Council on April 9. 1973 with the
adoption of Ordinance No. 932, pursuant to the Law. The five members of the
City Council serve as the governing body of the Agency, and exercise all
rights, powers, duties and privileges of the Agency. The Mayor serves as
Chairman of the Agency.
Members and Officers
The members and officers of the Agency, their occupations and the
expiration of their terms are as follows:
Member
Robert Henning, Chairman
Louis Thompson
Evelyn Wells
E. L. Morris
Sohn D. Byork
Occupation
Public Service
Public Service - Retired
Public Service
Businessman- Retired
Businessman- Retired
Term
Expiration
November, 1987
November, 1989
November, 1989
November, 1989
November, 1987
Agency Powers
All powers of the Agency are vested in its five members who are elected
members of the City Council. Pursuant to the Law, the Agency is a separate
public body and may exercise governmental functions in planning and
implementing redevelopment projects.
The Agency may exercise broad governmental functions and authority to
accomplish its purposes, including, but not limiting to, the right of eminent
domain, the right to issue bonds or notes for authorized purposes and to
expend their proceeds and the right to acquire, sell, rehabilitate, develop,
administer or lease property. The Agency may demolish buildings, clear land,
and cause to be constructed certain improvements including streets, sidewalks
and utilities, and can further prepare for use as a building site any real
property which it owns or administers.
The Agency may, from any funds made available to it for such purposes, pay
for all or part of the value of land and the cost of buildings, facilities, or
other improvements to be publicly owned and operated, provided that such
improvements are of benefit to a redevelopmert project area and cannot be
financed by any other reasonable method. The Agency may not construct or
develop buildings, with the exception of public buildings, and must sell or
lease cleared property which it acquires within a redevelopment project area
for redevelopment in conformity with a particular redevelopment plan, and may
further specify a period within which such redevelopment must begin and be
completed.
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Financing
•0
The Law authorizes the financing of redevelopment projects through the use
of tax increment revenues. This method provides that the taxable valuation of
the property within a redevelopment project on the property tax roll last
equalized prior to the effective date of the ordinance which adopts the
redevelopment plan becomes the base year valuation, and the increase in
taxable valuation in subsequent years over the base year valuation becomes the
incremental valuation upon which taxes are levied and allocated to a
redevelopment agency. The resulting tax increment revenues (based on an
increase in taxable valuation over the base year valuation) are allocated to a
redevelopment agency and deposited in the applicable special fund.
Redevelopment agencies have no authority to levy taxes but must look to the
allocation of tax increment revenues as indicated above.
In accordance with Section 33334.2 of the Law, not less than twenty
percent (20 %) of all taxes which are allocated to the Agency shall be used by
the Agency for purposes of improving the City's supply of housing for persons
and families of low or moderate income. This requirement is applicable unless
the Agency and City Council make the finding that:
1. No need for such housing exists in the City;
2. Less than twenty percent (20 %) is sufficient to meet such
housing needs of the City; or
3. A substantial effort is presently being carried out with other
funds (either local, State or federal) and that such efforts are
equivalent in impact to twenty percent (20 %) of the Tax Revenues.
The City Council of the City of Lynwood, pursuant to Ordinance No. 1111
adopted on December 16, 1980 and effective on January 15, 1981, has made a
finding that the City is making a substantial effort to meet the low and
moderate income housing needs of the City and that this effort, including
funds available from State, local and federal sources, is equivalent in impact
to the funds otherwise required to be set aside pursuant to the Law. Nothing
contained therein shall preclude the Agency from using taxes for meeting the
low and moderate income housing needs of the City.
The issuance of tax allocation bonds is authorized under the Law. The
1976 Bonds and the Bonds described herein are equally secured by a pledge of
the Tax Revenues to be paid into the Special Fund of the Agency and
administered by the Fiscal Agent.
Factors Affecting Redevelopment Agencies Generally
Other features of California law which bear on redevelopment agencies
include general provisions which require public agencies to let contracts for
construction only after competitive bidding. The Law provides generally that
construction in excess of $5,000 undertaken by a redevelopment agency shall be
done only after competitive bidding. California statutes also provide for
offenses punishable as felonies which involve direct or indirect interest of a
m
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public official in a contract made by such official in his official capacity.
In addition, the Law prohibits a redevelopment agency or city official or
employee who, in the course of his duties, is required to participate in the
formulation or approval of plans or policies, from acquiring any interest in
property in a redevelopment project area.
Under a State law enacted in 1974, public officials are required to make
extensive disclosures regarding their financial interests by filing such
disclosures as public records. As of the date of this Official Statement, the
members of the City Council and the Agency, and other City and Agency
officials have made the required filings.
California also has strict laws regarding public meetings (known as the
Ralph M. Brown Act) which require that all redevelopment agency and city
meetings be open to the public, with certain exceptions not applicable here.
Redevelopment agencies are required to file a statement of indebtedness
with the County Auditor - Controller not later than the first day of October,
stating the amount of indebtedness of such redevelopment agency as of the
close of its fiscal year, June 30. The Agency has made such a filing.
Other Redevelopment Projects
The Agency has adopted one other completely separate project area and
redevelopment plan. This project area has been designated the Alameda
Industrial Area; and the redevelopment plan was adopted by Ordinance No. 993
which became effective on December 18, 1975. This project is entirely
industrial. The objectives of the project area are to improve employment
opportunities, improve property access and circulation, and improve the tax
base.
RISK FACTORS
Reduction of Tax Revenues
Tax Revenues allocated to the Agency are determined by the amount of
incremental valuation in the Project Area and the current rate at which
property in the Project Area is taxed. The reduction of taxable valuation of
property in the Project Area caused by a relocation out of the Project Area by
one or more major property owners, or the complete or partial destruction of
such property could result in a reduction of the Tax Revenues that secure the
Bonds. In addition, any reduction in tax rates or the taxable valuation of
property in the Project Area would cause a reduction in the Tax Revenues.
Such reduction of Tax Revenues could have an adverse effect on the Agency's
ability to make timely payments of principal of and interest on the Bonds.
Article XIII A of the State Constitution provides that the full cash value
of property used in determining taxable valuation may reflect from year to
year the inflationary rate, not to exceed two percent for any given year, or
such lesser amount as shown in the consumer price index. Such rate is
computed on an April 1 year end.
19
Article XIH A of the State Constitution
0
On June 6, 1978, California voters approved Proposition 13 or the
Jarvis -Gann Initiative, which added Article XIII A to the State Constitution.
The principal thrust of Article XIII A is to limit the amount of ad valorem
taxes on real property to 1% of "full cash value" of such property, as
determined by the County Assessor. Article XIII A defines "full cash value"
to mean "the County Assessor's valuation of real property as shown on the
1975 -76 tax bill under 'full cash value,' or, thereafter, the appraised value
of real property when purchased, newly constructed, or a change in ownership
has occurred after the 1975 assessment." Furthermore, the "full cash value"
of all real property may be increased to reflect the rate of inflation, as
shown by the consumer price index, not to exceed 2% per year or may be reduced.
Article XIII A has subsequently been amended to permit reduction of the
"full cash value" base in the event of declining property values caused by
substantial damage, destruction or other factors, and to provide that there
would be no increase in the "full cash value" base in the event of
reconstruction of property damaged or destroyed in a disaster.
Article XIII A exempts from the 1% tax limitation any voter approved
indebtedness incurred prior to July 1, 1978, requires a vote of two- thirds of
the qualified electorate to impose special taxes, while totally precluding the
imposition of any additional ad valorem, sales or transaction tax on real
property, and requires the approval of two- thirds of all members of the State
Legislature to change any State tax laws resulting in increased tax revenues.
On September 22, 1978, the 'California Supreme Court upheld the general
validity of Article XIII A against a series of challenges which attacked the
Jarvis -Gann Initiative as a whole ( Amador Valley Joint Union School District
vs. State Board of Equalization 22 Cal. 3d 208 (1978)). The Court found that
it was premature to rule on the claim that Article XIII A impermissibly
interfered with contracts in violation of the U.S. Constitution, stating that
such a challenge must come when a specific contract or obligation is impaired.
The Agency has no power to levy and collect taxes. Any further reduction
in the tax rate or the implementation of any constitutional or legislative
property tax de- emphasis will reduce the Tax Revenues, and, accordingly, would
have an adverse impact on the ability of the Agency to pay debt service on the
Bonds.
Business Inventory Exemption
Pursuant to legislation adopted in 1979 (Statutes of 1979, Chapter 1150),
business inventories were exempted from taxation in fiscal year 1980/81 and
each fiscal year thereafter. This law further provided a formula for
reimbursement by the State to cities, counties, cities and counties, special
districts and school districts for the amount of tax revenues lost by reason
of such exemption, as adjusted for percentage changes in the population and
the cost of living. Under prior 'State law, the State paid 50% of the taxes
that were levied against business inventory. Under Chapter 1150, the State
20
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•0
paid, as a subvention, an amount equal to 100% of taxes that would otherwise
be due (excluding taxes to pay for voter approved indebtedness) from business
inventories commencing with the 1980/81 fiscal year. The effect of Chapter
1150 has been to eliminate current and future business inventories from
assessment and taxation, with the State reimbursing local agencies for lost
revenue approximately equal to the total due in fiscal year 1979/80 with
annual increases allowed based on increases in population and inflation.
Recently adopted 1984 legislation (Senate Bill 794 and Assembly Bill 1849)
has replaced business inventory subventions with a long term financing plan
for local governments. In section 1 of Senate Bill 794, "The Long -Term Local
Financing Act of 1984," (Section 16110, et seq. of the Government Code, which
became operative, along with counterpart legislation Assembly Bill 1849, on
July 1, 1984) the purpose and intent of The Long -Term Local Financing Act of
1984 is stated as follows:
"The Legislature finds and declares that some local
agencies lack sufficient revenues to meet their obligations to
the landowners and residents they serve. It is the intent of
the Legislature in enacting this act to provide local agencies
with reliable, stable, and very predictable revenues to finance
these obligations."
In place of the terminated business inventory subvention, the new
legislation makes available to redevelopment agencies and other local
agencies, beginning in fiscal year 1984/85, special supplemental subventions
to compensate for lost revenue resulting from the repeal of former personal
property tax subvention programs. First, agencies receive a share of the
revenues generated from taxes on a new supplemental property tax roll. Then
if agencies do not receive sufficient revenue from this source to replace the
funds lost by reason of termination of the business inventory subvention, the
new legislation establishes a special supplemental allocation. The special
supplemental allocation is to be paid by the State to certain local agencies,
including redevelopment agencies, to restore to such agencies the difference
between the level of business inventory subventions which were to be paid
under prior law and the amount of revenue received from taxes on the
supp property tax roll. As a result of these changes, redevelopment
agencies will receive approximately the same amounts of revenue as they were
to receive in fiscal year 1983/84 had business inventory subventions not been
terminated.
Pending Federal Legislation Concerning Tax- Exempt Obligations
On December 17, 1985, the United States House of Representatives passed
H.R. 3838, the Tax Reform Act of 1985 (the "House Bill "). The House Bill in
the form passed by the House imposes additional requirements which must be
satisfied in order for the interest on obligations issued by or on behalf of
state and local governments to be exempt from federal income taxation. Such
21
00
•0
requirements generally are effective for all obligations issued after December
31, 1985, and thus, if the House Bill becomes law in its present form, would
be applicable to the Bonds.
The House Bill is subject to change, and, if it becomes law, may contain
requirements which differ from those contained in the House Bill in its
present form. Therefore, there can be no assurance that the Agency will be
able to comply with such requirements. The failure or inability of the Agency
to comply with the requirements of the House Bill could jeopardize the
tax- exempt status of the Bonds from their date of issuance. Bondowners should
be aware that in such event, the Bonds are not callable, nor will the interest
rate on the Bonds be adjusted to reflect the loss of the tax exemption.
On March 14, 1986, a joint statement was made by Chairman Dan
Rostenkowski, D -Ill., House Committee on Ways and Means, Chairman Bob
Packwood, R -Ore., Senate Committee on Finance, Rep. John J. Duncan, Ranking
Member of the Committee on Ways and Means, Sen. Russell Long, Ranking Member
of the Committee on Finance and Secretary of the Treasury, James A. Baker, III
with respect to the effective dates of certain provisions of the Comprehensive
Tax Reform Legislation (H.R. 3838) being considered by Congress (the "Joint
Statement ").
On June 24, 1986, the Senate approved an amended version of H.R. 3838 (the
"Senate Bill "). The Senate Bill contains provisions relating to tax- exempt
obligations and in most respects applies to obligations issued after enactment
of tax reform legislation.
Regardless of the postponement of the effective date contained in the
Joint Statement, under the' House Bill, during any period in taxable years
beginning after 1987 when the Bonds are held by property and casualty
insurance companies, interest received with respect to the Bonds by such
companies would be subject to a minimum tax, which would operate in a manner
similar to the alternative minimum tax under existing law, and under -the
Senate Bill, during any period in taxable years beginning after 1986 when the
Bonds are held by corporations, interest received with respect to the Bonds
would be included in reported profits of such corporations for the purposes of
the alternative minimum tax provisions applicable to corporations, which
provisions require there to be included as an item of tax preference, in
computing such alternative minimum tax, fifty percent of reported profits not
otherwise included in the minimum tax base.
Except as to the minimum tax upon property and casualty insurance
companies and the alternative minimum tax upon certain corporations, both as
referred to in the preceding paragraph, it is the opinion of Bond Counsel that
if the provisions of the Joint Statement are incorporated into the provisions
of the House Bill and if the House Bill is enacted in the form adopted by the
United States House of Representatives on December 17, 1985, with such
incorporation, or if the Senate Bill is enacted, in the form passed by United
States Senate on June 24, 1986, the tax- exempt nature of interest payable with
respect to the Bonds would not be impaired.
P*
1,0 ,..
Background
0
so
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
The City of Lynwood is primarily a residential community, with scattered
areas of commercial and industrial development, situated in the central basin
area of Los Angeles County, in southern California. The City is approximately
5.0 square miles in size and had a 1980 population of about 52,000. It is
located approximately 11 miles southeast of the downtown area of the City of
Los Angeles and is bordered by the cities of South Gate, Paramount, Compton
and Los Angeles and unincorporated county territory.
The Lynwood Redevelopment Agency implements and administers two
redevelopment projects: Redevelopment Project Area "A" and 'Alameda Project.
The goal of the Lynwood Redevelopment Agency is the implementation of the
redevelopment plans for both project areas in a manner consistent with Agency
and City policies, including the removal of blight and blighting influences
from the project areas and replacement of these blighted conditions with uses
and development which will benefit the total community both economically and
socially.
Redevelopment Project Area "A" was formulated after consideration and
review by the Redevelopment Advisory Committee and the Lynwood Planning
Commission in the spring of 1973. On September 2, 1973 the City Council
enlarged the Redevelopment Survey Area surrounding Redevelopment Project Area
"A" and commenced proceedings with the Lynwood Redevelopment Agency to
designate and plan an amendment to Redevelopment Project Area "A ". The
Planning Commission considered the amendment on December 20, 1973 and by
Planning Commission Resolution No. 549 formed the redevelopment plan as
amended to be consistent with the Land Use Element of the, City of Lynwood
General Plan. After reveiwing the VTN "Market Feasibility Report," the
Wainwright and Ramsey Lynwood Commercial Center Project "A" Financial
Feasibility Report June, 1973 proposing use of the State Redevelopment Act and
the Wainwright and Ramsey report of December, 1973 "Lynwood Commercial Center
Summary of the Financial Feasibility of Redevelopment Project Area "A" As
Amended Using the State Redevelopment Act," the City Council adopted Ordinance
No. 960 as an amendment to Ordinance No. 945 and the official Redevelopment
Plan for Redevelopment Project Area "A ".
On June 17, 1975 the Lynwood Redevelopment Agency adopted Resolution of
Intention to again amend the Redevelopment Plan for Redevelopment Project Area
"A" by enlarging the territory within the plan. The City Council adopted
Ordinance No. 990 on August 20, 1975 amending Ordinance No. 945 and the
Redevelopment Plan for Redevelopment Project Area "A ".
On April 6, 1979 the Lynwood Redevelopment Agency and the City Council
conducted a joint hearing to consider an amendment to the Redevelopment Plan
for Redevelopment Project Area "A" by adding additional properties and
deleting certain properties. The City Council adopted Ordinance No. 1000 on
June 3, 1976 amending the plan.
23
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The Lynwood Redevelopment Agency adopted Resolution of Intention to again
amend the Redevelopment Plan for Redevelopment Project Area "A" by deleting
certain properties. The Redevelopment Plan was amended a fourth time by
adoption of Ordinance..No. 1010 by the City Council on December 8, 1976.
The Redevelopment Plan for Redevelopment Project Area "A" was finally
amended by the City Council adoption of Ordinance No. 1111 on December 16,
1980. The size of Redevelopment Project Area "A" increased in size from one
initial area of 44 acres to the present 564 acres.
The Project Area expansion primarily encompasses commercial and
manufacturing uses. In addition, street right -of ways, public land and
properties currently under the control of Caltrans are not included in the
Project Area.
Project Area acreage is detailed below:
Land Use (Zoning) Existing
Residential
Single Family (R -1 & R -2) 2.94
(1 -6 Unit /Acre)
Townhouse /Cluster 0
(7 -14 Units /Acre (R -3))
Multiple Family 1.00
(15 -35 Units /Acre (R -3))
Commercial (CB -1, C -2, C -2A, C -3) 180.64
Industrial /Semi - Public 77.47
(General Plan designated)
Freeway Right -of- Way /Buffer 0
(General Plan designated)
Street Right -of -Way 190.00
Total Acreage 564.43
As these acreage figures show, approximately 190 acres of the Amended Area
are street right -of -way. Of the remaining 374.43 acres, 44 were in the
original Project Area, 24.69 are owned by Caltrans, and public and semipublic
uses (St. Francis Medical Center, the City Park and City Hall Complex) total
52.47 acres, leaving a balance of 253.27 acres of commercial and industrial
property.
24
•M •0
Agreement for Reimbursement of Tax Increment Revenues
At the time of consideration of the Agency's amendments to the
Redevelopment Project Area "A" adopted by Ordinance No. 1111 on December 16,
1980, the Agency received a list of conditions upon which the County would be
agreeable to the City's amendments to the Redevelopment Plan. These included
some of the following requested limitations on the Agency's diversion of tax
increment for the Project Area:
1. A limit of $20,000,000 in maximum tax increment revenues to be
diverted for the added Project Area over the 40 year life of the project.
2. Exclusion of the diversion of any tax increment revenues from
the Lynwood Civic Center, Lynwood City Park, and St. Francis Hospital
property, and Jorgensen Steel Company property, if any.
3. Reimbursement to the Los Angeles County Flood Control District
and Public Library for additional costs of service associated with any
actions taken by the Agency or the City.
4. Reimbursement to the affected taxing agencies of those tax
increment revenues associated with the compounded 2% annual inflationary
growth in assessed value on the local secured, unsecured and public
utility tax rolls; and the state business inventory reimbursement over the
base year amount.
5. Reimbursing to the affected taxing agencies 15% of all tax
increment revenues diverted from the - Seven - th Day Adventist Church owned
property in the event it returns to the tax ules.
6. The County shall receive any increase in tax increment revenues
attributable to increases in the tax reimposed by County taxing agencies
within the Project Area.
7. The Agency shall make in lieu payments for any revenue losses
resulting from property being taken off the tax rolls for extended periods
of time by virtue of ownership by the Agency.
a
8. The Agency shall not spend tax increment revenues within the
Project Area for public improvements that are not related to the Project
Area and are normally a financial responsibility of the City such as
parks, cultural facilities, city hall, community facilities, etc.
Although the County suggested these restrictions on the Redevelopment Plan
and Agency staff communicated general concurrence with these conditions to the
County, the plan amendment which was adopted by the Agency and Ordinance No.
1111 made no reference to these provisions. Thereafter, in 1982, the County
proposed a form of agreement for reimbursement of tax increment funds to
implement the County's earlier recommendations. The Agency responded and by
resolution adopted in 1983 approved a form of agreement for reimbursement of
tax increment revenues substantially similar to the County's recommendations
25
•0 •0
in 1980, except that the agreement provided for subordination of any
obligation of passed tax increment revenues to any tax allocation bonds of the
Agency, and did not provide for the pass through to the taxing agencies of the
2% inflationary increase which may have occurred. The County objected to
several of the provisions of the Agency's proposed agreement, and has not
approved this agreement. To the best knowledge of the Agency, the County has
taken no steps to implement by means of diversion of tax increment revenues,
any moneys as a result of any of the above - referenced negotiations.
Nevertheless, the size of the Bond issue has been computed as though the
1983 Agency Agreement were valid and has further assumed that such obligation
would 'not be subordinated to the Agency's Bonds and that the 2% inflationary
increases would not be available to the Agency. The Agency does not believe
it has any legal obligation to implement any thing beyond its 1983 Agreement,
and it is unclear whether the 1983 Agreement is of any force or affect.
26
•!
TAX REVENUES
00
Tax Revenues (as described in the section "Security for the Bonds" on page
5 hereof) derived each year from the levy and collection of taxes on any
increase in the taxable valuation of land, improvements, personal property and
public utility property in the Project Area over and above the base year
valuation for such property are to be deposited in the Special Fund,
administered by the Fiscal Agent and applied to the payment of the principal
of and interest on the Bonds.
Historical Tax Revenues
The Base Year valuation was established in fiscal year 1972 -73 for the
original Project Area, 1975 -76 and 1980 -81 for the amended portions of the
Project Area. The following table shows the breakdown of the Base Year
Property Tax Rolls.
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
BASE YEAR PROPERTY TAX ROLLS
Boundaries 1976 Annexation 1981 Annexation
1972 -73 1975 -76 1980 -81
Secured Valuation (1) $1,744,240 $1,835,820 $69,213,160
Unsecured Valuation 92,680 593,504 13,396,700
Total Valuation 1.836.92 2.429.324 $82.609
i
1) Secured valuation included the public utility valuation as reported by the
State Board of Equalization.
27
•0
... . �....��... .� . . -... .. ....4 _. w .. _ ... .�. ...w ..
The following table is a schedule of the taxable valuations and resulting
Tax Revenues for the fiscal years 1983 -84 through 1985 -86.
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
SCHEDULE OF HISTORICAL TAX REVENUES
W]
1976 Annexation
Original
Boundaries
1983 -84
1984 -85
1985 -86
1983 -84
$ 3,030
1984 -85
1985 -86
Secured Valuation
$
6,567,557
$
7,079,648
$ 7,161,236
Utility Valuation
-0-
423,460
$ 16,980
397,720
417,500
Unsecured Valuation
(2,429,324
1,348,187
(2,429,324
1,824,594
1,834,942
Total Valuation
$
8,339,204
$
9,301,962
$ 9,413,678
Less: Base Year Valuation
$ 335.802
(1,836,920
(1,836,920
(1,836,920
Incremental Valuation
$
6,502,284
$
7,465,042
$ 7,576,758
Average Tax Rate
1.187894
1.175477
1.162826
Tax Revenues
$ 77.240
$
87.750
$ 88.105
W]
1976 Annexation
1983 -84
1984 -85
1985 -86
Secured Valuation
$ 3,030
$ -0-
$ -0-
Utility Valuation
13,950
14,030
4,280
Unsecured Valuation
-0-
-0-
-0-
Total Valuation
$ 16,980
$ 14,030
$ 4,280
Less: Base Year Valuation
(2,429,324
(2,429,324
(2,429,324
Incremental Valuation
$(2,412,344)
$(2,415,294)
$(2,425,044)
W]
1981 Annexation
1983 -84
1984 -85
1985 -86
Secured Valuation
$ 90,066,941
$ 96,404,468
$102,782,281
Utility Valuation
3,591,030
3,833,760
3,853,700
Unsecured Valuation
17,220,586
17,981,014
28,530,510
Total Valuation
$110,878,557
$118,219,242
$135,166,491
Less: Base Year Valuation
(82,609,860
(82,609,860
(82,609,860
Incremental Valuation
$ 28,268,697
$ 35,609,382
$ �5 2,556,631
Average Tax Rate
1.187894
1.175477
1.162826
Tax Revenues
$ 335.802
$ 418.580
$ 611.142
W]
•!
Projected Tax Revenues
•4
The following table is a schedule of the projected taxable valuations and
resulting Tax Revenues in the Project Area.
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
SCHEDULE OF PROJECTED TAX REVENUES
(000's omitted)
(1) Adjusted Real Property values, less assumed acquisition and demolition,
reflects an annual two percent increase as allowed by Article XIII A of
the California Constitution.
(2) New Development is as discussed below.
(3) Other Property includes taxable value attributable to personal and State
assessed public utilities, less assumed acquisition and demolition. For
purposes of this analysis, projected increases in personal property value
are the result of anticipated new development.
(4) Tax revenue is projected on the basis of area tax rates reflecting an
assumed annual decline equal to the average annual decline of rates
between 1981 -82 and 1985 -86.
Source: Katz, Hollis, Coren & Associates, Inc.
New Development
The estimates of taxable value added as a result of new construction and
change in ownership activity in the Project Area include valuation estimates
for developments currently under construction as well as proposed developments
for which the scope and timing have yet to be finalized. Information
regarding the scope and timing of active and proposed developments was
provided by Agency staff and developers in the Project Area. Should the scope
and timing of proposed developments vary from current estimates, tax revenue
estimates would need to be adjusted accordingly.
29
.ter'
]�Y y M Iy
(1)
(3)
Increment
(4)
Adjusted
(2)
Total
Over
Total
Fiscal
Real
New
Other
Total
Base of
Projected
Year
Property
Development
Property
Value
$86,876
Revenue
1986 -87
$121,813
$ 236
$24,716
$146,766
$59,889
$478
1987 -88
124,176
5,336
24,716
154,228
67,351
535
1988 -89
132,102
7,703
24,836
164,641
77,765
624
1989 -90
142,601
512
26,626
169,739
82,863
651
1990 -91
145,975
0
26,918
172,893
86,017
655
1991 -92
148,895
0
26,947
175,842
88,966
657
1992 -93
151,872
0
26,947
178,820
91,943
658
1993 -94
154,910
0
26,947
181,857
94,981
659
1994 -95
158,008
0
26,947
184,955
98,079
660
(1) Adjusted Real Property values, less assumed acquisition and demolition,
reflects an annual two percent increase as allowed by Article XIII A of
the California Constitution.
(2) New Development is as discussed below.
(3) Other Property includes taxable value attributable to personal and State
assessed public utilities, less assumed acquisition and demolition. For
purposes of this analysis, projected increases in personal property value
are the result of anticipated new development.
(4) Tax revenue is projected on the basis of area tax rates reflecting an
assumed annual decline equal to the average annual decline of rates
between 1981 -82 and 1985 -86.
Source: Katz, Hollis, Coren & Associates, Inc.
New Development
The estimates of taxable value added as a result of new construction and
change in ownership activity in the Project Area include valuation estimates
for developments currently under construction as well as proposed developments
for which the scope and timing have yet to be finalized. Information
regarding the scope and timing of active and proposed developments was
provided by Agency staff and developers in the Project Area. Should the scope
and timing of proposed developments vary from current estimates, tax revenue
estimates would need to be adjusted accordingly.
29
.ter'
]�Y y M Iy
•
Estimated valuations for the developments included are based on our
understanding of the general assessment practices currently employed by Los
Angeles County. General assessment practices are subject to policy changes,
legislative changes, and the individual appraiser's judgment in a specific
situation. While we believe our estimates to be reasonable, taxable values
resulting from actual tax appraisals may vary from the amounts assumed in the
projections.
A brief description of developments which have been included in the
- projection of new development and projection of personal property are outlined
below. It should be noted that potential taxable value added as a result of
changes in ownership not specifically identified below have not been assumed.
To the extent that the included development proceeds as anticipated, and
additional new development or property transfers occur within the Project
Area, property assessments and the resulting tax revenues could be higher than
amounts estimated in the Schedule of Projected Tax Revenues. The developments
which are included in this analysis are as follows:
1. Condor West Partnership A 4,600 square foot neighborhood
shopping center was completed in the second quarter of 1986. Partial and
full valuations are anticipated to appear on the 1986 -87 and 1987 -88 tax
rolls.
2. Hercules Restaurant A 769 square foot expansion of an existing
restaurant is currently underway with an estimated completion in the third
quarter of 1986. Total valuation is expected for the 1987 -88 tax roll.
3. Navarro Development -- A- 3,888 _square- foot- office and retail
building is assumed to begin construction by the first quarter of 1987.
Full valuation is projected in fiscal year 1987 -88.
.4. Windsor Financial Corporation A 6,950 square foot neighborhood
shopping center was completed in the second quarter of 1986. Taxable
value added as a result of this development is anticipated for the 1986 -87
and 1987 -88 tax rolls.
5. Century Atlantic Associates
shopping center is presently under
first quarter of 1987 will result in
tax roll.
A 7,162 square foot neighborhood
construction. A completion by the
taxable value added to the 1987 -88
6. Triad Development A 7,300 square foot neighborhood shopping
center currently under construction is expected to be complete by the
first quarter of 1987. Taxable value from the development is projected
for the 1987 -88 tax roll.
7. Barber & Mendoza Development A 10,196 square foot shopping
center is anticipated to begin construction by the first quarter of 1987.
A projected completion by the fourth quarter of 1987 will be reflected on
the 1988 -89 tax roll.
30
w
J
8. Moya Development A development consisting of 8,400 square feet
of retail space and a 1,400 square foot restaurant is projected to begin
construction by the first quarter of 1987. A completion by the fourth
quarter of 1987 will result.in taxable value added in fiscal year 1988 -89.
9. Saiver Development A shopping center consisting of 11,800
square feet and a fast food restaurant of 1,700 square feet are projected
for construction in the first quarter of 1987. Completion by the fourth
quarter of 1987 is assumed, resulting in value added to the 1988 -89' tax
roll.
10. Sterick Company A renovation and expansion of a former Zody's
department store will begin in the third quarter of 1986 with the
remodeling of the 100,800 square foot building. Subsequent expansion of
34,000 square feet of retail space and 3,850 square feet of fast food and
restaurant space is projected to begin by the first quarter of 1987.
Taxable value added from the development is projected for the 1987 -88 to
1989 -90 fiscal years.
11. Zerounian Development A 4,296 square foot neighborhood
shopping center and adjoining 1,500 square foot restaurant is expected to
start construction in the fourth quarter of 1986. Completion is projected
by the third quarter of 1987, resulting in partial and full valuation on
the 1987 -88 and 1988 -89 tax rolls.
12. Lucky's Supermarket A new 41,465 square foot market is
anticipated to begin construction in the fourth quarter of 1986, replacing
the current market on the site. Partial and complete valuation is
expected to appear on the 1987 -88 and 1988 -89 tax rolls.
13. Lynwood Towne Center A shopping center development consisting
of a 60,000 square foot supermarket, 19,210 square foot super drugstore,
24,300 square feet of retail space and 7,000 square feet of fast food
restaurants will begin construction by the fourth quarter of 1986.
Completion is anticipated in the third quarter of 1987, with taxable value
added to the 1987 -88 and 1988 -89 tax rolls.
Source: Katz, Hollis, Coren & Associates.
31
SAN CY.
0
1
Annual Debt Service
A
Set forth below is the annual debt service requirements for the 1976 Bonds
and the estimated annual debt service (assuming minimum sinking account
payments) for the term of the Bonds.
REDEVELOPMENT PROJECT AREA "A ", AS AMENDED
ANNUAL DEBT SERVICE
Maturity
Tax Allocation Bonds,
Series 1986
Total
Date
Series 1976
Total
Combined
July 15 of
Debt Service
Principal
Interest
Debt Service
Debt Service
1987
$ 169,467
$ 316,983
$ 316,983
$ 486,450
1988
170,417
345,800
345,800
516,217
-1989
171,030
345,800
345,800
516,830
1990
166,305
345,800
345,800
512,105
1991
171,580
345,800
345,800
517,380
1992
175,980
345,800
345,800
521,780
1993
169,680
345,800
345,800
515,480
1994
173,380
345,800
345,800
519,180
1995
176,380
345,800
345,800
522,180
1996
178,680
345,800
345,800
524,480
1997
180,040
345,800
345,800
525,840
1998
180,680
345,800
345,800
526,480
1999
180,600
345,800
345,800
526,400
2000
179,800
345,800
345,800
525,600
2001
.180,200
345,800
345,800
526,000
2002
$ 175,000
345,800
520,800
520,800
2003
185,000
332,500
517,500
517,500
2004
200,000
318,440
518,440
518,440
2005
215,000
303,240
518,240
518,240
2006
230,000
286,900
516,900
516,900
2007
250,000
269,420
519,420
519,420
2008
270,000
250,420
520,420
520,420
2009
290,000
229,900
519,900
519,900
2010
310,000
207,860
517,860
517,860
2011
335,000
184,300
519,300
519,300
2012
360,000
158,840
518,840
518,840
2013
385,000
131,480
516,480
516,480
2014
415,000
102,220
517,220
517,220
2015
450,000
70,680
520,680
520,680
2016
480,000
36,480
516,480
516,480
Totals
$2,624,212
4.550.000
$8.386.663
$12.936.663
560.882
32
Debt Service Coverage
is
Set forth below is the estimated debt service coverage for the first four
years the Bonds and the 1976 Bonds are outstanding.
(1) Bond proceeds on deposit in the Escrowed Proceeds Fund and the Reserve
Account invested at a rate of six and one -half percent (6.50 %).
(2) Projected Tax Revenues as shown on page 29 of this Official Statement.
CONCLUDING INFORMATION
Financial Consultant
Miller & Schroeder Financial, Inc. ( "Miller & Schroeder "), has acted as
financial consultant to the Agency concerning the Bonds. As financial
consultant, Miller & Schroeder will receive compensation contingent upon the
sale and delivery of the Bonds.
Miller & Schroeder may submit a bid
Miller & Schroeder is the successful
required to and does not intend to waive
in addition, will receive compensation as
for the purchase of the Bonds. If
bidder, Miller & Schroeder is not
its financial consultant's fee and,
underwriter.
Underwriting
The Bonds have been sold at a net
purchase price to be paid is $
The underwriters intend to offer the
yields set forth on the cover page of
interest from August 1, 1986, which yi
requirement of prior notice.
interest rate of %. The original
for the Bonds, plus accrued interest.
Bonds to the public initially at the
this Official Statement, plus accrued
gilds may subsequently change without any
The underwriters reserve the right to join with dealers and other
underwriters in offering the Bonds to the public. The underwriters may offer
and sell Bonds to certain dealers (including dealers depositing Bonds into
investment trusts) at prices lower than the public offering prices, and such
dealers may reallow any such discounts on sales to other dealers.
33
"'YYw-
Escrowed
Projected Tax
Proceeds
Revenues
Total Debt
Fund
Net Debt
Available for
July 15
Service
Earnings (I
Service
Debt Service(2)
Coverage
1987
$486,450
$112,502
$373,948
$478,000
1.28x
1988
516,217
86,502
429,715
535,000
1.25x
1989
516,830
45,552
471,278
624,000
1.32x
1990
512,105
-0-
512,105
651,000
1.27x
(1) Bond proceeds on deposit in the Escrowed Proceeds Fund and the Reserve
Account invested at a rate of six and one -half percent (6.50 %).
(2) Projected Tax Revenues as shown on page 29 of this Official Statement.
CONCLUDING INFORMATION
Financial Consultant
Miller & Schroeder Financial, Inc. ( "Miller & Schroeder "), has acted as
financial consultant to the Agency concerning the Bonds. As financial
consultant, Miller & Schroeder will receive compensation contingent upon the
sale and delivery of the Bonds.
Miller & Schroeder may submit a bid
Miller & Schroeder is the successful
required to and does not intend to waive
in addition, will receive compensation as
for the purchase of the Bonds. If
bidder, Miller & Schroeder is not
its financial consultant's fee and,
underwriter.
Underwriting
The Bonds have been sold at a net
purchase price to be paid is $
The underwriters intend to offer the
yields set forth on the cover page of
interest from August 1, 1986, which yi
requirement of prior notice.
interest rate of %. The original
for the Bonds, plus accrued interest.
Bonds to the public initially at the
this Official Statement, plus accrued
gilds may subsequently change without any
The underwriters reserve the right to join with dealers and other
underwriters in offering the Bonds to the public. The underwriters may offer
and sell Bonds to certain dealers (including dealers depositing Bonds into
investment trusts) at prices lower than the public offering prices, and such
dealers may reallow any such discounts on sales to other dealers.
33
"'YYw-
ti
Legal Opinion
6
The opinion of the Bond Counsel firm of Stradling, Yocca, Carlson & Rauth,
A Professional Corporation, Newport Beach, California, approving the validity
of the Bonds and stating that interest on the Bonds is exempt from income
taxes of the United States of America under present federal income tax laws
and such interest is also exempt from personal income taxes of the State of
California under present State income tax laws, will be furnished the
successful bidder at the time of delivery of the Bonds at the expense of the
Agency. Compensation for Bond Counsel's services is entirely contingent upon
the sale and delivery of the Bonds.
A copy of such opinion, certified by an officer of the Agency by his
facsimile signature, will be printed on the back of each definitive Bond. No
charge will be made to the purchaser for such printing or certification.
The legal opinion is only as to legality and is not intended to be nor is
it to be interpreted or relied upon as a disclosure document of an express or
implied recommendation as to the investment quality of the Bonds. In
addition, certain opinions will be provided by the Agency's Counsel,
Stradling, Yocca, Carlson & Rauth, A Professional Corporation, Newport Beach,
California.
Tax Exempt Status
In the opinion of Stradling, Yocca, Carlson & Rauth, A Professional
Corporation, Newport Beach, California, Bond Counsel, under existing statutes,
regulations, rulings and court decisions, interest on the Bonds is exempt from
present federal income taxation and from present State of California personal
income taxes.
Legality for Investment in California
The Law provides that obligations authorized and issued under the Law
shall be legal investments for all banks, trust companies and savings banks,
insurance companies, and various other financial institutions, as well as for
trust funds. The Bonds are also authorized security for public deposits under
the Law.
The Superintendent of Banks of the State of California has previously
ruled that obligations of a redevelopment agency are eligible for savings bank
investment in California.
Bond Insurance
issue, effective as of the date on which the
insurance guaranteeing the payment when due of
Bonds. The insurance extends for the life
cancelled by
34
") has committed
Bonds are issued, a policy
principal and interest on
of the Bonds and cannot
to
of
the
be
i � O
I
Rating
As noted on the cover of this Official Statement, the Agency has received
a " " rating from Standard & Poor's Corporation on the understanding that
the standard insurance policy of will be issued
upon delivery of the Bonds. This rating reflects the view of the rating
agency and explanations can be obtained from Standard & Poor's Corporation, 25
Broadway, New York, New York 10004 (212) 248 -2525. There is no assurance that
such rating will remain for any given period of time or that it will not be
lowered or withdrawn entirely if, in the judgment of the rating agency,
circumstances so warrant.
Miscellaneous
All of the preceding summaries of the Resolution, the Law, other
applicable legislation, the Redevelopment Plan for the Project Area,
agreements and other documents are made subject to the provisions of such
documents respectively and do not purport to be complete statements of any or
all of such provisions. Reference is hereby made to such documents on file
with the Agency for further information in connection therewith.
This Official Statement does not constitute a contract with the purchasers
of the Bonds. Any statements made in this Official Statement involving
matters of opinion or estimates, whether or not so expressly stated, are set
forth as such and not as representations of fact, and no representation is
made that any of the estimates will be realized.
The execution and delivery of this Official Statement by its Executive -
Director has been duly authorized by the Agency.
LYNWOOD REDEVELOPMENT AGENCY
By:
35
Executive Director
• • • •
SUPPLEMENTAL INFORMATION
THE CITY OF LYNWOOD
General
The City is located in the Los Angeles Basin, midway between downtown Los
Angles and Long Beach. Incorporated on July 11, 1921, the City has a general
law form of government. Five City Councilmembers representing the City at
large are elected to four -year overlapping terms. The mayor is selected
annually by a majority of the City Council. The City elects both the City
Treasurer and the City Clerk, while the Council appoints a City Manager.
Population
The population of the City as of January 1, 1986, was 53,000. A summary
of the City's population is shown below.
City of Lynwood
Population (1)
1980
48,000
1981
49,050
1982
50,100
1983
51,000
1984
51,800
1985
52,400
1986
53,000
(1) Estimated by Population Research Unit, California Department of Finance,
estimates as of January 1 of each year
W.
Commerce
40 0
The number of establishments selling merchandise subject to sales tax and
the valuation of taxable transactions is presented in the following table.
City of Lynwood
Taxable Retail Sales
Number of Permits and Valuation of Taxable Transactions
Economy
Total Ali Outlets
No. of
Retail Stores
Permits
No. of
Taxable
160,988,000
Permits
Transactions
1980
283
100,930,000
1981
287
105,439,000
1982
287
101,566,000
1983
289
103,725,000
1984
295
109,895,000
1985
294
106,185,000
Economy
Total Ali Outlets
No. of
Taxable
Permits
Transactions
784
160,988,000
779
155,964,000
794
148,070,000
770
148,121,000
769
162,434,000
748
159,734,000
The residents of the City have access to the City's labor market as well
as to the metropolitan Los Angeles -Long Beach labor market. While the City of
Lynwood is predominantly residential, it has significant industrial districts
containing national manufacturers such as Jorgenson Steel, Cargill Chemical,
Western Gear, and Sure Grip Skates.
37
The following table shows employment by industry through the first quarter
of 1986.
Employment by Industry
(In Thousands)
Manufacturing
Wholesale and Retail Trade
Services
Government
Finance, Ins., & Real Estate
Transportation & Public Utilities
Construction
Mining
Agricultural
Total All Industries
Total Civilian Labor Force (2)
Total Unemployment
Unemployment Rate (3)
Los Angeles -Long Beach
Labor Market Area (1)
1985
1986
917.9
909.4
910.2
898.4
999.5
995.2
472.9
495.5
259.1
265.3
199.9
197.7
122.5
114.1
11.9,
12.3
12.4
10.9
3,914.0 4,060.0
213.0 245.0
5.4% 6.0%
(1) Average employment reported for the years indicated by place of work
excluding self - employed, unpaid family and workers involved in labor
disputes. Columns may not add due to rounding —
(2) Annual average civilian labor force (and components)
residence; includes workers involved in labor disputes.
(3) The unemployment rate is computed from rounded data;
differ from rates using rounded figures in this table.
Source: State Employment Department.
01
is by location of
therefore, it may
00 •a
The largest employer in the Lynwood area is the St. Francis Hospital which
employs approximately 1,400 people. The second largest employer in the area
is Jorgensen Steel, which employs approximately 500 people.
Los Angeles County is a relatively affluent county in comparison with
other counties in California. Lynwood is slightly less affluent than average
for the County, but it is above that of most of the adjacent communities.
The general area is characterized by intense industrial development and
high population densities, while Lynwood has' predominantly lower density
residentially. The industrial base of both Lynwood and of the general area is
essentially well diversified and manufacturing oriented.
The following is a list of the major employers in the area provided by the
Lynwood Chamber of Commerce.
Company
St. Francis Hospital
Jorgensen Steel
West Tech. Gear
Manchester Tank
Universal Molding
Eastern Cabinet
Ranger Diecasting
Major Employers
Product /Service Employment
Medical Services
1,400
Steel
500
Equipment Parts
250
Propane Tanks
250
Various moldings
Cabinets
7
Aluminum Diecasting
75
WE
Construction Activity
• • •
The table below summarizes construction activity in Lynwood for both
single - family and attached living units and'commercial units during the last
five years.
City of Lynwood
Building Permit Valuation (1)
(Valuation in Thousands of
Dollars)
1982
1983
1984
1985
1986
Residential
New Single - Dwelling
$ 553
$ 520
$ 583
$ 195
$ -0-
New Multi - Dwelling
288
-0-
201
816
-0-
Additions, Alterations
2,049
2,039
1,539
1,901
64
Total Residential
$2,890
$2,559
$2,323
$2,912
$ 64
Non - residential
New Commercial
$3,774
$ 299
$ 125
$1,103
$ -0-
New Industrial
237
279
187
1,226
-0-
Other
571
110
273
2,455
3
Additions, Alterations
1,619
1,109
1,254
1,195
148
Total Non - residential
$6,201
$ 797
$1,839
$5,979
$ 150
Total Valuation
$.4�4
4 5
4 1
$$ 9
L__Z 4
Number of New Dwelling Units
Single - dwelling
11
14
9
4
-0-
Multi- dwelling
6
-0 - --
20
30
_ -0-
Total Units
�Z
�4
— 2�
— 4
-0-
Source: "California Construction Trends," Security Pacific National Bank,
Year to Date, March, 1986.
Utilities
Water is supplied by the City of Lynwood and the County of Los Angeles
Waterworks and Utility Division. Sewage treatment and disposal is provided by
the Los Angeles County Sanitation District.
Southern California Gas Company supplies natural gas and electric power is
provided by Southern California Edison Company. Telephone service is provided
by General Telephone Company.
40
! 0
Community Service Facilities
• O
The City maintains police protection service under contract to the Los
Angeles County Sheriffs Department and maintains its own fire station. City
planning and recreational activities are provided by the City's full -time
professional staff. Library services are provided by the Los Angeles County
Library District.
The City's educational system is comprised of nine elementary schools, one
junior high school and one high school. In addition to the public school
system, there are private and church - affiliated schools in the Lynwood area.
Compton Community College is located about five miles south of the City. In
addition, there are many public and private universities including the
University of California at Los Angeles, University of Southern California,
and California State College at Long Beach in the Los Angeles Basin within
commuting distance.
Comprehensive hospital services are available to the City's residents at
St. Francis Hospital. The Hospital is a 524 -bed facility that offers such
specialized services as critical and coronary care units, an oncology ward,
nuclear medicine, heart catheterization, and open -heart surgery, the SCAN
heart program, a 24 -hour emergency room and several public health and
community service programs.
The City maintains an active public recreation program. Currently, there
are three developed park sites with facilities that include baseball diamonds,
volleyball, courts, handball /racquetball courts, swimming pools, barbecues,
picnic shelters, and tennis courts. There is also a community center with a
gymnasium, four meeting rooms, and an olympic -size, indoor swimming pool.
Beyond the immediate area, major recreational centers located within a
relatively short distance of the City are located to the south and to the west
of Lynwood. Disneyland is nearby. To the east, the mountains provide
recreation for skiers, hikers, campers, and naturalists.
Climate
The City of Lynwood is located at an elevation of about 89 feet.
Lynwood's climate is characterized as generally clear, sunny, and mild with an
annual mean temperature of 62.5 degrees Fahrenheit. The average annual
temperature ranges from about 54 degrees to 72 degrees. Rainfall occurs
almost entirely in winter and early spring and averages 13.8 inches annually.
Transportation
The City is well served by transportation modes. Lynwood has excellent
surface street and freeway access to adjacent cities and other locations in
the Los Angeles Basin. Major freeways are the Harbor Freeway which passes
41
�i� Ys
{. I - O
three miles west of Lynwood, the Long Beach Freeway along the City's eastern
boundary and the proposed I- 105- Century Freeway. Southern California Rapid
Transit District provides scheduled service to and through Lynwood to all
parts of Los Angeles County.
The City is approximately 25 miles east of Los Angeles International
Airport, 12 miles north of the Long Beach Airport, and six miles west of a
general aviation port in Compton.
The industrial areas in western Lynwood are served by Southern Pacific
Railroad which provides both intrastate and interstate rail service.
42
ti ;'
i
t
r.ITL R. 6TP.O1ING
,.IC. C. YDCC.
C. CRAIG CARLSON
WILLIAM R. RAYTM III
MAAr
RICHARD C. GOODMAN
JOHN J. MURPHY
THOMAS P. CLARR, JR.
RLN A. FRIO...
DAVID R. I.C.L. M
PAUL L CALE
RUDOLPH C. SHEPARD
ROLLRT J ..NE
M. D. TALBOT
LRUCL C. STUART
DOUGLAS r. MIOMAM
C. KURT YLAGER
POSCPT J. WHALEN
POSCRT C. RICH
RCTEP J. TLNMYSON
THOMAS A. PISTON[
SCOTT L. MCCONMCLL
•HCMSEK OI DILTPKT OI
CIR...M M. OHLY
July 22, 1986
Mr. Charles Gomez
Executive Director
Redevelopment Agency
of Lynwood
11330 Bullis Road
Lynwood, CA 90262
of the City
RE': Proposal for Bond Counsel Services for 1986 Tax
Allocation Bonds
Dear Charles:
JOHN L. RRCCR[w RIDGC
D. COVNL4
TELECOPI[R
(714( 640.7332
This proposal is for bond counsel services with respect to
the issuance of tax allocation bonds pursuant to the Community
Redevelopment Law. We are prepared to provide all legal
services required by the Agency as directed by you and your
staff in connection with such a bond issue. In light of our
existing relationship with the Agency, we have set the fee at a
level substantially lower than we customarily charge for legal
services in connection with such a bond issue. The variable
amount of the fee reflects the increased level of
responsibility assumed by our firm as the size of the bond
issue increases.
The Agency and the City are well familiar with our firm's
services. We anticipate that Kurt Yeager and Mark Huebsch
would be primarily responsible for work on your proposed issue.
Our primary responsibility as tax allocation bond counsel
is to render an opinion in connection with the issuance of
bonds by the Agency to the effect: (i) that the bonds have
been properly authorized and issued and are valid and binding
STRAIM NO. YOCCA, CARLSON EE RAUTH
A PROFESSIONAL CORPORATION
PCwA C. 670.L
ATTORNEYS AT LAW
RANDALL J. SHERMAN
SPUCL rEUCMTLR
660 NEWPORT CENTER DRIVE, SUITE 1600
MAR. J MVLLLCM
KIRA r MALOOMADO
POST OrrICE BOX 7660
A. CL
NEWPORT BEACH,
LLILA
KLIZ. L[TN C. RRI [CN
G
CALIFORNIA DC660-6441
REGI.. GROU.DWAT[R
TELEPHONE 1714) 640-7035
OONALO } NAMMAN
JOMM A LWIGART, JR.
wuu w, wEwNRTUN
PAUL 4 SCMMIDHAUSER
TONY L LOWL
CMPI•JTORMLP J. .ILPATPIC.
NANCY RADCR WMIT[MCAO
LLW16 G. rCLOMAN
EYLVIA D. LAUTSCM
CLAN. M. LISCNSOM
MAP. W. OUV0161N
[PNEST W. KLATTC 11 1
4WRLNCC R. Co..
NNN D. CATACI
LAWRENCE W. NORWITZ
July 22, 1986
Mr. Charles Gomez
Executive Director
Redevelopment Agency
of Lynwood
11330 Bullis Road
Lynwood, CA 90262
of the City
RE': Proposal for Bond Counsel Services for 1986 Tax
Allocation Bonds
Dear Charles:
JOHN L. RRCCR[w RIDGC
D. COVNL4
TELECOPI[R
(714( 640.7332
This proposal is for bond counsel services with respect to
the issuance of tax allocation bonds pursuant to the Community
Redevelopment Law. We are prepared to provide all legal
services required by the Agency as directed by you and your
staff in connection with such a bond issue. In light of our
existing relationship with the Agency, we have set the fee at a
level substantially lower than we customarily charge for legal
services in connection with such a bond issue. The variable
amount of the fee reflects the increased level of
responsibility assumed by our firm as the size of the bond
issue increases.
The Agency and the City are well familiar with our firm's
services. We anticipate that Kurt Yeager and Mark Huebsch
would be primarily responsible for work on your proposed issue.
Our primary responsibility as tax allocation bond counsel
is to render an opinion in connection with the issuance of
bonds by the Agency to the effect: (i) that the bonds have
been properly authorized and issued and are valid and binding
0
Mr. Charles Gomez
July 22, 1986
Page 2
0
obligations, (ii) that the essential sources of security for
the bonds have been legally provided for, and (iii) that
interest on the bonds is exempt from federal and California
income taxation. Our services as bond counsel shall consist of
providing general advice to, and consultation with, you, your
staff, fiscal and planning consultant, and financial
advisor /underwriter; the preparation of all resolutions,
notices and other documents required for the authorization,
issuance and sale of the bonds; reviewing the provisions of the
official statement; meeting with staff and consultants as may
be necessary and desirable for the performance of "due
diligence" in connection with the issuance and sale of the
bonds; examining the transcript of the proceedings; and issuing
our approving opinion to the purchaser of the bonds.
Our fee for the above services will be based upon the total
principal amount of each issue of bonds authorized and sold and
will be computed in accordance with the following schedule:
Total Amount of
Bonds Authorized Fee
$1,000,000 or less
$1,000,001 to $5,000,000
$8,000
$8,000 plus .258 of
the excess over
$1,000,000
The proceedings with respect to each financing will be
drafted so that the above fees will be paid from the proceeds
of the bonds. In the event that a financing is not completed
for any reason, we would expect to be compensated at the usual
municipal finance hourly rate of the attorneys involved for the
work done prior to abandonment. In addition to the above fees,
we will be reimbursed for out -of- pocket expenses, including
travel outside the Southern California area at the request of
the Agency, long distance telephone calls, document preparation
and copying, outside messenger service and similar items.
•
r.
Mr. Charles Gomez
July 22, 1986
Page 3
If this proposal is satisfactory to you, please authorize
the employment according to the terms of this letter and return
to us a copy executed by an authorized officer of the Agency.
We value highly our relationship with the City and, as always,
we look forward to ;serving you on this latest issue of bonds.
Thank you for your consideration.
1 .
Respectfully submitted,
STRADLING `' CA, CARLSON S RAUTH
E. Kurt Yeage
EKY /lmb
TERMS OF EMPLOYMENT APPROVED THIS
DAY OF , 1986
2549k/2019/27
DATE: July 30, 1986
• • •.•: � • is r. • i e+•
FROM: Vicente L. Mas, Director, Com=ity Development
SUBJECT: OFFER TO ACQUIRE - 3208 SANBORN AVENUE e�
PURPOSE
To request Agency authorization to submit Statutory Offer to Mr. Floyd J. Head
for his property at 3208 Sanborn Avenue, Lynwood.
FACTS
1. Mr. Floyd's property is included in the Agency - approved Site Plan
for the Lynwood Towne Center, the Hopkins Project (See attached Map).
2. On April 23, 1986, pursuant to Mr. Head's desire to relocate his
business to a suitable location, the Agency tendered him an offer to
acquire the referenced real property at fair market value ($272,500) .
Relocation capensation was to be determined at a later date upon
determination of "suitable" location to relocate to.
3. Mr. Head has rejected the offer. Staff is actively pursuing the
location of a suitable property. However, there is no certainty at
this time that a property acceptable to Mr. Head can be found in
a timeframe which will allow for the timely development of the Lynwood
Towne Center.
4. The Agency on. July 21, 1986, agreed to adopt a Resolution of Necessity
(conditioned_ to Developer's performance in securing lease agreements) by
August 19, 1986, as last recourse for the acquisition of the referenced
property.
5. Pursuant to the provisions of the California Redevelopment Law a Statutory
Offer (fair market value of real property and furniture, fixtures
and equipment) must be made prior to the adoption of the Resolution of
Necessity. The Statutory Offer is broken down as follows:
Real Property = $272,500
Furniture, Fixture & Equi pment = $397,492
"iCITAL $669,992
AGENDA ITEM
ANALYSIS & CONCLUSION
Although staff continues its efforts to negotiate an amicable acquisition of Mr.
Head's property, the referenced Resolution of Necessity must be adopted in order
to insure a timely development of the proposed project as per Agency's desire and
in compliance with the terms and conditions of certain DDA by and between the Agency
and Lynwood Associates (Hopkins) dated February 20, 1986. The Statutory Offer moist
be tender to Mr. Head prior to the adoption of the Resolution.
!•uiwau• -1iCr�ii
Staff respectfully recommends that after consideration the Agency authorize staff
to tender the Statutory Offer to Mr. Head.
V
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-�-�� HOPKINS PROJECT