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HomeMy WebLinkAboutRDA 01 AMEND TO J.P.A. 09-23-02AGENDA REPORT RDA NO. 1 09-23-02 400-10 ~ MEETING DATE: SEPTEMBER 23, 2002 ~ TO: FROM' SUBJECT: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL, BOARD OF DIRECTORS OF TUSTIN COMMUNITY REDEVELOPMENT AGENCY, BOARD OF DIRECTORS OF TUSTIN PUBLIC FINANCING AUTHORITY [~ WILLIAM A. HUSTON, CITY MANAGER SPECIAL MEETINGS OF THE TUSTIN CITY COUNCIL, TUSTIN COMMUNITY REDEVELOPMENT AGENCY, AND TUSTIN PUBLIC FINANCING AUTHORITY RECOMMENDATION' Acting as the Tustin City Council, Tustin Community Redevelopment Agency, and Tustin Public Financing Authority, approve the following: City Council o Resolution No. 02-90 of the City Council of the City of Tustin authorizing the Execution of an Amendment to the Joint Exercise of Powers Agreement Creating the Tustin Public Financing Authority. . Resolution No. 02-91 of the City Council of the City of Tustin Approving a Quitclaim Deed from the City to the Tustin Public Financing Authority and authorizing the City Manager to execute such Quitclaim Deed and to take all necessary implementing actions. Community Redevelop_ment A._oe_ncv ,. 1. Resolution No. RDA 02-3 of the Board of Directors of the Tustin Community Redevelopment Agency Authorizing the Execution of an Amendment to the Joint Exercise of Powers Agreement Creating the Tustin Public Financing Authority. Tustin Public Financing Aut_horit¥ I o Resolution No. TPFA 02-01 of the Board of Directors of the Tustin Public Financing Authority Authorizing Acceptance of a Quitclaim Deed, Execution of a Promissory Note and Deed of Trust, Recordation of the Quitclaim Deed and Deed of Trust, Delivery of the Promissory Note and copy of the Recorded Deed of Trust, and authorizing the Executive Director to accept both the Quitclaim Deed, execute the Promissory Note and Deed of Trust, and to take all necessary implementing actions. FISCAL IMPACT: None. DISCUSSION: In May of 2002, the City of Tustin ("City") and the Tustin Public Financing Authority ("Authority") entered into the Settlement and Release Agreement with the Santa Ana Unified School District ("SAUSD") (the "Settlement Agreement"). To secure the City's obligations under the Settlement Agreement, the Authority (which is a joint powers authority composed of the City and the Tustin Community Redevelopment Agency) agreed to secure an irrevocable Standby Letter of Credit in the amount of Sixty Million Dollars ($60,000,000.00) to be~ issued to SAUSD. However, if that could not be accomplished, the Authority agreed in the Settlement Agreement to deliver to SAUSD a Promissory Note in the amount of Sixty Million Dollars ($60,000,000.00) and a Deed of Trust for designated properties at MCAS, Tustin. The Authority has not been able to reach agreement with a bank to secure the Letter of Credit and therefore desires to provide SAUSD with the Note and Deed of Trust. In order for the Authority to fulfill its obligation to execute and deliver the Note and Deed of Trust, the property to be secured by the Deed of Trust must be transferred by the City to the Authority. The City desires to cooperate with the Authority by providing a Quitclaim Deed for the property to the Authority (Resolution No. 02-91). To clarify the powers of the Authority to accomplish its tasks under the Settlement Agreement, it is proposed that the Joint Powers Agreement that established the Authority be amended (Resolution No. 02-90). This Amen. dment will also need to be approved by the Tustin Community Redevelopment Agency (Resolution No. RDA 02-3). To comply with the Settlement Agreement, the Authority must accept the Quitclaim Deed, authorize execution of the Note and Deed of Trust, authorize recordation of the Quitclaim Deed and Deed of Trust, and authorize delivery of the Note and copy of the recorded Deed of Trust to SAUSD (Resolution No. TPFA 02-01). The proposed Deed of Trust is secured by approximately ninety-seven (97) acres ("Secured Property") identified in Section 4.3 and Exhibit F to the Settlement Agreement. Based upon recent evidence of the sales of comparable property and 2001 land value projections by the City's consultants, the current fair market value of the Secured Property exceeds Sixty-Seven Million Dollars ($67,000,000.00). CEQA The actions are solely to secure financial obligations. None of the actions proposed will have or could have an effect on the environment. Accordingly, the actions do not constitute a "project" under CEQA. RESOLUTION NO. RDA 02-3 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT CREATING THE TUSTIN PUBLIC FINANCING AUTHORITY RESOLVED, by the governing board (the "Board") of the Tustin Community Redevelopment Agency (the "Agency"), as follows: WHEREAS, the Agency and the City of Tustin (the "City" and, with the Agency, the "Members"), have heretofore approved the Joint Exercise Powers Agreement, dated as of May 1, 1995 (the "Agreement") under Articles 1 through 4 (commencing with section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, for the purpose of establishing a vehicle which may reduce local borrowing costs and promote the greater use of existing and new financial instruments and mechanisms, and have established the Tustin Public Financing Authority (the "Authority"); WHEREAS, the Members have determined to amend, the Agreement to provide additional powers to the Authority; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Tustin Community Redevelopment Agency as follows: Section 1. Amendment of Agreement. The Board hereby authorizes the Executive Director, or the Executive Director's designee, to execute, and the Secretary to attest, an amendment to the Agreement, in substantially the form on file with the Secretary, together with any changes therein deemed advisable by counsel to the Agency. Section 2. Official Actions. The Executive Director, the Assistant Executive Director, the Treasurer, and all other proper officers of the Agency are hereby authorized and directed to take all actions and do all things necessary or desirable hereunder, including but not limited to the execution and delivery of any and all agreements, certificates, instruments and other documents, which they, or any of them, may deem necessary or desirable and not inconsistent with the purposes of this resolution. Section 3. This Resolution shall take effect upon its adoption by the Board. APPROVED and ADOPTED by the Board of Directors of the Tustin Community Redevelopment Agency on September 23, 2002. ATTEST: ChairpersonNice Chairperson Pamela Stoker, Secretary FIRST AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT Dated September 23, 2002 by and between the CITY OF TUSTIN and the TUSTIN COMMUNITY REDEVELOPMENT AGENCY Amending that Certain Joint Exercise of Powers Agreement Dated May 1, 1995 by and between the City of Tustin and the Tustin Community Redevelopment Agency (TUSTIN PUBLIC FINANCING AUTHORITY) FIRST AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT TUSTIN PUBLIC FINANCING AUTHORITY THIS FIRST AMENDMENT TO JOINT POWERS AGREEMENT (the "Amendment"), dated September 23, 2002, is by and between the CITY OF TUSTIN (the "City") and the TUSTIN COMMUNITY REDEVELOPMENT AGENCY (the "Agency" and, with the City, the "Members"), each duly organized and existing under the laws of the State of California, Amending that Certain Joint Exercise of Powers Agreement, dated May 1, 2995, by and between the City and the Agency (the "Agreement"); WITNESSETH: WHEREAS, the Members have heretofore approved the Agreement under Articles 1 through 4 (commencing with section 6500) of Chapter 5, Division 7, Title I of the California Government Code, for the purpose of establishing a vehicle which may reduce local borrowing costs and promote the greater use of existing and new financial instruments and mechanisms, and have established the Tustin Public Financing Authority (the "Authority"); WHEREAS, the Members have determined to amend the Agreement to provide additional powers to the Authority; NOW, THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Members do hereby agree as follows: Section 1. Amendment. Section 5.03 of the Agreement is hereby amended in full as follows: Section 5.03. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not limited to, any or all of the following: (a) to make and enter into contracts; (b) to employ agents or employees; (c) to acquire, construct, manage, maintain or operate any Public Improvement, including the common power of the City, the Agency and any Associate Member to acquire any Public Improvement by the power of eminent domain or any other lawful means; (d) to sue and be sued in its own name; (e) to issue Revenue Bonds and otherwise to incur debts, liabilities or obligations, provided that no such Bond, debt, liability or obligation shall constitute a debt, liability or obligation of the City or the Agency; (f) to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States of America or of the State; (g) to invest any money in the treasury pursuant to section 6505.5 of the California Government Code which is not required for the immediate necessities of the Authority, as the Authority determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to section 53601 of the California Government Code; (h) to apply for letters of credit or other form of financial guarantees in order to secure the repayment of Bonds and enter into agreements in connection therewith; (i) to carry out and enforce all the provisions of this Agreement; (j) to make and enter into Bond Purchase Agreements and any other agreements, assignments and documents of any nature whatsoever as may be necessary or' convenient in the exercise of its powers hereunder or under the Act; (k) to purchase Obligations of or to make loans to the City, the Agency or any other Local Agency for the purposes hereof, or to refinance indebtedness incurred by the City, the Agency or any other Local Agency in connection with any of the purposes hereof; (1) to establish community facilities districts under the Mello-Roos Community Facilities Act of 1982, as amended; and (m) to make loans to the City, the Agency or any other Local Agency, to the extent the City, the Agency or any other Local Agency is authorized by law to borrow moneys; (n) to secure its obligations with deeds of trust on its property; and (o) to exercise any and all other powers as may be provided in the Act or in the Bond Law. Section 2. All Other Provisions of Agreement. All other provisions of the Agreement, unless affected by this Amendment shall remain in full force and effect. Section 3. Execution in Counterparts. This Amendment may be executed in several counterparts, each of which shall be an original and ail of which shall constitute but one and the same instrument. -2- IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and attested by their proper officers thereunto duly authorized and their official seals to be hereto affixed, on the day and year set opposite the name of each of the parties. CITY OF TUSTIN ATTEST: By City Manager City Clerk TUSTIN COMMUNITY REDEVELOPMENT AGENCY ATTEST: By Executive Director Secretary -3-