HomeMy WebLinkAboutResolution No. 6089 RESOLUTION NO. 6089
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
APPROVING THE ISSUANCE OF NOT TO EXCEED$11,000,000 PRINCIPAL
AMOUNT OF DOWNEY REDEVELOPMENT PROJECT
1997 REFUNDING TAX ALLOCATION BONDS BY THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY
WHEREAS,the Community Development Commission of the City of Downey (the
"Commission")has established a Redevelopment Plan for the Downey Redevelopment Project,
in the City of Downey(the"Redevelopment Project"); and
WHEREAS, for the purpose of financing the Redevelopment Project,the City of
Downey (the"City")has previously made loans, advances and other expenditures with respect to
the Redevelopment Project as evidenced by a promissory note dated March 12, 1982, Operative
Agreement#14 dated June 14, 1988, Operative Agreement#15 dated June 13, 1989, Operative
Agreement#16 dated December 11, 1990, and Operative Agreement#2 4 dated November 26,
1996 (collectively,the"City Loans")which the Commission is obligated to repay(the"City
Loans"); and
WHEREAS,the Commission has previously issued its Downey Redevelopment Project
1990 Tax Allocation Bonds in the aggregate principal amount of$5,000,000(the"1990 Bonds:);
and
WHEREAS,the Commission has determined at this time that due to prevailing interest
rates in the municipal bond market, it is in the economic interests of the Commission to provide
for the payment and prepayment in full all of the outstanding 1990 Bonds, and for that purpose,
and for the purpose of raising additional funds to prepay the City Loans and thereby enable the
City to undertake various municipal improvement projects,the Commission has determined to
authorize the issuance of its Community Development Commission of the City of Downey
Redevelopment Project 1997 Refunding Tax Allocation Bonds in the aggregate principal amount
of not to exceed$11,000,000 (the "Bonds"); and
WHEREAS,the Commission has previously designated and appointed the firm of Stone
& Youngberg LLC to act as underwriter of the Bonds upon the terms and conditions to be set
forth in a bond purchase agreement to be entered into upon the sale of the Bonds; and
WHEREAS,in accordance with the requirements of Section 33640 of the California
Health and Safety Code,the City Council wishes at this time to approve the issuance of the
Bonds by the Commission;
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RESOLUTION NO. 6089
Page 2
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Downey
that the issuance and sale of the Bonds by the Commission, for the purpose of refunding the 1990
Bonds and prepaying the City Loans, be and is hereby approved.
APPROVED AND ADOPTED this 9th day of September , 1997.
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BARBARA J. ' ILEY, Mayor
ATTEST:
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/ JUDITH E. MC DONNELL, City Clerk
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City
Council of Downey at a regular meeting hereof held on the 9th day of September , 1997,by
the following vote,to wit:
AYES: 5 Council Members McCarthy, McCaughan, Lawrence, Brazel ton, Riley
NOES: 0 Council Members None
ABSENT: 0 Council Members None
ABSTAINED: 0 Council Members None
,JUDITH E. MC DONNELL, City Clerk
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