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REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS
RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF $4,500,000
PRINCIPAL AMOUNT OF 1977 REDLANDS REDEVELOPMENT
PROJECT TAX ALLOCATION REFUNDING BONDS , AUTHORIZ-
ING EXECUTION OF ESCROW AGREEMENT AND APPROV-
ING OFFICIAL NOTICE OF SALE AND OFFICIAL STATEMENT
WHEREAS , the Redevelopment Agency of the City of
Redlands, by Resolution No. 154 , adopted this day, duly
authorized the issuance of 1977 Redlands Redevelopment
Project Tax Allocation Refunding Bonds in the principal
amount of $4,500 ,000 (herein called the "Bonds") , and it is
desirable that the Bonds be offered for public sale at this
time:
NOW, THEREFORE, BE IT RESOLVED by the Redevelop-
ment Agency of the City of Redlands , as follows:
Section 1. The Bonds shall be offered at public
sale. Tuesday, February 8, 1977 , at 11: 00 A.M. , is hereby
fixed as the time, and the City Hall , 30 Cajon Street,
Redlands , California, is hereby fixed as the place, at which
bids will be _received for the purchase of the Bonds, as
described in, and subject to the terms and conditions of,
the official notice of sale hereinafter set forth.
Section 2. The Secretary is hereby authorized
and directed to cause the official notice of sale of the
Bonds to be published once, at least five days prior to
said date of sale, in the Redlands Daily Facts , a newspaper
of general circulation published in the City of Redlands ,
County of San Bernardino, State of California. Said offi-
cial notice of sale shall be in substantially the follow-
ing form:
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OFFICIAL NOTICE OF SALE ,
$4,500,000
REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS
1977 REDLANDS REDEVELOPMENT PROJECT
TAX ALLOCATION REFUNDING BONDS
NurricE: Is HEREBY GIVEN that scaled proposals will he received by the Redevelopment Agency of the City of Rectlands (the
"Agency") at City Hall, 30 Cajon Street, Redlands,California, on
TUESDAY, FEBRUARY 8, 1977
at 110) A.M. for the purchase of S4,5M,000,principal amount of bonds of the Agency designated the "1977 Redlands Redcvel
merit Project Tax Allocation Refunding Bonds (the "Bonds"), authorized to be issued tinder the provisions of a resolution of T_
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Agency adopted on January 18, 1977 (the "Resolution"), and pursuant to the Community Redevelopment Law of the State of
California (being Part I of Division 24 of the health and Safety Code of the State of California). The Bonds are more particularly
described in the Resolution (which is incorporated herein by reference) and copies thereof will be furnished to any interested bidder
upon request. The Bonds are generally described as follows:
ISSUE- $4,500,000, consisting of 900 coupon bonds of the de- of the Fiscal Agent, Bank of America National Trust and Sav-
nomination of MOW each (or hilly registered bonds in denomi- ings Association, in Los Angeles, California, or, in the case of
nations of $5,M) or multiples thereof), all dated March 1: coupon Bonds, at the option of the holder, at paying agents
1977. The Revolution peri-nits the issuance of additional bonds of the Agency in Chicago, Illinois, or New York, New York,
but only subject to the limitations and conditions set forth in
the Resolution. REGISTRATION: The Bonds may be issued in coupon form
or in fully registered form, and will be interchangeable upon
INTEREST RATE: The maximum rate bid may not exceed the tennis set forth in the Resolution.
eight per cent (8%) per annum. Interest is payable onIll, 1,
1077 and semiannually thereafter on January I and July i of PURPOSE: The Bonds are being issued by the Agency for the
each year. Bidders must specify the rate or rates of interest purpose of refunding $4,31.0,0W principal amount of 1075 5 Red-
which the Bonds hereby offered for sale shall bear. Bidders Vs Redevelopment Project Tax Allocation Bonds (the -1975
will be permitted to bid different rates of interest; but (i) Bonds") maturing on and after July 1, 1988, and subject to
the difference between the highest and lowest coupon rates call and redemption on and after July 1, I987.
specified in any bid shall not exceed 11/2% per annum; (ii) each
interest rate specified in any bid must be ill a 111111tiple of one- SECURITY: The Bonds are payable from and are secured by
twentieth (1/20) of one per cent per annual and a zero rate a first and exclusive Pledge of the Investment Revenues (its lie_
of interest cannot be specified; (iii) each interest rate specified fined in the Resolution) oil and before July 1, 1987 and (to-
for any maturity after 1994 must be equal to or higher than gether with any additional bonds permitted by the Resolution)
the interest rate specified for the preceding maturity; (iv) no the Tax Revenues (as defined in the Resolution) after July 1,
Bond shall bear more than one mute of inten.,st, no interest pay- 1987 and the refunding of the 1975 Bonds. The Bonds are not
merit shall be evidenced by more than one coupon and supple- obligations of tile City of Redlands. The Agency has no direct
mental coupons will not he permitted,. (v) each Bond shall bear power of taxation and cannot control the rate of taxation ill)-
interest from its date to its stated maturity date at the interest posed by taxing agencies upon property in the project area,
irate specified in the bid; (vi) all Bonds maturing at any one Bidders should be aware that there has been legislation linliting
time shall bear the same rate of interest; and (vii) any premillyll, tax rates adopted by the California State Legislature and meas-
must be paid as part of the purchase price, and no bid will be tires submitted to the voters which might have the effect of re-
accepted which contemplates the cancellation of any interest ducing the amount of tax allocations that would otherwise be
coupons, or the waiver of any interest or other concession by available for the payment of the Bonds. Any provision of addi-
the bidder as a substitute for paynient in full of the purchase tional sources of income to taxing agencies having the effect If
price. ( (ct I
reducing the property tax rate most necessarily rt-dnev the
amount of tax allocations that would otherwise he. available to
MATURITIES: The Bonds will mature on July I in each of the pay the principal of kind interest on the Bonds. Likewise, broad-
years, And in the atuounts, as follows: ened property tax exemptions or any additional limitation on
the rate of taxation by taxing agencies could have a similar ef-
Principal Principal feet. In December, 1976, the Supreme Court of California field
Year Amount Year Amount that the California system of financing public elementary and
secondary schools, based on all valorein property taxation, is in-
1988 . . . . . . $270,M) 1994 . . . .. . . 540(),0()0 secondary
tinder the California Constitution. The Courts decision
1989 . . . 290,M) 1995 - - . 430,W0 permits the existing system of financing schools to continne to
1990 . . . . 310,M) 19913 . . . 455,0W operate for a reasonable length of time (not longer than until
1991 *3om) 1997 490,M) September 3, 1980) So that a constitutional system can be
plaved into operation. To the extent that this decision, and
1992 . . . . . . . . W),(XX) 1998 . . .. . . .. 520,W0 any future legislative or judicial action re(loired to iniple-
19)3 . . . . 375,0W 1999 . . . 280AW merit or enforce this decision,'may limit the ability of or re-
(tile(- the need for school districts to continue to levy ad
REDE�NIPTION: Bonds maturing on July 1, 1988 are not valorem property taxes for the support of education, Tax
subject to redemption before their stated maturity. Bonds ma- Revenues will be reduced, adversely affecting the security of
taring (Ilk or after )ill)' 1. 1989 are silbivet to redemption the Bonds. At present, the passible effect on till, taxing power
prior to their respet-the stated 'natnt itics, at the option of the of or the ainoinit of taxes that will he levied by any given
Agency, from any source of available fonds, as a whole or in school district cannot be foreseen. Bidders are refern-d to the
part, tit inverse order of maturity and by lot within a maturity, Resolotion and tea the official statement for further particulars.
On any interest Pay'nent date on or after July 1' 1988, at tit(,
principal amount thereof and aeumcd interest to the date of TAX EXEMPT STATUS: In the event that prior to the deliv-
rt-Aelliption plus a premium of one-quarter of one per cent ery of the Bunds (a) the inconic received lav private holders
('/a of 1% ) for cich year and for the fraction Of a year, if any, front bonds of the saint, type and character %'hall lie (1cclared
remaining front (tit- date fixed for redemption to the Stated to he taxable (either at tit It time of such declaration or at any
maturity thervot, future date) under any fi-deral income tax laws, 61brr III, tit"
teens of such laws or by ruling of a federal inconie tax all-
PAYMENT: Both principal and iotvwst are payable ill lawful thority or official which is follow(-([ by the ,venno
money of the United States of America at the principal office Service, or by decision of any federal votirt, or (h) any federal
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income= tax law i% a(lopted which will have a substantial all- 1977 Redlands Redevelopment Project Tax Allocation Refund-
verse tax cflcut upon holders of the Bonds as such, the success- ing Bonds.'* Each hid must be in accordance:with the terms and
fit►) bidder may, at his option, Frior to the tender of the Bonds conditions set forth in this notice.
by the Agency, be relieved of his obligation under the con- Bal Cheeks A certified or cashier's check drawr3 an it bank or
tract to purchase the Bonds, and in such case the deposit
accompanying his; bid will be returned. trust company having an office in Los Angeles, California, in
the auuount of $54,4(K), payable to the order of the Agency,
LEGAL OPINION:The joint legal opinion of Orrick, Herring- must accompany each proposal as a guaranty that the bidder, if
ton, Rowley & Sutelifle, of San Franciscan, California, and successful,will accept and pay for the Bends in accordance with
Ratan & Tucker,of Santa Ana,California, approving the valid- the terns of his bid. The check accompanying any accepted
ity of the 11(mds, will be furnished to the successful bidder proposal shall be applied on the purchase price. The check-
without
heck
without charge.. A copy of the legal opinion, certified by the shall be cashed and the amount thereof retained by the Agency
official in whose office the original is filed, will be printed on if, after the award of the Bonds, the successful bidder fails to
each Bernd without charge to the purchaser. complete his purchase oa the terms stated in his proposal. The
cheek accompanying each unaccepted proposal will be returned
TERMS OF SALE promptly. No interest will be paid upon the deposit made by
any bidder.
Highest Bid: The Bonds will be awarded to the highest bidder, Statement of Net Interest Cost: Each bidder is requested, but
considering tlec interest rate or rates specified and the premium not require(], to state in his bid the total net interest cost in
oSer A. if any. The highest bid will he determined by deduct- dollars to the Agency and the percentage net interest cost deter-
fng dee amorurk of the premium bid (if any) from the total mined thereby, which shall be considered as infornative only
amount of interest which the Agency would be required to and not binding on either the bidder or the Agency.
pay from ,;ie date of the Bonds to their respective maturity
dates at the coupon rate or rates specified in the bid, and the No Litigation: There'is no litigation pending concerning the
award will he made on the basis of the lowest net interest cost validity of the Bonds, the existence of the Agencv or the title
to the Agency. The purchaser must pay accrued interest from of the officers thereof to their respective offices, and the Agency
the date of the Bonds to the date of delivery. All interest will will furnish to the successful bidder a no-litigation certificate
be computed on a 360-day year basis. The cost of printing the certifying to the foregoing as of and at the time of the delivery
Bonds will be home by the Agency. of the Bonds.
Right of Rejection: The Agency reserves the right, in its discre- CUSIP Numbers: It is anticipated that CUSIP identification
tion, to reject any and all bids and to waive any irregularity numbers will be printed on the Bonds but neither the failure
or informality in any hid. to print such number on any Bond nor any error with respect
thereto shall constitute cause for a failure or refusal by the
Prompt Award: Subject to the above conditions of sale, the purchaser thereof to accept delivery of and ay for the Bonds
Agency will take action awarding the Bonds or rejecting all in accordance with the terns of the pure mase contract. All
bids not later than 26 hours after the expiration of the time expenses in relation to the printing of CUSIP numbers on the
herein prescribed for the receipt of proposals, unless such time Bonds shall be paid by the Agency.
of award is waived by the successful bidder. Notice of the
award will be given promptly to the successful bidder. Official Statement: The Agency has adopted an official state-
ment relating to the Bonds, a copy of which will be fumished
Delivery and Payment: Delivery of the Bonds will be made to upon request to Stone: & Youngberg Nfunicipal Financing Con-
the successful bidder at the principal office of the Fiscal Agent, sultants, Inc., Suite 2754, 1 California Street, San Francisco,
Bank of America National Trust and Savings Association, in Calif. 9411.1. Tel. (415) 989-2300. The Agency at its expense
Los Angeles, California, s soon as the Bonds can be, prepared, will provide 364 copies of the official statement to the success-
.whieh the Agency estimates will be within 34 days from the ful bidder.
date of sale. Payment for the Bonds must be made in funds im-
mediately available to the Agency in Los Angeles, California. Certificate: The Agency will provide to the purchaser of
Any expense of providing immediate Los Angeles funds, the Bonds a certificate, signed by an official of the Agency,
whether by transfer of Federal Reserve Bank funds or other- confirming, to the purchases that, at the time of the acceptance
wise,shall be home by the purchaser. of the bid for the Bonds and at the time of delivery thereof,
to the best of the knvwle(Ige of said official, the official state-
Right of Cancellation: The successful bidder shall have the ment does not contain any untrue statement of a material fact
right, at his option, to cancel the contract of purchase if the or omit to state a material fact necessary in order to make
Agency shall fail to execute the Bonds and tender the same for the statements made therein. in the light.of the circiuunstances
delivery within 60 days from the date of sale thereof, and in under which they were made, not misleading, and that there
such event the successful bidder shall be, entitled to the return has been no material adverse change in the financial condition
of the deposit accompanying his bid. or affairs of the Agency between the date of sale and the date
Form of Bid: All bids must he for not less than all of the Bonds of delivery of the Bonds.
hereby offered for sale and accrued interest to date of delivery, Dated:January 18, 1977.
pills such premium as is specified in the hied. Each bid, together
with bidder's check, most be enclosed in a sealed envelope
addressed to the Secretary of the Redevelopment Agency of the PEGGY A. MOSELEY
City of Redlands at the address above mentioned with the Secretary of the Redevelopment Agency
envelope and bid clearly marked "Proposal for Purchase of of the City of Redlands
Section 3. The .official statement gelating to
the Bands, in substantially the farm submitted to the
Agency at this meeting, subject to such addi
Section 6. The proposed form of escrow agree-
ment between the Agency and Bank of America National Trust
and Savings Association submitted to this meeting is here-
by approved, and the Chairman and the Secreta are Au-
thorized and directed to execute and deliver said escrow
agreement, after the sale of the fronds, in substantially
the farm so submitted, with such changes as said officers may
deet advisable.
Section 7. The Chairman, the Secretary and all
Cather officers of the Agency are each hereby authorized and
directed in the name and on behalf of the Agency to take
any and -all steps and to issue and deliver any and all certi-
ficates, requisitions, agreements, notices, consents, war-
rants and other documents which they, or any of them, teem
necessary or appropriate in order to consummate the trans--
actions contemplated by said escrow agreement and the issuance
and sale of the fonds
PASSED AND ADOPTED this 18th day of January, 1977
by the following vote:
AYES: Members Knudsen, Miller, Grace, Elliott,
Chairman DeMi rjyn
NOES: None
SENT: None
w ° b
(SEALI-
Chair can f t Re 'm°
`¢ o R ids
ATTEST:
sec- o the vel ent
Agf
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SECRETARY'S CERTIFICATE
1, Peggy A. Moseley, Secretary of the Redevelop-
ment Agency of the City of Redlands, hereby certify that
the attached is a full, true and correct copy of a resolu-
tion duly adopted at a regular meeting of said Agency duly
and regularly held on the 18th day of January, 1977, of
which meeting all of the members of said Agency had due
notice and at which a majority thereof were present; and
that at said meeting said resolution was adopted by the fol-
lowing vote:
AYES: Members Knudsen, Miller, Grace, Elliott, Chairman DeMirjyn
NOES: None
ABSENT: None
I further certify that I have carefully compared
the same with the original minutes of said meeting on file
and of record in the Agency 's office; that said resolution
is a full, true and correct copy of the original resolution
adopted at said meeting and entered in said minutes and
that said resolution has not been amended, modified or res-
cinded since the date of its adoption, and is now in full
force and effect.
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IN WITNESS WHEREOF, T have executed this certificate
and affixed the seal of the Redevelopment Agency of the City
of Redlands hereto this 18th day of January, 1977.
S ecr o f the Redevelo ent
Agency of the City of R ands
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