HomeMy WebLinkAbout2015-06-23; Public Financing Authority; Resolution 70Exhibit 13
1 RESOLUTION NO. 70
2 A RESOLUTION OF THE CARLSBAD PUBLIC FINANCING
AUTHORITY ("AUTHORITY"), DISCONTINUING INTEREST
ACCRUAL ON ADVANCE BETWEEN THE CITY COUNCIL 3
. OF THE CITY OF CARLSBAD CALIFORNIA ("CITY") AND
THE AUTHORITY
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6 WHEREAS, the City has agreed to advance (and has advanced) funds to the
7 Authority from time to time for the purpose of designing, constructing, maintaining and
^ operating a municipal Golf Course; and
WHEREAS, on November 21, 2006, the City and the Authority entered into an
Advance Repayment Agreement (attached herein as Exhibit 13-A) for the eventual
repayment of advances with interest to the City; and
WHEREAS, the City has consulted with its financial reporting audit firm (Mayer
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Hoffman McCann) regarding the likelihood ofthe advance repayment occurring within a
j5 reasonable period of time with continued interest accrual on the advance; and
16 WHEREAS, a determination is made that repayment of the advance with
17 continued interest accrual is highly unlikely; and
WHEREAS, it is recommended that the City forego the continued accrual of
interest on the advance between the City and the Authority effective retroactively to July
1, 2014.
NOW, THEREFORE, IT IS AGREED by and between the City Council ofthe City
of Carisbad, California, and the Carisbad Public Financing Authority as follows:
1. The Carlsbad Public Financing Authority approves discontinuance of the
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23 accrual of interest on the advance between the City and the Authority, effective
26 retroactively to July 1, 2014
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting ofthe City of CaHsbad
Public Financing Authority, City Council, CaHsbad Municipal Water Distnct Board, Community
Development Commission, and City of CaHsbad as Successor Agency to the Redevelopment
Agency on the 30**' day of June, 2015, by the following vote to wit:
AYES:
NOES:
ABSENT:
Board/Council/Commission Board Members Hall, Blackburn, Schumacher, Wood
and Packard.
None.
None.
MATT HALL, Chairman/Mayor/President
ATTEST:
BARBARA ENGLESOIV^cretary
(SEAL) o'"..
= 5:3 i'l -
Exhibit 13-A
GOLF COURSE ADVANCE REPAYMENT AGREEMENT
This Advance Repayment Agreement entered into between the City
Council of the Cily of Carisbad, California ("City"), and the Carlsbad Public
Financing Authority, a public entity and joint powers authority ("Authority") on
November 21,2006, and shall be retroactive to March 31,1997.
The Cily has agreed to advance (and has advanced) funds to ttie
Authority from time to time for the purpose of designing, constructing, maintaining
and operating a municipal Golf Course. The Municipal Golf Course consists of
an 18-hole golf course as well as related facilities including a driving range.
Clubhouse, pro shop and maintenance facilities. The City and Authority desire to
make provisions for the eventual repayment of the Advances with interest to the
City.
Now, therefore, it is agreed by and between the parties to this Agreement
as follows:
1. The Authority is obligated to reimburse the City the full principal and ail
accrued interest on the existing Advances and any subsequent
Advances to be made by the City to the Authority for the purpose of
designing, constructing, maintaining and operating an 18-hole
municipal Golf Course.
Exhibit 13-A
Interest shall accrue on all Advances from the date of the Advance to
the date repaid to the City at an average annual rate of return earned
on the City's pooled funds as detemiined by the City Treasurer for
each fiscal year. Interest shall be compounded annually.
Repayment shali be made from available funds in the Authority's
accounts as determined annually by the Authority Treasurer after
providing for operating, capital and reserve needs of the Municipal Golf
Course or as otherwise required under covenants for any debt issued
I for, or secured by, the Municipal Golf Course.
Claude A. Lewis
President of the Board - CPFA Mayor - Cily of Carisbad
Attest: Attest:
Lorraine M. Wood CJ Lorr^e M. Wood ' ^ Sl
Secretary - CPFA
(Seal)
' Hi':
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City Clerk - City of Carisbad
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