HomeMy WebLinkAboutRes1987-025
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-025 (SUBSTITUTE)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, APPROVING THE
DISPOSITION OF REAL PROPERTY OF THE CITY OF
SEWARD KNOWN AS THE SPRING CREEK CORREC-
TIONAL FACILITY SITE; AUTHORIZING THE
EXECUTION OF AN AMENDMENT OF LEASE AND OF A
NEW AGREEMENT OF LEASE OF SAID REAL PROPER-
TY BY AND BETWEEN THE CITY AND THE STATE OF
ALASKA AND AN ASSIGNMENT OF SAID NEW LEASE;
AND ALSO AUTHORIZING A FIRST SUPPLEMENTAL
TRUST INDENTURE AND ASSIGNMENT OF LEASE, A
CONSTRUCTION ESCROW AGREEMENT AND A CERTI-
FICATE ESCROW AGREEMENT; AND PROVIDING FOR
RELATED MATTERS.
WHEREAS, the City of Seward, Alaska (the "City"), is
a home rule city and under Section 11 of Article of X of the
Alaska Constitution may exercise all legislative power not
prohibited by law or by the Charter of the City, and it has
been determined that the matters set forth in this Resolution
are not prohibited by law or the Charter; and
WHEREAS, the City is the owner of certain premises
known as the Spring Creek Correctional Center (the "Project")
more particularly described in an Agreement of Lease between
the City and the State of Alaska (the "State") dated as of
October 1, 1985 (the "Old Lease");
WHEREAS, the City assigned the Old Lease for the
benefit of owners of Certificates of Participation in Rent to
Rainier National Bank as Trustee under a Trust Indenture and
Assignment of Lease dated as of October 1, 1985 (the
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-025 (SUBSTITUTE)
Page 2.
"Indenture") for the purpose of financing construction of the
Project;
WHEREAS, the state may achieve a savings ~n rent
payments by advance refunding the Certificates and refinancing
the Project, and the City has consented to such a refinancing;
WHEREAS, the City considers that the construction,
equipping and leasing to the State of the Project and the
refinancing of the same is in the best interest, and will
promote the public purposes, of the City;
WHEREAS, such refinancing requires a First Amendment
to Agreement of Lease which amends the Old Lease, a new Agree-
ment of Lease between the City and the State (the "New Lease"),
an Assignment and Security Agreement among the City, the State
and Ford Motor Credit Company assigning the New Lease and
certain funds to Ford Motor Credit Company, a First Supp1e-
mental Trust Indenture and Assignment of Lease which amends the
Indenture, a Certificate Escrow Agreement among the City, the
State and Rainier National Bank as Escrow Agent, and a Con-
struction Escrow Agreement among the City, the State and
Rainier National Bank as Escrow Agent;
WHEREAS, the State is legally authorized to enter the
New Lease, and the Alaska Legislature has stated its intention
to appropriate lease payments for the lease of the Project,
when constructed by the City, to the State of Alaska under
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-025 (SUBSTITUTE)
Page 3.
various enactments of the First Session of the Fourteenth
Alaska Legislature;
WHEREAS, there have been presented to the City the
form of the following documents which the City proposes to
enter into in connection with the refinancing of the Project:
1. The form of the New Lease which is entitled
Agreement of Lease between the City and the State of
Alaska (the "New Lease");
2. The form of First Amendment to Agreement of
Lease between the City and the State of Alaska (the
"Amendment of Lease") ;
3. The form of Assignment of Lease and Secur-
ity Agreement among the City, the State and Ford Motor
Credit Company (the "Assignment")
4. The form of First Supplemental Trust
Indenture and Assignment of Lease between the City and
Rainier National Bank (the "Supplemental Indenture");
5. The form of Construction Escrow Agreement
among the City, the State and Rainier National Bank (the
"Construction Escrow Agreement"); and
6. The form of the Certificate Escrow Agree-
ment among the City, the State and Rainier National Bank
(the "C~rtificate Escrow Agreement");
WHEREAS, it appears that each of the instruments
above referred to, which are now before the City, is in
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-025 (SUBSTITUTE)
Page 5.
Section 3.
That the disposition of an interest in
the Property by negotiation to Ford Motor Credit Company under
the Assignment will serve the public interest and is hereby
approved.
Section 4.
That the public interest will not be
served by an appraisal of the interests in real property whose
disposal is approved by this Resolution, and such appraisals
are hereby waived.
Section 5.
That the form and content of the New
Lease, Amendment of Lease, Assignment, Supplemental Indenture,
Construction Escrow Agreement and Certificate Escrow Agreement
be and the same hereby are in all respects authorized, approved
and confirmed, and the Mayor, Manager or Deputy City Manager be
and each hereby is authorized, empowered and directed to
execute and deliver each said document to the counterparty for
and on behalf of the City in substantially the form and content
now before this meeting but with such changes, modifications,
additions and deletions therein as shall to them seem neces-
sary, desirable or appropriate, the execution thereof to
constitute conclusive evidence of the approval of any and all
changes, modifications, additions or deletions therein from the
form and content of the said documents now before this meeting,
and that, from and after the execution and delivery of the said
documents, the Mayor, Manager, Deputy City Manager and the
Clerk of the City are hereby authorized, empowered and directed
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-025 (SUBSTITUTE)
Page 6.
to do all such acts and things and to execute all documents as
may be necessary to carry out and comply with the provisions of
the documents as executed.
Section 6.
That the Mayor, Manager, Deputy City
Manager and the Clerk of the City or any other person author-
ized by the City be and each hereby is authorized to execute
and deliver for and on behalf of the City any and all addi-
tional certificates, documents, opinions or other papers and
perform all other acts as they may deem necessary or appro-
priate in order to implement and carry out the intent and
purposes of this Resolution.
Section 7.
That the provisions of this Resolution
are hereby declared to be separable and if any section, phrase
or provision shall for any reason be declared to be invalid
such declaration shall not affect the validity of the remainder
of the sections, phrases or provisions.
Section 8.
That upon adoption of this Resolution,
the Clerk of the City shall cause a true copy of same to be
posted for at least thirty days on the City Hall and Post
Office bulletin boards, as provided in Seward City Code Section
2-83.
Section 9.
That this Resolution shall become
effective thirty days after passage and posting in accordance
with Seward City Code Section 2-83.
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 87-025 (SUBSTITUTE)
Page 7.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, this 27th day of April, 1987.
THE CITY OF SEWARD, ALASKA
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M or
AYES:
NOES:
ABSENT:
ABSTAIN:
BOOHER, GIESELER, HILTON, MEEHAN, NOLL & SIMUTIS
NONE
DUNHAM
NONE
ATTEST:
APPROVED AS TO FORM:
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City Attorney
(City Seal)
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