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
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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