California City Municipal Code Art. 7 Economic Development

This article may be called the "City of California City Economic Development Regulations."

It is necessary and essential to the well-being of the City to provide financial assistance to promote the economic development of the City. Such economic development will serve the following public purposes and municipal affairs of the City:

(a) The full and gainful employment of residents of the City;

(b) The full and efficient utilization and modernization of existing industrial, commercial, and business facilities;

(c) The development of new industrial, commercial and business facilities;

(d) The growth of the City's tax base through increased property values and consumer purchasing;

(e) The reduction of the need for the costs of welfare and other remedial programs;

(f) The reduction of urban ills, such as crime, attributable in part to inadequate economic opportunities;

(g) The stability and diversification of the City's economy;

(h) The lowering of the cost to City consumers of necessary goods and services;

(i) The environmentally optimum disposition of waste materials of the City; and

(j) The enhancement of the general economic prosperity, health, safety and welfare of the residents of the City.

The availability of the financial assistance authorized by this chapter will serve those purposes and the general plan of the City by providing private enterprises with new methods of financial capital outlays that are beneficial to the City and its residents and by ensuring economic development within the City will reflect the local community's needs and objectives and will be environmentally optimum with respect to both the physical and social environment of the City. The City shall promote such public interests pursuant to this Chapter without adversely affecting areas outside the City and without conflicting with efforts by the State of California to solve problems of statewide concern.

The following terms are defined for the purposes of this chapter:

(a) "The Act" means the California Industrial Development Financing Act.

(b) "Authority" means the Industrial Development Authority established by the City pursuant to the Act.

(c) "Council" means the governing Council of the Authority. The City Council of the City of California City is the governing Council of Authority.

(d) "Bonds" mean the bonds, notes, certificates, debentures and other obligations authorized to be issued by the Authority pursuant to this chapter.

(e) "Cost" means the total of costs incurred by or on behalf of a Participating Party to carry out works and undertakings and to obtain rights and powers necessary or incident to the acquisition, construction, installation, reconstruction, rehabilitation or improvement of Facilities. "Cost" may include costs of issuance of bonds for such purposes, costs for construction undertaken by a Participating Party as its own contractor, amounts equal to interest on the bonds prior to, during, and for a reasonable period following construction of Facilities, reserves for debt service and for repairs, replacements, additions and improvements to a Facility, and other working capital incident to the operation of a Facility.

(f) "Facilities" mean the properties, places or buildings within the City which are, or will be, maintained and operated for industrial, commercial or business purposes, conform to the general plan of the City and are approved by the Authority for the financing authorized by this Chapter, such approval being given only when the Authority finds and determines that such financing will substantially promote one or more of the public purposes listed herein. "Facilities" may include, but are not limited to, activities which may otherwise be financed pursuant to the Act to the extent the Act permits the financing of such activity under alternative Authority. "Facilities" include, without limitation, real and personal property, land, buildings, structures, fixtures, machinery or equipment, and all such property related to or required or useful for the operation of a Facility. Facilities do not include property, place or building used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.

(g) "Participating Party" means an individual, association, corporation, partnership or other entity approved by the Authority to undertake the financing of the Costs of a Facility for which this chapter authorizes the issuance of the Bonds.

(h) "Revenue" means amounts received by the Authority as payments of principal, interest, and other charges with respect to a loan authorized by this Chapter, as payments under a lease, sublease or sale agreement with respect to Facilities, as proceeds received by the Authority from mortgage, hazard or other insurance on or with respect to such a loan (or property securing such loan), lease, sublease or sale agreement, other rents, charges, fees, income and receipts derived by the Authority from the financing of Facilities authorized by this chapter, amounts received by the Authority as investment earnings on moneys deposited in any fund securing the Bonds, and such other legally available moneys as the City Council may, in its discretion, lawfully designate as Revenues. "Revenues" as defined by this chapter, and the expenditure of such Revenues shall not be taken into account in determining the City's compliance with Article XIIIB of the California Constitution.

The terms defined above are also defined by the Act. In the event of conflict, the definitions contained in the Act control. Terms not defined above which are defined in the Act have the meanings given by the Act.

There is a need for the Industrial Development Authority of the City under the Act; such Authority shall function in the City; the City Council shall be the governing Council of the Authority; and the Authority is authorized to transact business and exercise powers permitted by law.

The Authority is authorized to acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip and lease as Lessee, with the proceeds of the Bonds, Facilities, solely for the purpose of selling or leasing as Lessor such Facilities to such Participating Party, and is further authorized to make contracts for such purposes. The Authority is also authorized to contract with such Participating Party to undertake on behalf of the Authority to construct, enlarge, remodel, renovate, alter, improve, furnish and equip such Facilities.

The Authority is authorized to sell or lease, upon such terms and conditions as the Authority shall deem proper, to a Participating Party, any Facilities owned by the Authority under this chapter, including Facilities conveyed to the Authority in connection with a financing authorized by this chapter but not being financed hereunder.

A person may apply to the Authority for approval as a participating Party and for approval of Facilities for financing under this chapter. Applications shall set forth such information as the Authority may require to enable the Authority to evaluate the applicant, the Facilities and its proposed costs.

Applications shall be evaluated by the Authority to assure that financing under this chapter results in at least one of the following public benefits:

(a) Significant additional employment to residents of the City. An industrial facility will qualify for financing under this chapter only if such financing will result in an increase in employment. An industrial facility which produces goods or services for sale outside the California City area, or which is to be located in a disadvantaged area, shall receive preference.

(b) Continuance of a company's operation in the City which otherwise might relocate outside the City.

(c) Preservation or enhancement of the supply of energy (including gas) or a reduction in the expected costs thereof.

(d) The provision of goods and services not otherwise conveniently available to residents of a neighborhood.

(e) An improvement in the viability of a revitalization or redevelopment project.

Financing under this chapter shall be approved by the Authority only when it can be demonstrated such financing will make a significant beneficial contribution to the realization of one or more of the public benefits listed above.

The Authority is authorized to charge Participating Parties application, commitment, financing and other fees, to recover administrative and other costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.

The Authority is authorized to obtain, or aid in obtaining, from a department or agency of the United States or of the State of California or a private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or principal, or both, rents, fees, or other charges, or part thereof, on a loan, lease or sale obligation or an instrument evidencing or securing the same, made or entered into as authorized by this chapter and is authorized to accept payment in such manner and form as provided therein in the event of default by a Participating Party, and to assign such insurance or guarantee as security for Bond.

The Authority Manager is authorized to fix rents, payments, fees, charges and interest rates for a financing authorized by this chapter and to agree to revise from time to time such rents, payments, fees, charges and interest rates to reflect changes in interest rates on Bonds, losses due to defaults or changes in other expenses related to this chapter, including Authority administrative expenses.

The Authority is authorized to hold deeds of trust or mortgages or security interests in personal property as security for loans and other obligations authorized by this chapter and to pledge or assign the same as security for repayment of Bonds. Such deeds of trust, mortgages or security interests, or other interest of the Authority in any Facilities, may be assigned to, and held on behalf of the Authority by a bank or trust company appointed to act as trustee by the Authority in any resolution or indenture providing for issuance of Bonds.

The Authority is authorized to contract for such engineering, architectural, financial, accounting, legal or other services as necessary in the judgment of the Authority for the purposes of this chapter.

Except as specifically provided in this chapter, the acquisition, construction, installation, reconstruction, rehabilitation or improvement of Facilities financed under this chapter shall not be subject to requirements relating to buildings, works or improvements owned or operated by the Authority, and requirements of public competitive bidding or other procedural restriction imposed on the award of contracts for acquisition or construction of an Authority, building, work or improvement, or to the lease, sublease, sale or other disposition of Authority property shall not be applicable to action taken under this chapter.

In addition to other powers specifically granted by this chapter, the Authority is authorized to contract for and do things necessary or convenient to carry out the purposes of this chapter, provided, however, the Authority shall not have the power to operate a Facility financed under this chapter as a business, except temporarily in the case of a default by a Participating Party.

(a) The Authority is authorized to issue Bonds in an aggregate principal amount not to exceed $100,000,000.00 and to issue such Bonds, from time to time, in such series and amounts as are determined by the Council to be necessary or appropriate to provide for the costs of facilities approved by the Council. Bonds shall be negotiable instruments subject only to the provisions of such Bonds for registration.

(b) In addition to the Bonds authorized in the preceding paragraph, the Authority is authorized to issue additional bonds in an aggregate principal amount not to exceed $100,000,000 for Facilities or activities related to energy development, production, collection, conversion (from one form of energy to another), storage, conservation, transmission, distribution, transportation, or conveyance, including but not limited to the furnishing of electric energy or gas, and to issue such bonds from time to time, in such series and amounts, as are determined by the Council to be necessary or appropriate to provide for the cost of facilities approved by the Council. Bonds shall be negotiable instruments subject only to the provisions of such Bonds for registration.

(c) For the purpose of bonds issued for facilities or activities related to energy development as more broadly defined above, the term "Facilities" shall have the same meaning as defined herein, except the facilities, places, or buildings are not necessarily required to be located within the Authority so long as the Council finds the Facilities to be financed would directly benefit the citizens of the City.

Bonds authorized to be issued shall be limited obligations of the Authority payable from all or any specified part of the revenues and the moneys and assets authorized in this chapter to be pledged or assigned to secure payment of Bonds. Such revenues, moneys or assets shall be the sole source of repayment of such issue of Bonds. Bonds issued as authorized by this chapter shall not be deemed to constitute a debt of liability of the City or a pledge of the faith and credit of the City but shall be limited obligations payable solely from specified revenues, moneys, and assets. The issuance of Bonds shall not directly, indirectly, or contingently obligate the City to levy or pledge any form of taxation or to make appropriate for their payment.

Bonds shall contain on the face thereof a statement to the following effect:

"Neither the faith and credit nor the taxing power of the City of California City is pledged to the payment of the principal or of premium, if any, or interest on this bond."

Bonds shall be issued as serial bonds, term bonds, installment bonds, or pass-through certificates or any combination thereof. The Authority Manager shall determine the terms and timing of the issuance of particular Bonds in accord with the resolution of the Council approving the particular Facilities to be financed thereby. Bonds shall bear such date or dates, mature at such time or times not to exceed forty years, bear interest at such fixed or variable rate or rates approved by the Participating Party whose Facilities are being financed but not to exceed the maximum rate permitted by law, be payable at such time or times, be in such denominations, be in such form, 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, be subject to such terms of redemption and have such other terms and conditions as such resolution, or any indenture to be entered into by the Authority pursuant to such resolution, shall provide. Bonds shall be sold at either public or private sale and for such prices as the Authority shall determine.

A resolution relating to the issuance of Bonds, or indentures to be entered into by the Authority pursuant to such resolution, may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of such Bonds:

(a) The terms, conditions and form of such Bonds and interest and principal to be paid thereon;

(b) Limitations on the uses and purposes to which the proceeds of sale of such Bonds may be applied, and the pledge or assignment of such proceeds to secure the payment of such Bonds.

(c) Limitations on the issuance of additional parity, Bonds, the terms upon which additional parity Bonds may be issued and secured, and the refunding of outstanding Bonds;

(d) The setting aside of reserves, sinking funds and other funds and the regulation and disposition thereof;

(e) The pledge or assignment of all or any part of the Revenues and of any other moneys or assets legally available therefor (including loans, deeds of trust, mortgages, leases, subleases, sales agreements and other contracts and security interests) and the use and disposition of such Revenues, moneys and assets, subject to such agreements with the holders of Bonds as may then be outstanding;

(f) Limitation on the use of Revenues for operating, administration or other expenses of the City;

(g) Specification of the acts or omissions to act which shall constitute a default in the duties of the City to holders of such Bonds, and providing the rights and remedies of such holders in the event of default, including any limitations on the right of action by individual bondholders;

(h) the appointment of a corporate trustee to act on behalf of the Authority and the holders of its Bonds, the pledge or assignment of loans, deeds of trust, mortgages, leases, subleases, sale contracts and any other contracts to such trustee, and the rights of such trustee;

(i) The procedure, if any, by which the terms of the contract with bondholders may be amended or abrogated, the amount of such Bonds the holders of which must consent thereto, and the manner in which such consent may be given;

(j) An indenture entered into by the Authority relating to the issuance of any Bonds will contain a provision prohibiting the sale by a Participating Party of any facility financed under this chapter, without prior approval by the Authority; and

(k) Other provisions which the Council may deem reasonable and proper for the purposes of this chapter and the security of the bondholders.

The pledge or Revenues or other moneys or assets as authorized by this chapter shall be valid and binding from the time such pledge is made. Revenues, moneys and assets so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against parties having claims in tort, contract, or otherwise against the Authority, irrespective of whether such parties have notice thereof. The resolution and indenture by which a pledge is created need not be filed or recorded except in the records of the Authority.

The members of the Council, the officers of the employees of the Authority or the City, and any person executing any Bonds shall not be liable personally on the Bonds or be subject to personnel liability or accountability by reason of the issuance thereof.

The Authority shall have the power out of funds available to purchase its Bonds. The Authority may hold, pledge, cancel, or resell such Bonds, subject to and in accordance with agreements with the bondholders.

The holder of Bonds issued under this chapter or the coupons appertaining, and trustee appointed pursuant to a resolution relating to the issuance of Bonds, except to the extent the rights may be restricted by such resolution or indenture authorized to be entered into by the Authority may, at law or in equity, by suit, action, mandamus or other proceedings, shall protect or enforce rights specified in law or in such resolution or indenture, and may enforce and compel the performance of duties required by this chapter or by such resolution or indenture to be performed by the Authority or by any officer, employee, or agent thereof, including the fixing, charging, and collecting of rates, fees, interest, and charges authorized and required by the provisions of such resolution or indenture to be fixed, charged, and collected.

The Authority is authorized to issue Bonds for the purpose of replacing or refunding Bonds then outstanding.

In anticipation of the sale of Bonds authorized by this chapter, the Authority is authorized to issue bond anticipation notes, and to renew the same from time to time, in such series and amounts as are determined by the Council to be necessary or appropriate for the Costs of Facilities approved by the Council. Such notes shall be payable from Revenues or other moneys or assets authorized by this chapter to be pledged to secure payment of Bonds, and which are not otherwise pledged, or from the proceeds of sale of the particular Bonds in anticipation of which they are issued. Such notes shall be issued in the same manner as Bonds. The Mayor or Authority Manager shall determine the terms and timing of the issuance of particular bond anticipation notes in accord with the provisions of Section 3-2.717 and the resolution of the Council approving the particular Facilities to be financed. Such notes, a resolution relating to the issuance of such notes and an indenture to be entered into by the Authority pursuant to such resolution may contain any provisions, conditions or limitations permitted under Section 3-2.718.

The validity of the authorization and issuance of Bonds is not dependent on and shall not be affected by proceedings taken by the Authority for the approval of financing or the entering into of an agreement, or by the failure to provide financing or enter into an agreement, for which Bonds are authorized to be issued under this chapter.

This article, being necessary for the welfare of the City and its inhabitants, shall be liberally construed to effect its purposes.

The omission of an officer of the City or the Authority in proceedings under this chapter or any other defect in the proceedings, shall not invalidate such proceedings or the Bonds issued pursuant to this chapter.

This article is full authority for the issuance of Bonds by the Authority for any of the purposes specified herein.

This chapter shall be deemed to provide a complete, additional, and alternative method for doing the things authorized, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of Bonds under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuance of Bonds. The purposes authorized may be effectuated and Bonds are authorized to be issued for such purposes under this chapter notwithstanding that any other law may provide for such purposes or for the issuance of Bonds for like purposes and without regard to the requirements, restrictions, limitations or other provisions contained in other laws.

To the extent the provisions of this article are inconsistent with the provisions of any general statute or the Act or parts thereof, the provisions of such statute or the Act are deemed controlling.

If any provision of this article or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or application of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. The Council declares it would have adopted and passed this chapter and each section, subsection, sentence, clause, phrase and word hereof, irrespective of the fact that any one or more of the other sections, subsections, sentences, clauses, phrases or words hereof be declared invalid or unconstitutional.

The appropriate officers of the Authority are hereby authorized and directed, for and in the name of and on behalf of the Authority, to do any and all things, and take any and all actions, and execute and deliver any and all certificates, agreements and documents which they or any of them may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds or bond anticipation notes authorized by this chapter in accordance with the provisions of such law, and the resolution of the Council approving the particular Facility to be financed.