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Unless the context otherwise requires, the following definitions shall govern the construction of this ordinance:
A. “Acquisition” and its variants means acquisition, construction, improvement, furnishing, equipping, remodeling, repair, reconstruction or rehabilitation.
B. “Administrative expenses” means the reasonable and necessary expenses incurred by the city in the administration of the provisions of this ordinance with respect to a particular project and the financing thereof, including without limitation fees and expenses of paying agents, trustees, bond counsel and financing consultants, and costs of printing and advertising.
C. “Bonds” mean any bonds, notes, interim certificates, debentures, lease or other obligations or evidences of indebtedness issued by the city pursuant to this ordinance, which are payable exclusively from revenues and other funds permitted by this ordinance, and which are "private activity bonds" within the meaning of Section 141, of the Internal Revenue Code of 1986, as amended, or any similar provision of said Code then in effect.
D. “City” means the City of Chico, California, a charter city in the state existing under and exercising powers pursuant to the city charter.
E. “City Charter” means the charter of the city, as amended from time to time.
F. “Council” means the council of the city.
G. “Costs” mean, with references to a project, any or all of the following costs incurred for the acquisition thereof:
1. Obligations of the participating party incurred for labor and materials in connection with the acquisition of the project;
2. The cost of acquisition of any property, whether real or personal and improved or unimproved, including franchise rights and other intangible property, and any interests therein, required for the acquisition of the project;
3. The cost of demolishing, removing or relocating any building or structure, and the cost of making relocation assistance payments required by law;
4. The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of the acquisition of the project;
5. All costs of engineering, legal and consultant services, including the costs of the participating party for surveys, estimates, plans and specifications and preliminary investigation therefor, and for supervising construction, as well as for the performance of all other duties required by or consequent upon the proper acquisition of the project;
6. All costs incurred in connection with proceedings by the participating party necessary to comply with the California Environmental Quality Act of 1970, as amended;
7. All amounts required to fund any reserve funds for bonds and any interest on bonds becoming due and payable during a period not exceeding the period of acquisition of the Project and 12 months thereafter,
8. All administrative expenses;
9. All costs which the participating party shall be required to pay, under the terms of any contract or contracts, for the acquisition of the project;
10. The refinancing of any existing indebtedness secured by an interest in any real property comprising any portion of the project, so long as and to the extent that such refinancing does not cause interest on the bonds to become taxable under Section 103 of the Internal Revenue Code of 1986, as amended, any rules or regulations thereunder, any similar provision of said Code then in effect or successor thereto; and
11. Any sums required to reimburse the participating party for advances made for any of the above items or for any other costs incurred and for work done which are properly chargeable to the project.
H. “Finance” and its variants means the lending of moneys or any other thing of value, or the purchase of loans or the entering into of leases or installment sale agreements, for the purpose of paying or otherwise providing for or assisting the payment of any or all of the costs of a project pursuant to this ordinance.
I. “Participating party” means any person, corporation, partnership, firm or other entity or group of entities requiring financing for the acquisition of a project pursuant to this ordinance. No member of the city council or officer, staff member or employee of the city shall be eligible to be a participating party under the provisions of this ordinance.
J. “Project” means (a) real property located within the city and improved with an industrial or commercial structure, (b) real property located within the city and improved with a structure to be used for nonprofit organizations qualified under section 501(c)(3) of the Internal Revenue Code of 1986, (c) telephone service contracts for participating parties, (d) qualified residential rental projects as described in and within the meaning of section 142(d) of the Internal Revenue Code of 1986, and (e) all other property of any nature whatsoever in connection with the foregoing or incidental to the foregoing, including but not limited to machinery, equipment, fixtures and furnishings. Any reference in this paragraph to a provision of the Internal Revenue Code of 1986 includes all amendments thereto and any rules or regulations promulgated with respect thereto, and includes any similar provision of said code in effect or any predecessor or successor provision.
K. “Ordinance” means Ordinance No. 1423, passed and adopted by the council of the city on March 17, 1981, pursuant to the city charter as amended from time to time.
L. “Revenues” means, with respect to a project, all amounts received as repayment of principal, interest and all other charges received for, and all other income and revenue (including the proceeds of insurance) derived by, the city in connection with such project, and any receipts derived from the investment of such income or revenues, including moneys deposited in a sinking, redemption or reserve fund or other fund to secure the bonds or to provide for the payment of the principal of or interest on the bonds and such other moneys as the city council may in its discretion make available therefor.
M. “State” means the State of California.
(Ord. 1423 (part), Ord. 1451, Ord. 2019 §2, Ord. 2111 §3, Ord. 2268)
The city is authorized and empowered:
A. To determine the location and character of any project to be financed under the provisions of this ordinance, and to finance such projects by making or purchasing loans to participating parties therefor;
B. To issue bonds for the purpose of financing or otherwise assisting the acquisition of projects authorized by this ordinance and for the purpose of funding or refunding bonds;
C. To fix fees, charges and interest rates for financing any project, and to revise such fees, charges and interest rates from time to time, and to collect interest and principal on any loan made to a participating party together with such fees and charges incurred in such financing, and to contract with any person, partnership, association, corporation or public agency with respect thereto;
D. To hold deeds of trust as security for financing any project and to pledge the same as security for repayment of bonds issued therefor;
E. To establish the terms and conditions for the financing of any project undertaken pursuant to this ordinance;
F. To require that the full amount owed on any loan for the financing of a project pursuant to this ordinance shall be due and payable upon sale or other transfer of ownership of such project;
G. To acquire, by deed, purchase, lease, contract, gift, device, or otherwise, any real or personal property, structures, rights, rights-of-way, franchises, easements, mortgages and other interests in property located within the state necessary or convenient for the financing or acquisition of a project, upon such terms and conditions as it deems advisable, and to lease, sell or dispose of the same in such manner as may be necessary or desirable to carry out the objects and purposes of this ordinance. Notwithstanding the foregoing, nothing in this ordinance is intended or shall be construed in any way to authorize any exercise of the power of eminent domain with respect to any project;
H. To employ or contract for such engineering, architectural, accounting, collection, economic feasibility, or other services in connection with the servicing of loans made to participating parties, as may be necessary in the judgment of the city council for the successful financing of a project. The city may pay the reasonable costs of consulting engineers, architects, accountants, construction experts, and economic feasibility experts, if, in the judgment of the city council, such services are necessary to the successful financing of a project and if the city is not able to provide such services. The city may employ, contract for, and fix the compensation of financing consultants, bond counsel, and other advisers as may be necessary in its judgment to provide for the issuance and sale of bonds;
I. In addition to all other powers specifically granted in this ordinance, to do all things necessary or convenient to carry out the purposes of this ordinance.
(Ord. 1423 (part))
Participating parties may apply for financing pursuant to this ordinance by contacting the city manager or other officer or employee of the city designated by the city manager. Each applicant shall supply to the satisfaction of the city manager or such officer or employee all information required to evaluate the financial reliability and stability of the participating party and the feasibility of the proposed project including an estimate of the maximum amount of financing to be required, a description or itemization of the costs of the proposed project, and a written agreement to pay all administrative expenses for the proposed project.
(Ord. 1423 (part))
Upon receipt of an application containing all required information, agreements and undertakings, the city council shall at such time as is deemed convenient by it review such application and any staff recommendations with respect thereto. If the city council chooses to approve any application for financing under this ordinance, it shall adopt a resolution accepting and approving such application and the participation of the city in the financing of such project, subject to the provisions of this ordinance and the conclusion of all proceedings undertaken to consummate such financing to the satisfaction of the city.
(Ord. 1423 (part))
The city may issue its bonds for the purpose of financing or otherwise assisting the acquisition of projects authorized by this ordinance. Every issue of bonds shall be a special obligation of the city, payable solely from all or any part of the revenues of projects.
(Ord. 1423 (part))
The bonds may be issued as serial bonds or as term bonds, or the city council, in its discretion, may issue bonds of both types. The bonds shall be authorized by resolution of the city council and shall bear such date or dates, mature at such time or times, bear interest at such fixed or variable rate or rates, be payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America, at such place or places, and be subject to such terms of redemption as the resolution or resolutions of the city council may provide. The bonds may be sold at either a public or private sale and for such prices as the city council shall determine. Pending preparation of the definitive bonds, the city may issue interim receipts, certificates, or temporary bonds which shall be exchanged for such definitive bonds.
(Ord. l493 (part))
Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of the bonds:
A. The pledge of all or any part of the revenues subject to such agreements with bondholders as may then exist;
B. The interest and principal to be received and other charges to be charged and the amounts to be raised each year thereby, and the use and disposition of the revenues;
C. The setting aside of reserves or sinking funds and the regulation and disposition thereof;
D. Limitations on the purposes to which the proceeds of a sale of any issue of bonds, then or thereafter issued, may be applied, and pledging such proceeds to secure the payment of the bonds or any issue of bonds;
E. Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;
F. The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given
G. Specification of the acts or omissions to act which shall constitute a default in the duties of the city to holders of its obligations, and providing the rights and remedies of such holders in the event of default;
H. The mortgaging of land, improvements, or other assets owned by a participating party for the purpose of securing the bondholders;
I. Such other terms and conditions pertaining to the issuance of the bonds as are deemed advisable by the city council.
(Ord. 1423 (part))
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