HomeMy WebLinkAboutResolution - 1125 1 RESOLUTION NO. 1125
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JACINTO AUTHORIZING TIME 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
THE LEASE WITH MULLENIX ORNAMENTAL IRON, INC.
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6 THIS RESOLUTION IS ADOPTED WITH REFERENCE TO THE FOLLOWING FACTS:
7 A. By its Resolution No. 1099, adopted earlier this year, the City Coun-
cil of the City of San Jacinto accepted terms for the long-term financing of
8 the construction of an industrial building at Grand Industrial Park on land own-
ed by the City of San Jacinto, the subject of a lease to Mullenix Ornamental
9 Iron, Inc. . subject to provisions that the exact amount to be borrowed from
United California Bank, and the monthly rate of rent to be paid by Mullenix
10 Ornamental Iron, Inc. were to be adjusted and determined by the actual cost of
construction of the building.
11 � B. The building has been completed and the work accepted and the total
12 cost of construction of the building is $134,788,00, The City Council desires
to obtain the long-term financing of the cost of construction to repay the in-
13 termm and temporary loans made from other funds of the city with short-run sur-
pluses, and the tenant, Mullenix Ornamental Iron, Inc. , desires to enter into
14 occupancy of the building.
15 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
16 without approval by referundum to the electors of the city, but that a Califor-
nia municipality may lawfully obtain funds by the sale of property with its
17 lease-back with options to purchase, under such conditions that the indebted-
ness for any individual year be limited to the reasonably expected income of
18 the city, and that the plan of financing the construction of the building ap-
peared to him to be lawful by reason of the fact that the city had a tenant com-
19 mitted to pay sufficient rent to the city to enable it to make all lease pay-
ments on the lease of the building.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Ja- j
21 ! cinto sitting in regular session the Sth day of October, 1976, as follows :
22 1 . The Council finds the foregoing facts to be true and correct.
23 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
24 respectively upon which the building has been recently constructed to United i
California Bank on forms approved by the City Attorney whereby United California
25 ( Bank will purchase the building and take the lease for a period of ten years in
26 exchange for the payment of $134,788.00 in cash to this city, and the execution
by the Mayor and City Clerk on a form approved by the City Attorney of a lease
back to this city of the building and land for a total rent of $213,240.00 pay-
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able in twenty equal installments , the first being upon execution of the lease,
28 and each installment thereafter becoming due six months thereafter until paid
in full , with the option of the city on the anniversary of the effective date
to purchase the building and terminate the ground lease for a price according
29 to the formula set forth in paragraph D of Resolution No. 1099.
30 3. The Mayor and City Clerk of this city are further authorized to exe-
cute an amendment to the lease to Christie Steel Fabrication, Inc. , as the new
name of the lessee, formerly known as Mullenix Ornamental Iron, Inc. , in ac-
32 cordance with paragraph 23 therein to establish the monthly rent payable by the
lessee based upon the actual cost of construction of the building as therein
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2 MOVED AND ADOPTED the 5th day of October, 1976, by the following vote:
3 AYES: Councilmen Brooks, Hazeltine, Stevens and Ver Plank,
4 NOES: None
5 ABSENT: Councilman Wilson,.
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ATTEST: ,11
` .� �.n....
7 LUCY MAY ALLEN, Cl/TY CLERK Mayor Pro Tem, City of San Jacinto
8 By
Helen 'Sherman, Deputy
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10 CERTIFICATE
11 I , LUCY MAY ALLEN, duly appointed City Clerk of the City of San Jacinto,
12 do hereby certify that the above is a true and correct copy of a Resolution
13 passed and adopted by the City Council of the City of San Jacinto on the 5th
14 day of October, 1976,
15 LUCY MAY ALLEN, CITY CLERK
16 Bye
Hele Sherman, Deputy
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