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HomeMy Public PortalAboutResolution No. 78-42 (fully executed)DLH40-16A RESOLUTION NO. 78-42 RESOLUTION OF THE CARSON REDEVELOPMENT AGENCY SELLING BONDS OF SAID AGENCY WHEREAS, Notice Inviting Bids on the $14,000,000 Bonds of the Carson Redevelopment Agency, designated "Carson Dedeve lopndnt Agency, Redevelopment Project Area No. 2, Tax Allocation Bonds, Issue of 1978" (the "Bonds"), was given as required by law; and WHEREAS, pursuant thereto, bids have been received, publicly opened, read and examined: and WHEREAS, the bid hereinafter described is the best bid; and WHEREAS, all steps required by law to be taken precedent to the authorization, issuance and sale of said Bonds have been duly and regularly taken as provided by law and this Agency is fully advised in the premises; NOW, THEREFORE, THE CARSON REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: section 1. That the bid of Goldman, Sachs & Co. and Associates for said $14,000,000 of Bonds, attached hereto and made a part hereof, is the best bid for said Bonds. Said bid is hereby accepted in accordance with the terms thereof, and in accordance with the Subject to Resolu- tion No. 78-32. Section 2. That all bids other than the one accepted in Section 1 hereof are rejected and the Secretary DLH40-17A P = No. 78-42/Page 2 is directed:to return checks accompanying said rejected bids to the respective bidders. Section 3. That the interest rate on said Bonds is hereby fixed as seven and one-half percent (74%). Section 4. That the Secretary is hereby authorized and directed to deliver said Bonds to the successful bidder upon payment of $13,300,000 therefor, plus accrued interest to date of delivery. Section 5. That all actions and proceedings heretofore taken in the authorization, issuance and sale of the Bonds are hereby ratified and confirmed. The foregoing Resolution is adopted by the Carson Redevelopment Agency this 17th day of April, 1978. | ag a wart Oka iea the Carson Redevelo ent Agency ATTEST: Res. No. 78-42/Page 5 As 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 unqualified opinion of the Bond Counsel firms of Richards, Watson, Dreyfuss & Gershon, Los Angeles, California, and Mudge Rose Guthrie & Alexander, New York, New York, approving the validity of the Bonds, will be furnished us Gt we are the successful bidder) at the time of delivery of the Bonds at the expense of the Agency. Agency. (2) Insert “certified” or “cashier’s”. There is submitted herewith a memorandum (which shall not constitute a part of this bid) stating the total net interest cost in dollars on the Bonds bid for during their life under this bid, and the average net interest rate determined thereby. | . by: Chemae & Merce pyatt “Thomas E.Horeis _Geolduan Sachs aCo. sss Calitoenia St. SAN FRANCISCO CA. Mid MEMORANDUM OF INTEREST COST . : ; : : 279 *- > fF The total net interest cost on the Bonds during their life under the above bid is $. 3.4, 20° ©) C0© and the average net interest rate determined thereby is 7.6667 %. Res. No. 78-42/Page 4 “WE CERTIFY that, subject to the exception noted herein, no litigation of any nature is now pending or threatened restraining or enjoining the issuance and delivery of said Bonds or the levy, collection or allocation of taxes to pay the interest and principal or in any manner questioning the proceedings or the authority under which said Bonds are issued or affecting the validity of the Bonds thereunder; that neither the corporate existence of said Agency nor the title of the present Officers to their respective offices is being contested; and that no steps or proceedings of any kind have been taken to revoke, recall or repeal the proceedings for the issuance of said Bonds, except the case of McNutt, et al. v. City of Los Angeles, et al., Los Angeles County Superior Court Case No. 210576.” Legal Opinion: The Opinion of the Bond Counsel firms of Richards, Watson, Dreyfuss & Gershon and Mudge Rose Guthrie & Alexander, New York, New York, approving the validity of the Bonds and stating that interest on the Bonds is exempt from Federal income taxes, and from State of California personal income taxes under existing statutes, regulations and decisions will be furnished the success- ful bidder at or prior to the time of delivery of the Bonds, at the expense of the Agency. Such opinions will contain the following paragraph: The Bonds are payable from and secured by an irrevocable pledge of Tax Revenues. Tax Revenues constitute that portion of taxes levied each year by or for the benefit of the State of California, any city, county, city and county, district or other public corporation upon taxable property in the Redevelopment Project Area (as defined in the Resolution) which is required to be allocated to and paid in the Special Fund of the Agency pursuant to Section 16 of Article XVI of the Constitution of the State of California and Section 33670 of Article 6 of Chapter 6 of the Community Redevelopment Law. The method of deriving Tax Revenues has been challenged by plaintiffs, named in a Suit, in which they seek a declaration that such method is violative of certain provisions of the United States and California Constitutions and seek to enjoin the Agency from receiving any further Tax Revenues from the Redevelopment Project Area, entitled McNutt, et al. v. City of Los Angeles, et al., No. 210576 (Superior Court, Los Angeles County, filed August 22, 1977), in which the Agency is a named defendant. Based upon our review of the complaint, pertinent statutory and constitutional provisions, existing case law and such other matters as we have deemed pertinent, although we are not able to conclude that the allegations contained in the pleadings are without merit, it appears unlikely that any decision will be retroactively applied and we are of the opinion that the litigation should not affect the validity of the Bonds and should not prevent the use of Tax Revenues as a source of payment for the Bonds. A copy of said opinions of Richards, Watson, Dreyfus & Gershon and Mudge Rose Guthrie & Alexander, certified by an officer of the Agency by facsimile signature, will be printed on the back of each Bond. No charge will be made to the purchaser for such printing or certification. Information Available: Requests for copies of the Resolution and the Official Statement pertaining to the Bonds, or for other information concerning the Agency, should be addressed to Miller & Schroeder Municipals, Inc., Financial Consultants to the Agency, 1200 Prospect, Suite 150, La Jolla, California 92037 (800-542-6032). GIVEN by order of the Agency adopted on April 3, 1978. HELEN S. KAWAGOE Secretary of the Carson Redevelopment Agency Carson Redevelopment Agency City of Carson, California $14,000,000 CAR REDEVELOPME TAX ALLO BID THE PURC 2SON REDE ENT PRO \CATION BONDS, CT oY Vi an &, 4 } a (op ay HASE OPMENT AGENCY JECT AREA NO. 2 ISSUE OF 1978 f Og FY Res. No. 78-42/Page 3 OF In behalf of a group which we save formed, cons) ( 20k Ds P/ po 7 SSfII/7 Ft. LI ALAS oe rh Vote / Ad Ms 2, f wd 4 > ft and pursuant to the Notice a Bids herewnalter principal amount, all or none, of the Sonds ees Project Area No. 2, Tax Allocation Bo vonds s, Issue of interest at the following rate per arum: Year of Maturity December 1, UUC& ......... and to pay therefor the aggregatc sum of $15,300.%° to the date of delivery thereof. This bid is made subject to ail the terms published, all of which terms and conditic in this bid. (1) $14,000,000, plus premium cr icss discount. mentioned, we offer to purchase $14,000,000 “¢ 78", Carson Redevelopment Agency, Redevelopment particularly described in said Note, bearing Principal Interest Amount Rate Bid i $14,000,000 Ya 1) plus accrued interest on such Bonds to and conditions of the Notice Inviting Bids heretofore wus are made a part hereof as fully as though set forth in full