HomeMy WebLinkAbout2001-12-18; City Council; Resolution 2001-3821
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RESOLUTION NO. 2o01-382
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA APPROVING THE ISSUANCE
OF QUALIFIED 501(c)(3) REVENUE BONDS BY THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
(THE AUTHORITY) FOR THE GEMOLOGICAL INSTITUTE OF AMERICA
WHEREAS, the California Statewide Communities Development Authority (the
“Authority”) is authorized pursuant to the provisions of California Government Code Section 6500
et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated
as of June 1, 1988 (the “Agreement”), among certain local agencies throughout the State of
California, including the City of Carlsbad (the “City”), to issue revenue bonds in accordance with
the Agreement and state law; and
WHEREAS, the Gemological Institute of America (the “Borrower”), a nonprofit
corporation under Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”), has
requested that the Authority issue qualified 501(c)(3) revenue bonds in an aggregate principal
amount not to exceed $40,000,000 to refinance the acquisition, construction and equipping of
certain administrative and educational facilities, including classrooms, administrative offices, a
library, laboratories, a conference center and parking facilities located at 5345 Armada Drive,
Carlsbad, California (the “Campus”), to finance the acquisition of certain laboratory equipment
to be used at the Campus and a portion of the acquisition of real property on the corner of
Cannon and Lego Drives in Carlsbad and related capital improvements (collectively, the
“Project”), and to fund certain reserves and pay other costs related thereto; and
WHEREAS, the qualified 501(c)(3) bonds will be “private activity bonds” for
purposes of the Code; and
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WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private
activity bonds are required to be approved by the “applicable elected representative” of the
governmental units on whose behalf such bonds are expected to be issued and by a governmental
unit having jurisdiction over the entire area in which any facility financed or refinanced by such
bonds is to be located, after a public hearing held following reasonable public notice; and
WHEREAS, the members of this City Council (this “Council”) are the applicable
elected representatives of the City; and
WHEREAS, there has been published, at least 14 days prior to the date hereof, in a
newspaper of general circulation within the jurisdiction of the City, a notice that a public hearing
regarding the Bonds would be held on the date hereof; and
WHEREAS, such public hearing was conducted on said date by this Board, at
which time an opportunity was provided to interested parties to present arguments both for and
against the issuance of the qualified 501 (c)(3) bonds for the Project; and
WHEREAS, it is intended that this resolution shall constitute the approval of the
issuance of the qualified 501 (c)(3) bonds required by Section 147(f) of the Code and Section 9 of
the Agreement, as applicable;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, as follows:
Section 1. The above recitals are true and correct.
Section 2. The City Council hereby approves the issuance of the qualified
501(c)(3) revenue bonds by the Authority for the Project. It is the purpose and intent of the City
Council that this resolution constitute approval of such bonds for the purposes of (a) Section 147(f)
of the Code, with respect to the qualified 501 (c)(3) bonds, and (b) Section 9 of the Agreement.
Section 3. The City Manager, City Attorney and the Administrative Services
Director are hereby authorized and directed, jointly and severally, to do any and all things and to
execute and deliver any and all documents that they
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deem necessary or advisable in order to carry out, give effect to and comply with the terms and
intent of this resolution and the financing approved hereby.
Section 4. The City Clerk is hereby directed to forward a certified copy of this
Resolution to:
Ana Marie del Rio, Esq.
Orrick, Herrington & Sutcliffe LLP
Old Federal Reserve Bank Building
400 Sansome Street
San Francisco, California 94111
Section 5. This resolution shall take effect immediately upon its passage.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on
the 18th day of DECEMBER , 2001, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Fin a, Nygaard, Ha
NOES: None
ABSENT: None
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