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Home My WebLink AboutRDA RES 064RESOLUTION NO. 64 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY AWARDING A LOAN BID TO CITY NATIONAL BANK. WHEREAS, the Redevelopment Agency does receive tax increment financing payments; and WHEREAS, the Redevelopment Agency has advertised for bids and called for the issuance of a note in the amount of $500,000; and WHEREAS, City National Bank has responded to said bid request with the rate of 4%; NOW, THEREFORE, BE IT RESOLVED that the Executive Director of the Palm Desert Redevelopment Agency and the Chairman of said Agency be directed to proceed with the issuance of said note in the form items attached hereto marked Exhibit "A" and made a part hereof, and make award of the loan to City National Banka 4/ interest repayable by May 31, 1978. PASSED, APPROVED, and ADOPTED this >>th day of August 1977, by the following vote, to wit: AYES: McPherson, Newbrander, Wilson & Mullins NOES: ABSENT: Brush ABSTAIN: / ' - , L ` ' , v D RD D. MULLINS, MAYOR ATTEST: Y ! v • SHEILA R. GILLIGAN, ecC e ary to the P.edevelopment Agency RedevE �ment Agency Resolution �64 EXHIBIT A RESOLUTION PROVIDING FOR THE ISSUANCE OF NEGOTIABLE PROMISSORY NOTE IN THE AMOUNT OF $500,000 OF THE PALM DESERT REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT FOR PROJECT AREA N0. 1 REDEVELOPMENT. RESOLVED, by the Palm Desert Redevelopment Agency of the City of Palm Desert as follows: WHEREAS, funds are needed to finance Redevelopment Project Area No. 1; WHEREAS, the Palm Desert Redevelopment Agency of the City of Palm Desert (the "Agency") is authorized to borrow funds and issue bonds, notes or other obligations pursuant to Article 5(commencing with Section 33640) Chapter 6, Part 1, Division 24 of the Health and Safety Code of the State of California, for the purpose of paying costs and expenses associated with the redevelopment of said Project Area No. 1 and has complied with all requirements of law necessary for the issuance of said negotiable note; and WHEREAS, pursuant to published notice inviting bids therefor, City National Bank has offered to lend the Agency the sum of $500,000 at an interest rate of 4% per annum upon a negotiable note to be made payable on or before May 31, 1978, with interest to date of payment. NOW, THEREFORE, IT IS HEREBY ORDERED AND DETERMINED, as follows: 1. A negotiable promissory note of the Palm Desert Redevelopment Agency of the City of Palm Desert will be issued pursuant to the provisions of Article 5 (commencing with Section 33640), Chapter 6, Part 1, Division 24 of the Health and Safety Code of the State of California and the said Agency does hereby accept the offer, and shall borrow the principal sum of $500,000 from City National Bank, Palm Desert office, 73-785 E1 Paseo, Palm Desert, California, to be represented by a single promissory note issued to evidence said indebtedness. 2. Said negotiable promissory note shall be, and it is hereby, sold to said Bank at the par value thereof, together with the accrued interest thereon from the date of said note to the date of its delivery. 3. Said negotiable promissory note, in the sum of $500,000, in aggregate principal amount, shall be negotiable in form, shall be dated as of the date of delivery, which shall be the date of its issuance, shall bear interest at the rate of four percent (4%) per annum, and shall mature and become payable on May 31, 1978, together with interest thereon to such date of payment. Both principal and interest on said negotiable promissory note shall be payable in lawful money of the United States at the office of said Agency, City Hall, Palm Desert, California. Said note is subject to call and redemption at any time, at the option of the Agency, at the principal amount thereof plus accrued interest thereon to date of redemption. The principal of said note shall be payable upon its maturity, or earlier redemption as herein provided, and only upon surrender of said note. The interest thereon shall be payable upon presentation of said negotiable promissory note at its date of maturity, or date of earlier redemption as herein provided, and endorsement thereon of payment of interest. If, upon presentation at maturity, payment of the note or any interest due thereon, or both, is not made in full accordance with the terms of this resolution, said -1- EXHIBIT A (Continued� Rer �lopment Agency Resolution ,#64 note and the interest thereon, or both, shall continue to bear interest at the rate stated in said note until paid in full. 4. Said note shall be signed by the Chairman and the Treasurer of the Agency and countersigned by its Secretary, and such signing and countersigning shall constitute and be a sufficient and binding execution of said negotiable promissory note by said Agency. 5. Said negotiable promissory note shall be substantially in the form as set forth in Exhibit "B" attached hereto and by reference made a part hereof. 6. All proceeds of sale of said note shall be deposited with the Treasurer of the Agency and shall be applied exclusively to the purposes and objects for which the aforesaid note was authorized to be issued. 7. The principal of and interest on said note shall be payable from revenues of the Agency generally including, specifically, such portion of the tax receipts to accrue to Redevelopment Project Area No. 1 of the Agency during the fiscal year 1977-78 necessary to repay said note and the interest thereon when due, which funds are hereby pledged to secure the repayment of said note. Notwith- standing said pledge, said note shall be a general obligation of said Agency and may be paid from any other moneys of the Agency available therefor. 8. The Secretary of the Agency is directed to cause a blank note of suitable quality to be typed or printed, and to cause the blank spaces thereof to be filled in to comply with the provisions hereof, and to procure its execution by the proper officers, and to deliver it, when so executed, to the purchaser thereof, on receipt of the purchase price. Said Chairman, 7reasurer, and Secretary are further authorized and directed to make, execute and deliver to the purchaser of said negotiable promissory note, if required, a signature and no-litigation certificate in the form customarily required by purchasers of notes of public agencies, certi- fying to the genuineness and due execution of said negotiable promissory note and further certifying to all facts within their knowledge relative to any litigation which may or might affect said Agency, said officers, or said note, and said Agency Treasurer is hereby authorized and directed to make, execute and deliver to the purchaser of said note a receipt in the form customarily required by purchasers of notes of public agencies, evidencing the payment of the purchase price of said note, which receipt shall be conclusive evidence that said purchase price has been paid and has been received by said Agency. On the basis of the facts, estimates and circumstances now in existence and in existence on the date of issue of the Note, as determined by the Treasurer, the Treasurer is authorized to certify that it is not expected that the proceeds of the issue will be used in a manner that would cause such an obligation to be an arbitrage note. Such certification shall be delivered to the purchaser with the Note. * * * * * -2- Redeve ment Agency Resolution #64 � EXHIBIT B c PALM DESERT REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT (COUiJTY OF RIVERSIDE, STATE OF CALIFORNIA) PROJECT AREA N0. 1 NEGOTIABLE PROMISSORY NOTE OF 1977 $500,000 SIGNATURE AND NO-LITIGATION CERTIFICATE EDWA.RD D. MULLINS as Chairman PAUL E. BYERS SHEILA R. GILLIGAN as as Treasurer Secretary of the Palm Desert Redevelopment Agency of the City of Palm Desert, County of Riverside, State of California, hereby certify that we signed and executed a single note in the principal amount of $500,000, designated "Palm Desert Redevelopment Agency of the City of Palm Desert Negotiable Promissory Note of 1977." Said note is dated September 23, 1977, is numbered 1-1977, matures on May 31, 1978, and bears interest at the rate of 4'/o per annum, payable at ma.turity (subject to prior redemption). We further certify that on the date of said note and on the date that said note was executed we held our respective offices, and that we now hold same. We further certify that said note has been in all respects duly executed pursuant to our authority as such officers, that only the note above described has been issued pursuant to such authority, that the proceedings or records which have been certified to the purchasers of the note or to the attorneys approving the same have not been repealed, amended or changed in any manner, except as shown by the proofs furnished, and that there has been no material change in the facts or circ�stances affecting said note, except as shown by proofs so furnished. We further certify that there is no litiga��nn pending con- cerning the organization of said Redevelopment Agency, our right to our respective offices, the proceedings pursuant to which the note is issued, the means provided for the payment of the principal and interest on the note, or in any manner questioning our right to execute and deliver said ttote, �r otherwise 4uestioning the validity thereof. WILSON, JONES� MORTON & LYNCH Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo, California 94401 � � The Redevelopment Agency is aware of the allegations con- tained in the Complaint for Declaratory and Injunctive Reliet filed in the Superior Court of the State of California for the County of Los Angeles, Mar aret McNutt, et al, v. Cit of Los An e1es, et a?.. challenging, among ot er t ings, t e constitutiona ity o t e tax increment financing system for redevelopment projects. The Redevelc� ment Agency does not believe that the foregoing action will have a materially adverse effect upon said note. Dated: September 23, 1977. � /�„ ,. _/�, , ; ./ � i,-� �; , ,,��;- '�_ � .. ,� j ` ZFiairman , _� � '�i � � r as er . .; ' :� ^.' ` i � ,�/ ,,, ,, ��/ f �.' �L�%f �/� C. -r ecretar�/ SIGNATURE GUARANTEE I hereby certify that the above signatures are genuine. Dated: September 23, 1977. -2- // � ,\!.� 'Gi � (G o .� ' �� ' n icate an s, �. anc � and ti.tle of officer) . � <-s,; � . �-5: :� / WILSON, JONES, MORTON & LYNCH Attorneys and Counsellors at Law 630 North San Mateo Drive San Mateo, California 94401