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Home My Public Portal About99.043 LRALYNWOOD REDEVELOPMENT AGENCY RESOLUTION NO. 99.43 RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE INCURRENCE OF INDEDBTEDNESS IN AN AMOUNT NOT TO EXCEED $15,000,000 TO REFUND CERTAIN OUTSTANDING INDEBTEDNESS OF THE AGENCY AND TO FINANCE COSTS ASSOCIATED WITH CAPITAL IlVIPROVEMENTS IN PROJECT AREA A AND THE ALAMEDA PROJECT -AREA, TO APPROVE LOAN AGREEMENTS, OFFICIAL STATEMENTS, BOND PURCHASE CONTRACTS, AND TO TAKE OTHER ACTIONS IN CONNECTION THEREWITH 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 State of California) (the "Redevelopment Law") and the powers of the Agency include the power to issue bonds for any of its corporate purposes; WHEREAS, a redevelopment plan known as Project Area A Redevelopment Plan ("Project Area A"), in the City of Lynwood, California (the "City") has been adopted and approved by Ordinance No. 945, as amended from time to time, by the City, and all requirements of the law for and precedent to the adoption and approval of said redevelopment plan have been duly complied with; WHEREAS, a redevelopment plan known as the Alameda Project Area Redevelopment Plan ("Alameda Project Area"), in the City, has been adopted and approved by Ordinance No. 933, as amended from time to time, by the City, and all requirements of law for and precedent to the adoption and approval of said redevelopment plan have been duly complied with; WHEREAS, the Redevelopment Law and Project Area A and the Alameda Project Area redevelopment plans contemplate that the Agency will from time to time issue its bonds and incur other indebtedness to finance and refinance the costs of the Agency's redevelopment activities in Project Area A and the Alameda Project Area; WHEREAS, the Agency has previously caused to be issued its 1993 Tax Allocation Bonds in an aggregate principal amount of $10,735,000 (the "Prior Bonds"); WHEREAS, the Agency now deems that it may be necessary and desirable to refinance the Prior Bonds and to finance capital improvements in Project Area A and the Alameda Project Area (the "Projects"), as identified in Exhibit A hereto, by borrowing monies from the Lynwood Public Financing Authority (the "Authority") through the execution of two loan agreements (the "Loan Agreements"), each dated as of September 1, 1999, by and between the Agency and the Authority, such loans to be repaid from tax increment revenues of the Agency from Project Area A and the Alameda Project Area, respectively; WHEREAS, the Authority is authorized pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the California Government Code (commencing with Section 6500) (the "Act") to issue and sell at a public or negotiated sale bonds to finance public capital improvements whenever there are significant public benefits; WHEREAS, the Authority has determined to issue its 1999 Tax Allocation Bonds (Project Area A) and 1999 Tax Allocation Bonds (Alameda Project Area) (collectively, the "Bonds") in order to loan the proceeds thereof to the Agency pursuant to the terms of the Loan Agreements, such loans to be repaid from tax increment revenues from each of the Alameda Project Area and Project Area A; WHEREAS, the issuance of the Bonds by the Authority and the execution of the documents hereby will result in significant public benefits including, but not limited to (i) demonstrable savings in effective interest rates and (ii) employment benefits from undertaking the projects in a timely fashion, and (iii) more efficient delivery of local agency services to -the residential and commercial development in each of the respective Project Areas; WHEREAS, in connection with the above, there has been presented to the Board the following documents: (i) forms of Loan Agreements, each dated as of September 1, 1999, by and between the Agency and the Authority; (ii) the form of Bond Purchase Contract (the "Purchase Contract"), to be executed at the time of sale of the Bonds by and among the Agency, the Authority and The Chapman Company (the "Underwriter"), the form of which has- been presented to this Board; and (iii) the form of Official Statement relating to the Bonds. WHEREAS, pursuant to the Redevelopment Law the Agency is authorized to enter into contracts and other instruments necessary or convenient to the exercise of its corporate powers in the financing of the respective Projects. NOW, THEREFORE, THE LYNWOOD REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Findings. The Agency hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to the public affairs of the Agency and that the statements, findings and determinations of the Agency set forth in the preambles of the documents approved thereon are true and correct. Section 2. Approval of Issuance and Sale of Bonds. The issuance and sale by the Authority of the Bonds, in an aggregate principal amount not to exceed $15,000,000 and in such number of series, taxable or tax-exempt or both, as determined by the Authority to be necessary to fund the loans contemplated by the Loan Agreements, is hereby approved. The Chairman, Vice Chairman or the Executive Director of the Agency and any officer of the Agency authorized by such persons for and in the name and on behalf of the Agency, are hereby authorized and directed to take all actions necessary to effect the issuance and sale of the Bonds. Section 3. Approval of Loan Agreements. The forms of Loan Agreements presented to this meeting and on file with the Secretary of the Agency, are hereby approved. The Chairman, Vice Chairman or the Executive Director of the Agency and any officer of the Agency authorized by such persons are each hereby authorized and directed, for and in the name and on behalf of the Agency, to execute said Loan Agreements in substantially said forms, with any changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 4. Bond Purchase Contract. The form of Bond Purchase Contract presented to this meeting and on file with the Secretary of the Authority, is hereby approved. The Chairman, Vice Chairman or the Executive Director of the Agency and any other officer of the Agency authorized by such persons are each hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver said Bond Purchase Contract in substantially said form, with any changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the initial interest rate payable on the Bonds does not exceed 8.50% and the Underwriter's discount does not exceed 2.00%. Section 5. Official Statement. The form of Official Statement relating to the Bonds (the "Official Statement"), on file with the Secretary of the Agency, to be used in connection with the offer, sale and remarketing of the Bonds, is hereby approved, and the Board hereby ratifies and approves the distribution of the Official Statement to prospective purchasers of the Bonds, the Chairman, Vice Chairman or the Executive Director of the Agency or any designee are hereby directed to execute and deliver at the time of sale of the Bonds, the Official Statement in substantially the form of the Official Statement presented to this meeting, with such additions thereto or changes therein as such officers may require, recommend or approve upon consultation with counsel to the Agency and Bond Counsel to the Agency, such approval to be nosiasv 2 conclusively evidenced by the execution and delivery thereof, and to execute and deliver a certificate confirming that the information contained in the Official Statement (insofar as such informatio>Z relates to the Agency) is "deemed final" by the Agency for purposes of Securities and Exchange Rule 15c2-12. Section 6. Appointment of Brown & Wood LLP. Brown & Wood LLP is hereby appointed Bond Counsel to the Agency with respect to the issuance of the Bonds. The Executive Director of the Agency is hereby authorized and directed to enter into an agreement with Bond Counsel to provide for the scope of services and the compensation to be received by Bond Counsel, the terms and conditions of which are in the best interest of the Agency; provided however, the compensation to be paid to Bond Counsel shall be contingent upon the issuance and sale of the Bonds. Section 7. Further Actions. The Chairman, Vice Chairman and the Executive Director of the Agency and any other official or officer of the Agency designated by such persons are each hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate, carry out, give effect to and comply with the terms and intent of this Resolution. All actions heretofore taken by officers, employees and agents of the Agency with respect to matters contemplated by this Resolution are hereby ratified, confirmed and approved. Section 8. Other Actions. The Secretary of the Agency is hereby authorized and directed to attest to the signature of the Chairman, the Vice Chairman or the Executive Director of the Agency, and to affix the seal of the Agency, as may be required in connection with the execution and delivery of the documents referred to in this Resolution. Section 9. Effective Date. This Resolution shall take effect upon adoption. /1081481/ 3 ADOPTED AND APPROVED this 26th day of August, 1999. Executive Director Lynwood Redevelopment Agency (SEAL) ATTEST: ~/ 1 ~ Secretary Lynwood Redevelopment Agency nos~aav 4 SECRETARY'S CERTIFICATE eS-cretary of the Board of the Lynwood Redevelopment Agency, hereby certify as follows: The following is a full, true and correct copy of a resolution duly adopted at an adjourned regular meeting of the Board of said Agency duly and regularly and legally held at the regular meeting place thereof on August 26, 1999, of which meeting all of the members of the Board of said Agency had due notice and at which a quorum was present. I have carefully compared the same with the original minutes of said meeting on file and of record in the Secretary's office and the foregoing is a full, true and correct_copy of the original resolution adopted at said meeting and entered in said minutes. Said resolution has not been amended, modified or rescinded since the date of its adoption,~a~n~d the same is now in full force and effect. Dated~~``~ ~~ ~, 1999 ~~~~ ~ ~ Secretary of the oard [Seal) /1081481/ 5