Resolution No. 8854
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RESOLUTION NO. 8854
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE ISSUANCE BY THE
REDEVELOPMENT AGENCY OF THE CITY OF VERNON OF ITS
INDUSTRIAL REDEVELOPMENT PROJECT TAX ALLOCATION
BONDS, APPROVING A FORM SUBORDINATION AGREEMENT AND
AUTHORIZING THE TAKING OF NECESSARY ACTIONS IN
CONNECTION WITH THE ISSUANCE OF THE BONDS
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8 WHEREAS, pursuant to the Community Redevelopment Law (Part 1
9 of Division 24 of the California Health and Safety Code and referred to
10 herein as the "Redevelopment Law"), a redevelopment plan (the
11 "Redevelopment Plan") for the area of the Redevelopment Agency of the
12 City of Vernon's (the "Agency") Industrial Redevelopment Project
13 ("Project Area") has been adopted; and
14 WHEREAS, in conformity with the Redevelopment Law, the City
15 of Vernon (the "City") has undertaken various obligations and advanced
16 and/or loaned funds of the City, from time to time, in furtherance of
17 implementation of the Redevelopment Plan, subject to reimbursement
18 from the Agency from incremental property tax revenues eligible for
19 allocation to the Agency (the "Tax Revenues") and other funds
20 (collectively, the Tax Revenues and other Agency funds referred to
21 hereinafter as the "Project Area Revenues") received by the Agency
22 from time to time with respect to Project Area as provided by the
23 Redevelopment Law and the Redevelopment Plan; and
24 WHEREAS, on the date hereof, the Agency has authorized the
25 issuance and sale of its Redevelopment Agency of the City of Vernon
26 Industrial Redevelopment Project Tax Allocation Bonds, Series 2005 (the
27 "Series 2005 Bonds"), in an aggregate principal amount not to exceed
28 $65,000,000, to finance a portion of the Agency's Industrial
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1 Redevelopment Project pursuant to the Redevelopment Law and the
2 Indenture to be entered into by the Agency and The Bank of New York
3 Trust Company, N.A., as trustee (the "Indenture"); and
4 WHEREAS, the Series 2005 Bonds and any additional bonds
5 issued on a parity therewith pursuant to the Indenture (collectively,
6 the "Bonds~) are to be secured by a lien upon and pledge of Pledged
7 Tax Revenues (as defined in the Indenture) as provided in the
8 Indenture, pursuant to which the Pledged Tax Revenues and certain
9 other moneys will be pledged to the payment of the principal of and
10 the interest and redemption premiums, if any, on the Bonds, which
11 pledge the Agency desires to constitute a first lien on the Pledged
12 Tax Revenues and the specified other moneys; and
13 WHEREAS, in furtherance of marketing the Bonds on the most
14 advantageous terms, the Agency desires, and the City is willing, to
15 expressly subordinate the City's entitlement to any and all payments
16 from Project Area Revenues, including but not limited to the Pledged
17 Tax Revenues, to the lien upon and pledge of the Pledged Tax Revenues
18 as the security for payment of the principal of and the interest and
19 redemption premiums, if any, on the Bonds; and
20 WHEREAS, the City is also willing to expressly subordinate
21 the City's entitlement to any and all payments from Project Area
22 Revenues to the Agency's obligation to make (i) contractual pass-
23 through payments pursuant to pass-through agreements entered into
24 pursuant to Section 33401 of the California Health and Safety Code and
25 (ii) statutory pass-through payments required to be made under Section
26 33607.5 of the California Health and Safety Code; and
27 WHEREAS, a form of the Subordination Agreement (such
28 Subordination Agreement, in the form presented to this meeting with
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1 such changes, insertions and deletions as are made pursuant to this
2 Resolution, being referred to as the "Subordination Agreement"), to be
3 entered into by and between the City and the Agen9Y for such purposes
4 has been submitted by the Agency.
5 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
6 CITY OF VERNON AS FOLLOWS:
7 SECTION 1: The City Council of the City of Vernon hereby
8 finds and determines that the recitals contained hereinabove are true
9 and correct.
10 SECTION 2: The issuance of the Series 2005 Bonds by the
11 Agency is hereby approved pursuant to Section 33640 of the California
12 Health and Safety Code.
13 SECTION 3: The Subordination Agreement, in substantially
14 the form submitted to this meeting and made a part hereof as though
15 set forth in full herein, be and the same is hereby approved. Each of
16 the Mayor, the Mayor Pro Tem, the City Administrator or Acting City
17 Administrator (each an "Authorized Officer"), acting singly, is hereby
18 authorized to execute and deliver the Subordination Agreement, in the
19 name of and on behalf of the City, in substantially the form presented
20 to this meeting with such changes, insertions and deletions as may be
21 approved by the Authorized Officer executing the Subordination
22 Agreement, said execution being conClusive evidence of such approval,
23 and the City Clerk of the City is hereby authorized to attest thereto.
24 SECTION 4: Each officer of the City is hereby authorized
25 and directed, acting singly, to do any and all things and to execute
26 and deliver any and all documents, certificates and other instruments
27 which such officer may deem necessary or advisable in order to
28 consummate the issuance, sale and delivery of the Series 2005 Bonds by
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1 the Agency and the execution and delivery of the Subordination
2 Agreement, as authorized herein, and to do and cause to be done any
3 and all acts and things necessary or convenient in carrying out the
4 transactions contemplated by this Resolution, including, without
5 limitation, making any determinations or submission of any documents
6 or reports which are required by any rule or regulation of any
7 governmental entity in connection with the authorization, execution,
8 delivery and performance by the Agency of its obligations under the
9 documents and instruments approved or authorized by this Resolution.
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SECTION 5:
The Acting City Clerk of the City of Vernon
11 shall certify to the passage of this resolution, and thereupon and
12 thereafter the same shall be in full force and effect.
13 APPROVED AND ADOPTED this 21st day of September, 2005.
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./" \LEONIS C. MAL URG, Mayor
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1 STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
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4 I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Resolution, being
6 Resolution No. 8854, was duly adopted by the City Council of the City
7 of Vernon at a regular meeting of the City Council duly held on
8 Wednesday, September 21, 2005, and thereafter
9 Mayor of the City of Vernon.
the
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