ARA1992-0311 !L,, ,~1 21tt l\~ :l'.,'l':slc ()1/25/92 J9363
02:01/92
RESOLUTION NO. ARA92-3
A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
AUTHORIZING THE BORROWING OF FUNDS FROM THE ANAHEIM
PUBLIC FINANCING AUTHORITY IN THE AGGREGATE PRINCIPAL
AMOUNT OF NOT TO EXCEED $150,000,000 RELATING TO
REDEVEI ~OPMENT PROJECT AI.PHA, AUTHORIZING AND
DIRECTING EXECUTION OF REI~TED LOAN AGP,.EEM]~,
APPROVING SAI.E OF BONDS BY AUTHORITY AND AUTHORIZING
OFFICIAL ACTIONS
WHEREAS, the City of Anaheim (the "City") and the Anaheim Redevelopment
Agency (the "Agency") have heretofore entered into a Joint Exercise of Powers
Agreement establishing the Anaheim Public Financing Authority (the "Authority") for
the purpose, among others, of issuing its bonds to be used to provide financial assistance
to the Agency; and
WHEREAS, the Agency is undertaking to assist the redevelopment of
Redevelopment Project Alpha in the City (the "Redevelopment Project"), and for such
purpose the Agency has previously issued its Redevelopment Project Alpha Tax
Allocation Refunding Bonds, Series D in the aggregate initial principal amount of
$64,000,000, and its Redevelopment Project Alpha Tax Allocation Refunding Bonds
(Subordinate Lien), Series 1986 A, in the aggregate initial principal amount of
$49,380,000, and has entered into a Loan Agreement with the Local Government Finance
Authority and The Bank of New York pursuant to which a loan was made to the Agency
in the aggregate initial principal amount of $92,499,714.38 (collectively, the "Prior
Obligations"); and
WHEREAS, the Agency has determined that due to prevailing financial market
conditions it is in the best interests of the Agency to realize interest rate savings by
refunding a portion of the Prior Obligations, and the Agency has requested the Authority
to lend it funds in an amount sufficient for such purpose and also to provide additional
financing for the Redevelopment Project; and
WHEREAS, for the purpose of raising funds necessary to provide such financial
assistance to the the Agency, the Authority proposes to authorize the issuance of its
revenue bonds (the "Bonds") under the provisions of Article 4 (commencing with Section
6584) of Chapter 5 of Division 7 of Title i of the Government Code of the State of California
(the "Act"), designated as the Anaheim Public Financing Authority 1992 Tax Allocation
Revenue Bonds (Redevelopment Project Alpha); and
WHEREAS, the proceeds of the Bonds will be applied to make a loan (the "Loan") to
the Agency pursuant to a Loan Agreement dated as of February 1, 1992 (the "Loan
Agreement"); and
WHEREAS, the firms of Stone & Youngberg and Merrill Lynch & Co. (collectively,
the "Underwriters") have proposed to purchase and underwrite the Bonds and have
presented to the Agency a form of Purchase Agreement for the Bonds, to be entered into
among the Authority, the Agency and the Underwriters (the "Purchase Agreement")
and have presented the Agency with a proposed form of Official Statement describing the
Bonds, to be used in connection with the marketing of the Bonds by the Underwriters; and
WHEREAS, the Agency has duly considered such transactions and wishes at this
time to approve said transactions in the public interests of the Agency,
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the
Anaheim Redevelopment Agency as follows:
Section 1. Findings and Determinations. Pursuant to the Act, the Agency hereby
finds and determines that the issuance of the Bonds will result in savings in effective
interest rates, bond underwriting costs and bond issuance costs and thereby result in
significant public benefits to its members within the contemplation of Section 6586 of the
Act.
Section 2. Approval of Loan from Authority;, Loan Agreexnent. The Agency hereby
authorizes and approves the borrowing by the Agency from the Authority of the proceeds
· of the Bonds pursuant to and in accordance with the provisions of the Loan Agreement.
The aggregate principal amount of the Loan shall not exceed $150,000,000, and the final
maturity of the Loan and the Bonds shall be in calendar year 2018. The Agency hereby
approves the Loan Agreement in substantially the form on file with the Secretary,
together w/th such additions thereto and changes therein as the Executive Director shall
deem necessary, desirable or appropriate, the execution of which by the Executive
Director shah be conclusive evidence of the approval of any such additions and changes.
The Executive Director is hereby authorized and directed to execute, and the Secretary is
hereby authorized and directed to attest and afrnx the seal of the Agency to, the final form
of the Loan A~o~eement for and in the name and on behalf of the Agency. The Agency
hereby authorizes the delivery and performance of the Loan A~eement,
Section 3. Sale of Bonds. The Agency hereby approves the sale of the Bonds by the
Authority by negotiation with the Underwriters, pursuant to the Purchase Agreement in
substantially the form on file with the Secretary, together with such additions thereto and
changes therein as the Executive Director shall deem necessary, desirable or
appropriate, the execution of which by the Executive Director shall be conclusive evidence
of the approval of such additions and changes. The Executive Director is hereby
authorized and directed to execute the final form of the Purchase A~eement for and in
the name and on behalf of the Agency upon the submission of an offer by the
Underwriters to purchase the Bonds, which offer is acceptable to the Executive Director
and consistent with the requirements of this Resolution. The amount of Underwriters'
discount for the Bonds shall be not more than one percent (1%) of the par amount thereof
(without regard to any original issue discount) and the net effective rate of interest on the
Bonds (taking into account any original issue discount on the sale thereof) shall not
exceed seven percent (7%) per annum.
Section 4. Official Statement. The Agency hereby approves the preparation of, and
hereby authorizes the Executive Director to deem final within the meaning of Rule 15c2-
12 of the Securities Exchange Act of 1934 except for permitted omissions, a preliminaw
form of Official Statement describing the Bonds. Distribution of such preliminary Official
Statement by the Underwriters is hereby approved. The Executive Director is hereby
authorized to execute the final form of the Official Statement, including az it may be
modified by such additions thereto and changes therein as the Executive Director shall
deem necessary, desirable or appropriate, and the execution of the final Official
Statement by the Executive Director shall be conclusive evidence of the approval of any
such additions and changes. The Agency hereby authorizes the distribution of the final
Official Statement by the Underwriters. The final Official Statement shall be executed in
the name and on behalf of the Agency by the Executive Director,.
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~ctlon 5. Official Actions. The Chairman, the Executive Director, ~he Treasurer,
the Secretary and any and ali other officers of the Agency are hereby authorized and
directed, for and in the name and on behalf of the Agency, to do any and all things and
take any and all actions, including execution and delivery of any and ali assignments,
certificates, requisitions, agreements, notices, consents, instruments of conveyance,
warrants and other documents which they, or any of them, may deem necessary or
advisable in order to consummate the lawful issuance and sale of the Bonds and the
making of the Loan and the refunding of a portion of the Prior Obligations as described
herein.
Section 6. Effective Date. This Resolution shall take effect from and after the date
of its passage and adoption.
The FOREGOING RESOLUTION was approved and adopted by the Anaheim
Redevelopment Agency this 11ch day of February, 1992, by the following vote:
AHEIM
Attest:
SECRETARY OF THE ANAHEIM
REDEVELOPMENT AGENCY
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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. ARA92-3 was passed and adopted at a
regular meeting of the Anaheim Redevelopment Agency held on the llth day of
February, 1992, by the following vote of the members thereof:
AYES: AGENCY MEMBERS: Simpson, Ehrle, Pickler, Daly and Hunter
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment Agency
signed said Resolution No. ARA92-3 on the 12th day of February, 1992.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 12th day of
February, 1992.
SECRETARY OF THE ANAHEIM REDEVELOPMENT AGENCY
(SEAL)