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Resolution Number CRA 11-02-01-02RESOLUTION NO. CRA 11-02-01-02 A RESOLUTION OF THE SAN .JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. CRA NO. 11-01-18-01 OF THE AGENCY PROVIDING FOR THE ISSUANCE OF CERTAIN REFINANCING PROMISSORY NOTES WHEREAS, pursuant to that certain Purchase and Sale Agreement/Joint Escrow Instructions dated as of March 6, 1991 (the "DDA"), the Agency has incurred indebtedness to Kinoshita Enterprises, L.P., a California limited partnership and Bobby Kinoshita Investment Enterprises, L.P., a California limited partnership (each, a "Kinoshita Entity") respectively, as assignee of Seller thereunder (the "Seller") which is evidenced by two Non -Negotiable Notes, each dated as of March 6, 1991 (the "Refunded Notes") in the principal amount of $3,916,450.71 and $4,080,246.64, respectively; and WHEREAS, the Agency and each Kinoshita Entity have agreed to extend and refinance the Refunded Notes by the issuance of replacement non-negotiable notes (the "2011 Notes") in favor of the applicable Kinoshita Entity, in the same principal amount for an extended term to March 1, 2021; and WHEREAS, the Agency has previously adopted its Resolution No, CRA 11-01- 18-01 (the "Resolution") providing for the issuance of the 2011 Notes on the terms and conditions set forth therein; and WHEREAS, the Agency has determined that existing market conditions require the 2011 Notes be secured by a subordinate pledge of tax increment; and WHEREAS, the Agency desires to amend the Resolution to authorize the issuance of the 2011 Notes on a basis which is secured by a subordinate pledge of tax increment, substantially on the basis set forth in the form of the 2011 Notes presented at this meeting and on file with the Executive Director (the "Subordinate Tax Increment Pledge"); NOW, THEREFORE, BE IT RESOLVED, by the Agency acting by and through its Governing Board (the "Board") as follows: SECTION 1. Issuance of 2010 Bonds in the Adjusted Principal Amount. The Resolution is hereby amended to provide that, pursuant to the Letter Agreement (as defined in the Resolution), the 2011 Notes are authorized to be issued on a basis which is secured by the Subordinate Tax Increment Pledge. All capitalized terms used in this amending resolution (and not otherwise defined) shall have the meaning ascribed thereto in the Resolution. SECTION 2. Official Actions. Each of the authorized officers identified in Section 2 of the Resolution, the Secretary, the General Counsel and any and all other officers of 2/1/2011 the Agency are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, documents (including modification of the Letter Agreement) necessary or appropriate to facilitate the issuance of the 2011 Notes in accordance with the Resolution as amended by this amending resolution, and any actions previously taken by any of such officers are hereby ratified and confirmed, including any necessary or appropriate revisions to the documents approved in the Resolution. SECTION 3. Except as expressly amended hereby, the Resolution shall remain in full force and effect, and all findings and determinations therein shall apply with equal force to the 2011 Notes, modified pursuant to the authority of the resolution and this amending resolution as if set forth in full herein. SECTION 4. Effective Date. This amending resolution shall take effect from and after the date of its passage and adoption. APPROVED AND ADOPTED this 1't day of February, 2011 STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SAN JUAN CAPISTRANO :Y LAURA FREESE, CHAIR I, MARIA MORRIS, appointed Agency Secretary of the Community Redevelopment Agency of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. CRA, 11-02-01-02 was duly adopted by the Board of Directors of the Community Redevelopment Agency at a regular meeting thereof, held the 1t day of February, 2011, by the following vote: AYES: DIRECTORS: Allevato,Kr, e , aylor, and Chair Freese NOES DIRECTORS: Reeve ABSENT: DIRECTORS: None , City Berk 2 2/1/2011