APFA 1996-2RESOLUTION NO. APFA96-2
A RESOLUTION OF THE ANAHEIM PUBLIC FINANCING
AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $560,000,000 AGGREGATE ORIGINAL
PRINCIPAL AMOUNT OF ITS LEASE REVENUE BONDS
(ANAHEIM PUBLIC IMPROVEMENTS PROJECT) TO
FINANCE THE EXPANSION OF THE ANAHEIM
CONVENTION CENTER, THE CONSTRUCTION OF A
PUBLIC PARKING FACILITY AND THE CONSTRUCTION
OF CERTAIN OTHER INFRASTRUCTURE
IMPROVEMENTS AND PROVIDING THE TERMS AND
CONDITIONS FOR THE ISSUANCE OF SAID BONDS,
APPROVING A FINANCE AGREEMENT, AND OTHER
MATTERS RELATING THERETO
WHEREAS, the Anaheim Public Financing Authority (the "Authority") has been
established pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State
of California (the "Act"), by the Joint Exercise of Powers Agreement (the "Agreement"), dated
as of January 28, 1992, between the City of Anaheim, California (the "City") and the Anaheim
Redevelopment Agency for the purpose, among others, of assisting in providing financing for
public capital improvements under the Act; and
WHEREAS, pursuant to the Agreement, the Authority shall have all the powers
provided in the Act and the Bond Law (as defined in the Agreement) to provide for the financing
of public capital improvements (as defined in Section 6585(g) of the Act) and to otherwise
accomplish the purposes of the Agreement; and
WHEREAS, public capital improvements authorized by the Bond Law include
the expansion of the Anaheim Convention Center, construction of a public parking facility and
construction of the other infrastructure improvements proposed to be financed by the Authority
(collectively, the "Public Improvements"); and
WHEREAS, the completion of the Public Improvements is necessary to complete
and open The Disneyland Resort Project and the Convention Center Expansion, which projects
are expected to provide over 14,000 jobs in the Anaheim area and over 8,100 jobs within the
City of Anaheim, as well as significant additional economic development projects which will
provide additional business and tourist activity within the City with a corresponding increase in
taxes to the City's General Fund; and
WHEREAS, the completion of the Public Parking Facilities will not only aid in
the economic development of the City through increased tourist and business activity, but will
also make available a shared-use parking arrangement for the Anaheim Convention Center which
will maximize the area available for Convention Center uses and help maintain the competitive
position of the Convention Center; and
WHEREAS, the Authority, the City, Walt Disney World Co., a Delaware
corporation ("Disney") and The Walt Disney Company, a Delaware corporation ("The Walt
Disney Company") desire to enter into an Infrastructure and Parking Finance Agreement which
sets forth the terms and conditions of the parties' agreement to finance and construct the Project;
WItEREAS, the Authority is authorized under the Bond Law, particularly
Section 6591 thereof, to issue bonds to finance a public capital improvement which bonds may
be payable from, and secured by a pledge of, the revenues of any public improvement or any
other moneys of the Authority; and
WHEREAS, the Authority has determined to authorize and issue from time to
time one or more series or subsefies of bonds (the "Bonds") designated, subject to Section 1
hereof, as its Lease Revenue Bonds (Anaheim Public Improvements Project) on the terms and
conditions set forth in the Indenture of Trust (such Indenture of Trust, as defined in Section 2
hereof, being referred to as the "Indenture") to finance the costs of the Public Improvements;
and
WHEREAS, in order to provide for the payment of principal and interest on the
Bonds, the Authority desires to lease from the City certain real property and facilities pursuant
to a site and facility lease, between the City, as lessor, and the Authority, as lessee (the "Site
and Facility Lease") and to lease from the Walt Disney World Company ("Disney") certain real
property pursuant to a public parking facilities ground lease, between Disney, as lessor, and the
Authority, as lessee (the "Public Parking Facilities Ground Lease"), to cause the construction
of the Public Improvements which are improvements to the property included under the Site and
Facility Lease and the Public Parking Facilities Ground Lease (such property, as so improved,
constituting the "Leased Premises") and to lease the Leased Premises back to the City in
exchange for lease payments (the "Lease Payments") to be made pursuant to a lease agreement
between the Authority, as lessor, and the City, as lessee (the "Lease Agreement"); and
WHEREAS, the Bonds are to be payable from, and secured by a pledge of and
lien on, the Lease Payments paid by the City pursuant to the Lease Agreement and the other
funds pledged therefor pursuant to the Indenture; and
WHEREAS, the Authority, the City, Disney and The Walt Disney Company
desire to cooperate in the financing and construction of the Public Improvements on the terms
and conditions set forth in the Infrastructure and Parking Agreement (the "Finance Agreement");
and
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WHEREAS, there has been presented to this meeting the following:
(1) A proposed form of the Indenture to be entered into between the
Authority and a corporate trustee selected pursuant to Section 2 hereof, as trustee
(the "Trustee"), providing for the authorization and issuance of the Bonds; and
(2) A proposed form of the Site and Facility Lease to be entered into
by the City and the Authority; and
(3) A proposed form of the Lease Agreement to be entered into by the
Authority and the City; and
(4) A proposed form of a Purchase Contract (the "Purchase Contract")
for the Bonds to be entered into by the Authority, the City and the underwriter
for the Bonds; and
(5) A proposed form of the Infrastructure and Parking Finance
Agreement (the "Finance Agreement") to be entered into by and among the
Authority, the City, Disney and The Walt Disney Company; and
(6) A proposed form of the Public Parking Facilities Ground Lease
(the "Parking Ground Lease") to be entered into by and between the Authority
and Disney with respect to a portion of the Leased Premises; and
(7) A proposed form of the Reimbursement Agreement (the
"Reimbursement Agreement") to be entered into by and between the Authority,
the City, The Walt Disney Company and Disney relating to credit enhancement
for a portion of the Bonds; and
WHEREAS, the Authority, the City and Disney expect to pay certain
expenditures (the "Reimbursement Expenditures") in connection with the Public Improvements
prior to the issuance of the Bonds; and
WHEREAS, the Authority reasonably expects that the Bonds will be issued in
an aggregate principal amount not exceeding $560,000,000 and that a portion of the proceeds
of the Bonds will be used to reimburse the Reimbursement Expenditures; and
WHEREAS, Section 1.150-2 of the Treasury Regulations requires the Authority
to declare its reasonable official intent to reimburse prior expenditures for the Public
Improvements with proceeds of a subsequent borrowing; and
WHEREAS, the Community Center Authority (the "CCA") adopted its Resolution
No. CCA-166 (such Resolution No. CCA-166 of the CCA being attached hereto as Exhibit A)
on May 15, 1996, declaring its official intent to issue debt obligations in an aggregate principal
amount not exceeding $155,000,000 to finance (and to reimburse Reimbursement Expenditures
for) Public Improvements incurred in connection with the expansion of the Anaheim Convention
Center; and
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WHEREAS, the Authority and the CCA have determined that the Authority is
the appropriate governmental body to issue the Bonds to finance the Public Improvements,
including the Public Improvements relating to the expansion of the Anaheim Convention Center
previously included within the scope of the CCA's Resolution No. CCA-166.
NOW, THEREFORE, BE IT RESOLVED by the members of the Board of
Directors of the Anaheim Public Financing Authority, as follows:
Section 1. The issuance of the Bonds in the aggregate original principal amount
not exceeding Five Hundred Sixty Million Dollars ($560,000,000) on the terms and conditions
set forth herein and in, and subject to the limitations specified in, the Indenture is hereby
authorized and approved.
The Bonds shall be designated the "Anaheim Public Financing Authority Lease
Revenue Bonds (Anaheim Public Improvements Project)" with such further designation as shall
be necessary to identify any separate series or subseries of the Bonds.
The Bonds shall not constitute a general obligation of the Authority or a charge
against the general assets of the Authority but shall be payable solely from, and secured solely
by, the Lease Payments paid by the City under the Lease Agreement and the other funds pledged
therefor pursuant to the Indenture. The Bonds shall not constitute an obligation of any member
of the Authority.
The Bonds will be issued from time to time in such series or subseries, in such
aggregate original principal amount or amounts (subject to the limitations contained in the first
sentence of this Section 1 with such limit applying to the stated principal amount of any current
interest bonds and the initial principal amount of any capital appreciation bonds), will be dated
such date or dates, will bear interest at such rate or rates (which interest on any series or
subseries of the Bonds may be fixed or variable and tax-exempt or taxable for federal income
tax purposes), will be subject to redemption, including redemption from mandatory sinking fund
payments, will be issued in the form, and will be as otherwise provided in the Indenture
executed and delivered pursuant to Section 2 hereof; provided, that, the stated interest rate on
any Bond shall not exceed eight and one-half percent (8 1/2%) per annum and the final maturity
of the Bonds shall not extend beyond forty (40) years from the effective date of the Indenture
and the Bonds shall be as described in Exhibit N to the Finance Agreement.
The proceeds of the sale of each series or subseries of the Bonds, including any
accrued interest and premium, will be applied simultaneously with the delivery of such Bonds
as provided in the Indenture.
Section 2. The form, terms and provisions of the Indenture in the form presented
at this meeting are hereby approved, and each member of the Board of Directors of the
Authority and the Executive Director of the Authority (each such member of the Board of
Directors of the Authority and the Executive Director being hereinafter referred to as an
"Authorized Officer"), acting alone, is hereby authorized and empowered to execute by manual
or facsimile signature and deliver the Indenture to the Trustee. The Authorized Officer
executing the Indenture may approve insubstantial changes and insertions therein from the form
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presented to this meeting, with the approval of counsel to the Authority, provided the terms of
the Bonds shall be as set forth in Exhibit N to the Finance Agreement, Proposed Financing
Structure, with the only variations being the number of series or subseries of Bonds and the
application of the proceeds thereof (provided that the total net proceeds of the Bonds to be
deposited in the Construction Fund under the Indenture shall be set forth in the Proposed
Financing Structure except as provided in Sections 4.12 of the Finance Agreement). Such
insubstantial changes shall include changing the designation of the Bonds, the allocation of the
net proceeds of the Bonds among the series and subseries of the Bonds, the number of series or
subseries of Bonds, the deposit of Bond proceeds and other moneys held under the Indenture into
new subaccounts within the funds and accounts currently described in the Indenture, the
establishment of funds and accounts to separately account for the proceeds of the Bonds and
interest earnings thereon, any changes required by a provider of credit enhancement for the
Bonds which is not inconsistent with this Resolution or the Proposed Financing Structure, any
changes necessary to ensure compliance with federal tax law, the use of one or more
supplemental indentures to establish the terms and conditions of a series or subseries of Bonds,
the adjustment of the relative rights of senior and subordinate Bond owners, conforming changes
among documents consistent with the Finance Agreement and any other insubstantial change as
may be necessary to cause the same to carry out the intent of this Resolution. Such approval
of an Authorized Officer shall be conclusively evidenced by such Authorized Officer's execution
of the Indenture.
Each of the Authorized Officers, acting alone, is hereby authorized and
empowered to select the Trustee under the Indenture; provided, that, the Trustee so selected
shall satisfy the criteria for a successor Trustee pursuant to the Indenture.
The Bonds may be issued as a single series or as several series, and each series
may contain one or more subseries with terms that differ from other Bonds of such series or
subseries, all as determined by an Authorized Officer, and each Authorized Officer, acting
alone, is hereby authorized and empowered to execute by manual or facsimile signatures and
deliver to the Trustee any supplement or amendment to the Indenture necessary in connection
with the issuance from time to time of the Bonds in two or more series or subseries within a
series and to determine the specific terms and conditions of each such series or subseries within
a series, subject to the limitations on the Bonds contained in this Resolution.
Section 3. The form, terms and provisions of the Site and Facility Lease in the
form presented at this meeting are hereby approved, and each Authorized Officer acting alone,
is hereby authorized and empowered to execute by manual or facsimile signature and deliver the
Site and Facility Lease with such insubstantial changes and insertions therein as may be
necessary to cause the same to carry out the intent of this Resolution and as are approved by
counsel to the Authority, such approval to be conclusively evidenced by the execution thereof.
Section 4. The form, terms and provisions of the Lease Agreement in the form
presented at this meeting are hereby approved, and each Authorized Officer acting alOne, is
hereby authorized and empowered to execute by manual or facsimile signature and deliver the
1.ease Agreement with such insubstantial changes and insertions therein as may be necessary to
cause the same to carry out the intent of this Resolution and as are approved by counsel to the
Authority, such approval to be conclusively evidenced by the execution thereof.
Section 5. The form, terms and provisions of the Purchase Contract in the form
presented at this meeting are hereby approved, and each Authorized Officer acting alone, is
hereby authorized and empowered to execute by manual or facsimile signature and deliver a
Purchase Contract for each separate delivery of a series of Bonds or subseries within a series,
which may be made from time to time with such insubstantial changes and insertions therein as
are consistent with the limitations on Bonds contained in this Resolution and as may be necessary
to cause the same to carry out the intent of this Resolution and are approved by counsel to the
Authority, such approval to be conclusively evidenced by the execution thereof.
The Authorized Officer executing a Purchase Contract on behalf of the Authority
is hereby authorized and empowered to determine the price to be paid for the Bonds pursuant
to each Purchase Contract; provided, that, such price shall not be less than ninety-five percent
(95 %) of the aggregate principal amount of the current interest Bonds or the initial principal
amount of any capital appreciation Bonds purchased.
Section 6. The form, terms and provisions of the Finance Agreement and each
Exhibit thereto in the form presented at this meeting are hereby approved, and each Authorized
Officer acting alone, is hereby authorized and empowered to execute by manual or facsimile
signature and deliver the Finance Agreement with such insubstantial changes and insertions
therein as may be necessary to cause the same to carry out the intent of this Resolution and as
are approved by counsel to the Authority, such approval to be conclusively evidenced by the
execution thereof.
Section 7. The form, terms and provisions of the Parking Ground Lease in the
form presented at this meeting are hereby approved, and each Authorized Officer acting alone,
is hereby authorized and empowered to execute by manual or facsimile signature and deliver the
Parking Ground Lease with such insubstantial changes and insertions therein as may be necessary
to cause the same to carry out the intent of this Resolution and as are approved by counsel to
the Authority, such approval to be conclusively evidenced by the execution thereof.
Section 8. The form, terms and provisions of the Reimbursement Agreement in
the form presented at this meeting are hereby approved, and each Authorized Officer acting
alone, is hereby authorized and empowered to execute by manual or facsimile signature and
deliver the Reimbursement Agreement with such insubstantial changes and insertions therein as
may be necessary to cause the same to carry out the intent of this Resolution and as are
approved by counsel to the Authority, such approval to be conclusively evidenced by the
execution thereof.
Section 9. Each Authorized Officer, acting alone, is hereby authorized and
empowered to: (i) prepare, or cause to be prepared, one or more preliminary official statements
in connection with several series of the Bonds (collectively, the "Preliminary Official
Statement") in such form as shall be approved by the Authorized Officer preparing, or causing
the preparation of, the Preliminary Official Statement, which Preliminary Official Statement shall
be consistent in form with prior offering documents of the Authority and the City for similar
transactions, and as shall also be approved by counsel to the Authority; and (ii) to prepare, or
cause to be prepared, one or more final official statements in connection with several series of
the Bonds (collectively, the "Official Statement") substantially in the form of the Preliminary
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Official Statement with such insubstantial changes and insertions therein as may be necessary
to cause the same to carry out the intent of this Resolution and as are approved by counsel to
the Authority, such approval to be conclusively evidenced by the execution thereof. Each
Authorized Officer, acting alone, is hereby authorized and empowered to deliver the Preliminary
Official Statement to the underwriter for the applicable Bonds, and to execute and deliver the
Official Statement to the underwriter for the Bonds, in each case for purposes of marketing the
Bonds.
Section 10. The Chairman or Vice Chairman of the Board of Directors of the
Authority, and each of them, acting alone, is hereby authorized and directed to execute, by
manual or facsimile signature, each of the Bonds, and the Secretary or an Assistant Secretary
of the Authority, and each of them, acting alone, is hereby authorized and directed to attest, by
manual or facsimile signature, thereto, in the name and on behalf of the Authority, in accordance
with the Indenture and in the form set forth in the Indenture.
Section 11. The Bonds of each series or subseries, when executed as provided
in Section 10 hereof, shall be delivered to the Trustee for authentication by the Trustee. The
Trustee is hereby requested and directed to authenticate and register the Bonds so delivered by
executing the appropriate Certificate of Authentication appearing thereon, and to deliver such
Bonds, when duly executed, authenticated and registered, to the purchasers thereof in accordance
with written instructions executed on behalf of the Authority by any Authorized Officer which
instructions said Authorized Officer is hereby authorized and directed, for and in the name of
and on behalf of the Authority, to execute and to deliver to the Trustee. Such instructions shall
provide for the delivery of such Bonds to the purchaser thereof upon payment of the purchase
price therefor.
Section 12. Orrick, Herrington & Sutcliffe LLP is hereby appointed as bond
counsel for the Bonds and Public Financial Management, Inc. is hereby appointed as financial
advisor to the Authority in connection with the issuance of the bonds. PaineWebber
Incorporated is hereby appointed as the Senior Managing underwriter for the Bonds. Each
Authorized Officer is hereby authorized and directed to approve any Co-Managing Underwriter
for the Bonds.
Section 13. Each Authorized Officer, acting alone, is hereby authorized and
empowered to obtain credit-enhancement for the Bonds in the form of municipal bond insurance
on such terms and conditions, and at such prices as shall be approved by an Authorized Officer;
provided, however, that all costs of such credit-enhancement shall be paid out of the proceeds
of the sale of the Bonds or shall be paid from Lease Payments paid by the City.
Section 14. In making any determination with respect to the Bonds, the
Indenture, the Site and Facility Lease, the lease Agreement, the Purchase Contract, the Finance
Agreement, the Parking Ground Lease or the Reimbursement Agreement or in taking any other
action required or authorized to be taken pursuant to this Resolution, each Authorized Officer
shall be subject to the provisions of this Resolution.
Section 15. The Authority hereby ratifies and endorses the CCA's Resolution
No. CCA-166 as if it were the Authority's own and declares its official intent to adopt and
comply with each of the terms and conditions set forth in the CCA's Resolution No. CCA-166
in connection with the financing of the portion of the costs of the Public Improvements that
relate to the expansion of the Anaheim Convention Center.
For purposes of establishing compliance with Section 1.150-2 of the Treasury
Regulations, the Authority hereby declares its official intent to use proceeds of the Bonds to
reimburse itself, the City or Disney for Reimbursement Expenditures. Proceeds of the Bonds
in an amount not exceeding $155,000,000 may be used to reimburse Reimbursement
Expenditures relating to the expansion of the Anaheim Convention Center that were paid no
earlier than 60 days prior to May 15, 1996, and proceeds of the Bonds in an amount not
exceeding $395,000,000 may be used to reimburse Reimbursement Expenditures relating to the
Public Improvements other than the expansion of the Anaheim Convention Center that were paid
no earlier than 60 days prior to the date of adoption of this Resolution.
Section 16. Each Authorized Officer, acting alone, is hereby authorized and
empowered to certify on behalf of the Authority that the Preliminary Official Statement and the
Official Statement is deemed final as of its respective date, within the meaning of Rule 15c2-12
promulgated under the Securities Exchange Act of 1934.
Section 17. All actions heretofore taken by the members of the Board of
Directors, the officers and the agents of the Authority with respect to the issuance and sale of
the Bonds are hereby approved, confirmed and ratified, and the members of the Board of
Directors, the officers of the Authority and their authorized deputies and agents are hereby
authorized and directed, jointly and severally, to do any and all things and to execute and deliver
any and all certificates and other documents, including without limitation any continuing
disclosure agreement required by the Rule, in addition to those enumerated herein, including the
preparation and distribution of any offering material, which they or counsel, to the Authority
may deem necessary or advisable in order to consummate the issuance, sale and delivery of the
Bonds and otherwise to effectuate the purposes of this Resolution.
Section 18. Capitalized terms used herein and not otherwise defined shall have
the meanings given such terms in the Finance Agreement.
CHAIRMAN
ANAHEIM PUBLIC FINANCING AUTHORITY
~. This Resolution shall take effect from and after its adoption.
PASSED AND ADOPTEI~ by the Board of Directors of the Anaheim Public
Financing Authority this [Sth] day of October, 1996.
I, the undersigned, the duly appointed, and qualified Secretary of the Anaheim
Public Financing Authority, DO HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Board of Directors of said Authority at a duly called meeting of the Board of
Directors of said Authority held in accordance with law on October 8, 1996.
Secretary
Board of Directors of the
Anaheim Public Financing Authority
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EXHIBIT A
Resolution No. CCA-166
Community Center Authority
COM~T~NITY CENTER AUTHORITY
RESOLUTION NO. CCA-166
A RESOLUTION OF THE GOVERNING BOARD OF THE COM/4I/NITY CENTER
AUTHORITY APPROVING THE FORM AND AUTHORIZING EXECUTION OF THE
DECLARATION OF OFFICIAL INTENT OF THE AUTHOR/TY TO REIMBURSE
CERTAIN'EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS
WHEREAS, the Community Center Authority (the 'Issuer')
intends~to acquire and construct certain improvements to the
Anaheim Convention Center (the 'Project);
WHEREA~,- the Issuer expects to pay certain expenditures (the
'Relmbursement~bcpenditures') in con~ection ~iththe Project
.prior to the issuance of indebtedness.for the purpose of
financing costs'assoCiated with the Project on a long-tel-m basis;
WEER~, the Issuer reasonably expects t~t debt obligations
in an amount not'expected to exceed $155,000%00 w~ll be issued
and that certain of the proceeds of such deb~ oWligations will'be'
used to reimburse the Reimbursement Expenditures.
NOW, ~HEREFORE, BE IT RESOLVED by the Governing Board of the
Community Center Authority as follows:
Section 1. The Governing Board finds and determines that
the foregoing recitals are true and correct.
Section 2. This declaration is'made solely for purposes of
establishing compliance with the requirements of section 1.150-2
of the Treasury Regulations. This declaration does not bind the
I~suer to make any expenditure, incur any indebtedness, or
.proceed with the Project.
~ection 3. The Governing Board hereby declares its official
intent to use proceeds of indebtedness to reimburse itself for
Reimbursement Expenditures.
Section 4. This declaration shall take effect from and
after its adoption.
I hereby certify that the foregoing resolution was duly
adopted at a meeting of the Governing Board of the Community
Center Authority d~ly held-on.~he 15th day of May, 1996, by the
following vote: ...
AYES, and in favor of, Boardmembers: Riley (Vice President),
Patterson, Hostetter and Currier
NOES, Boardmembers: None -
ABSENT, Boardmenbers:. Schacht
COMHUNITY CENTER A~ORI~
STEVE SCHACHT
President
PATTERSON
Secretary
O018945.01\smann\May 10, 1996
STATE OF CALIFORNIA )
COUNTY OF ORANGE
CITY OF ANAHEIM )
) SS.
I, LEONORA N. SOHL, Secretary of the Board of Directors of the Anaheim Public Financing
Authority, do hereby certify that the foregoing Resolution No. APFA96-2 was introduced and
adopted at a special meeting provided by law, of the Board of Directors of the Anaheim Public
Financing Authority held on the 8th day of october, 1996, by the following vote ofthe members
thereof:
AYES:
BOARD MEMBERS: Tait, Zemel, Feldhaus, Lopez, Daly
NOES: BOARD MEMBERS: None
ABSENT: BOARD MEMBERS: None
AND I FURTHER certify that the Chairman of the Board of Directors signed said Resolution
No. APFA96-2 on the 8th day of October, 1996.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of
Anaheim this 8th day of October, 1996.
SECRETARY OF THE ANAHEIM PUBLIC FINANCING AUTHORITY
(SEAL)
I, LEONORA N. SOHL, Secretary of the Anaheim Public Financing Authority, do hereby certify
that the foregoing is the original of Resolution No. APFA96-2 duly passed and adopted by the
Anaheim Public Financing Authority on October 8th, 1996.
SECRETARY OF THE ANAHEIM PU~-EIC FINANCING AUTHORITY