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ARA88-010RESOLUTION NO. ARA 88-10 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY REQUESTING REALLOCATIONS OF FUNDS FROM THE LOCAL GOVERNMENT FINANCE AUTHORITY AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO AND WITH RESPECT TO THE SALE AND ISSUANCE OF TAX ALLOCATION BONDS OF THE AGENCY WHEREAS, the Community Redevelopment Law of the State of California (the "Law") authorizes redevelopment agencies to issue bonds to finance redevelopment activities; WHEREAS, the Anaheim Redevelopment Agency (the "Agency") plans to issue tax allocation bonds on or about September 1, 1988 (the "Agency Bonds"), in order to provide funds to carry out its redevelopment plan for the Redevelopment Project Alpha (the "Project"); WHEREAS, the Local Government Finance Authority (the "Authority") has previously issued twelve issues of its variable Rate Demand Revenue Bonds (the "Authority Bonds"), and has allocated the proceeds thereof to various local agencies (the "Allocations") to acquire obligations of said local agencies under and pursuant to Articles 1 through 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California; WHEREAS, the proceeds of the Authority Bonds are not subject to certain provisions of the Internal Revenue Code of 1986 (the "New Code"), in that they were issued prior to the effective date of the Tax Reform Act of 1986, such that the proceeds of the Authority Bonds may be used in connection with tax-exempt financing of activities that could not otherwise be financed on a tax-exempt basis under the New Code; WHEREAS, the Allocations initially made by the Authority to the City of King City and the City of Tracy have been relinquished by said Cities to the Authority and it is expected that other local agencies initially granted Allocations will relinquish all or a portion of their allocations to the Authority; WHEREAS, in order to implement its redevelopment plan for the Project on terms favorable to the Agency and realize the benefits of tax-exempt financing, the Agency desires to request is that the Authority reallocate to the Agency the relinquished Allocations of the Cities of Tracy and King City in an amount equal to or greater than the expected principal amount of the Agency Bonds; and WHEREAS, in addition to the requesting said reallocation, the Agency desires to authorize and direct the Agency staff to take actions necessary and appropriate in connection with the preparation of documents and other 4D procedures necessary to issue the Agency Bonds. NOW, THEREFORE, BE IT RESOLVED by the Anaheim Redevelopment Agency as follows: 1. The foregoing recitals are true and correct. 2. The Agency hereby requests that the Authority reallocate to the Agency the Allocations initially made to the Cities of King City and Tracy provided that, in any event, (a) said reallocation shall be in an aggregate amount not less than $39,200,000, and (b) said reallocation shall occur as soon as possible in order that the Agency staff may proceed in a timely manner to structure, and prepare the documents necessary in connection with, the issuance of the Agency Bonds. 3. The Agency hereby authorizes and directs the Interim Executive Director and any other officers of the Agency to transmit a certified copy of this Resolution to the Authority and its members as soon as practicable, and to provide the Authority and its members with any information regarding the Agency, the Project or the Agency Bond program as it or they may request. 4. The Agency hereby authorizes the Interim Executive Director to execute such agreements and other documents for and on behalf of the Agency, with the Authority and others, in order to provide for the reallocations requested in Section 2 above. The Agency hereby authorizes payment to the Authority, in consideration of the reallocations, of such fees as the Authority may reasonably require in connection with the reallocations; provided that said fees shall not, in any event, be greater than the portion of investment earnings on the unused Authority Bond proceeds that is or will be allocable to the Agency upon its use of Allocations reallocated to it by the Authority pursuant to the foregoing request. 5. The Agency hereby authorizes and directs the Interim Executive Director and other appropriate officers and agents of the Agency to take such actions as are necessary or appropriate, including the preparation of documents, to present the matter of the sale and issuance of the Agency Bonds to this board for its approval, so that the Agency Bonds may be issued is on or about September 1, 1988. The sale and issuance of the Agency Bonds shall be subject to the approval of the Agency at a later meeting of the Agency and approval by the Agency of the documents implementing the sale and issuance of the Agency Bonds. THE FOREGOING RESOLUTION is approved and adopted by the Anaheim Redevelopment Agency this 7th day of June , 1988. Attest: Secretary LS•-BondReso U Chairman STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ANAHEIM ) I, LEONORA N. SOHL, Secretary of the Anaheim Redevelopment Agency, do hereby certify that the foregoing Resolution No. ARA88-10 was passed and adopted at a regular meeting of the Anaheim Redevelopment Agency held on the 7th day of June, 1988, by the following vote of the members thereof: AYES: AGENCY MEMBERS: Ehrle, Hunter, Kaywood, Pickler and Bay NOES: AGENCY MEMBERS: None ABSENT: AGENCY MEMBERS: None AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment. AgPr,.cy signed said Resolution on the 7th day of June, 1988. IN WITNESS WHEREOF, I have hereunto set my hand and seal this 7th day of June, 1988. SECRETARY OF THE ANAHEIM REDEVELOPMENT AGENCY (SEAL) �i