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