HomeMy WebLinkAboutResolution - 1228 i
1 RESOLUTION NO. 1228
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JACINTO AUTHORIZING THE MAYOR AND CITY CLERK
3 TO EXECUTE A BILL OF SALE, A GROUND LEASE AND A
LEASE-BACK WITH AN OPTION TO PURCHASE A BUILDING
a AND PARCEL AT GRAND INDUSTRIAL PARK AND TO AMEND
y THE LEASE WITH MOBILEHOMES U.S.A. , INC.
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THIS RESOLUTION IS ADOPTED WITH REFERENCE TO THE FOLLOWING FACTS:
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A. By its own motion, adopted April 18, 1978, the City Council of the City
7 of San Jacinto accepted terms for the long-term financing of the construction of
an industrial building at Grand Industrial Park on land owned by the City of San
8 Jacinto, the subject of a lease to Mobilehomes U.S.A. , Inc. subject to provisions
that the exact amount to be borrowed from United California Bank, and the monthly
g rate of rent to be paid by Mobilehomes U.S.A. , Inc. were to be adjusted and de-
termined by the actual cost of construction of the building.
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B. The building has been completed and the work accepted, and the total cost
11 of construction of the building is $119,403.00. The City Council desires to ob-
tain the long-term financing of the cost of construction to repay the interim and
12 temporary loans made from other funds of the city with short-run surpluses, and
the tenant, Mobilehomes U.S.A. , Inc. desires to enter into occupancy of the
13 building.
14 C. The City Attorney has advised the City Council that limitations of the
law prohibit the city from incurring indebtedness beyond a period of a year with-
1 5 out approval by referundum to the electors of the city, but that a California
municipality may lawfully obtain funds by the sale of property with its lease
- 16 back with options to purchase, under such conditions that the indebtedness for
any individual year be limited to the reasonably expected income of the city, and!
17 that the plan of financing the construction of the building appeared to him to bei
lawful by reason of the fact that the city had a tenant committed to pay suffic-
18 ient rent to the city to enable it to make all lease payments on the lease of thel
building.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Jacin-
20 to sitting in regular session the 5th day of July 1978 as follows :
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21 1 . The Council finds the foregoing facts to be true and correct.
22 2. The Mayor and City Clerk of this city are authorized and instructed to
execute a ground lease and bill of sale for the parcel of land and building re-
23 spectively upon which the building has been recently constructed to United Cali-
fornia Bank on forms approved by the City Attorney whereby United California Bank'
24 will purchase the building and take the lease for a period of ten years in ex-
change for the payment of $119,403.00 in cash to this city, and the execution by
2 5 the Mayor and City Clerk on a form approved by the City Attorney of a lease back
to this city of the building for a total rent of $168,859.00 payable in twenty
26 equal installments, the first being upon execution of the lease, and each in-
stallment thereafter becoming due six months thereafter until paid in full , with
27 the option of the city on the anniversary of the effective date to purchase the
building for a price that shall be determined by a formula derived as if the
28 original purchase price by the bank were treated as a loan bearing interest at
the rate of 8% per annum simple interest on the purchase price unpaid and after
29 determining all interest that would have accrued on the unpaid loan as if the
rental payments were loan repayment installments applied first against accrued
30 interest and then against principal , then the said repurchase price by the city
shall be the equivalent of what would then be the unpaid principal plus accrued
31 interest plus the sum of one dollar.
32 3. The Mayor and City Clerk of this city are further authorized to execute
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1 an amendment to the lease to Mobilehomes U.S. A. , Inc. in accordance with Para-
graph 20 therein to establish the monthly rent payable by the lessee based upon
2 the actual cost of construction of the building as therein set forth.
3 MOVED AND ADOPTED the 5th day of July 1978 by the following vote.
4 AYES: Councilmen Ver Plank, Stevens, Brooks and Wilson.
5 NOES: None
6 ABSENT: Councilwoman Hazeltine.
7 ATTEST:
LUAY CY1 ALLEN, CITY CLERK
8 William Wilson, Mayor
9 Doputy
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11 CERTIFICATE
i2 I, LUCY MAY ALLEN, duly appointed City Clerk of the City of San Jacinto,
13 do hereby certify that the above is a true and correct copy of a Resolution
14 passed and adopted by the City Council ofrthe City of San Jacinto on the 5th day
15 of July 1978.
- 16 LUCY MA,Y ALLEN, CITY CLERK
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By
Deputy
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