HomeMy WebLinkAboutHousing and Urban Development - Fixed Rate Note for Series 2010 A Certificatessit
p US. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
E�
Fixed Rate Note for Series 2810"A Certificates
BORROWER:
CITY OF FRESNO, CALIFORNIA
NOTE NO. B -99-10G06.0001
REGISTERED HOLDER: DATE
THE BANK OF NEW YORK MELLON
AGGREGATEPRINCIPAL
AMOUNT: $900,000
For value received, rhe undersigned, the CITY OF FRESNO (the "Bormwer." which
team includes any successors oras rgns). a public enfity magency organized and existing under
the law's of the Slam (or Commonwealth, ifapplicable) of CALIFORNIA. promises to pay to the
order of THE BANK OF NEW YORK MELLON, as Registered Holder (the "Holder." which
tent Includes any suceesaors or assigns), He Principal Amounts sel town on the. attached
Schedule P&I as of each a rificable principal Due Date set forth therein. together with interest on
such unpaid Principal Amounts at the rates applicable therein as specified on such attached
Schedule P&I. Interest shall be calculated and paymens shall be made in We manner set forth
below. The Halder is acting hereunder on behalf of a=at (the "Trust') created pursuant to a
Trust Agreement by and between the Secretary of Housing and Urban Development (the
'Scanners') and Chemical Bank (now known as The Bank of New York Mellon), as ouuee (the
"Trustee"), dated as of January 1, 1995. as amended (the "Trust Agreement"), as supplemented
by the applicable Supplement to the Trust Agreement, by add between rhe Secretary and the
Trustee.
A. Principal and interest
Interest on a Principal Amount of this Nine that is due as ora given dare specified on the
Schedule P&I touched herein (such data We "Principal Due Date" for such Principal Amount)
shall accord at the per arum sate specified on such Schedule P&1 tram (and including) the date
hereof to (but excluding). such Principal Dae Date or. if applicable, to the applicable Interest Due
Dam on which an Optional Redemption (as definM below) occurs. The aggregate of me interest
aunts accrued on Ne entire unpaid transmit Amount of this Note shall be due semiannually as
of February I and August I of each year (each, r "Interest Due Date"). announcing on
February 1, 2011, until the Aggregate Principal Amount listed on me Schedule P&I anached to
this Note is paid in full. Interest shell he calculated on the basis of a 360dayyear consisting of
twelve 30.day months.
B. Optional Redemption
Certain Primgpal Amounts indicated as being eligible for Optional Redemption on me
Schedule P&1 hereto may be paid, in whale or in part, at the option of the Borrower as of my
Interest Due Date on or after the dale specified in such Schedule (an "Optional Redemption'). In
order to elect an Optional Redemption of a redeemable Principal Amount, bre Bormwer shall
give notice of its intention to redeem a Principal Amount to the Trustee and the Secretary not less
than 60 days nor more than Say days prior to the Interest Due Date as of which the Borrower
intends to redeem the Principal Amount. The Trustee shall apply my payments received in
respect of Optional Reshooting in accordance wire women insmactiom of the Borrower, as
approved by the Secretary. Principal Amounts that are not Indicnted as being eligible for Optional
Redemption on such Schedule may not be prepaid.
C, Additional Dominant;
For purposes of this Note, the following Some shall be defined m follows:
'Busineo Day' shall mean a clay on which beaking institutions in New York, New York,
are nm required of authorized to remain closed and on which the Federal Reverse Bank and the
New York Stuck Exchange non not clossel. If any payment (including a payment by the
Secretary) is required to be made on a day that is not a Business Day, then payment shall be made
on the next Business Day.
'Contractshall mean the Contract I'oflum Guarantee Assistance, mtl my amendments
thi between the Secretary and the Dorrowef. the designated public entity named Immin (if
applicable), or the State named therein (if applicable), which recons to and inmrpuacc this Note
by the amber heeeof.
D. Borrower's Timely Payment to Trustee.
Nowt hswnding anything contained in this Note, me Borrower, in accordance with the
Contract. shall be required to more all payments of interest and principal, including my Optional
Redemption payments, directly to the Trustee on the seventh Business Day India to the
appropriate Imann tDue Date, Principal Due Daze to dam of Optional Redemption, as applicable.
B. Interest on tate Paymenm
If a payment of principal or interest herein provided for has net been duly received by the
Holder form either the Borrower or the Secretary by the close of business on the applicable
Interest Due Date or Principal Due Date, interest shall vicine on the amount of such payment at
the applicable interest rete or rates payable on this Note, from me relevant due dine until Bre date
such payment is made. Nodded in the immediately protecting sentence shall ber construed its;
permitting or implying that the Borrower may, without he written content of the Holder and the
Scummy, modify, extend, alter or affect in my manner whalseever be night of the Holder timely
to receive any and all payments of principal and interest specified In this Note.
F. Apol'cab'I us of Fiscal Ammy Agrecmeo and Trust Agreement
This Now and payments made hereunder shall be administered pursuant to the terms of
the Trust Agreement and are subject o such agreement, The lemes and provisions of the Trost
Agreement, insofar as they affect the rights, dudes and obligations of the Holder maker be
Borrower, are hereby incorporated herein and form a part of this News. Capimliad terms not
defined in this Note shall have the meanings ascribed to them in Trust Agreement. The
Amended and Restated Master Fiscal Agency Agincourt dated as of May 19, 2", between the
Secretary and The Chase Manhattan Bank (now known as The Bank of New York Mellon), as
Fiscal Agent (be'Tiwal Agenry Agreement") provides for JPMwgm Chace Bank, acting as
Fiscal Agent to perform certain duties, Including the duties of registrar for this Note until this
Nene is canceled or a new registrar appointed in accordance with the Fiscal Agency Agreement
The Ford Agreement provides for the Trustee to portion certain duties. including the duties or
paying agent and reflection agent for this Note until a new Trustee is appointed N accordance
with the Truer Agrxment. This Note maybe slmendered N the Fiscal Agent for registration of
transfer or exchange, as provided in the Fiscal Agency Agreement. The Fiscal Agent and the
Trustee shall permit reasonable inspection to be made of a copy of the Fiscal Agency Agreement
or Treat Agreement kepton Pleat its coryorate tmst offce. Neither the Fixed! Agency
Agreement nor the Trost Agreement shall change the Borrowers payment obligations drawn this
Now.
G. Applicabilay of Calumet and Secretary Guarantee
This Note evidences indebtedness incurred pursuant to and in accordance with be
Contract and paramount to Section I o8 of Tide I of Ne Housing and Community Development Act
of 1974. as amanded (42 U.S.C. 4 5908) (the "HCD Act'). This Note is subject to the mons and
provisions of the Contract, rc which Contract reference is hereby, made for a nateoed of said
terms and provisions and for a description of the collateral security for Nis Note. The payment
of principal on the applicable principal Due Dares and of women on the applicable b remst Due
Dates under flus Note is unconditionally grarmlad by be Secretary to the Holder through a
guarantee (the "Gusmmee'). Execution of be Secrelary's Guarantee is required before this Now
s effective, and such Guarantee shall be issued putsuanuo and in accordance with the terms of
the Contract and Section IBP of the HCD Act.
If. Default
A default under this Note shall coeur upon failure by we Borrower to pay principal or interest on
this Note when due to the Trustee hereunder. Out any Interest Due Date an or after the Hot
permeable Optimal Redemption Date, if either (i) a Borrower defaults on the payment of any
interest or Principal Amount when due or (ii) the Secretary gives notice mf a final decision to
declare the Borrower in default pursuant to be following paragraph, then the Secretary any, but
is not obligated to, make an acceleration payment to the Trustee equal to the Aggregate Principal
Amount of the Note, together with accmW and unpaid interest thereon to such Interest Due Date.
The Secretary shall give notice of such payment on the far nee nth Business Day meeting such
Interest Due Damara shall maim such payment on the seventh Business Day preceding such
Interest Due Date. In the event hat any such acceleration Incorrect is made from sources other
than funds plelged by the Borrower as security under the Contrail (or older Borrower funds), the
runts paid on behalf of fire Burrower shall be deemed m be immediately due and payable to
the Secretary. Nothing in this paragraph shall bet construed as permitting or implying that he
Bronwen may, without the written consent of the Holder and the Smretary, modify, extend alter
or affect in any manner whatsoever the fight of the Holder timely an reactive any and at I payments
of principal and interest specified in this Note.
In ideation, lie Seminary may declare the Borrower in default under this Note if the
Secretary makes a food decision in accordance with the provisions of M CFR § 570.9131a any
successor regulation thereof), including requirements for reasonable notice and opportunity for
heating, that the Borrower has failed to comply. substantially with Title 1 of the HCD Ad.
Following the giving of such reasonable notice, the Scmntary may take the remedial actions
specified as available in the relevant provisions of ere Contras pending We Secretary's final
decision.
I. Holder's Refund: on Guamntec
Following a default by the Bumrwer under the meas of this Note. the Holder agrees to
rely wholly and exclusively for repayment of this Note man the Guarantee. The enfomemem of
any imtrnments oragteements searing or otherwise related to Ws Note shall be the sole
responsibility of the Secretary. and the Holder shall not be msponsible for the preparation.
contents or administration of such instruments and amendments, or for my neons taken in
connection with such instruments and agreement. He Holder, to the extent it is legally able to do
o, shall bind or cause to an bound its mordants said maigns to all bndmGons imposed upon the
Holder by this Nae.
i, int
Tbis Note may only be amended with Ne poor written consent of the Secremry and the
Borrower. No such amendment shall reduce, without the prior written consent of the Holder of
this Note, in any manner the amount of, or delay the timing of, payments required to an received
on this Note by Joe Holder or Trustee, including Gnmsnlre Payinwim
K. Wilson
The Borrower hereby waives any requirement for presentment, protest or other demand or
Boa
notice with hexing forrespect
my to this Note. ea payment hereby waives notice of default and opportunity
for hearing for any failure to make a payment when due,
L Mlivery and Effec i e Date
Ms Nom is deemed issued executed andddivered on hchaif of the Borrower by its
authorized official as an obligation permitted by the Secretary, pursuant to Section 10 of We
HCD Act. effective as of the date of the. Secreury's Guarantee.
M. Borrower 5necific Provisions
Proceeds of this Now shall he used solely for the purpose of refinancing through
defe rmnce funds advanced under previous Nom(s) having the same Note number.
[Remainder of Page Immntionally Left Blankl
THE UNDERSIGNED, as an authorized oRcid of the Burrower. has nvcvwed and
delivered this Note.
CITY OF rm"O. mDirOBHIA
BOHBONBA
BY: y,
&Sgne[uce)
Jpe Gray
(Home)
Cir, Controller
(Title)
ATTEST:
REBECCA E. HLISCH
City Clerk q
By: C✓-. 0' btu.. Yl//V
➢eputy
APPAOTEO AS TO FORM:
JAMES C. SANCHEZ
City Attorneys
BY: //s<'i +— Dated:
Mark J. Gleason, Deputy
SCHEDULEP&I
Note NOB -99 -MC -06-00111
Principal Amount
Principal
Interest Rate Optical Redemption
Available
Due Due
YES
NO
S 75,000
August 1, 2011
X
80.000
August 1. 2012
x
85.000
August 1, 2013
x
90.000
August 1. 2014
x
M."
August I. 2015
x
105,000
August 1. 2016
x
110.000
August 1. MP
x
120,000
August 1; 2018
x
135SM
August 1, 2019
X
August 1. 2020
x
August 1, 2021
x
August 1. 2022
x
August 1. 2023
x
August I. 2024
x
August 1, Merl
x
August 1. 2026
x
August 1, 2027
x
August 1. 2028
x
August 1, 2029
x
August 1, 2030
x
$900.IIM - Approbate Principal Amount
Principal Amounts due on or after August L 202L for which Optional Redemption is ava0able
may be redlecmed, subject to the terms turnaround herein and in the Trust Agreement, on any
Interest Due Date on or alter August 1. MM.
Cllyal
FEWMer
James C. Ransil
Cay Anomey
fun
Secretary, of Housing and Urban Developmer
4517th Street SW
Washington, DC 20410 Ole
Re: City offresw
Ladies and Gentlemen:
Our office, which is comprised of ding to
practice law in the State of Califrmia, has no (the
'Borrower'). As such, we have represented 1 ry nate,
referred to on Note No. B -99 -MC -06-0001 )Ogodo
(`Note'), to be executed by Borrower payab m$ and
to be guaranteed by the Secretary of Houten section
108 of the Housing and Community Development Act m n C 5306
('Section 108"). The Now will beincluded in a trust created by HUD (together with other
Section 108 Notes issued by other borcowers), and trust certificates based on the trust will be
sold in the Series 1_010-A public offering by the underwriters selected by HUD. HUD's
guarantee of the Note will be governed by the Contract for Loan Coaxial Assistance wider
Section 108 between the Borrower and [IUD (the "Contra 1, in which the Borrower pledges
Community Development Block Craps personal to 24 CFR 5]0]05(6) (2), as well as any other
security specified in the Contract. as security for HUD's guarantee.
In our capacity as legal counsel, we have made an examination and investigation of all
such matters of fact and questions of law as we consider neciel or advisable to enable us to
render the opinion hereafter act forth. Specifically, and without limiting to generality of the
foregoing, we have examined:
L A Resolution of the governing body of Borrower dal lune 24, 2010. authorizing
Borrower to enter into this transaction, and authorizing the City Controller, Lx Crap or his
designee, to execme on behalf of Borrower all documents necessary or desirable to accomplish
the annsanion.
2. The Contract
3. Ile Note
C The Amended and Restated Mater fiscal Agency .Agreement dated as of
May 17.2000, the T v Agreement dated as of January I, 1995, and the form of Supplement to
ole w0`u 26'%Hall • Fresno, California 93721 • (559)621-05M • FM(559)488-1084
the Trost Agreement to be executed by the 5iecremry of HOD for the closing of the public
offering.
Based on the foregoing investigation and authorities, we are ofthe opinion that
I. Borrower has authorized in accordance wnh applicable State and local law, the
nano conn. including issuance of the Note. the plMge of gram hunts, and the execution of all
documents necessary or desirable to accomplish the murasection.
2. Borrower has authorized Joe Gray, in his capacity as City Controller, b execute
the Contract, the Note and all other documents necessary or desirable to accomplish the
transaction.
3. The Note and the Conaaet have been duly executed by the aforementione4
uthorixed representative of the &trtoweq and upon delivery thereof, due execution of the
Contract and Guarantee on behalf of HUD, and receipt of the loan proceeds on behalf of the
Bormww, the Note and Contract about he valid, biadng and enforceable obligations of the
Borrower.
4. The pledge of present and future Community Development Block Downs by the
Borrower pursuant to 24 CFR 590.705(6)(2) and the Contract is valid.
5. Than is no outstanding, or to our knowledge threatened, action, suit. proceeding.
investigation or litigation by or against the Borrower that will effect the validity of the Note or
the security therefor.
Very trWy yews,
CITY OF FRESNO
COY ATTORNEY'S OFFICE
Mark J. Gleason, Deputy City Attorney
euv W�2mro2awz
US. DEPARTMENT OF
Fixed Rate Note for Series 2010-A Certificate;
BORROWER:
CITY OF FR OlC IPORNIA
NOTE NO. 1i MC -0 01-A
REGISTERED HOMER: DATE
THEBANKOFNEW YORKMELiAN
AGGREGATE PRINCIFAL
AMOUNT: $1,550,000
For value received, the undersigned, We CITY OF FRESNO (the "Bormwa," which
term inciudo my waesaore or assigns), a public entity or age xy orpoisd asci existing nota
the lawsof the State(m WWYOdtb,ifeppiirable)ofCA1.i Holli ( promisesbprybthe
onlc ofTliE BANK OP NBW YORK MELLON, pa Ransomed et fon (the or att c," whidt
tam itdudo any f meson icbleiPrin 0h Due
Amomta net Tooth on attechal
Schalne id P in of ora applicable a mesal Due Date an fon therein, together nsoon atb boo]
oudtuopaid L baboon "ibeazWetato appliobletbercoosmm,in on earn ersatf
below. PffiI. Iotmeat shJl be dovlatal anal paFnmashell be malleo Wemanvicen forty
below. Honda ieol between
no Smbtly ofHotrust onsfUtuet� opspmamvlme
Trust Agreement by � bmaem the r loto"y s Itoc Bing end Dtben D Mellon),
a (the
7frow!"Secro), and Cs®isn Beek (naw,m sormThe BeakofNew Yoh Meilen),uhaeme Qhs
"'Imams"), dotal Se of January 1, 1995, st ammdd (the "Iron Agement', or e¢ soot no by the appBrable Supplement b the Trost Agreemm; by sod between for SersemryuW the
Twtee.
��TTP!R.1
Intact m a Principal Amount of this Note that is due as of a given dem spedBed on the
Schedule Pffio eternal hecto (such tete, the "Principal Dm Ata" for such Frinapal Amount)
shell scam or the pa eonum ones specified on won Smetana P&I from (end including) the date
hesofto (but exdonng) sura poincipd Doe Date m, ifspplicsble, no the applicable interest One
Daze on which an Optimal Redauptim(o de0nal below) ears. l eggegne of no interest
moms armed on the more unpaid Principal Amount of this Note ebal] be due emiamue,ty as
of February 1 and August 1 ofeacb yes (each, on "boast Due Date"), commmubg on
February 1, 2011, umU the Aggregam Principd Amount listed on du Schedule P&1 attached Or
this Note ie paid in full. mtese& shill be calculated on the more of ado day yam consisting of
twelve 30d ymonme.
Certain priipd Amman indicted ere being eligible for Optioned Redemption on me
Schelde P&1 hereto may be paid, in wlmle Orin put, a the option ofrhe Borrower ne of my
maul Due Due on or after the dile momid in mob Sehdde (a ^opfioal Redenpnon"). to
order or deer a Optical Redemption of redeemable Principd Amomn, the Bosmwa Gell
give no0ce of its mandar on redmn a Priipa Amount to the Trume and the Scom my not Ina
them M days nor more dm N deys prim to ted breand Oce Dae a of 'Mob the nanown
mtmde to Oman the Principe Amnon[TIM Trmme shell apply, my potentate cona,ed be
respect of Optioned Redemptions in eawNmce with written iatruuioa of me Bmcnwer, of
apmoved by the Sealnuf Pommel AaadW tont menet irMiated a being eligible for Optical
Red®pdon on such sA dde may nor be prepaid
C. Addi' al Delmi'
Pre purposes of this Nota the following Ozone shill be defined a follows:
"Business Day shall man achy on which bulking matmoa or New York, New York,
ere not named or numonmd to tamale closed end m whiff the Federal R cBemk well the
New Yoh Stack Fachenge ere not dosed if eerypeymmt( ludingoprymmfby me
Smeary) is required m be made m a daymar u net a eaivees Day, thmpaymad she66e mile
on the nest Bamws Day. -
^Connect^aba6 mem the Contruct fn Igen Oanntee Aaimm e, end my mvedmmb
therao, behami the samaary, end the eoaower, the de®goeted public catty mmed the an (if
applicable), of the Settle meed therein (ifappliceLle), which refers Or end incorpontn this Nom
by the number hereof.
Notwimelmdivg myttag eommed to this NOW the B roar, toaemNuta with fie
Contra L slu l be required to make ell pay ,era of banned and priadped including my opBoal
Ademption Prymmm, dhadym the Trustee on the seventh Buamess Dey Poor to do
eppropriue mmmt Due Dan Prmapsl Due Dam OrMe ofOpmewd Redemption, m wppBceble.
If a Pealea OfPrencipd or menet Bertin provided for has net ban My scavcd by the
Holder from either the Borrower or me Seaetery by the close ofbusmns on the oppBceble
Interest Due Date Or Prmapd lire Dae, went shell aerue on the meant of such payment to
the oppliceble latero[ tae or ones peynble on this Nom, fiom the m1mart due date until the dere
such peymwris mode. Nothingm the®mandetyprvicediog warm: aBbecevehueda
pamitong m implying that the Borrower may, without the wdem consemn of the Holder and the
Sectary, nwdify, good, alta Or affect's any newer whwoeva the right of the Holder timely
to mcave my and ill payments ofprioapal and intact specified w this Note
Thu Note and payments route 4a cr shell beedmiviated pursuer to the tame of
the Trost Agreavent and ere subject to such agreement. The terns sons[ proviaore of the Trust
Agreement mention as they affour the nghb, dura nod obhpunm of the Holder antl/m the
Bmrowa, me hereby incorporated heron and fom s part of this Nae. CapiWi Wrote out
defined in thin NOW shell have the mustangs a bed to Wei in Trust Agreement The
Amended end Restated Master Fiend Agency Agrxment deed as of May 17, 2", between the
Secretary and The Chase Marbanan Bark (mw Imown a The Beek of New Ymk Mellon), as
}Sad Agent(to "Fiscal Ag Agreement') provide fm RMorgav(Base Bek, acting as
Fiend Agentto pafm careen dimes, imluding the duties ofregiaver fm dus NOW until tlds
NOW is canceled or a new registrar appoivtM in moordenm wild the Fieri Agemy Aptemtet.
The Trust Agtmmet prwnda for the Truce to pert comma dines, including flu: dries of
peyfng agent and collation agent fm this NOW until a new'Pruaee u appoinsM to ammdmce
withthe Tmrt A@ Cort Thu Nommaybeemrmdrndmthe Fix Agentfmregiatreaonof
tratsf machete, as provided in the Final Agency Agreement The Fiscal Agent end the
Trustee shall permit reasonable inspection to be made of copy of the Fined Agency Agreement
m Trost Agreement kept on ale k ib corptmte hurt office. Nehha the Fieri Agency
Note. her the Tnel Agttmmh shall change the Bomwede pymm obligetiom wdarhia
Note.
This Note mat to Section
108 ol" inc I ofthe mini g aed u e raruninca with the
Contactum pended(to Section IBM g)(theI cm Housing andC®nwiry Wths:t met Ac[
of 19'!4,8 the Co(42U.S.C.§5308)(the"1M®mon 4lsetr Now isarastaemthe terms and
tommand oftheCsand1m description
Coon oftefaemrahadymamf None. Thenent of send
tanaend ton thea endfinerumpal Me Mi s andoflsenuity for this Nolen. ThepaestM
Mesam ulu ththeappagble Prmapm Ilue Miss and the SeeetatheeppBddethrough Due
Dew aria this NOW hmeondiaemlly Mum®mN by the 9evetarym the required
Insert(the"t3nilb Man Bammon of Poe MoremryS and in aaisrequiredbefore tr NOW
that ntrwc and eSeeaua:nmfabutbafamed foreword to and in eccoNmw with the terms of
We Contract and Stew 108 of the HM Aa
A default under don NOW shell occur upon faJme by the Borrower to pay pinup) or iaounet on
this Note when due to, the Trust hereunder. 0n my Internet Due Banc one eft the fiat
permissible Opaoml Redemption Dam, if either (i) a Bomwa deflb on the payneet ofeey
interest or Principl Anomt when due or (u) the Secretary gives intim of find deasion m
dtte the Burrows in defauB pursuant to the following paragraph, Mea the Sevetsry may, but
is not obligpted to, make an emelaeaon peymentto the That equal to the Ag®egtte Principal
Anoint ofthc Nae, logethawith argued and rapid ivtaat nc�eon m mrL Into[ Due Date.
The Saxetary shall give notice of such payment on the fowtemth Bosom Day preceding each
Inters[ Dae Dole and Shall melee mch payment on the swath Businw Day preceding such
Imam Drs Date. In the event that my such accelaetim payment u made from mates other
that foods pledged by We Renewers snvtity mods me Corona (or other fmmwa fiords), the
ounu paid on behelfof We Bomwa sbdl be domed W be immwiamy due and payable to
the Semetary. Nodmrg in Ads paragraph elWl W construed as pemittivg w implying that the
Borrower may, without the write consent of We Holden and the Secondary, modify, aimed, alts
a affect in my means whatwena the tight of the Holda manly to receive my and dl pays me
ofprinupal and iolanit wedfied in this Now.
be additioq rhe Secretary may decline the Bomwer in defnolt under this Note iftbe
Secretary makes a feel decision in accordance wild the pmvivon of CPR § 570.913 (m my
mnasor mgulation thereof), including requirmmu for reasonable notice and opportunity for
hens& that the Bormwcr ben failed W comply mndiumaBY with Tide I of the H® Aa.
Following the gisfag of such renmoeble entice. the Sammy y may tate We rmedial actions
speci6M as available W the relevant pmvisiom of the Costas larding the Semaays find
de nim.
if1m}Tffa1
F011owwg a default by the Beenower water the tame of this Note the Holda agree W
My wbolly acrd exclusively for repayment of this Note elan the tlom The mf cot of
MY irrstrmnam or agreaamu semhig or otbawise relined W thio Note shall be the sole
malkentity of the Secretary, mod the Holder sbaB notbe responsible for the preparation,
contain or administration of such immmeas and agremiam, or fbr any actions taken in
concoction with mob ivetmomu and agreement, The Holder, to the extort it is legally able W do
so, shall bind orsuse W be bouts its succeams tied mentions Well l®iutions imposed upon the
Holderbythis Noce.
nn
This Note may only be mended with the prim wdtm consent of the san ury and the
Bortower. No such armament shall reduce, without We prior written consent of the Holder of
this Note, to my manna the moots of or delay the timing of, payments required W be receival
an this Note by the Holden Tons, otzbol og Ciumantee paymeam.
K. Waivers
The Bomwer beaby waiven my ramomm for presenwmt, Man to, odra dmmd ne
notice with respect W this Note. The 9omwer baeby waives notice of damet and appo bauty
fm henrivg fat any failure W make epaymmt when duo
This Now is deemed issued,¢scutal, and deliv ou behdfofWe Banower by ib
authorivd officud as an obligation g aotecd by the Sevetary Pmeumt b Scdw 108 of the
NCD Ant, eli w as of the date of the Smetmy� Gummtm.
P Geode ofthie Note shell be used solely Por the g mofrefina ing Wmugb
defessmoc funds advmccd soda g ow Note(s) having the smnc Note=bcr.
[Remaioda of Page lmrntionally Left ff o )
ME DNDERSIGNED, as an aWReernj official of Ne Bortuwer, pas exec Wed and
deliver dns Note.
Cxrr cr rRzmo, eAanoxwxa
/�mnralvrn
BY:/ Lyy
eTl, qu�tvr�)
Joe Gra"
(bow)
City Controller
(Title)
ATTEST:
REBECCA E. FLISCH
City Clerk
By: "dl?� w� 7/1//D
Deputy
APPROVED AS TO FORM:
JAMES C. SANCHEZ
City Attorne
BY: Dated:
Mark J. Gleeson, Deputy
SCHEDULEP&I
Noe No.. &94MC-060001-A
Privapel Am9uut
P Pa
IutaMgrte Opto Redwphon Awileble
Due Date
YU NO
S 175,000
Augup 1, 2011
X
19.000
August 1, 2012
X
205,000
August 1, 2013
X
220,000
Augwt 1, 2014
X
235,000
Augur 1, 2015
X
255,000
August 1, 2016
X
290,000
Augur 1, 2017
X
Augurt 1, 2018
R
Auguat 1, 2019
X
August 1, 2020
X
August 1, 2021
X
August 1, 2022
X
August 1, 2023
X
August 1, 2024
X
Augur 1, 2025
X
Augur 1, 2026
X
Augur 1, 2029
X
Augw 1, 2028
X
AYgm 1, 2029
X
Augur 1, 20M
X
[109.000 = Ap to MncipelAmdmt
PrinaPa Amowm dw on or efts Augur 1, 2021, Gx wLvL Op0ovat Rdevptlov u available
mnY beedewed, aubJat m Oue tame mphmctl hvao and in the'llurt Agamw, w evy
Imam Due Dere on or Wa August 1, 2020.
REPORT TO CITY COUNCIL I AGENDAITEMNO.
2,:a0pm, 3 D
COUNCIL MEETING 0612442010
Dale June 24, 2010
From: JOE GRAY, City Contrdler10"i mmdelnctodoW
Finance Department perr�M v/ia
ponvisn
PHILLIP HARMASTLE, Principal ArrT)puntied
DebtAdminlspatiONFinaaca Oepa t
SUBJECT: RESOLUTION OF THE COUNCIL OF THE CITY OF FRESNO, CALIFORNIA
AUTHORIZING AND APPROVING THE REFINANCING OF TWO U.S. DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT SECTION 108 LOANS FOR THE SOLE
PURPOSE OF ACHIEVING INTEREST SAVINGS; AND AUTHORIZING THE
EXECUTION AND DELIVERY OF THE PROMISSORY NOTES, THE CONTRACTS
FOR LOAN GUARANTEE ASSISTANCE, AND THE TAKING OF ALL NECESSARY
ACTIONS RELATING TO THE REFINANCINGS.
RECOMMENDATIO
Slag recommends that the Coundl approve time accompanying Resolution and authorize the City
Controller to execute the appropriate documents, Induding Notes. Contracts, and other documents as
necessary to refinance two existing HUD Section 108 bans. The refinancing is being pursued for the
sole purpose of taking advantage of favorable current lower interest rates in order to reduce annual
debt service an me loans.
S3rlillisf.',I„11:7'7
SIalf Is requesting that Council approve necessary documents neetled In order to refinance two existing
HUD Section 108 bans with aggregate outstanding balances of $245 million. The City was presented
with this opportunity by the U.S. Department of Housing and Urban Development (HUD) in Mid -May,
Currently rates are between 631% and 7.958%. Refinancing at this time could produce hues
somewhere beteeen 0.5% and 4%, or an average annual sarongs of $58.000.
BACKGROUND
In 1995, the City of Fresno assisted then Fresno Regional Medical Center with financing for an
expansion of their facility for the purpose of serving a growing population of dtiaeru in Fresno. The Cry
borrowed $3 million to be used on this expansion. The balance is curren0y $1,715,000 with$185,000
due on August 1, 2010. Average annual debt service is approximately $280,000 and will be paid off on
August 1, 2017. Interest rates Targe between 6.78% and 7.13%.
In 1999, the City of Fresno assisted the FresnoAladem Area Agency on Aging (FMAAA) with financing
far the renovation of the old Sierra Hospital into offices for the FMAAA so they coud better serve the
REPORT TO THE CITY COUNCIL
Resolution of the Counal of the City of Fresno, Califomia Authodang and Approving Me Refinancing of HUD
Section 108 Loans Nor the Sole Purpose of Achieving Interest Savings
July 21, 2010
Page 2
elderly of the metropolitan area. The City borrowed $1.5 million to be used on this renovation. The
balance is currently $970,000 with $70,00 due on August 1, 2010. Average annual debt service is
approximately $140,090 per year and will he paid off on August 1. 2019. Interest rates range between
7.448% and 7.958%.
HUD has provident information to Staff indicating that these loans can be refinanced at rates between
0.5% and 4%. If these rates can be achieved, the City could save as much as $58,990 per year Mrough
2017 and another $24,000 per year through 2011.
FISCAL IMPACT
Approving the Resolution would authonze Staff to begin the process of refinanarg of two HUD Section
108 loans. Refinencng these loans will provide savings of approximately $58,00 annually through
FY2017 and $24,000 annually mmugh FY2019. The se ami will benefit 9m Community Development
Black Grant Fund as it is this Fund that bells the HUD Section 108 Loans.
Attachments:
- Resolution
- Note Certificates
-Contracts