CIC Resolution 01-98COMMUNITY IMPROVEMENT COMMISSION OF THE CITY OF ALAMEDA
RESOLUTION NO. 01 -98
AUTHORIZING THE ISSUANCE AND SALE TO THE ALAMEDA PUBLIC
FINANCING AUTHORITY OF BONDS RELATING TO THE BUSINESS AND
WATER FRONT IMPROVEMENT PROJECT AREA, APPROVING AN
INDENTURE OF TRUST FOR THE BONDS, APPROVING PLEDGE AGREEMENT
AND AUTHORIZING SUBMISSION OF A BALLOT FOR THE CITY'S
COMMUNITY FACILITIES DISTRICT NO. 4, AND APPROVING OTHER
RELATED DOCUMENTS (INCLUDING A CONSTRUCTION REIMBURSEMENT
AGREEMENT), AND ACTIONS
(COMMUNITY FACILITIES DISTRICT NO. 4 -
FISC AND EAST HOUSING SITES)
RESOLVED, by the Community Improvement Commission of the City of Alameda (the
"CIC "), as follows:
WHEREAS, the CIC has established its Business and Waterfront Improvement Project
area (the "BWIP Project Area ") in order to finance redevelopment projects of the CIC within or
of benefit to the BWIP Project Area; and
WHEREAS, the City of Alameda (the "City ") has advanced funds to the CIC in
connection with redevelopment activities of the CIC related to the BWIP Project Area (the "City
Advances ") and the CIC desires to undertake various redevelopment activities within or of
benefit to the BWIP Project Area, including activities related to the provisions of low and
moderate income housing (the "Redevelopment Activities "); and
WHEREAS, in order to refinance the City Advances and to finance the Redevelopment
Activities, the CIC now desires to issue its Community Improvement Commission of the City of
Alameda Business and Waterfront Improvement Project 2001 Tax Allocation Bonds (the "CIC
Bonds "), and to approve the documents required to issue the CIC Bonds; and
WHEREAS, the CIC and Catellus Development Corporation ( "Catellus ") have entered
into a Disposition and Development Agreement, dated as of June 16, 2000 (the "DDA "), which
provides for, among other matters, the financing and installation of backbone infrastructure
(the "Backbone Infrastructure ") and the demolition of existing improvements (the
"Demolition ") on 87 acres of land for residential purposes and 77 acres of land for a business
park (the "Property "), constituting portions of the FISC and East Housing areas, as such terms
arc defined and all as more completely described in the DDA, and the purchase of the Property
by Catellus or other entities permitted under the DDA, all as more particularly set forth in the
DDA; and
WHEREAS, the City and the CIC have entered into the Joint Implementation
Agreement (as defined in the DDA) in order to assure the timely and orderly development of
the Property, as contemplated by the DDA; and
WHEREAS, under the provisions of the DDA, the CIC has agreed that it will engage a
master developer (initially being an affiliate of Catellus, but which may in the future include
other entities and third party contractors permitted under the DDA), as an independent
contractor to perform the Demolition and to undertake the design, permitting and construction
of the Backbone Infrastructure, and the CIC has agreed to use revenues related to the project to
pay project - related expenses, including among other expenses costs related to the Demolition
and Backbone Infrastructure, all as more fully described in the DDA; and
WHEREAS, the City has agreed to assist the CIC in the financing of the costs of the
Demolition and Backbone Infrastructure, and to that end has conducted proceedings under and
pursuant to the City of Alameda Special Tax Financing Improvement Code, constituting Section
3 -70 (Special Tax Financing Improvement Code) of Article IV (Special Tax Financing) of
Chapter III (Finance and Taxation) of the Alameda Municipal Code (the "Code "), to form the
City of Alameda Community Facilities District No. 4 (Demolition and Backbone Infrastructure -
FISC and East Housing Sites) (the "District "), to authorize the levy of special taxes upon the
land within the District, and to issue bonds secured by the special taxes (the "CFD Bonds ") the
proceeds of which are to be used to finance all or a portion of the costs of the Demolition and
Backbone Infrastructure; and
WHEREAS, the establishment of the District, the levy of the special taxes and the
issuance of the CFD Bonds are the subject of a special election called by the City Council under
the provisions of the Code; and
WHEREAS, the CIC is the sole owner of the land within the District and the only entity
entitled to vote in favor of the District, and the CIC now desires to authorize the Executive
Director, on behalf of the CIC, to cast a ballot in favor of the District, the levy of the special
taxes in the District and the issuance of the CFD Bonds, and
WHEREAS, the CIC also desires to assist in the repayment of the CFD Bonds by means
of the pledge and use of tax increment revenues arising in the BWIP Project Area to pay the
debt service on the CFD Bonds and to that end now desires to approve a CIC Pledge
Agreement as further described later in this Resolution; and
WHEREAS, in furtherance of the purposes of the DDA and the Joint Implementation
Agreement, and as contemplated by the DDA, the Agency desires to approve a construction
reimbursement agreement with a affiliate of Catellus related to the Demolition and the
Backbone Infrastructure; and
WHEREAS, the CIC and the City have heretofore entered into a Joint Exercise of Powers
Agreement, establishing the Alameda Public Financing Authority (the "Authority ") for the
purpose, among others, of issuing its bonds to be used to provide financial assistance to the CIC
and the City; and
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WHEREAS, it is expected that the Authority will issue its Alameda Public Financing
Authority 2001 Revenue Bonds (the "Authority Bonds ") under the provisions of Article 4
(commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code
of the State of California (the "Act "), the proceeds of which will be applied, in part, to the
purchase of the CIC Bonds and, in part, to the purchase of the CFD Bonds; and
WHEREAS, the CIC has duly considered all of the foregoing transactions and wishes at
this time to approve said transactions and the documents to which the CIC is a party related
thereto, in the public interests and in furtherance of the public purposes of the CIC.
NOW, THEREFORE, THE COMMUNITY IMPROVEMENT COMMISSION OF THE
CITY OF ALAMEDA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Findings and Determinations. Pursuant to the Act, the CIC hereby finds and
determines that the issuance of the Authority Bonds will result in savings in effective interest
rates, bond underwriting costs and bond issuance costs and thereby result in significant public
benefits to the CIC within the contemplation of Section 6586 of the Act.
Section 2. Issuance of CIC Bonds; Approval of Indenture. The CIC hereby authorizes
the issuance of the CIC Bonds under and pursuant to an Indenture of Trust (the "Indenture ")
and the Community Redevelopment Law of the State of California, in the maximum principal
amount of $12,000,000.
The CIC hereby finds and determines that a portion of the proceeds of the CIC Bonds
will be used to improve real property or building sites with onsite or offsite improvements, and
the improvements are to be made as a part of a program which results in the new construction
of affordable housing units for low or moderate income persons that are directly benefited by
the improvements.
The CIC hereby approves the Indenture in the form on file with the Secretary. The CIC
hereby authorizes and directs the Executive Director to execute and deliver the Indenture in
such form, together with any changes therein or additions thereto deemed advisable by the
Executive Director upon consultation with the City Attorney and Bond Counsel, the approval
of such changes to be conclusively evidenced by the execution of such document by the CIC.
The CIC hereby authorizes the delivery and performance by the Agency of the Indenture.
Section 3. Approval of Sale of CIC Bonds; CIC Bond Purchase Contract. The CIC hereby
authorizes and approves the sale to the Authority of the CIC Bonds pursuant to and in
accordance with the provisions of a Bond Purchase Contract between the CIC and the
Authority (the "Bond Purchase Contract "), so long as the principal amount and maturity of the
CIC Bonds are not in excess of the maximum limits set forth in Section 2 above. The CIC
hereby approves the Bond Purchase Contract in the form on file with the Secretary. The CIC
hereby authorizes and directs the Executive Director to execute and deliver the Bond Purchase
Contract in such form, together with any changes therein or additions thereto deemed
advisable by the Executive Director upon consultation with the City Attorney and Bond
Counsel, the approval of such changes to be conclusively evidenced by the execution of such
document by the CIC. The CIC hereby authorizes the delivery and performance by the CIC of
the Bond Purchase Contract.
Section 4. Approval of Official Statement. The official statement relating to the
Authority Bonds (the "Official Statement "), in the form on file with the Secretary, is hereby
approved. The Executive Director is hereby authorized and directed to execute the Official
Statement in said form, with such additions thereto or changes therein as are recommended or
approved by the Executive Director upon consultation with the City Attorney and Bond
Counsel, the approval of such additions or changes to be conclusively evidenced by the
execution and delivery of the Official Statement by the CIC. The underwriter for the Authority
Bonds is hereby authorized to distribute copies of said Official Statement to persons who may
be interested in the purchase of the Authority Bonds and is directed to deliver such copies to all
actual purchasers of the Authority Bonds. Distribution by the underwriter for the Authority
Bonds of a preliminary official statement relating to the Authority Bonds is hereby approved
and authorized.
The Executive Director is hereby authorized to execute a certificate or certificates to the
effect that the Official Statement and such preliminary official statement were deemed "final"
as of their respective dates for purposes of Rule 15c2 -12 of the Securities Exchange Code of
1934, and are authorized to so deem such statements final.
Section 5. Approval of Continuing Disclosure Certificate. The Continuing Disclosure
Certificate (the "Disclosure Certificate ") of the CIC related to the CIC Bonds and the Authority
Bonds, in the form on file with the Secretary, is hereby approved. The Executive Director is
hereby authorized and directed to execute and deliver the Disclosure Certificate in said form,
with such additions thereto or changes therein as are recommended or approved by the
Executive Director upon consultation with the City Attorney and Bond Counsel (including such
additions or changes therein as are necessary or advisable in accordance with Section 9 hereof),
the approval of such additions or changes to be conclusively evidenced by the execution and
delivery of the Disclosure Certificate by the CIC.
Section 6. Submission of Ballot. The CIC hereby authorizes the Executive Director to
execute a ballot in favor of the issues to be voted upon in the District election, and to submit the
ballot to the City Clerk.
Section 7. Approval of CIC Pledge Agreement. There has been presented to the CIC for
its approval a CIC Pledge Agreement (the "Pledge Agreement "), between the City and the CIC,
the form of which is on file with the Secretary. The Pledge Agreement contemplates that the
CIC will contribute to the City amounts equal to the debt service on the CFD Bonds from BWIP
Tax Increment even though a portion of the area in which the Demolition and Backbone
Infrastructure to be financed with CFD Bond proceeds will occur and be constructed,
respectively, is in another CIC redevelopment project are that is outside of the BWIP Project
Area. In light of the foregoing, this CIC hereby makes the following findings and
determinations, based upon all of the prior proceedings of the CIC related to the DDA, as well
as the terms and provisions of the DDA:
(a) the DDA requires that the CIC undertake the Demolition and the
construction of the Backbone Infrastructure on the Property, which
includes the design and construction of new roadway access to the
Property, as well as drainage, sanitary sewer, water, natural gas and
electrical system improvements;
(b) the two principal means of roadway access to the portion of the Property
in the BWIP Project Area run through a portion of the Property in the
CIC's Alameda Point Improvement Project area (the "APIP Project
Area "), and the most cost effective design for the storm drainage and
sanitary sewer systems for the Property involve flows from the APIP
Project Area portion of the Property into the BWIP Project Area portion
of the Property;
(c)
the water, natural gas and electrical distribution systems for the Property
are designed as loop systems with connections within both the BWIP
Project Area and the APIP Project Area;
(d) existing high voltage electrical transmission lines run through both the
BWIP Project Area portion of the Property and the APIP Project Area
portion of the Property, and will be relocated to run through the BWIP
Project Area portion of the Property; and
(e)
public open spaces on the Property will be designed to serve the mixed
uses of land on the Property, including both the BWIP Project Area and
the APIP Project Area portions of the Property.
Based upon the foregoing, the CIC finds and determines that (i) the Demolition and the
Backbone Infrastructure to be financed with the proceeds of the CFD Bonds the debt service on
which is to be paid for with BWIP Tax Increment pursuant to the Pledge Agreement, including
the work to be done outside of the BWIP Project Area portion of the Property, are of benefit to
the BWIP Project Area, (ii) no other reasonable means of financing the Demolition and the
Backbone Infrastructure are available to the community, (iii) the use of BWIP Tax Increment to
pay the debt service on the CFD Bonds, as contemplated by the Pledge Agreement, will assist in
the elimination of one or more blighting conditions inside the BWIP Project Area, and is
consistent with the implementation plan adopted by the CIC pursuant to Section 33490 of the
California Health and Safety Code.
The Pledge Agreement, in the form on file with the Secretary, is hereby approved. The
Executive Director is hereby authorized and directed to execute and deliver the Pledge
Agreement in said form, with such additions thereto or changes therein as are recommended or
approved by the Executive Director upon consultation with the City Attorney and Bond
Counsel (including such additions or changes therein as are necessary or advisable in
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accordance with Section 9 hereof), the approval of such additions or changes to be conclusively
evidenced by the execution and delivery of the Pledge Agreement by the CIC.
The CIC hereby finds and determines that a portion of the proceeds of the CFD Bonds
will be used to improve real property or building sites with onsite or offsite improvements, and
the improvements are to be made as a part of a program which results in the new construction
of affordable housing units for low or moderate income persons that are directly benefited by
the improvements.
Section 8. Approval of Construction Reimbursement Agreement. The Construction
Agreement, in the form of file with the Secretary, is hereby approved. The Executive Director is
hereby authorized and directed to execute and deliver the Construction Agreement in said
form, with such additions thereto or changes therein as are recommended or approved by the
Executive Director upon consultation with the City Attorney and Bond Counsel (including such
additions or changes therein as are necessary or advisable in accordance with Section 9 hereof),
the approval of such additions or changes to be conclusively evidenced by the execution and
delivery of the Construction Agreement by the CIC.
Section 9. Official Actions. The Chairman, the Executive Director, the Treasurer, the
Secretary and any and all other officers of the CIC are hereby authorized and directed, for and
in the name and on behalf of the CIC, to do any and all things and take any and all actions,
including execution and delivery of any and all assignments, certificates, requisitions,
agreements, notices, consents, instruments of conveyance, warrants and other documents
which they, or any of them, may deem necessary or advisable in order to consummate the
issuance of the CIC Bonds, the purchase of the CIC Bonds with proceeds of the Authority
Bonds, the repayment of the CFD Bonds with BWIP Tax Increment as contemplated by the
Pledge Agreement, and all other transactions contemplated by the documents approved by this
Resolution.
Section 10. Effective Date. This Resolution shall take effect from and after the date of its
passage and adoption.
* * * * * * * *
I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly
adopted and passed by the Community Improvement Commission of the City of Alameda in a
Special Joint City Council, Community Improvement Commission, and Public Financing Authority
meeting assembled on the 21st day of August, 2001, by the following vote to wit:
AYES: Commissioners Daysog, DeWitt, Johnson, Kerr and
Chair Appezzato - 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said
Commission this 22nd day of August, 2001.
Lara Weisiger, Acting Secretary
Community Improvement Commission
Ralph A PezZto, h
Community Improvement Commission