Resolution 2000-53
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RESOLUTION NO. 2000-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY AUTHORIZING THE ISSUANCE OF BONDS,
BONF ANTE GARDENS PROJECT.
RESOLVED, by the City Council (the "Council") of the City of Gilroy (the "City"),
County of Santa Clara, State of California, that:
WHEREAS, the Council wishes to provide for the issuance of the bonds to assist in the
financing of the Bonfante Gardens Theme Park (the ''Bonfante Gardens Project"), including
financing costs of the planning, construction and acquisition of improvements to the Bonfante
Gardens Project; and
WHEREAS, the Council has previously adopted its Ordinance No. 2000-06 (the ''Bond
Law") authorizing the issuance of revenue bonds for the purpose of providing funds to finance
projects of qualifying nonprofit corporations, as an exercise of the municipal affairs powers of
the City as a charter city of the State of California, and the Bond Law specifically provides that
bonds issued thereunder are payable solely from revenues provided from the project and the
sponsoring nonprofit corporation, and shall not be deemed to constitute a debt or liability of the
City or a pledge of the faith and credit of the City; and
WHEREAS, the Council wishes at this time to authorize the issuance of revenue bonds
(the "Bonds") under the Bond Law for the purpose of providing funds to finance the Bonfante
Gardens Project; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to
have been performed precedent to and in the issuance of the bonds as contemplated by this
resolution and the documents referred to herein exist, have happened and have been performed in
due time, form and manner as required by the laws of the State of California, including the Act.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED, as
follows:
Section 1. Law Applicable. For the purposes of these proceedings the Constitution
and laws of the State of California and the charter powers of the City, including but not limited
to the powers conferred upon the City by the Bond Law, shall be the authority for the issuance of
the Bonds,
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Section 2. Bonds Authorized. Bonds designated "City of Gilroy, Bonfante Gardens
Theme Park, Special Revenue Bonds, Series 2000" (the ''Bonds'') in an aggregate principal
amount not to exceed $40,000,000 are hereby authorized to be issued under the Bond Law. The
Bonds shall be dated and executed in the forms, be in the denominations, mature, be payable at
the place and in the priorities and bear interest at the rates as set forth in and otherwise as
provided in further proceedings and actions of this Council with respect to the Bonds. The
Bonds shall be payable entirely from funds and revenues of the Bonfante Gardens Project and
other, related sources and the City shall have no liability for the payment of the principal of or
the interest on the Bonds or for any of the costs associated with the issuance of the Bonds
Section 3. Financing Documents. The Bonds shall be issued pursuant to such legal
documentation as shall be approved by reso1ulion of the Council adopted prior to the sale of the
Bonds. Such documentation shall include, without limitation, an indenture of trust or trust
agreement authorizing the issuance of the Bonds, a loan agreement between the City and the
sponsoring nonprofit corporation of the Bonfante Gardens Project, and such other documents as
shall be required to protect and secure the interests of the Bond owners.
Section 4. Authorities Granted. The City Administrator, Administrative Services
Director, City Clerk, City Attorney or such other official of the City as may be designated by the
Council (each an "Authorized Officer") are hereby separately authorized and directed to execute
and deliver the documents and instruments to provide for the issuance, sale and delivery of the
Bonds, with such additions thereto or changes therein as are approved by the Authorized Officer
upon consultation with City's bond counsel and financial advisors, including such additions or
changes as are necessary or advisable to permit the timely issuance, sale and delivery of the
Bonds, provided, however, that no additions or changes shall: (a) authorize an aggregate
principal amount of Bonds in excess of $40,000,000; (b) result in an average interest rate on the
Bonds in excess of 10% per annum or such greater amount permitted by applicable law al the
time of the sale of the Bonds; (c) or result in an underwriter's discount in excess of 3% of the
aggregate principal amount of the Bonds; (d) or a maturity of the Bonds in excess of thirty-five
(35) years from the date of the Bonds. The approval of such additions or changes shall be
conclusively evidenced by the execution and delivery of the documents and instruments herein
specified by the Authorized Officer.
Section 5, Sale of Bonds. The Bonds shall be sold in such manner as the City, in
consultation with its financial advisors, shall determine, which manner shall be as provided by
separate resolution or order of this Council.
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Section 6. Actions Authorized, All actions heretofore taken by the officers,
employees and agents of the City with respect to the issuance, sale and delivery of the Bonds are
hereby approved, confirmed and ratified, and the Authorized Officers of the City are hereby
authorized and directed to do any and all things and take any and all actions and execute any and
all certificates, agreements and other documents, which they, or any of them, may deem
necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in
accordance with this resolution, and any certificate, agreement, and other document described in
the documents herein approved. All actions to be taken by a specified Authorized Officer as
specified herein, may be taken by the Authorized Officer or any designee, with the same force
and effect as if taken by such Authorized Officer. This Council hereby determines and directs to
be made any reductions in the annual levy of special taxes for the CFD in an manner consistent
with that prescribed in the Act as a result of the savings achieved through the issuance of the
Bonds.
Section 7. Effectiveness. This resolution shall take effect from and after its adoption.
Any previous resolutions in any way inconsistent with the provisions hereof in and for the
issuance of the Bonds as herein described are hereby repealed.
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PASSED AND ADOPTED this 7th day of August, 2000 by the following vote:
AYES: COUNCILMEMBERS: G. ARELLANO, P. ARELLANO,
MORALES, PINHEIRO, SUDOL, VELASCO, SPRINGER
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
APPROVED:
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ATTEST:
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Rhonda Pellin, City Clerk
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I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached
Resolution No, 2000-53 is an original resolution, duly adopted by the Council of the City of
Gilroy at a regular meeting of said Council held on the 7th day of August, 2000, at which meeting
a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 22nd day of August, 2000.
(Seal)