HomeMy WebLinkAboutCity Council - 2001-92 RESOLUTION NO. 2001-92
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF HUNTINGTON BEACH
APPROVING THE EXECUTION AND DELIVERY
OF AN AGREEMENT WITH THE
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
REGARDING FORBEARANCE OF REMEDIES
UNDER LEASE AGREEMENT
WHEREAS, the City of Huntington Beach, is a Charter City existing under its charter
and the laws of the State of California(the "City"); and
The City by its adoption of Resolution No. 2000-35 adopted April 17, 2000 (the
"Resolution of Formation") established by the District pursuant to the provisions of Chapter 3.56
of the City's Municipal Code (the "Municipal Code") and the Mello-Roos Community Facilities
Act of 1982, as amended, commencing with Section 533311 of the California Government Code
(the "Act"); and
The City Council, by its Resolution No. 2000-36 adopted April 17, 2000, completed
proceedings for the authorization of bonded indebtedness on behalf of the District in an
aggregate principal amount not to exceed $16,000,000 to finance the costs of construction of
certain public facilities (the "Public Facilities") on property within the District, including a
leasehold interest, to pay debt service on such bonded indebtedness and to pay certain
administrative expenses and other costs of the District. Pursuant to such authorization, the
District contemplates the issuance and sale of bonds in the approximate amount of$16,000,000
(the 'Bonds") pursuant to the terms of a Fiscal Agent Agreement by and between the District and
US Bank Corporate Trust, as fiscal agent (the "Fiscal Agent Agreement"); and
The City has established Redevelopment Agency of the City of Huntington Beach (the
"Agency") and approved and adopted a redevelopment plan (the "Redevelopment Plan") for a
redevelopment project known as the Huntington Beach Redevelopment Project (the
"Redevelopment Project") pursuant to the provisions of Section 33000 et seq. of the California
Health and Safety Code; and
The Agency entered into an Amended and Restated Disposition and Development
Agreement dated as of September 14, 1998, by and between the Agency and Mayer Financial,
Ltd., a California limited partnership (the "DDA") together with a Lease Agreement dated
April 4, 2001, under which the Agency has leased to PCH Beach Resorts, LLC its interest in real
property in the District for a period of 99 years the ("Lease Agreement"); and
Under the provisions of the Lease Agreement, the Agency has the right and power to
terminate the Lease Agreement if an event of default by the Developer occurs as described in the
Lease Agreement. The Agency acknowledges that payments of Special Taxes levied and
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SF:2001 Resolutions:City--Remedies—Lease Agreement
Res. No. 2001-92
collected with respect to the Leasehold Interest created under the Lease Agreement will be used
for payment of the Bonds, but only so long as there is a leasehold interest subject to the Special
Taxes, and the Agency has determined not to exercise its right to terminate the Lease Agreement;
and
NOW, THEREFORE, the City of Huntington Beach does hereby resolve as follows:
Section 1: Findings. This City finds that the above recitals are true and correct.
Section 2: Approval of Agreement. The proposed form of the Agreement Regarding
Forbearance of Remedies Under Lease Agreement (the "Agreement") with the Agency presented
at this meeting is hereby approved. The Mayor or the City Administrator or his designee is
hereby authorized and directed for and in the name of the City to execute the Agreement in
substantially the form hereby approved, with such additions thereto and changes therein as are
recommended or approved by Special Counsel to the City and approved by such officers, such
approval to be conclusively evidenced by the execution and delivery thereof.
Section 3: Other Acts. The officers and employees of the City are hereby authorized
to undertake such actions as they deem necessary to effectuate the provisions of this Resolution.
Section 4: Effective Date: This Resolution shall take effect from and after its date of
adoption.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 19th day of November , 2001.
4 UcAftl
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk m- 21—o1 City Attorney 5
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REVIEWED AND APPROVED: INITIrD AND APPROV D:
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City dministrator Di ector 6f Economic eloVne4
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Res. No. 2001-92
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
i, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council
of the City of Huntington Beach is seven; that the foregoing resolution was
passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a regular meeting thereof held on the 19th
day of November, 2001 by the following vote:
AYES: Green, Boardman, Cook, Garofalo, Dettloff, Bauer
NOES: None
ABSENT: Julien Houchen (out of room)
ABSTAIN: None
City Clerk and ex-officio derk of the
City Council of the City of
Huntington Beach, California