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Resolution 2002-76 RESOLUTION NO. 2002-76 A RESOLUTION APPROVING AND AUTHORIZING THE AMENDMENT OF CERTAIN SUBORDINATE LIEN BONDS ffiSUEDFORTHEBONFANTEGARDENSPROmCTAND DIRECTING ACTIONS WITH RESPECT THERETO WHEREAS, City is chartered city under the Constitution and laws of the State of California, and as such the City Council by its Ordinance No. 2000-6, adopted July 10, 2000, enacted the Nonprofit Corporation Project Financing Law of the City of Gilroy (the "Bond Law"); and WHEREAS, by its Resolution No. 2000-53 adopted August 7, 2000, and its Resolution No. 2000-70 adopted October 16, 2000, the City Council has authorized the issuance and sale of revenue bonds under the Bond Law, including a series of bonds designated the Subordinate Lien Project Revenue Bonds (Bonfante Gardens Theme Park Project), Series 2000, in an aggregate principal amount of $9,800,000 (the "Subordinate Bonds"), to assist in the financing of the Bonfante Gardens Theme Park, which revenue bonds are paid solely from the revenues of the Bonfante Gardens Project and from the Bonfante Gardens, Inc., a Delaware non-profit corporation; and WHEREAS, Michael A. Bonfante and Claudia Bonfante, as the registered owners of three of the Subordinate Bonds, have requested an amendment to the Subordinate Bonds owned by them for the purpose of converting the payment of interest on their Subordinate Bonds from a current basis to a compounding basis through May 1, 2012, from which date interest would commence to be payable on a current basis; and WHEREAS, under Section 9.04 of the Subordinate Lien Bond Trust Indenture dated as of December 1, 2000 (the "Subordinate Bond Indenture"), between the City and BNY Western Trust Company, as trustee, the City is authorized to enter into amendments of particular Subordinate Bonds with the owners thereof; and WHEREAS, the City wishes at this time to approve the amendments requested by the Subordinate Bond Owners to the particular Subordinate Bonds owned by them; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as follows: Section 1. Amendment of Subordinate Bonds. The City Council hereby consents to the amendment of Subordinate Bonds numbered R-1 in the aggregate principal amount of $7,500,000, R-8 in the aggregate principal amount of $600,000, and R-9 in the aggregate principal amount of $600,000 (collectively, the "Affected Subordinate Bonds"). The Affected Subordinate Bonds shall be amended to provide that interest thereon compounds on each interest payment date at the rate stated on the Affected Subordinate Bonds through May 1, 2012, following which date interest will be payable on a current interest payment basis RESOLUTION NO. 2002-76 -1- commencing November 1, 2012, and continuing until the final maturity date of the Affected Subordinate Bonds. Section 2. Exchange of Subordinate Bonds. The Director of Administrative Services is hereby authorized and directed to cause to be prepared by Jones HalL A Professional Law Corporation, as bond counsel to the City ("Bond Counsel") new Subordinate Bonds evidencing the amendments made under Section 1, and to deliver such new Subordinate Bonds to the registered owners of the Affected Subordinate Bonds upon surrender of the Affected Subordinate Bonds for cancellation. Section 3. Amendment of Subordinate Bond Indenture. The City Council hereby approves the Agreement to Amend Subordinate Bonds among the City, the Trustee and the owners of the Affected Subordinate Bonds, which (among other things) amends the Subordinate Bond Indenture for the purpose of reflecting the amendments which are hereby authorized to the Affected Subordinate Bonds, in substantially the form of prepared by Bond Counsel and on me with the City Clerk. The City Administrator and the Director of Administrative Services are hereby each individually authorized to approve any changes to that agreement and to execute the final form thereof in the name and on behalf of the City. Section 4. Authorized Actions. The Mayor, the City Administrator, the Director of Administrative Services, the City Clerk and any and all other officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they, or any of them, may deem necessary or advisable in order to consummate any of the transactions contemplated by this resolution. Whenever in this resolution any action is authorized to be taken by an officer of the City and such officer is absent or unavailable, such action may be taken on behalf of the City by any designee of such officer. Section 5. Effective Date. This Resolution shall take effect from and after its adoption. PASSED AND ADOPTED this 21st day of October, 2002 by the following vote: AYES: COUNCILMEMBERS: DILLON, GARTMAN, MORALES, PINHEIRO, and SPRINGER COUNCILMEMBERS: ARELLANO NOES: ABSENT: COUNCILMEMBERS: VELASCO ~'.. ;}../" ~- . ~ . - ~ '^--. ~.-A-. Rhonda Pellin, City Clerk APPROVED: ----7J( ~ ~ Thomas W. Springer yor-'- RESOLUTION NO. 2002-76 -2- I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certifY that the attached Resolution No. 2002-76 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 21 st day of October, 2002, 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 23rd day of October, 2002, ~ftWl~~ City Clerk of the City of Gilroy (Seal)