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Home My WebLink AboutResolutions - No. 2001-25RESOLUTION NO. 2001-25 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE ISSUANCE OF NOTES, BONDS OR OTHER EVIDENCE OF INDEBTEDNESS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY Local Government Participant: Issuer: Borrower: Obligations: Maximum Principal Amount: Public Hearing Date: City of Lodi, California California Statewide Communities Development Lustre -Cal Nameplate, Joseph C. and Clydene G. Hohenrieder or an affiliate Notes, Bonds or any other evidence of indebtedness of the Issuer $5,000,000 February 7, 2001 WHEREAS, the Issuer in its inducement resolution (the "Inducement Resolution") attached hereto as Exhibit A has proposed to issue its notes, bonds or other evidence of indebtedness (the "Obligations") in an aggregate principal amount not expected to exceed the Maximum Principal Amount pursuant to the California Industrial Development Financing Act, Section 91500 et seq. of the Government Code of the State of California, as amended and supplemented (the "Act"); and WHEREAS, the project to be financed by the Obligations consists of the acquisition, construction, rehabilitation and improvement of property, including real and personal property, to be used as, or as a part of, a manufacturing facility (the "Project") as described in the Inducement Resolution; and WHEREAS, the Issuer has requested that the governing body of the Local Government Participant approve the issuance of the Obligations in order to satisfy the public approval requirement of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the requirements of Section 9 of the Amended and Restarted Joint Exercise of Powers Agreement (the "Agreement"), dated as of June 1, 1988, among certain local agencies, including the Local Government Participant, and the public agency approval requirement of Section 91530(f) of the Government Code of the State of California, as amended; and WHEREAS, the governing body of the Local Government Participant hereby finds and determines that the Project is not substantively inconsistent with the Local Government Participant's general plan as prepared and adopted in accordance with Article 5 (commencing with Section 65300 of the Government Code of the State of California) of Chapter 3 of Title 7; and WHEREAS, the Local Government Participant held a public hearing on the Public Hearing Date providing a reasonable opportunity for persons to comment on the issuance of the Obligations and the Project; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Obligations required by Section 147(f) of the Code, Section 9 of the Agreement and Section 91530(f) of the Government Code of the State of California; NOW, THEREFORE, BE fT RESOLVED, by the governing body of the Local Government Participant, that the issuance of the Obligations is hereby approved for the purposes of Section 147(f) of the Code, Section 9 of the Agreement and Section 91530(f) of the Government Code of the State of California. Dated: February 7, 2001 ------------------------------------------------------------------ ------------------------------------------------------------------ I hereby certify that Resolution No. 2001-25 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 7, 2001, by the following vote: AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land and Pennino NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mayor Nakanishi ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLAC TON City Clerk 2001-25 EXHIBIT A ISSUER'S INDUCE`IENT RESOLUTION CSCOA E01D9.PAitilClPa.NTD0C5(&97,) EXHIBITS A RESOLUTION NO.2000IDB-18 RESOLUTION OF THE CALIFORNIA STATENVIDE COMMUNITIES DEVELOPMENT AUTHORITY MAKING DETERMINATIONS WITH RESPECT TO THE FINANCING OF FACILITIES ANMD DECLARING ITS OFFICIAL INTENT TO UNDERTAKE THE FINANCING AND TO REIMBURSE CERTAIN CAPITAL EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS Borrower: Lustre -Cal Nameplate Corporation or an affiliate Oblisation: Notes, Bonds or any other evidence of indebtedness Maximum Principal Amount: 55,000,000 Activities and Uses of the Project: In a manufacturing facility or facilities that manufactures labels, nameplates and related supplies Anticipated Public Benefits: (a) Employment benefits (within the meaning of Section 91502.1(b)(1) of the Act) by securing or increasing the number of employees of the Borrower and any other direct users of the Project or the compensation for such employment. (b) Consumer benefits (within the meaning of Section 91502.1(b)(3) of the Act) by improving the quantity or quality or reducing the price of products, energy or related services or facilities, and by producing new or improved products or related services or facilities. WHEREAS, the California Statewide Communities Development Authority (the "Issuer") is authorized and empowered by the provisions of Title 1, Division 7, Chapter 5 of the Government Code of the State of California to issue its Obligations pursuant to the California Industrial Development Financing Act, as amended and supplemented (the "Act"), for the purpose of financing certain costs of a project, as that term is defined in the Act; and WHEREAS, the Borrower desires to acquire, construct, rehabilitate and improve property, including real and personal property, to be used as, or as a part of, a manufacturing facility (the "Project"); and WHEREAS, the Borrower is willing to acquire, construct, rehabilitate and improve the Project upon the issuance by the Issuer of the Obligation to finance the Project pursuant to the Act; and WHEREAS, the Borrower has heretofore submitted, and this Commission has accepted, an application requesting financing for the Project; and WHEREAS, the Issuer may not issue the Obligation to finance the Project until this Commission makes certain determinations with respect to public benefits and qualification of the Project as required by the Act; and WHEREAS, this Commission has carefully considered and discussed the information contained in the Borrower's application and other information necessary to make such determinations; and CSC0+.E0108-1N0UCERFS (3,197) WHEREAS, this Commission desires to induce the Borrower to commence adquisition, construction, rehabilitation and improvement of the Project at the earliest possible time so as to produce the public benefits set forth herein; and WHEREAS, the Issuer, in the course of assisting the Borrower in the financing of the Project, expects that the Borrower has paid or may pay certain expenditures (the "Reimbursement Expenditures") in connection with the Project within 60 days prior to the adoption of this Resolution and prior to the issuance of the Obligation for the purpose of financing costs associated with the Project on a long-term basis; and WHEREAS, the Issuer reasonably expects that the Obligation in an amount not expected to exceed the Maximum Principal Amount will be issued and that certain of the proceeds of the Obligation may be used to reimburse the Reimbursement Expenditures; and WHEREAS, Section 1.103-8(a)(5) and Section 1.150-2 of the Treasury Regulations require the Issuer to declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds of a subsequent borrowing; \OW, THEREFORE, the Commission of the California Statewide Communities Development Issuer does hereby resolve as follows: correct. Section 1. This Commission hereby finds and determines that the foregoing recitals are true and Section 2. This Commission hereby finds and determines that: Act; (a) the Activities and Uses of the Project are in accord with Section 91503 of the (b) the use of the Project is likely to produce the Anticipated Public Benefits; (c) the issuance of the Obligation by the Issuer in an amount sufficient to finance certain costs of the Project, which is now estimated not to exceed the Maximum Principal Amount, as described in the Borrower's application attached hereto as Exhibit A, is likely to be a substantial factor in the accrual of one or more of the Anticipated Public Benefits from the use of the Project as proposed in the Borrower's application; and (d) the acquisition of the Project by the issuance of the Obligation is otherwise in accord with the purposes and requirements of the Act. Section 3. It is the present intent of the Issuer to issue, at one time or from time to time, the Obligation (the interest of which is intended to be exempt from federal income taxation) when permitted to do so under the Act in the amount not to exceed the Maximum Principal Amount to finance certain costs of the Project. Section 4. This Resolution is being adopted by the Issuer for purposes of establishing compliance with the requirements of Section 1.103-8(a)(5) and Section 1.150-2 of the Treasury Regufations. In that regard, the Issuer hereby declares its official intent to use proceeds of indebtedness CSCt]a.[OIDD'0"NDUCERS (3177) -7- to reimburse the Reimbursement Expenditures. Notwithstanding the foregoing, this resolution does not bind the Issuer to make any expenditure, incur any indebtedness, or proceed with the financing of the Project. Section 5. This resolution shall take effect immediately upon its passage. PASSED AND ADOPTED by the California Statewide Communities Development Authority this 19th day of December, 2000. The undersigned, a duly appointed and qualified Member of the Commission of the California Statewide Communities Development Authority, DOES HEREBY CERTIFY that the foregoing resolution was duly adopted by the Commission of the Issuer at a duly called meeting of the Commission of the Issuer held in accordance with law on December 19, 2000. Me b r of the Commission California Statewide Communities Development Authority CSCD.�. E0I03.D0•INDCCERES (597)