HomeMy WebLinkAbout01-097 CC ResolutionRESOLUTION NO. 01-97
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMECULA APPROVING THE ISSUANCE OF REFUNDING
REVENUE BONDS BY THE INDUSTRIAL DEVELOPMENT
AUTHORITY OF THE CITY OF TEMECULA FOR THE TENSION
ENVELOPE CORPORATION FACILITY
WHEREAS, the Industrial Development Authority of the City of Temecula (the
"Authority") is authorized by Article 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the
Government Code of the State of California, as amended (the "Act"), to issue and sell revenue
bonds for the purpose of refunding any of its outstanding revenue bonds; and
WHEREAS, on August 16, 1994, the Authority issued its Industrial Development
Authority of the City of Temecula Industrial Development Revenue Bonds (Tension Envelope
Corporation Project) in the initial principal amount of $5,625,000 (the "1994 Bonds") and made a
loan of the proceeds of the 1994 Bonds to Tension Envelope Corporation (the "Corporation") to
finance the acquisition, renovation and equipping of a building located in the City of Temecula
(the "City") for use as an envelope manufacturing facility (the "Facility"); and
WHEREAS, the Corporation has requested that the Authority issue and sell refunding
revenue bonds in the principal amount of $3,545,000 (the "Bonds") for the purpose of refunding
all of the outstanding 1994 Bonds; and
WHEREAS, the final maturity of the Bonds will be in excess of the final maturity of the
1994 Bonds, and in order for the interest on the Bonds to be excluded from the gross income of
the Bondowner, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"),
requires that the "applicable elected representative" with respect to the Authority approve the
issuance of the Bonds following the holding of a public hearing with respect thereto; and
WHEREAS, the Authority has determined that the City Council of the City is the
"applicable elected representative" to hold such hearing and approve the issuance by the
Authority of the Bonds; and
WHEREAS, notice of said public hearing has been duly given as required by the Code,
and this City Council has heretofore held the public hearing at which all interested persons were
given an opportunity to be heard on all matters relative to the operation and refinancing of the
Facility and the Authority's issuance of the Bonds therefore; and
WHEREAS, it is in the public interest and for the publics benefit that the City Council
approve the issuance of the Bonds by the Authority for the aforesaid purpose.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Temecula, as
follows:
Section 1. The City Council of the City of Temecula hereby approves the issuance of
the Bonds by the Authority under the Act and the Code for the purpose of providing funds to
refund the 1994 Bonds and thereby refinance the Facility.
Section 2. This Resolution shall take effect immediately upon its adoption.
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PASSED, APPROVED AND ADOPTED, by the City Council of the City of Temecula, at
a regular meeting held on the 23rd day of October, 2001.
A'CrEST:
[SEAL]
~Mayor
STATE OF CALIFORNIA )
COUNTYOF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, City Clerk of the City of Temecula, do hereby certify that Resolution
No. 01-97 was duly and regularly adopted by the City Council of the City of Temecula at a
regular meeting thereof held on the 23r~day of October, 2001, by the following vote:
AYES:
5 COUNCILMEMBERS: Naggar, Pratt, Roberts, Stone, Comerchero
NOES: 0 COUNCILMEMBERS: None
ABSENT: 0 COUNCILMEMBERS: None
ABSTAINED: 0 COUNCILMEMBERS: None
~'"'~~ Susal~ Jones, CMO
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