HomeMy WebLinkAboutReso 2004-165 - Acquisition Agreement
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CITY COUNCIL OF THE CITY OF REDDING
RESOLUTION NO. 2004-165
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE FORMS OF AND AUTHORIZING THE EXECUTION AND
DELIVERY OF AN AMENDMENT OF ACQUISITION AGREEMENT AND
QIDTCLAIM DEED AND AN AMENDMENT OF FACILITIES LEASE IN ORDER
TO RELEASE ClERT AIN PROPERTY RELATING TO THE REDDING JOINT
POWERS FINANCING AUTHORITY LEASE REVENUE BONDS (2003 CAPITAL
PROJECfS); MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH AND
AUTHORIZING RELATED ACTIONS
WHEREAS, Article 1 of Chapter 5 of Division 7 of Title 1 of the Government
Code of the State of California authorizes and empowers local agencies to form a joint powers
authority, and Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of
California authorizes and empowers such an authority to issue bonds for the purpose of financing public
capital improvements, working capital, liability and other insurance needs, or projects whenever there
are significant public benefits, as determined by the local agency; and
WHEREAS, the City of Redding (the "City") and the Housing Authority of the City of
Redding have created and established, pursuant to the laws of the State of California, the Redding Joint
Powers Financing Authority (the "Authority") for the purpose of, among other things, issuing bonds to
fmance public capital improvements, including, but not limited to, general municipal improvements; and
WHEREAS, in order to achieve such public purpose, the City approved the
Authority's issuance of not to exceed $14,000,000 aggregate principal amount of the Redding Joint
Powers Financing Authority Lease Revenue Bonds (2003 Capital Projects), including 2003 Series A
Bonds in an aggregate principal amount not to exceed $11,100,000 and 2003 Series B (Taxable)
Bonds in an aggregate principal amount not to exceed $2,900,000 (the "Bonds"); and
WHEREAS, in connection with the issuance of the Bonds the City authorized the
execution and delivery of (i) an Acquisition Agreement, dated as of January 1,2003, by and between
the City and the Authority (the "Acquisition Agreement"), pursuant to which the City sold to the
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Authority certain interests in real property, including the City's police building, certain public safety
communications facilities and the Redding Plunge (the "2003 Property"), as more completely described
in the Acquisition Agreement; and (ii) a Facilities Lease, dated as of January 1,2003, by and between
the City and the Authority (the "Facilities Lease"), pursuant to which the Authority leased back to the
City the 2003 Property;
WHEREAS, the City has determined that the description of the 2003 Property
inadvertently included a certain parcel of real property (the "Parcel to be Released") that was not
intended to be sold and leased pursuant to the Acquisition Agreement and the Facilities Lease and the
City now desires to correct the description of the 2003 Property contained in the Acquisition
Agreement and Facilities Lease in order to remove the Parcel to be Released;
WHEREAS, there has been presented to this meeting proposed forms of (i) an
Amendment of Acquisition Agreement and Quitclaim Deed by and between the City and the Authority
(the "Amendment of Acquisition Agreement and Quitclaim Deed"), and (ii) an Amendment of Facilities
Lease by and between the City and the Authority (the "Amendment of Facilities Lease") which, when
duly executed, delivered and recorded, shall remove encumbrances upon the Parcel to be Released
and any interest therein under the Acquisition Agreement or the Facilities Lease;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Redding as follows:
Section 1. The City Council hereby fmds and determines that the foregoing preambles
are true and correct. The City Council further finds and determines that the execution and delivery of
the Amendment of Acquisition Agreement and Quitclaim Deed and the Amendment of Facilities Lease
and the recording of the Quitclaim Deed shall not materially adversely affect the owners of the Bonds in
that (i) the Parcel to be Released was inadvertently encumbered in connection with the issuance of the
Bonds and was not intended to be part of the consideration between the City and the Authority under
either the Acquisition Agreement or the Facilities Lease and is not required to fully obligate the City to
make all required payments of rental and otherwise perform all of its obligations under the Facilities
Lease, and (ii) after the execution and delivery of the Amendment of Acquisition Agreement and
Quitclaim Deed and the Amendment of Facilities Lease and the recording of the Quitclaim Deed, the
City acknowledges, confirms and agrees that it shall continue to be fully obligated to make all payments
of Base Rental, Additional Rental and all other amounts due and payable pursuant to the Facilities
Lease without any reduction, off-set or other adjustment.
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Section 2. The Amendment of Acquisition Agreement and Quitclaim Deed, in
substantially the form on file with the City Clerk and incorporated by reference as if fully set forth
herein, is hereby approved. The Mayor, City Manager, Assistant City Manager or Deputy City
Manager (each, an "Authorized City Representative") are hereby authorized to execute, and the City
Clerk is hereby authorized to attest and deliver, the Amendment of Acquisition Agreement and
Quitclaim Deed in substantially said form with such changes therein as shall be approved by the City
Attorney and such Authorized City Representative executing the same, with such execution to constitute
conclusive evidence of such Authorized City Representative's approval and the City's approval of any
changes or revisions therein from the form of such agreement now on file with the City Clerk.
Section 3. The Amendment of Facilities Lease, in substantially the form on file with the
City Clerk and incorporated by reference as if fully set forth herein, is hereby approved. Any
Authorized City Representative is hereby authorized to execute, and the City Clerk is hereby authorized
to attest and deliver, the Amendment of Facilities Lease in substantially said form with such changes
therein as shall be approved by the City Attorney and such Authorized City Representative executing
the same, with such execution to constitute conclusive evidence of such Authorized City
Representative's approval and the City's approval of any changes or revisions therein from the form of
such lease amendment now on file with the City Clerk.
Section 4. The officers, employees and agents of the City are hereby authorized and
directed, jointly and severally, to do any and all things and to execute and deliver any and all
documents, certificates and other instruments which they may deem necessary or advisable (including,
without limitation, recording the Quitclaim Deed) in order to consummate the execution and delivery of
the Amendment of Acquisition Agreement and Quitclaim Deed and the Amendment of Facilities Lease,
and the procurement of a policy of title insurance, if appropriate or deemed by any of them to be
desirable, all as authorized herein, and otherwise to carry out, give effect to and comply with the terms
and intent of this resolution and the documents herein approved and authorized to be executed.
Section 5. This resolution shall take effect immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular
meeting of the City Council of the City of Redding on the 5th day of October, 2004, and was duly
adopted at said meeting by the following vote:
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AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
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ATTEST: ;;}. ii,
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Cibula, Kight, Mathena, StegaU, and Pohlmeyer
None
None
Mayor
FORM APPROVAL:
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