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HomeMy WebLinkAboutItem 5.1 Approve Lease Transaction Civic Center Sq0_ 70 CITY OF DUBLIN AGENDA STATEMENT City Council Meeting Date: December 18 , 1985 SUBJECT: Public Hearing: Ordinance Approving a Certain Lease Transaction for the Lease by the City, as Lessee, of Certain Public Facilities, and Approving and Authorizing the Execution of Certain Leases and Other Related Financing Documents in Connection with the Dublin Public Facilities Project Number One. EXHIBITS ATTACHED: Ordinance; Lease Agreement; Agency Agreement ; Trust Agreement ; Notice of Public Hearing. RECOMMENDATION: /1 Open Public Hearing; Hear Presentation by Staff and Bond Counsel ; Hear Public Testimony; Close Public Hearing; Deliberate; Waive Reading and Adopt Ordinance. FINANCIAL STATEMENT: The adoption of this Ordinance will provide for the acquisition and construction of a civic center and related facilities, and the financing for the acquisition and construction. Annual lease payment by the City is estimated at 1 to 1 . 3 million dollars and is dependent upon interest rates obtained by the City for the issuance of certificates of participation. DESCRIPTION: At its meeting of December 9 , 1985 , the City Council adopted a Resolution establishing a public hearing on December 18 , 1985 , for the purpose of considering a proposed lease transaction for the lease of the site of the municipally-owned civic center complex and related facilities to be acquired by the City and the lease of the completed civic center complex and related facilities from Dublin Information, Inc. The purpose of the public hearing is to also present interested persons with an opportunity to submit financial proposals for the proposed lease transaction, which will offer the City the greatest economic return for this project . The ordinance proposed is an urgency ordinance which would provide for the adoption of several agreements between the City and Dublin Information, Inc. These agreements consist of a Lease Agreement, an Agency Agreement, and a Trust Agreement . The Lease Agreement provides that the City lease the civic center site as well as the project improvements from Dublin Information, Inc. The Agency Agreement provides for the appointment of the City as Agent for Dublin Information, Inc. for the purposes of, constructing, acquiring, and operating the civic center complex . The Trust Agreement provides that the City and Dublin Information, Inc. , authorize the sale of participation interests in the lease agreement by Dublin Information, Inc. , as trustee, at rates of interest to be subsequently determined and approved by the City. Mr . Robert Haight, the City' s appointed Bond Counsel on this project, will be available at the City Council meeting to address any questions . ----------------'-------------------------------------------------- ITEM NO. COPIES TO: ORDINANCE NO. - 85 AN ORDINANCE OF THE CITY OF DUBLIN, CALIFORNIA ------------------------ APPROVING A CERTAIN LEASE TRANSACTION FOR THE LEASE BY THE CITY AS LESSEE OF CERTAIN PUBLIC FACILITIES AND APPROVING AND AUTHORIZING THE EXECUTION OF CERTAIN LEASES AND OTHER RELATED FINANCING DOCUMENTS IN CONNECTION WITH THE DUBLIN PUBLIC FACILITIES PROJECT NO. 1 WHEREAS, the City of Dublin ( the "City" ) , has initiated certain actions in connection with the preparations necessary for the adoption of the proposed Public Facilities Project No. 1 ( the "Project" ) ; and WHEREAS, the City deems it desirable to proceed to undertake certain actions prior to the anticipated adoption of the Project in order to expedite the acquisition and construction of the proposed Project and to take advantage of the currently favorable economic conditions which make the acquisition and construction of said proposed public facilities project more feasible and affect in a positive manner the ability of the City to obtain lower construction costs and financing costs for certain public improvements ; and WHEREAS, the City deems it to be desirable to lease from Dublin Information, Inc. , a California nonprofit corporation, ( the "Lessor" ) certain real property ( the "Site" ) for the purposes and upon such terms as are more fully described in that certain lease agreement entitled "Lease Agreement Relating to Public Facilities Project No. 1" , dated as of December 18 , 1985 , ( the "Lease Agreement" ) , attached hereto as Exhibit "A" and incorporated herein by this reference; and WHEREAS, the City deems it desirable to enter into an Agency Agreement with the Lessor, attached hereto as Exhibit "B" and incorporated herein by this reference, wherein the City would be appointed as agent for the Lessor for the purposes of construction, acquisition. and operation of the Project ; and WHEREAS, in accordance with the Lease Agreement, the Lessee as agent for the Lessor , shall construct a civic center complex and related facilities upon the Site, as more fully described in said Lease Agreement, and the Lessor shall lease said completed public facilities which shall constitute the Facilities to the City upon the terms which are more fully described in said Lease Agreement; and WHEREAS, pursuant to the Trust Agreement attached hereto as Exhibit "C" , and incorporated herein by reference, the City and the Lessor desire to authorize the sale of participation interests in the Lease Agreement by the Lessor as Trustee designated in the Trust Agreement, at rates of interest to be subsequently determined and approved by the City; and WHEREAS, the entering into of the Lease Agreement by the Lessor and the City and the execution and delivery thereof is authorized or permitted by California Government Code Section 37350 et seq. , and 37380 , et se q. , and the laws and Constitution of the State of California NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS: Section 1. The City of Dublin hereby approves the Lease Agreement by and between the City and the Lessor substantially in the form as attached hereto as Exhibit "A" and substantially upon the terms and conditions as set forth therein, subject to the insertion of the interest component of the lease payments as shall be made by the City- when the same shall have been ascertained and subject to any changes in the principal amount to be financed pursuant to the Lease Agreement . Any amendments, modifications or changes to the Lease Agreement shall not materially alter the City' s obligation under the Lease Agreement and shall be subject to approval by resolution of the City Council. The Mayor and the City Clerk are hereby authorized and directed to execute the Lease Agreement which shall be dated December 18 , 1985 , and the seal of the City shall be affixed thereto upon approval of the final forms thereto by a duly approved and adopted Resolution of the City Council . Section 2 . The City hereby approves the Agency Agreement by and between the City and the Lessor substantially in the forms as attached hereto as Exhibit "B" , and substantially upon the terms and conditions as set forth therein. Any amendments, modifications or changes shall not materially alter the City' s obligation under the Trust Agreement and shall be subject to approval by resolution of the City Council. The Mayor and the City Clerk are hereby authorized and directed to execute the Agency Agreement which shall be dated December 18, 1985 , and the seal of the City shall be affixed thereto upon approval of the final forms thereof by a duly approved and adopted Resolution of the City Council. Section 3 . The City hereby approved the form of the Trust Agreement by and among the City, the Lessor and the Lessor as Trustee designated therein substantially in the forms as attached hereto as Exhibit "C" , and substantially upon the terms and conditions as set forth therein, subject to the insertion of the interest component of the payments to be made on the Certificates of Participation, evidencing ownership interests in the Lease Agreement when such interest component has been ascertained and subject to any changes in the principal amount of the Certificates of Participation to be issued by the Lessor as Trustee pursuant to the Trust Agreement . The Mayor and City el Clerk are hereby authorized and directed to execute the Trust Agreement which shall be dated as of December 18 , 1985 , and the seal of the City shall be affixed thereto upon approval of the final forms thereof by a duly approved and adopted Resolution of the City Council . Section 4. The Mayor, the City Clerk, other authorized officials of the City and all members of the City Council are hereby authorized and directed to execute and deliver any and all documents which may be required under the terms of the Lease Agreement , the Agency Agreement , and the Trust Agreement and to execute such instruments and take such other action as maybe required or appropriate for the performance of the duties imposed thereby. Section 5 . IMMEDIATE EFFECT This Ordinance shall take effect immediately upon its enactment because the adoption and immediate effect thereof is necessary to the construction of a civic center which will house police facilities essential to public peace and safety, and in addition, the construction of traffic signalization and street improvements , including pedestrian and vehicular ingress and egress to said civic center complex. Section 6 . . POSTING OF ORDINANCE The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3 ) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin on this day of 1985 by the following vote . AYES: NOES : ABSENT: Mayor ATTEST: City Clerk Item 5. 1 Exhibits Missing Lease Agreement, Agency Agreement, Trust Agreement CITY OF DUBLIN P.O. Box 2340 — Dublin, CA 94568 (415) 829-4600 NOTICE OF PUBLIC HEARING ON A CERTAIN PROPOSED LEASE TRANSACTION BY THE CITY OF DUBLIN, CALIFORNIA DUBLIN PUBLIC FACILITIES PROJECT NO. 1 NOTICE IS HEREBY GIVEN that the City of Dublin, California (the "City" ) , shall conduct a public hearing on December 18, 1985 , at the hour of 7: 30 p.m. , at the Dublin Library, 7606 Amador Valley Boulevard, Dublin, California 94568, for the purposes of the consideration pursuant to Government Code Section 37380 of a proposed lease transaction for the Lease of the sites of a certain municipally owned civic center complex and related facilities hereafter to be acquired to the City and the lease of the completed civic center complex and related facilities , respectively, from said firm, person, corporation or entity to the City. In accordance with the laws of the State of California, all persons interested in submitting a proposal upon such financial terms which will offer the greatest economic return to the City may be submitted not later than at the time and on the date of such public hearing and in accordance with the proposed Lease Agreement and the proposed Trust Agreement all as on file with the City Clerk. All persons interested in the matter may attend such public hearing of the City Council at the hour and at the date as above specified and may submit written proposals prior to such time of the hearing or at the time thereof or may make any other written or oral comment , bid or proposal as they may deem appropriate under the. circumstances. This notice has been duly authorized for publication by the City Council of the City of Dublin, California, on the date as hereinafter set forth. DATED: December 6, 1985 City Clerk of the City of Dublin, California Publish: Tri-Valley Herald, December 12 and December 17, 1985