CC Resolution 9272
13051
JH:CKL
8/21/97
RESOLUTION NO. 9272
BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
APPROVING, AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH
RESPECT TO A PROPOSED LEASE FINANCING INVOLVING AMENDMENT OF
CERTAIN LEASE OBLIGATIONS OF THE CITY AND CERTAIN INDEBTEDNESS
OF THE REDEVELOPMENT AGENCY, AND APPOINTING A FINANCING TEAM
IN CONNECTION THEREWITH
RESOLVED, by the City Council of the City of Campbell (the "City"):
WHEREAS, in August, 1985, the City of Campbell Redevelopment Agency (the
"Agency") purchased the former Campbell High School for the purpose of establishing the
Campbell Community Center (the "Community Center"); and
WHEREAS, to finance acquisition and construction of the Community Center (the
"Project"), the Agency entered into that certain Lease Agreement, dated as of August I, 1985,
by and between the Agency, as lessor, and the City, as lessee (the "1985 Lease"); and
WHEREAS, for the purpose of (i) refinancing the 1985 Lease, (ii) refinancing an
outstanding $500,000 promissory note of the City (the "1991 Note"), (iii) financing the costs of
acquisition and construction of certain community center and related facilities to be used for the
purposes of the City (the "City Project"), and (iv) financing the cost of acquisition and
construction of certain public improvements and related facilities to be used for the purposes of
the Agency (the "Agency Project"), the 1985 Lease was amended and restated pursuant to the
provisions of that certain First Amended and Restated Lease Agreement, dated as of November
I, 1991, by and between the Agency, as lessor, and the City, as lessee (together with the 1985
Lease, the "Amended Lease"); and
WHEREAS, as part of the 1991 refinancing, the Agency assigned and transferred certain
of its rights under the Amended Lease to a corporate trustee bank (the "1991 Trustee"), which
1991 Trustee executed and delivered $30,245,000 aggregate principal amount of 1991
Certificates of Participation (Civic Center Project) (the "1991 Certificates"), each evidencing a
direct, undivided fractional interest in the lease payments to be made by the City under the
Amended Lease; and
WHEREAS, in connection with the 1991 Certificates, the City and the Agency entered
into that certain Indebtedness Agreement, dated as of November I, 1991 (the "Indebtedness
Agreement"), pursuant to which the City advanced to the Agency the amount of $11,405,000 of
the proceeds of the 1991 Certificates, which amount was used by the Agency for the Agency
Project; and
WHEREAS, in 1993, the Agency and the City determined that as a result of favorable
financial market conditions and other considerations it was in the best interests of the Agency
and the City to prepay and defease a portion of the obligation of the City to make payments
under the Amended Lease, and, accordingly, the Agency and the City entered into an
amendment and restatement of the Amended Lease (the "Second Amended Lease"); and
WHEREAS, as part of the 1993 refinancing, the Agency assigned and transferred certain
of its rights under the Second Amended Lease to a corporate trustee bank (the "1993 Trustee"),
which 1993 Trustee executed and delivered $11,810,000 aggregate principal amount of 1993
Certificates of Participation (the "1993 Certificates"), each evidencing a direct, undivided
* * * * * * * * * *
THE FOREGOING RESOLUTION was introduced by Councilperson Watson
seconded by Councilperson Furtado and carried this 2nd day of September,
1997, by the following vote on roll call:
AYES: Councilmembers:
Dougherty, Watson, Dean, Furtado, Conant
NOES: Councilmembers:
None
ABSENT: Councilmembers:
None
WHEREUPON, the Mayor declared the resolution adopted, AND SO ORDERED.
~&6uJ
MAYOR
Barbara D. Conant
ATTEST:
tL.~
CITY CLERK
Anne Bybee
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ST ATE OF CALIFORNIA
CITY OF CAMPBELL
I, e ^,^e ~.~ \;l~"-City Clerk of the City of Campbell, do hereby certify that the foregoing is
the original of Resolution No. 9272 duly passed and adopted by the City Council of the City
of Campbell on September 2, 1997.
~~
CITY CLERK
Anne Bybee
-4-