SR-414-001 (7)
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Santa Monica, California, AprL 1 5, 1978
TO'
Redevelopment Agency
II~
FROM.
City Staff
APR 1 1 1978
SUBJECT: Adoption of Resolution Revising Time and Place
for TakLng Bids Downtown Redevelopment Project
Backg round
On March 28, 1978, the Agency approved Resolution No. 346 which established a
bid opening date for the S3,700,OOO promissory note, and which directed staff
to publish a "Notice Inviting Bids."
O'Melveny and Myers has advised staff that a revised section involving maturity
date for the note must be published, and the intervening weekend did not allow
suffIcient time to run a corrective notice and maintain the original bid opening
date.
It is therefore necessary for the Agency to approve a revision to the bid opening
date.
Recommendation
It is recommended that the Agency adopt the attached resolution revisLng the bid
opening date for the $3,700,000 prOr'llssory note to Tuesday, April 18, 1978.
Prepared by. John Hener
JH:mh
Attachment
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APR 1 1 1978
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RESOLUTION NO.
(Redevelopment Agency)
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
SANTA MONICA, CALIFORNIA, DECLARING iTS INTENTION TO
SELL A PROMISSORY NOTE OF SAID AGENCY IN THE AMOUNT
OF $3,700,000 FOR THE CITY OF SANTA MONiCA DOWNTOWN
REDEVELOPMENT PROJECT; FIXING TIME AND PLACE FOR
TAKING BIDS; AND DIRECTING PUBLICATION OF A REVISED
NOTICE INVITING BIDS
WHEREAS, this Agency deems it proper and the necessity therefor
appears that bids be invited for the purchase of its $3,700,000 Promissory
Note (the "Note"), and that if bids are satisfactory, the Note be sold in
the manner and at the time and place hereinafter set forth.
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION I. Resolution No. 346, adopted March 28, 1978, is hereby
rescinded in its entirety.
SECTION Z. Sealed bids for the purchase of the Note shall be
received by the Agency at the time and place hereinafter set forth in the
Notice InViting Bids.
SECTION 3. The Secretary is hereby authorized and directed to
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Resolution No.
Redevelopment Agency
I hereby certify that the foregoing resolution was duly adopted by
the Redevelop~ent Agency of the City of Santa Monica, California, at a
meeting thereof held on the
day of
, 1978.
AYES:
NOES:
ABSENT:
John Jalili, Secretary
APPROVED AS TO LEGAL
FORM AND ADEQUACY:
Richard L. Knicke-bocker
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3/28/78
NOTICE I~VITI]\"G BIDS ON A
$3,700.000 PROMISSORY NOTE OF THE
REDEVELOPMENT AGENCY OF
THE CITY OF SANTA MONICA
NOTICE IS HEREBY GIVE!\" t!jat sealed proposals for the purchase of one 53.700.000 par
value. promIssory nore (the ":--rote'") of the Redevelopment Agency of the CIty of Santa MOllica wl11
be receIved by saId Agency at the place and up to the time below specIfied
TIME
11 00 o'clock t\ M Tuesday. ApnJ 18,1978
PLACE
Council Chambers
Oty Hall
1685 Mam Street
Santa ~1omca, Cahforma 90401
MAILED BIDS
Cc Mr John Jallh.
DIrector of Ennronmental ServIces
ar the above address
OPE?\IXG OF BIDS The bIds will be opened at the time and place shown above and will be
presented to the Agency at ItS meetmg to be held on the same date at the same place
ISSCE );3.700,000 PromIssory Kate. to be daten :\-iay 1, 1978
J\.-!ATURITY The Kate shall mature on May 1. 2004
PURPOSE OF ISSCE The :--rote IS to be Issued by the Agency under and pursuant to the Com-
munIty Redevelopment Law of the State of Cahforma (Pan I of DIVISIon 24 of the Health and Safety
Code) to md In the acqUisition and clearance of properties to be used for pubhc parkmg purposes and
leased to the. CIty of Santa Momca pursuant to a le3se (the "Lease--). for the relocation of persons and
busmesses from the acqUIred properties, and the repayment of mdebtedness Incurred by the Agency In
Implementmg these actiVIties
INTEREST RATE, PAYMENT The "'ate shall bear Interest at a rate to be fL'!:ed upon the sale
thereof, but not to exceed 6% per annum. payable semIannually from Its date. May I. 1978
PAYMENT SaId Kate and the mterest thereon will be payable III lawful money of the CllIted
States of Amenca at the office of the Treasurer of the Agency Pnnclpal will be payable lTI accordance
WIth the amortIzatIOn schedule set forth III the Resolution of Issuance adopted by the Agency on March
28, J 978 (the "ResolutlOn") whIch Resolul1on IS attached to the Lease as E'!:hlblt B
REDEMPTIO:--r The :--rote shall be subject to call or redemptIOn pnor to matunty at any lime,
upon payment of the prmclpal amount thereof plus accrued Interest to the date of redemptIOn,
all as proVIded m the ResolutIOn
SECrRITY The Note IS a speCIal obhgatIon of the Agency payable from any funds of the Agency
lawfully aVailable the ref 01. mdudmg an assignment of the Agency's Interest III thc Lease
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TERMS OF SALI:
Award The Kote shall be sold for cash only Each bId shall state the purchase pnce. WhICh shall
not be less than par. and Ihe mterest rate not to exceed that specJ/ied herem. at WhICh the bIdder
offers to buy the Note Each bIdder shall state m Ius bId the total net mterest cost m dollars and the
average net Interest rate determmed thereby. whIch shall be consIdered mformatIve only and not a part
of the bId
HIghe't B,dder The Note wIll be awarded to the hIghest responsIble bidder or bIdders consldermg
the Illterest rate speCified and the premIUm offered. If any The hIghest bid wIll be determined by
deductIng the amoun! of the premm1ll bId (If any) from the total amount of mterest whIch the Agency
would be reqwred to pay from the date of the Kate to the matunty date thereof at the rate specIfied m
the bId. and the award Will be made on the basIs of the lowest net Interest cost to the Agency
Right of RefectIOn The Agency reserves the nght. III Its dIscretIOn, to reject any and all bld~ and
to the extent not prohIbited by law to waIve any Irregulanry or mfcrmal1ty m any bId
Prompt Award The Agency wIil take action awardmg the Note or reJectmg all bIds not later than
26 hours after the tIme herem prescnbed for the receIpt of proposals, proVIded that the award may be
made after the eXpIratIOn of the speCified time If the bIdder shall not have gIve.n to the Agency notice
m wntmg of the wIthdrawal of such proposal
Place of Delivery and Funds for Payment Dehvery of said 1\'ote wIiI be made to the successful
bIdder at the offices of the Treasurer of the Agency m Santa MOllIca. CalIforma, or at such other place
as may be agreed upon by the successful bIdder and the Treasurer of the Agency
Payment for the Note shall be made m Federal Reserve Bank funds or other ImmedIately avaIlable
funds
Prompt De/zver)'. CancellatIOn for Late Dell''f!r)' It IS expected that Said ?\'"ote WIll be delIvered
to the successful bIdder on or about YIay I, 1978 The successful bidder shall have the nght, at ItS
optIOn, to cancel the contract of purchase If the Agency shall fall to execute the Note, satIsfy the terms
of sale as contamed herem. and tender It for delIvery wIthm 60 days from the date herem fixed for the
receIpt of btds. and m such event the successful bIdder shall be entItled to the return of the check
accompanymg hIS bId
Form of BId Each bId, together wIth the bId check, must be m a sealed envelope, addressed to
the Agency. WIlh the envelope and bid clearly marked 'Proposal for Do\\ntown Project Kote ,.
B,d Check A certIfied or cashIer's check on a responsIble bank or trust company In the amount
of $50.000 payable to the order of the Agency, must accompany each proposal as a guaranty that the
bIdder. If successful. WIll accept and pay for saId Kote m accordance WIth the terms of hiS bId The check
accompanymg any accepted proposal shan be apphed on the purchase pnce or. If such proposal IS
accepted but not performed. unless such failure of performance shall be caused by any act or OmISSIOn
of the Agency. shall then be cashed and the proceeds retamed by the Agency The check accompanymg
each unaccepted proposal WIll be returned promptly
Change III Tax Exempt StatuI At any time before the Note IS tendered for delIvery. the successful
bIdder may dIsaffirm and withdraw the proposal If the mterest receIved by pnvate holders from notes
of the same type and character shall be declared to be taxable or be reqmred to be taken lUto account m
computmg any federal lUcorne taxes. by the terms of any federal InCOme tax law enacted subsequent
to the date of thIS notIce
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CloHl1g Papers, Le,?al OpmlOn Each proposal '1'.'111 be understood to be condItioned upon the
Agency furmshmg to the purchaser. wIthout charge, concurrently wuh payment for and dehvery of the
~ote, the followmg cloSIng papers. each dated the date of dehvery
(a) Legal OplnlOnS-
(1) The oplmon of O'Melveny & Myers. Los Angeles. Cahfornra. Bond Counsel, approv-
mg the valrdIty of the Kate. the Lease and the assIgnment thereof and statmg that interest on
the :Note IS exempt from lUcorne taxes of the Umted States of Amenca under present federal
Income tax laws, and that such rnterest IS also exempt from personal lUcome ta-xes of the
State of Cabforma under present state Income tax laws
(II) The oprnlon of the CIty Attorney of the CIty of Santa Monica approvlUg the valIdity
of the Lease
(b) A cenrficate of the Agency cernfyrng tbat on tbe basIs of the facts, estimates and circum-
stances III e'<l~tence on the date of Issue,. It IS not e'<pected that the proceeds of the Note wIll be
used m a manner that would cause the ""ote to be an arbitrage bond
(c) A certIficale of the Agency sIgned by officers and representallves of the Agency cerllfymg
to the followmg (l) that saId officers and representatives have Signed the Note. whether by
facslllllk or manual slgnature. and that they were respectIVely duly authonzed to execute the same;
and (2) that there IS no lItIgation threatened or pendmg affectmg the valIdity of the Note
(d) A polICY of TItle Insurance (or a bmder representmg e",dence thereof) msunng the
valIdIty of the Lease and the prlonty of the aSSIgnment
(e) A certificate of both the Agency and the City that the Lease and the aSSIgnment of the
Lessor's mierest thereIn IS m full force and effect. has not been modified or amended III any way,
constitutes the entIre agreement between the partIes thereto With respect to the subject matter
thereof and there are no facts then m eXlstence whlch. ,,"Hh the glVmg of DotICe or the passage
of tune. would form the baSIS of any default under the Lease
I~FORMA nOK A VAIL4.BLE Requests for mformatlOn concermng the Agency should be
addressed to ylr John Jahh. 1685 Moon Street. Santa MODIca. CalIfornia 90401
GIVEK by order of the Santa \<lomca Redevelopment Agency of the CIty of Santa MODIca, adopted
March 28. 1978
Secretary of the Redevelopment Agency
of the City of Santa Momca. CalIfornIa
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