ARA1980-046RESOLUTION NO. ARA80 -46
A RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY
OF ANAHEIM REDEVELOPMENT AGENCY COMMERCIAL DEVELOPMENT
REVENUE NOTE, FOR THE PURPOSE OF FUNDING A
CONSTRUCTION AND TAKE -OUT LOAN TO
ONE NINETY EIGHT ASSOCIATES
WHEREAS, the Anaheim Redevelopment Agency ( "Issuer ")
is a public body, corporate and politic, organized and existing
under the Community Redevelopment Law of the State of California
(the "Law "), and is empowered under the Law and in particular
under Chapter 8, commencing with Section 33750 thereof (the "Act ")
to make our purchase low- interest loans through or from qualified
mortgage lenders to finance residential and certain commercial
construction, and to issue bonds, notes and other obligations
for the purposes of financing such construction; and
WHEREAS, on June 3, 1980 the Issuer adopted Resolution
No. ARA 80 -16 stating its intention to issue tax - exempt bonds or
notes for a commercial office building owned by One Ninety Eight
Associates, a California partnership ( "Owner "); and
WHEREAS, on June 3, 1980 Issuer adopted Resolution No.
ARA 80 -17 and made certain findings that the proposed office
building was an integral part of a residential neighborhood, as
required by the Act;
WHEREAS, to obtain funds with which to assist Owner in
financing the Project, Issuer proposes to issue and sell a
commercial development revenue note (the "Note ") in an
aggregate principal amount not to exceed $2,800,000, to be
secured by, in part, a loan agreement (the "Agreement ") between
Issuer and Union Bank, as Construction Lender ( "Construction
Lender ") ; and
WHEREAS, the Guardian Life Insurance Company has given
a written commitment to the Owner to purchase the Note from
the Construction Lender at the expiration of the construction
loan; and
WHEREAS, the Note shall not be deemed to constitute a
debt or liability of Issuer, or a pledge of faith and credit of
Issuer or the City of Anaheim; and
WHEREAS, neither Issuer nor any persons executing the
Note shall be subject to personal liability or accountability due
to issuance of the Note; and
WHEREAS, Dan W. Heil and William C. Stookey, as One
Ninety Eight Associates, will execute a Guaranty Agreement at the
time of closing the loan providing that they will guarantee re-
payment of the Note; and
WHEREAS, under the Agreement, Construction Lender will
advance proceeds of the Note to the extent required to fund
advances to Owner to finance the Project; and
WHEREAS, under the Buy and Sell Agreement, Permanent
Lender will agree to purchase the Note from the Construction
Lender one year from the date the Note is issued, unless such date
is extended by consent of the parties; and
WHEREAS, Issuer has caused to be prepared and presented
to this meeting the following instruments:
1. The form of Construction Loan Agreement;
2. The form of the Loan Agreement; and
3. The form of the Commercial Development Revenue Note;
WHEREAS, it appears that each of the foregoing documents
and instruments is in appropriate form for execution and delivery
for the purposes intended.
NOW, THEREFORE, IT IS RESOLVED as follows:
Section 1. Findings and Determinations. It is hereby
bound and determined that it is necessary an esirable for
Issuer to assist in financing the Project through issuance and
sale of the Note, as part of the redevelopment plan for the
Alpha Redevelopment Project Area.
Section 2. Authorization of the Note. For the purpose
of raising funds with which to effectuate financing the Project,
Issuer hereby determines to issue its Note, dated on or after
December 16, 1980, in aggregate principal amount not to exceed
$2,800,000, maturing and bearing interest at the rates provided
in the Agreement, and further determines to approve the sale of
the Note to the Permanent Lender for the Project at such time as
construction of the Project is completed.
The Note shall be issued in a principal amount not to
exceed $2,800,000 and shall be payable to Purchaser or its order.
Principal of and interest on the Note shall be payable in lawful
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money of the United States of America at Purcher's principal
office or at such place as the holder thereof shall direct.
The Note shall be substantially in the form presented
to this meeting and attached to the Agreement, with such
appropriate variations, omissions, insertions and changes as may
be approved by the officers of the Issuer executing the same,
their execution thereof to constitute conclusive evidence of
their approval of all changes from the form of Note presented
to this meeting, which form is hereby approved in all respects.
The Note shall be a special obligation of Issuer payable
as to principal and interest, and the Issuer's obligations under
the Agreement shall be paid and satisfied, solely from the
revenues, receipts and other funds pledged therefor under the
Agreement.
Section 3. Approval of Construction Loan A reement. The
Chairman and the Executive Director are hereby authorized an
directed to execute and deliver the Construction Loan Agreement
in substantially the form presented to this meeting or with such
changes as they may approve, their execution to constitute con-
clusive evidence of their approval of all changes from the form
of Construction Loan Agreement presented to this meeting, which
form of Agreement is hereby approved in all respects.
Section 4. Approval of Loan Agreement. To provide for
the details of and to prescri e t e terms and conditions upon which
the Note is to be issued, secured, executed, authenticated and
held, the Chairman and the Executive Director are hereby authorized
and directed to execute and deliver the Loan Agreement in sub-
stantially the form presented to this meeting or with such
changes as they may approve, their execution to constitute con-
clusive evidence of their approval of all changes from the form
of Loan Agreement presented to this meeting, which form of
Agreement is hereby approved in all respects.
Section 5. Execution and Delivery of Note. The Note
shall be executed in Issuer s name with the manua signature of
the Chairman and attested with the manual signature of the
Executive Director.
Section 6. Prior Actions Ratified and Confirmed. The
actions of the Chairman, the Executive Director or any other
officer of Issuer in doing any and all acts necessary to issuance
and sale of the Note and the making of the loan to Owner are
hereby ratified and confirmed.
Section 7. Further Actions Authorized. Issuer's
proper officers, agents and employees are ere y authorized, em-
powered and directed to do all acts, and to execute and deliver all
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documents, contemplated by the Agreements specifically authorized
in this resolution, including, but not limited to Assignment of
Loan Agreement, Security Agreement, Construction Deed of Trust
and Assignment of Rents, Signature and No- Litigation Certification
of $10,000,000 Election, No- Arbitrage Certificate, UCC -1, and
any and all other documents otherwise necessary or desirable
for issuance and sale of the Note and the making of the loan.
Section 8. Conflicting Resolutions Repealed. All
resolutions or parts tE_e_r_e_o_T in conflict herewith are, to the
extent of such conflict, hereby repealed.
Section 9. Severabilit . If any section, paragraph,
or provision of this Reso ution shall be held to be invalid or
unenforceable for any reason, the invalidity or unenforceability
of such section, paragraph, or provision shall not affect any
remaining provisions of this Resolution.
Section 10. Effective Date. This Resolution shall
take effect immediately upon its a option.
THE FOREGOING RESOLUTION IS APPROVED AND ADOPTED, BY
THE ANAHEIM REDEVELOPMENT AGENCY this 16th day of
December. 1980.
ATTEST:
Secretary
FAL:cew
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STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ANAHEIM )
I, LINDA D. ROBERTS, Secretary of the Anaheim Redevelopment Agency, do
hereby certify that the foregoing Resolution No. ARA80 -46 was passed and
adopted at a regular meeting of the Anaheim Redevelopment Agency held on
the 16th day of December, 1980, by the following vote of the members thereof:
AYES: AGENCY MEMBERS: Overholt, Kaywood, Bay, Roth and Seymour
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment
Agency signed said Resolution on the 16th day of December, 1980.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 16th day of
December, 1980.
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SECRETARY OF THE ANAHE REDEVELOPMENT AGENCY
(SEAL)