HomeMy WebLinkAboutC.C. RES 03-058
RESOLUTION NO. 03-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, PROVIDING FOR THE CARETAKING AND REUSE OF
MCAS, TUSTIN, AND FOR THE REIMBURSEMENT TO THE CITY OF
ADVANCES MADE TO THE TUSTIN LEGACY ENTERPRISE FUND
WHEREAS, the caretaking and reuse of MCAS, Tustin is intended to be funded by
land sales and other revenues derived from the reuse of MCAS, Tustin ("Enterprise
Revenues"); and
WHEREAS, the City has established the Tustin Legacy Enterprise Fund to receive
Enterprise revenues and to fund the caretaking and reuse of MCAS, Tustin; and
WHEREAS, to date, in the absence of Enterprise Revenues, the non-restricted
governmental funds of the City have been used to pay for the expenses of the caretaking
and reuse of MCAS, Tustin; and
WHEREAS, in order to settle litigation with the Santa Ana Unified School District (the
"District"), the City and the Tustin Public Financing Authority ("Authority") entered into a
transaction with Salomon Smith Barney, Inc., whereby in exchange for promissory Notes,
Salomon Smith Barney, Inc. provided $60,000,000 (Sixty Million Dollars) to the District; and
WHEREAS, until the Notes are paid in full, the City and Authority are each obligated
to deposit land sale proceeds derived from MCAS, Tustin into a trustee account for
repayment of the Notes (the "trustee account"); and
WHEREAS, the City has paid a commitment fee of $300,000 (Three Hundred
Thousand Dollars) plus legal and financial advisory fees and escrow costs for issuance of the
Notes, and until June 30, 2003, if monies are not available in the Trustee Account, the City is
obligated to pay monthly installments of principal and interest to Salomon Smith Barney, Inc.
for the Notes; and
WHEREAS, upon the discharge of the City's and Authority's obligations to Salomon
Smith Barney, Inc. it is intended that all Enterprise Revenues be deposited into the Tustin
Legacy Enterprise Fund; and
WHEREAS, until such time as the aforementioned obligations are discharged, the City
is agreeable to continuing to advance funds for the caretaking and reuse of MCAS, Tustin
from its non-restricted governmental funds, provided that such advances are repaid from
Enterprise Revenues deposited into the Tustin Legacy Enterprise Fund, as provided herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA
does resolve, determine and order as follows:
1. Caretakinq/Reuse. The City of Tustin will administer the caretaking and Reuse
of MCAS, Tustin.
2. Reimbursement of Cost and Interest. The Tustin Legacy Enterprise Fund
shall reimburse the City for costs advanced .up to the amount specified in Sections 4 and 5,
and shall pay interest from the date of each advance. The interest payable shall be
compounded monthly at the interest rate established by the City's earnings rate from the
Local Agency Investment Fund. The repayment of each advance is intended to be made
within twenty years of the date of this Resolution. At the end of each fiscal year, the City's
Finance Director shall provide a report to the City Council indicating advances made to the
Tustin Legacy Enterprise Fund, unpaid interest and, to the extent applicable, repayments to
the City with interest.
3. Method of Reimbursement. The Tustin Legacy Enterprise Fund shall
repay the City the amount of each advance, plus accrued interest on such advance, as funds
are available to the Tustin Legacy Enterprise Fund.
4. Amount of Caretakinq and Reuse Advances. The initial principal advance from
the City for the caretaking and reuse of MCAS, Tustin shall not exceed a total of $3,500,000
(Three Million Five Hundred Thousand Dollars). Future advances may be necessary as
determined each fiscal year in the annual budget adoption process.
5. Amount of Promissory Note Obligation. The initial principal advance from the
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City to meet the promissory note obligation shall not exceed $6,000,000 (Six Million Dollars).
Future advances may be necessary as determined each fiscal year in the annual budget
adoption process.
6. Termination of Obligations. The obligations of the City shall terminate upon the
full reimbursement by the Tustin Legacy Enterprise Fund of costs advanced by the City as
provided herein.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
on the 21st day of April, 2003.
WORLEY
MAYOR
ATTEST:
PAMELA STOKER
CITY CLERK
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RESOLUTION CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
RESOLUTION NO. 03-58
Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, does hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution was passed and adopted at
a regular meeting of the City Council held on the 21st day of April, 2003, by the following
vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES: t~Ot~T~
COUNCILMEMBER ABSTAINED.~°t~
COUNCILMEMBER ABSENT: t~O~T~
~'~E4 EI~-S-TOKE R
City Clerk
RES:Resolution03-58TustinLegacyEnterpriseFund.doc
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