HomeMy WebLinkAboutResolution No. 3161 RESOLUTION NO. 3161
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AUTHORIZING DOWNEY COMMUNITY HOSPITAL TO ACCEPT TITLE
TO ADDITIONAL FACILITIES AND APPROVE ARTICLES OF
INCORPORATION OF THE FOUNDATION AND APPROVE FORMS OF
CORPORATE RESOLUTION TO BORROW AND PROMISSORY NOTE
WHEREAS, the City Council of the City of Downey understands that Downey
Community Hospital Foundation, a nonprofit hospital corporation organized
and existing under the laws of California (the "Foundation"), proposes to
obtain a loan for the purposes of constructing and equipping additional
hospital facilities adjoining its present hospital facilities located at
11500 Brookshire Avenue in the City of Downey, County of Los Angeles,
California (the proposed new facilities and equipment financed by the loan
being herein called the "Additional Facilities "); and
WHEREAS, the construction of the present hospital facilities was
originally financed through the issuance of revenue bonds by the Downey
Community Hospital Authority, which Authority was created by virtue of a
Joint Powers Agreement dated May 23, 1967, between this City and the County
of Los Angeles; and
WHEREAS, this Council has been advised that a stipulation in the request
for an Internal Revenue Service ruling, regarding the tax - exempt status of
interest payments pursuant to the loan used to finance the Additional
Facilities, states that the Foundation will enter into the proposed financing
arrangement only with the prior written consent of the City of Downey, a
municipal corporation (the "City "); and
WHEREAS, this Council has been advised that pursuant to Section 6 of the
Lease dated October 16, 1968, between the Foundation and the City, the Founda-
tion may, at its own expense and risk, erect, maintain and operate the
Additional Facilities only with the prior written consent of the City; and
WHEREAS, the Foundation has requested that the City grant its written
approval to the proposed financing, construction and operation of the
Additional Facilities, as well as certain other matters, approval for which
is required by the Internal Revenue Service; and
WHEREAS, the forms of Corporate Resolution to Borrow and Promissory Note
indicate that the Foundation shall be solely responsible for payment of the
obligation represented by the note, and that neither the Downey Community
Hospital Authority nor the City shall in any event be liable for payment of
the principal of or the interest on the note, or for the performance of any
pledge, obligation or agreement of any kind whatsoever of the Foundation; and
WHEREAS, this Council has been advised that pursuant to Section 6 of the
above referenced Lease dated October 16, 1968, title to the Additional
Facilities will vest in the City immediately upon completion and acceptance
of said construction; and
NOW, THEREFORE, Be It and It is Hereby Resolved by the City Council of
the City of Downey, California, as follows:
1. That the City hereby expresses its willingness to accept title to
the Additional Facilities at any time upon completion,and upon
certification it is free of any and all liens and clear of any
financial obligation and acceptance of said construction;
2. That the Articles of Incorporation of the Foundation presented to
this Council are hereby approved;
3. That the forms of Corporate Resolution to Borrow and Promissory Note
presented to this Council contain nothing objectionable to this
Council and nothing which would impose any kind of obligation, burden
or imposition on this Council, and are therefore hereby approved;
4. That the purposes of such borrowing and additional construction
are hereby found to be beneficial to the City and are hereby
approved.
APPROVED AND ADOPTED this llth day of August, 1975.
kt x
Jose h E'. DiLoreto, Mayor
ATTEST:
D y City Clerk
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
City Council of the City of Downey, at a regular meeting thereof held on the
llth day of August, 1975, by the following vote:
AYES: 3 Council Members: Scotto, Jennings, DiLoreto
NOES: 0 Council Members: None
ABSENT: 1 Council Members: Winton
C, �.
Depu y. City Clerk