Loading...
Ord 673 ORDINANCE NO 673 AN ORDINANCE OF THE CITY OF POWAY APPROVING THE ENTERING INTO BY THE CITY OF POWAY WITH THE POWAY REDEVELOPMENT AGENCY OF A SITE LEASE AMENDMENT AND A LEASE AMENDMENT IN CONNECTION WITH THE POWAY ROYAL MOBILEHOME PARK RECITALS WHEREAS, the City of Poway (the "City") is a general law city, duly organized and validly existing under the Constitution and laws of the State of California (the "State"), and WHEREAS, the Poway Redevelopment Agency (the "Agency") is a public body, corporate and politic, duly organized and validly existing under the Constitution and laws of the State, and WHEREAS, in 1995, the Agency and the City refinanced the acquisition of the Poway Royal Mobilehome Park (the "Park") through the execution and delivery of 1995 Refunding Certificates of Participation (City of Poway 1991 Capital Improvement Project - Poway Royal Mobilehome Park) (the "1995 COPs"), and WHEREAS, in connection with the 1995 COPs, the City leased certain real property encompassing the Park and the improvements thereon (the "Site") to the Agency pursuant to a Site Lease, dated as of September 1, 1995 (the "1995 Site Lease"), and the City subleased the Site back from the Agency pursuant to a Lease, dated September 1, 1995 (the "1995 Lease"), and WHEREAS, the Agency and the City desire to cause the execution and delivery of 2008 Refunding Certificates of Participation (Poway Royal Mobilehome Park) (the "2008 COPs") for the purpose of refunding all of the remaining outstanding 1995 COPs, and WHEREAS, the Agency, the City and U S National Bank, as trustee (the 'Trustee") propose to enter into a Trust Agreement (the "Trust Agreement"), in order to provide for the execution and delivery of the 2008 COPs, and WHEREAS, the Agency and the City propose to enter into an Amendment to Site Lease (the "Site Lease Amendment") and an Amendment to Lease (the "Lease Amendment") in order to amend the 1995 Site Lease and the 1995 Lease, respectively, so as to adjust the amount of the lease payments thereunder and make the provisions thereof applicable to the 2008 COPs, and WHEREAS, the Agency will enter into an Assignment Agreement (the "Assignment Agreement") pursuant to which the Agency will assign all its rights, title and interest in the lease payments to be made by the City pursuant to the 1995 Lease, as amended by the Lease Amendment, to the Trustee for the benefit of the owners of the 2008 COPs, and Ordinance No 673 Page 2 WHEREAS, the Agency and the City propose to provide for the refunding of the 1995 COPs by the deposit, into an escrow fund, of an amount which, together with the earnings on the investment thereof, will be sufficient to current refund all of the remaining outstanding 1995 COPs pursuant to an Escrow Agreement (the "Escrow Agreement"), by and between the City, the Agency and U S Bank National Association, as escrow agent; and WHEREAS, after notice duly published, the governing board of the Agency has held a public hearing with respect to the proposed Site Lease Amendment and the Lease Amendment; NOW, THEREFORE, THE CITY OF POWAY DOES HEREBY ORDAIN AS FOLLOWS Section 1 Recitals. The above recitals, and each of them, are true and correct. Section 2. Site Lease Amendment. The City hereby approves the act of entering into the Site Lease Amendment with the Agency The Site Lease Amendment proposed to be entered into by and between the Agency and the City, in the form on file in the office of the City Clerk, is hereby approved. The Mayor (or in his absence, the Mayor Pro Tem) is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Site Lease Amendment in substantially said form, with such changes therein as the Mayor (or the Mayor Pro Tem, as the case may be) may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 3 Lease Amendment. The City hereby approves the act of entering into the Lease Amendment with the Agency The Lease Amendment proposed to be entered into by and between the Agency and the City, in the form on file in the office of the City Clerk, is hereby approved The Mayor (or in his absence, the Mayor Pro Tem) is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Lease Amendment in substantially said form, with such changes therein as the Mayor (or the Mayor Pro Tem, as the case may be) may approve (such approval to be conclusively evidenced by the execution and delivery thereof) Section 4 Terms of Site Lease Amendment and Lease Amendment. The authorization and direction set forth in this Ordinance regarding the execution and delivery of the Site Lease Amendment and the Lease Amendment are subject to the following parameters. (i) the Site Lease Amendment and the Lease Amendment shall become effective simultaneously with the execution and delivery of the 2008 COPs, (ii) the term of the 2008 COPs shall not exceed 36 years, (iii) no annual Lease Payment under the Lease Amendment shall exceed $2,500,000 during any calendar year (iv) the aggregate principal amount of the 2008 COPs shall not exceed $33,000,000; (v) the true interest cost of the 2008 COPs shall not exceed 6 0 percent; and (vi) the underwriter's discount with respect to the 2008 COPs shall not exceed 1 75 percent of the principal amount thereof Ordinance No. 673 Page 3 Section 5 Exemption from the California Environmental Qualitv Act ("CEQA"). The City Council finds, pursuant to State of California Guidelines for California Environmental Quality Act (14 Cal Code Regs. Secs 15000 et seq., hereafter the "CEQA Guidelines") Section 15378 (b)(4) that the Site Lease Amendment, Lease Amendment and the related refinancing (collectively the "Amendments") do not constitute a "project," and thus are not subject to the requirements of CEQA. The Amendments are the creation of a governmental funding mechanism that involves an existing mobile home park that will not be modified in any substantial way Further, because the activity involves no substantial changes to the existing mobile home park and is simply a governmental funding mechanism, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Therefore, the activity is also exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b )(3) The City Council hereby directs the City Clerk to file a notice of exemption in accordance with CEQA Guidelines Section 15062, accompanied by the appropriate document handling fee, with the San Diego County Clerk after adoption of this Ordinance. Section 6 Effective Date This Ordinance shall be in full force and effect 30 days from and after the date of its adoption. This Ordinance shall be subject to the provisions for referendum applicable to the City Section 7 PostinQ and Publication. The City Clerk is directed to cause copies of this Ordinance to be posted in three prominent places in the City of Poway and to cause publication once in the Powav News Chieftain, the official newspaper of the City of Poway, of a notice setting forth the date of adoption, the title of this Ordinance, and a list of places where copies of this Ordinance are posted, within 15 days after adoption of this Ordinance INTRODUCED at a regular meeting of the City Council held March 4, 2008, and PASSED, APPROVED AND ADOPTED as an ordinance of the City of Poway at a regular meeting of the City Council held on March 18, 2008, by the following vote. APPROVED' , Mayor ATTEST fJ:"~~ Ordinance No 673 Page 4 STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) I, L. Diane Shea, City Clerk of the City of Poway, do hereby certify under penalty of perjury that the foregoing Ordinance No 673 was duly adopted by the City Council at a meeting of said City Council on the 18th day of March 2008, and that it was so adopted by the following vote AYES EMERY, HIGGINSON, CAFAGNA NOES NONE ABSENT BOYACK, REXFORD DISQUALIFIED NONE X>n~~ 0~ L. Diane Shea, City Clerk City of Poway