HomeMy WebLinkAbout2008 058 CC RESO2008 058 CC RESO HÄ—@¸— Í ÞÍ«RESOLUTION NO. 2008-058
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN
PARK AUTHORIZING THE RELEASE OF CERTAIN PROPERTY
RELATED TO CERTIFICATES OF PARTICIPATION ENERGY
CONSERVATION AND RETROFIT FINANCING PROGRAM) DUE TO
THE THREAT OF EMINENT DOMAIN AND MAKING CERTAIN
FINDINGS IN CONNECTION THEREWITH
WHEREAS, the City has previously delivered $1,000,000 Certificates of
Participation Energy Conservation and Retrofit Financing Program) the Certificates")
in order to undertake an energy conservation and retrofit financing program; and
WHEREAS, in connection with the execution and delivery of the Certificates the
City and the Baldwin Park Public Financing Authority the Authority") and/or U.S. Bank
Trust National Association, as predecessor to U.S. Bank National Association, as
trustee the Trustee") entered into the following agreements: a) the Site Lease, dated
as of February 1, 2001, by and between the City, as lessor, and the Authority, as
lessee; b) the Lease Agreement, dated as of February 1, 2001, between the City, as
sublessor and the Authority, as sublessee the Lease") c) the Assignment Agreement,
dated as of February 1, 2001, between the Authority and the Trustee and d) the Trust
Agreement, dated as of February 1, 2001 the Trust Agreement"), by and among the
City, the Authority and the Trustee; and
WHEREAS, pursuant to the Lease, the City subleased the property known as the
public works yard Property") from the Authority; and
WHEREAS, the California Department of Transportation CalTrans") has
threatened to condemn a one-thousand eight hundred ninety six 1,896) square foot
one-hundred fifty eight 158) feet wide and twelve 12) feet deep) area of the Property
Section") for use for the 1-10, San Bernardino Freeway expansion; and
WHEREAS, CalTrans will acquire the property from the City under the threat of
condemnation pursuant to the terms of a Right of Way Contract-State Highway" or
similar agreement the Condemnation Agreement") between the City and CalTrans;
and
WHEREAS, the loss of the Section of the Property will not affect the use and
occupancy of the public works yard; provided, however, that some rehabilitation to the
property is necessary in order to improve the access to the yard; and
WHEREAS, the City determines that the remaining Lease Payments under the
Lease as defined in the Lease Agreement) represent fair consideration for the
remaining usable portions of the Property because the loss of the Section will not affect
the use of the Property; and
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2008 058 CC RESO HÄ—@¸— Í ÞÍ«Resolution No. 2008-058
Page 2
WHEREAS, pursuant to Section 6.02 of the Trust Agreement, if all or any part of
the Property is sold to a government threatening to exercise the power of eminent
domain, the net proceeds therefrom shall be deposited with the Trustee in the Insurance
and Condemnation Fund and be transferred by the Trustee to the City to expend to
repair the premises in accordance with Section 6.01 of the Trust Agreement to the
extent the City notifies the Trustee and finds that i) the eminent domain proceedings
have not materially affected the interest of the City in the Leased Premises, or the ability
of the City to meet any of its financial obligations under the Lease, and ii) such
proceeds are needed for repair, replacement or rehabilitation of the Leased Premises;
and
WHEREAS, in order for the City to retrieve the net proceeds of the sale of the
property under threat of condemnation and start the rehabilitation of the public works
yard, the escrow agent associated with the Condemnation Agreement has requested
that the City deposit a document in escrow releasing the Section from the Lease
Agreement to be recorded upon the close of the transaction; and
WHEREAS, there is attached hereto as Exhibit A" a form of release the
Release") for the Section; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Baldwin Park, as follows:
SECTION 1: The above recitals are true and correct.
SECTION 2: The City Council hereby finds that a) the eminent domain
proceedings have not materially affected the interest of the City in the Property, or the
ability of the City to meet any of its financial obligations under the Lease Agreement,
and ii) such proceeds of the Condemnation Agreement are needed for repair,
replacement or rehabilitation of the Leased Premises.
SECTION 3: The release of the Section in the form attached hereto as Exhibit
A' or similar form is hereby approved and the Mayor or Chief Executive Officer is
hereby authorized to execute said release with the City Clerk or a designated Assistant
or Deputy City Clerk to attest to said signature. The City Council hereby requests that
the Authority assist the City as necessary in effectuating the purposes of this
Resolution.
SECTION 4: The Mayor or Chief Executive Officer or any officer designated in
writing by the Mayor or the Chief Executive Officer is herby authorized to take such
other action as necessary to effectuate the purposes of this Resolution and direct the
appropriate parties under the Trust Agreement and the Lease.
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2008 058 CC RESO HÄ—@¸— Í ÞÍ«Resolution No. 2008-058
Page 3
APPROVED AND ADOPTED this 17th day of September 2008.
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS.
CITY OF BALDWIN PARK
I, LAURA M. NIETO, Deputy City Clerk of the City Council of the City of Baldwin
Park, do hereby certify that the foregoing Resolution No. 2008-058 was duly and
regularly approved and adopted by the City Council of Baldwin Park at a regular
meeting of the City Council held on September 17, 2008, by the following vote:
AYES: COUNCIL MEMBERS: Marlen Garcia, Monica Garcia, Ricardo
Pacheco, Mayor Pro Tern Anthony J. Bejarano,
and Mayor Manuel Lozano
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
AURA M. NIETO
DEPUTY CITY CLERK
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