SR-8-C (47)
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CA:RMM:moxbondjhpc
City Council Meeting 9-22-92
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Santa Monica, california~
STAFF REPORT
TO:
Mayor and City Council
FROM:
City Attorney
SUBJECT:
Recommendation to Introduce for First Reading
an Ordinance Pertaining to Approval of Leases
Necessary for Bond Financings
Background
C1ty staff and its consultants have reviewed and analyzed
the City's outstanding bonded indebtedness to determine which of
such bonds are an approprlate subject of refunding and
refinancing. The object of any such refunding and refinancing is
to take advantage of the drop in interest rates in the current
bond market so as to reduce the City's outstanding long term
debt.
Such review and analysis indicates that it would be
beneficial for the City to proceed with the refunding of three
separate bond issuances:
(1) The 1978 Downtown Redevelopment Project Parking Lease
Revenue Bonds (the 1t1978 Bondsll).
(2) The 1986 Certificates of Participation (City of Santa
Monica Improvements Project) pertaining to the Third
Street Promenade (the "Mall Bondslt).
(3) The 1988 Ocean Park Redevelopment Tax Allocation
Bonds.
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Discussion
Various procedural
steps
are required
in any bond
financing. In connection with the 1978 Bonds and the Mall Bonds,
the adoption of an ordinance is required in order to approve
certain lease agreements which are a necessary part of each of
these financings.
Specifically, Californla Government Code Section 54240 et
seq. requires that prior to entering into such leases, the city
must approve the act of entering into a formal lease agreement by
ordinance.
Accordingly, the attached ordinance would approve:
( 1 ) an
Amended and Restated Lease between the Redevelopment Agency and
the City for the public parking facillty located adjacent to
Santa Monica Place in connectlon wlth the refunding of the 1978
Bonds, and (2) a Lease Agreement between the Parking Authority ad
the City for certain public parking structure sites located in
the Third street Promenade District in connection with the
refunding of the Mall Bonds. The Ocean Park Bonds do not require
approval of any lease agreement.
BUdget/Financial Impact
No financial or budgetary action is required at this time.
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RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Joseph Lawrence, Acting City Attorney
Linda A. Moxon, Deputy city Attorney
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ORDINANCE NO.
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA, CALIFORNIA, APPROVING
CERTAIN LEASE AGREEMENTS
WHEREAS, the Redevelopment Agency of the City of Santa
Monica (the "Agencyll) owns a certain site (the "Redevelopment
Agency Site") within its Downtown Redevelopment Project which it
currently leases to the City of Santa Monica {the "City"} for use
as a public parking fac1.l1.ty (the "Existing Lease"); and
WHEREAS, the Agency proposes to amend and restate the
Existing Lease, or, alternatively, to lease the Site to the City
for use as a public facility for a term not to exceed 35 years
pursuant to a new lease agreement (the nRedevelopment Leasell);
and
WHEREAS, the Parking Authority of the City of Santa
Monica (the "Authority) owns certain sites located in the City of
Santa Monica (the nparking Authority Sitesll) and proposes to
lease the Parking Authority Sites to the City for use as public
parking facilities for a term not to exceed 35 years pursuant to
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a separate lease agreement (the IIParking Lease"); and
WHEREAS, Article 9, Chapter 5, Part 1, Division 2,
Title 5 (commencing with Section 54240) of the California
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09/09/92
Government Code requires that prior to entering into the amended
and restated Existing Lease or the Redevelopment Lease and the
Parking Lease (collectively, the "Leasesll), the City must approve
the act of entering into a formal lease agreement with the Agency
and the Authority, respectively, by ordinance which shall be
subject to the provisions for referendum applicable to the city.
NOW, THEREFORE, this City Council of the city of Santa
Monica does ordain as follows:
Section 1. This Council hereby approves (1) the act of
entering into a formal lease agreement (including an amendment
and restatement of the Existing Lease) with the Agency, provided
that the amount of annual base rent payable by the city
thereunder shall not exceed $1,194,100, and (2) the act of
entering into a formal lease agreement with the Authority,
provlded that the amount of annual base rental payable by the
City thereunder shall not exceed $1,181,200.
section 2. If any section, subsection, sentence,
clause or phrase of this ordinance is for any reason held to be
invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the
Nalidity of the remaining portions of the ordinance. The city
Council hereby declares that it would have passed this ordinance
and each and every section, subsection, sentence, clause or
phrase not declared invalid or unconstitutional without regard to
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09/09/92
whether any portlon of the ordinance would be subsequently
declared invalid or unconstitutional.
Section 3. The Mayor shall sign and the City Clerk
shall attest to the passage of this ordinance. The city Clerk
shall cause the same to be published once in the Outlook within
fifteen days after its adoption. The ordinance shall become
effective after thirty days from its adoption.
APPROVED AS TO FOml
L~
L),.:wRENCE
Clty Attorney
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09/09/92
ADOPTED AND APPROVED this
ATTEST:
city Clerk
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day of
, 1992.
09/09/S2
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES 55.
CITY OF SANTA MONICA
I do hereby certify that the foregoing ordinance was
duly and regularly introduced at a meeting of the City council on
the day of , 1992; that thereafter the ordinance
was duly adopted at a meeting of the city council on the day
of , 1992; by the following vote of the Council:
AYES:
Councilmember:
NOES:
Councilmember:
ABSENT;
councilmember:
City Clerk
APPROVED AS TO FORM:
City Attorney
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09/09/92
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