CC - Item 4E - Resolution No. 35•
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: MAYOR AND HONORABLE CITY COUNCIL MEMBER
FROM: ANDREW C. LAZZARETTO, EXECUTIVE DIRECTO
DATE: NOVEMBER 14, 2006
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
APPROVING THE ISSUANCE AND SALE OF NOT TO EXCEED $26,000,000
AGGREGATE PRINCIPAL AMOUNT OF ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION REDEVELOPMENT PROJECT NO. 1, TAX
ALLOCATION REFUNDING BONDS, SERIES 2006B
SUMMARY
At its October 24, 2006 meeting, the Community Development Commission authorized staff to
pursue the refunding of all outstanding debt from the 1993 Tax Allocation Bond issue and use
Piper Jaffray to serve as the senior managing underwriter. As part of the refunding process, the
City Council must adopt a resolution approving the issuance of the refunding bonds.
It is important to note that staff is not proposing that any new funds be generated by this
bond issue. This issue would only be to refinance the Commission's existing debt.
Staff Recommendation
Staff recommends that the City Council approve Resolution No. 2006-35 (Attachment 1)
approving the issuance of tax allocation refunding bonds in a not to exceed amount of
$26,000,000.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
LEGAL REVIEW
This staff report and the attached resolution have been reviewed and approved by the City
Attorney.
Submi by:
WL-
r aeki
Redevelopment and Economic Development Manager
Attachment 1 - Community Development Commission Resolution No. 2006-35
APPROVED FOR CITY COUNCIL AGENDA: l7`~`~
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RESOLUTION NO. 2006-35
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RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
APPROVING THE ISSUANCE AND SALE OF NOT TO EXCEED
$26,000,000 AGGREGATE PRINCIPAL AMOUNT OF ROSEMEAD
COMMUNITY DEVELOPMENT COMMISSION REDEVELOPMENT
PROJECT NO. 1, TAX ALLOCATION REFUNDING BONDS, SERIES
2006B
WHEREAS, the Rosemead Community Development Commission (the "Commission"),
has authorized the issuance and sale of not to exceed $26,000,000 aggregate principal amount of
its Redevelopment Project No. 1, Tax Allocation Refunding Bonds, Series 2006B (the "Series
2006B Bonds"), for the purpose of providing funds to aid in financing and/or refinancing
redevelopment activities in connection with the Commission's Redevelopment Project No. 1,
including the refunding of certain outstanding bonds, pursuant to an Indenture, by and between
the Commission and U.S. Bank National Association (the "Trustee"), as successor trustee, as
amended and supplemented by a First Supplement to Indenture and a Second Supplement to
Indenture, each between the Commission and the Trustee (collectively, the "Indenture");
WHEREAS, the Commission proposes to sell the Series 2006B Bonds to Piper Jaffray, as
underwriter (the "Underwriter"), pursuant to a Purchase Contract (the "Purchase Contract"),
between the Commission and the Underwriter; and
WHEREAS, the City hereby finds that the use of the Act to assist the Commission in
financing and/or refinancing the Redevelopment Project will result in significant public benefits
in the form of demonstrable savings in effective interest rates, and the more efficient delivery of
local agency services;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Rosemead, as follows:
Section 1. The foregoing recitals are true and correct and the City Council hereby so
finds and determines.
Section 2. The issuance and sale of not to exceed $26,000,000 aggregate principal
amount of the Series 2006B Bonds by the Commission, in accordance with the terms and
conditions set forth in the Indenture, is hereby approved.
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Section 3. This resolution shall take effect from and after its adoption and approval.
I, Nina Castruita, Clerk of the City of Rosemead, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of Rosemead held on November 14, 2006, by the following vote, to wit:
AYES:
NOES:
ABSENT:
City Clerk Rosemead City Council
Mayor Rosemead City Council
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