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HomeMy WebLinkAbout17 COUNTRYWIDE FIN 06-17-96NO. 17 6-17-96 DATE: JUNE 17, 1996 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER OFFICE OF THE CITY CLERK ORDINANCE NO. 1168, COUNTYWIDE PUBLIC FINANCING AUTHORITY RECOMMENDATION: Have second reading by title only and adoption of Ordinance No. 1168 (roll call vote). BACKGROUND: The following Ordinance No. 1168 had first reading and introduction at the June 3, 1996 City Council meeting: ORDINANCE NO. 1168 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE PUBLIC LEASE BACK OF CERTAIN FACILITIES WITH THE COUNTYWIDE PUBLIC FINANCING AUTHORITY Valerie Crabill Chief Deputy City Clerk 12 13 16 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 1168 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, APPROVING THE PUBLIC LEASE BACK OF CERTAIN FACILITIES WITH THE COUNTYWIDE PUBLIC FINANCING AUTHORITY The City Council of the City of Tustin hereby ordains as follows- Section 1. Approval of Enterinq into Lease. Pursuant to section 54241 of the California Government Code, the City of Tustin is hereby authorized to enter into a formal agreement with the Countywide Public Financing Authority with respect to the public leaseback of certain facilities and the real property on which such improvements are situated, more particularly described in Exhibit A attached hereto, so long as the principal amount of the Lease Agreement does not exceed $3,100,000, so long as the maximum annual lease payments to be paid by the City does not exceed $420,000 and so long as the term of the Lease Agreement does not exceed 10 years. This ordinance is subject to the provisions for referendum applicable to the City of Tustin. This ordinance shall be published in the manner required by law for ordinances of the City of Tustin generally. Section 2. Effective Date. This ordinance shall not become effective or be in force until thirty (30) days from and after the date of its adoption, and shall be published at least once in full in a newspaper of general circulation published in the City of Tustin, within 15 days after its adoption. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this day of , 1996. TRACY WILLS WORLEY, MAYOR PAMELA STOKER, CITY CLERK EXHIBIT A DESCRIPTION OF LEASED PROPERTY Civic Center Complex, located at 300 Centennial Way, Tustin, including city hall, council chambers, community center, police headqUarters, parking structure and grade parking 13128-01. JHHW:BDQ:kla 03/06/96 04/29/96 AFTER RECORDATION PLEASE RETURN TO: Jones Hall Hill & White, A Professional Law Corporation Four Embarcadero Center, 19th Floor San Francisco, CA 94111 Attention: Brian D. Quint, Esq. THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE. S1TE AND FACIL1TY LEASE Dated as of July 1,1996 by and between the CITY OF , as Lessor and the COUNTYWIDE PUBLIC FINANCING AUTHORITY, as Lessee Relating to $. Countywide Public Financing Authority · (Orange County, California) 1996 Revenue Bonds SITE AND FACILITY LEASE This SITE AND FACILITY LEASE, dated as of July 1, 1996, is by and between the CITY OF , a municipal corporation and ~ city organized and existing under the laws of the State of California, as lessor (the "City"), and the COUNTYWIDE PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under and by virtue of the laws of the State of California, as lessee (the "Authority"); WITNESSETH: WHEREAS, the City is proceeding to finance its share of a countywide 800 MHz communications system and to finance the construction of capital improvements throughout the geographic boundaries of the City by leasing certain real property and improvements from the Authority pursuant to a Lease Agreement, dated as of July 1, 1996 (the "Lease Agreement"); and WHEREAS, the City proposes to enter into this Site and Facility Lease with the Authority as a material consideration for the Authority's agreement to lease such land and improvements to the City; NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED, as follows: Section 1. Definitions. Unless the context clearly otherwise requires or unless otherwise defined herein, the capitalized terms in this Site and Facility Lease shall have the respective meanings specified in Section 1.01 of the Indenture, dated as of July 1, 1996, by and between the Authority and , as trustee thereunder. Section 2. Site and Facility Lease. The City hereby leases to the AuthOrity and the Authority hereby leases from the City, on the terms and conditions hereinafter set forth, those certain parcels of real property situated in the City of , Orange County, State of California, more particularly described in Exhibit A attached hereto and made a part hereof (the "Site"), and those certain improvements on the Site more particularly described in Exhibit B attached hereto and made a part hereof (collectively, the "Facility"). Section 3. Term. The term of this Site and Facility Lease shall commence on the date of recordation of this Site and Facility Lease in the Office of the County Recorder of Orange County, State of California, and shall end on July. 1, , unless such term is extended or sooner terminated as hereinafter provided. If, on July 1, , the aggregate amount of Lease Payments (as defined in and as payable under the Lease Agreement) shall not have been paid, or provision shall not have been made for their payment, then the term of this Site and Facility Lease shall be extended until such Lease Payments shall be fully paid or provision made for such payment. If, prior to July 1, , all Lease Payments shall be fully paid or provision made for such payment in accordance with Section 4.3 or 4.4 of the Lease Agreement, the term of this Site and Facility Lease shall end ten (10) days thereafter. Section 4. Advonce Rental Pi~yment. The City agrees to lease the Site and the Facility to the Authority in consideration of the payment by the Authority of an advance rental payment of dollars ($ ). The City and the Authority agree that by reason of the sale of the Bonds and deposit of proceeds pursuant to the provisions of the Indenture, the advance rental payment referenced in the preceding sentence shall be deemed to have been paid. Section 5. Purpose. The Authority shall use the Site and the Facility solely for the purpose of leasing the Site and the Facility to the City pursuant to the Lease Agreement and for such purposes as may be incidental thereto; provided, however, that in the event of default by the City under the Lease Agreement, the Authority and its assigns may exercise the remedies provided in the Lease Agreement. Section 6. City's Interest in Site and the Facility. The City covenants that it is the owner of fee title to the Site'and the Fadlity. Section 7. Assignments and Subleases. Unless the City shall be in default under the Lease Agreement, the Authority may not assign its rights under this Site and Facility Lease or sublet the Site or the Facility, except as provided in the Lease Agreement, without the written consent of the City. Section 8. Right of Entry. The City reserves the right, for any of its duly authorized representatives, to enter upon the Site and the Facility at any reasonable time to inspect the same or to make any repairs, improvements or changes necessary for the preservation thereof. Section 9. Termination. The Authority agrees, upon the termination of this Site and Facility Lease, to quit and surrender the Site and the Facility in the same good order and condition as the same were in at the time of commencement of the term hereunder, reasonable wear and tear excepted, and agrees that any permanent improvements and structures existing upon the Site or the Facility at the time of the termination of this Site and Facility Lease shall remain thereon and title thereto shall vest in the City. Section 10. Default. In the event the Authority shall be in default in the performance of any obligation on its part to be performed under the terms of this Site and Facility Lease, which default continues for thirty (30) days following notice and demand for correction thereof to the Authority, the City may exercise, any and all remedies granted by law, except that no merger of this Site and Facility Lease and of the Lease Agreement shall be deemed to occur as a result thereof; provided, however, that so long as any Bonds are outstanding and unpaid in accordance with the terms thereof, the Lease Payments assigned by the Authority to the Trustee under the Indenture shall continue to be paid to the Trustee. Section 11. Ouiet Enjoyment. The Authority, at all times during the term of this Site and Facility Lease, shall peaceably and quietly have, hold and enjOy the Site and the Facility subject to the provisions of the Lease Agreement and the Indenture. Section 12. Waiver of Personal Liability. All liabilities under this Site and Facility Lease on the part of the' Authority are solely liabilities of the Authority and the City hereby releases each and every member, director, officer, employee and agent of the Authority of and from any personal or individual liability under this Site and Facility Lease. No member, director, officer, employee or agent of the Authority shall at any time or under any circumstances be individually or personally liable under this Site and Facility Lease for anything done or omitted to be done by the Authority hereunder. Section 13. Taxe~. The City covenants and agrees to pay any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Site and the Facility (including both land and improvements). Section 14. Eminent Domain. In the event the whole or any part of the Site or the Facility thereon is taken by eminent domain proceedings, the interest of the Authority shall be recognized and is hereby determined to be the amount of the then unpaid Bonds including the unpaid principal and interest with respect to any then outstanding such Bonds and, subject to the provisions of the Lease Agreement, the balance of the award, if any, shall be paid to the City. Section 15. Use of the Proceeds. The City and the Authority hereby agree that the lease to the Authority of the City's right, title and interest in the Site and the Facility pursuant to Section 2 serves the public purposes of the City by providing funds to enable the City to finance the Improvements. The City hereby agrees that the proceeds of the Bonds shall be used solely for the purpose of paying the costs of the Improvements, to be owned, held or controlled by the City for its public purposes, on or before the date three years following the date of execution and delivery of the Bonds, or to refinance prior obligations of the City incurred for such purposes. Section 16. Partial Invalidity. If any one or more of the terms, provisions, covenants or conditions of this Site and Facility Lease shall, to any extent, be declared invalid, unenforceable, void or voidable for any reason whatsoever by a court of. competent jurisdiction, the finding, order or decree of ~hich becomes final, none of the remaining terms, provisions, covenants and conditions of this Site and Facility Lease shall be affected thereby, and each provision of this Site and Facility Lease shall be valid and enforceable to the fullest extent permitted by law. Section 17. Notices. All notices, statements, demands, consents, approvals, authorizations, offers, designations, requests or other communications hereunder by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if delivered personally or if mailed by United States registered mail, return receipt requested, postage prepaid, and, if to the City, addressed to the City in care of the , City of , , , CA ~, or if to the Authority, addressed to the Authority in care of the Executive Director, Countywide Public Financing Authority, 20 Civic Center Plaza, Santa Ana, CA 92701, or to such other addresses as the respective parties may from time to time designate by notice in writing. Section 18. Section Headings. All section headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Site and Facility Lease. Section 19. Applicable Law. This Site and Facility Lease shall be governed by and construed in accordance with the laws of the State. Section 20. Execution in Counterparts. This Site and Facility Lease may be executed in any number of counterparts, each of w~ch shall be deemed to be an original but all together shall constitute but one and the same inst:nxment. IN WITNESS WHEREOF, the City and the Authority have caused this Site and Facility Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year first above written. CITY OF , as Lessee Attest: By Title City Clerk COUNTYWIDE PUBLIC FINANCING AUTHORITY, as Lessor [SEAL] Attest: By Title Secretary NOTARY AcKNowLEDGMENT FORMS TO BE ATTACHED EXHIBITA DESCRIFI'ION OF THE SITE Exhibit A