Irvine Municipal Code Ch. 3 City of Irvine Economic Development Revenue Bond Law

This chapter may be cited as the City of Irvine Economic Development Revenue Bond Law.

(Code 1976, § II.H-501; Ord. No. 82-5, § 1, 5-11-82)

A. The Council hereby finds and declares that it is necessary and essential to the well-being of the City that it 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:

1. The full and gainful employment of residents of the City;

2. The full and efficient utilization and modernization of existing industrial, commercial and business facilities;

3. The development of new industrial, commercial and business facilities;

4. The growth of the City's tax base through increased property values and consumer purchasing;

5. The stability and diversification of the City's economy;

6. The lowering or the providing of the most economical cost to City consumers of necessary goods and services, including medical and health care;

7. The environmentally optimum disposition of waste materials of the City; and

8. The enhancement of the general economic prosperity, health, safety and welfare of the residents of the City.

B. 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 financing capital outlays in the City and by ensuring that 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 the areas outside the City and without conflicting with efforts by the State of California to solve problems of statewide concern.

(Code 1976, § II.H-502; Ord. No. 82-5, § 1, 5-11-82; Ord. No. 84-11, § 1, 6-12-84)

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Bonds means the bonds, notes, certificates, debentures and other obligations authorized to be issued by the City pursuant to this chapter and payable as provided in this chapter.

Cost means the total of all costs incurred by or on behalf of a participating party to carry out all works and undertakings and to obtain all rights and powers necessary or incident to the acquisition, construction, installation, reconstruction, rehabilitation or improvement of a facility. "Cost" may include all costs of issuance of bonds for such purposes, costs for construction undertaken by a participating party as its own contractor, costs of refunding or refinancing outstanding obligations of such participating party incurred to finance the cost of acquiring, constructing, rehabilitating or improving a facility (to the extent permitted by law), capitalized bond interest, reserves for debt service and for repairs, replacements, additions and improvements to a facility, and working capital incident to the operation of a facility. "Costs" may also include reimbursement of any such costs incurred by the participating party prior to or after the enactment or amendment of this section or prior to or after the enactment of a resolution of the Council with respect to the issuance of bonds (to the extent permitted by law).

Facility means any of the facilities, places or buildings within the City which are, or will be, maintained and operated for industrial, commercial, business, health and medical care or similar public benefit purposes, conform to the general plan of the City and are approved by the City for the financing authorized by this chapter, such approval being given only when the City finds and determines that such financing will substantially promote one or more of the public purposes listed in section 2-7-302.

A "facility" may be an activity which may otherwise be financed pursuant to the California Industrial Development Financing Act (Government Code § 91500 et seq.) to the extent said Act permits the financing of such activity under alternative authority. "Facility" includes, without limitation, real and personal property, land, buildings, structures, fixtures, machinery and/or equipment and all such property related to or required or useful for the operation of a facility. "Facility" does not include any facility, place or building used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.

Participating party means any individual, association, corporation, partnership or other entity which is approved by the City to undertake the financing of the costs of a facility for which this chapter authorizes the issuance of the bonds.

Revenues means amounts received by the City as payments of principal, interest and all other charges with respect to a loan authorized by this chapter; as payments under a lease, sublease or sale agreement with respect to a facility; as proceeds received by the City from mortgage, hazard or other insurance on or with respect to such a loan (or any property securing such loan), lease, sublease or sale agreement; all other rents, charges, fees, income and receipts derived by the City from the financing of a facility authorized by this chapter; any amounts received by the City as investment earnings on monies deposited in any fund securing the bonds; and such other legally available monies as the Council may, in its discretion, lawfully designate as revenues.

(Code 1976, § II.H-503; Ord. No. 82-5, § 1, 5-11-82; Ord. No. 82-13, § 1, 10-12-82; Ord. No. 84-11, §§ 2, 3, 6-12-84)

Revenues, as defined by this chapter, and the expenditure of such revenues shall not be taken into account in any manner in determining the City's compliance with Article XIIIB of the California Constitution.

(Code 1976, § II.H-504; Ord. No. 82-5, § 1, 5-11-82)

The City is hereby authorized to make, purchase or otherwise contract for the making of a mortgage or other secured or unsecured loan, with the proceeds of bonds and upon such terms and conditions as the City shall deem proper, to any participating party for the costs of a facility.

(Code 1976, § II.H-505; Ord. No. 82-5, § 1, 5-11-82)

A. The City is hereby authorized to acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip and lease as lessee, with the proceeds of bonds, a facility solely for the purpose of selling or leasing as lessor such facility to such participating party, and is further authorized to make any contracts for such purposes. The City is also authorized to contract with such participating party to undertake on behalf of the City to construct, enlarge, remodel, renovate, alter, improve, furnish and equip such facility.

B. This City is authorized to sell or lease, upon such terms and conditions as the City shall deem proper, to a participating party any facility owned by the City under this chapter, including a facility conveyed to the City in connection with a financing authorized by this chapter but not being financed hereunder.

(Code 1976, § II.H-506; Ord. No. 82-5, § 1, 5-11-82)

Any person may apply to the City for approval as a participating party and for approval of a facility for financing under this chapter. Applications shall set forth such information as the City may prescribe in order to enable the City to evaluate the applicant, the facility and its proposed costs. The Board of Directors of the Industrial Development Authority is hereby delegated the responsibility of receiving and evaluating such applications and shall recommend to the Council whether financing of a facility should be approved.

(Code 1976, § II.H-507; Ord. No. 82-5, § 1, 5-11-82)

The City is hereby authorized to charge participating parties application, commitment, financing and other fees in order to recover all administrative and other costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.

(Code 1976, § II.H-508; Ord. No. 82-5, § 1, 5-11-82)

The City is hereby authorized to obtain, or aid in obtaining, from any department or agency of the United States or of the State of California or any 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 any part thereof, on any loan, lease or sale obligation or any instrument evidencing or securing the same, made or entered into as authorized by this chapter; and the City 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 any such insurance or guarantee as security for bonds.

(Code 1976, § II.H-509; Ord. No. 82-5, § 1, 5-11-82)

The City is hereby 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 City administrative expenses.

(Code 1976, § II.H-510; Ord. No. 82-5, § 1, 5-11-82)

The City is hereby 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 any other interest of the City in any facility, may be assigned to and held on behalf of the City by any bank or trust company appointed to act as trustee by the City in any resolution or indenture providing for issuance of bonds.

(Code 1976, § II.H-511; Ord. No. 82-5, § 1, 5-11-82)

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

(Code 1976, § II.H-512; Ord. No. 82-5, § 1, 5-11-82)

The City requires that contractors and subcontractors engaged in the construction of facilities financed under this chapter shall provide equal opportunity for employment, without discrimination as to race, marital status, sex, color, religion, national origin or ancestry.

(Code 1976, § II.H-513; Ord. No. 82-5, § 1, 5-11-82)

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

(Code 1976, § II.H-514; Ord. No. 82-5, § 1, 5-11-82)

In addition to all other powers specifically granted by this chapter, the City is hereby authorized to contract for and do all things necessary or convenient to carry out the purposes of this chapter; however, the City 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.

(Code 1976, § II.H-515; Ord. No. 82-5, § 1, 5-11-82)

The City is hereby authorized to issue 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 for all purposes, subject only to the provisions of such bonds for registration.

(Code 1976, § II.H-516; Ord. No. 82-5, § 1, 5-11-82)

A. All of the bonds hereby authorized to be issued shall be limited obligations of the City payable from all or any specified part of the revenues and the monies and assets authorized in this chapter to be pledged or assigned to secure payment of bonds. Such revenues, monies 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 or liability of the City or a pledge of the faith and credit of the City but shall be payable solely from specified revenues, monies 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 any appropriation for their payment.

B. All 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 Irvine is pledged to the payment of the principal of or premium, if any, or interest on this bond."

(Code 1976, § II.H-517; Ord. No. 82-5, § 1, 5-11-82)

Bonds shall be issued as serial bonds, term bonds, installment bonds or pass-through certificates or any combination thereof. The Assistant City Manager or his or her designee shall determine the terms and timing of the issuance of particular bonds in accord with the resolution of the Council approving the particular facility to be financed thereby. Bonds shall bear such date or dates, mature at such time or times not to exceed 40 years, bear interest at such fixed or variable rate or rates approved by the participating party whose facility is being financed, 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, 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 City pursuant to such resolution, shall provide. Bonds shall be sold at either public or private sale and for such prices as the City shall determine.

(Code 1976, § II.H-518; Ord. No. 82-5, § 1, 5-11-82)

Any resolution relating to the issuance of any bonds, or any indenture to be entered into by the City 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 the 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 monies 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, monies 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 City and the holders of its bonds, the pledge or assignment of loans, deeds of trust, mortgages, leases, subleases, sales contracts and any other contracts to such trustee, and the rights of such trustee;

I. The procedure, if any, by which the terms of any 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; and

J. Any other provisions which the Council may deem reasonable and proper for the purposes of this chapter and the security of the bondholders.

(Code 1976, § II.H-519; Ord. No. 82-5, § 1, 5-11-82)

Any pledge of revenues or other monies or assets as authorized by this chapter shall be valid and binding from the time such pledge is made. Revenues, monies and assets so pledged and thereafter received by the City 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 all parties having claims of any kind in tort, contract or otherwise against the City, irrespective of whether such parties have notice thereof. Neither the resolution nor any indenture by which a pledge is created need be filed or recorded except in the records of the City.

(Code 1976, § II.H-520; Ord. No. 82-5, § 1, 5-11-82)

Neither the members of the Council, the Board of Directors of the Industrial Development Authority, the officers or employees of the City, nor any person executing any bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

(Code 1976, § II.H-521; Ord. No. 82-5, § 1, 5-11-82)

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

(Code 1976, § II.H-522; Ord. No. 82-5, § 1, 5-11-82)

Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and any trustee appointed pursuant to any resolution relating to the issuance of bonds, except to the extent the rights thereof may be restricted by such resolution or any indenture authorized thereby to be entered into by the City, may, either at law or in equity, by suit, action, mandamus or other proceedings, protect or enforce any and all rights specified in law or in such resolution or indenture, and may enforce and compel the performance of all duties required by this chapter or by such resolution or indenture to be performed by the City 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.

(Code 1976, § II.H-523; Ord. No. 82-5, § 1, 5-11-82)

The City is hereby authorized to issue bonds for the purpose of refunding any bonds then outstanding.

(Code 1976, § II.H-524; Ord. No. 82-5, § 1, 5-11-82)

In anticipation of the sale of bonds authorized by this chapter, the City is hereby 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 monies 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 Assistant City Manager or his or her designee shall determine the terms and timing of the issuance of particular bond anticipation notes in accord with the provisions of Section 2-7-321 and the resolution of the Council approving the particular facility to be financed thereby. Such notes, any resolution relating to the issuance of such notes and any indenture to be entered into by the City pursuant to such resolution may contain any provisions, conditions or limitations permitted under Section 2-7-322.

(Code 1976, § II.H-525; Ord. No. 82-5, § 1, 5-11-82)

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

(Code 1976, § II.H-526; Ord. No. 82-5, § 1, 5-11-82)

Any omission of any officer of the City 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.

(Code 1976, § II.H-528; Ord. No. 82-5, § 1, 5-11-82)

This chapter is full authority for the issuance of bonds by the City for any of the purposes specified herein.

(Code 1976, § II.H-529; Ord. No. 82-5, § 1, 5-11-82)

This chapter shall be deemed to provide a complete, additional and alternative method for doing the things authorized thereby, 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 hereby may be effectuated and bonds are authorized to be issued for any 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 any other law.

(Code 1976, § II.H-530; Ord. No. 82-5, § 1, 5-11-82)

To the extent that the provisions of this chapter are inconsistent with the provisions of any State law, the provisions of this chapter shall be deemed controlling.

(Code 1976, § II.H-531; Ord. No. 82-5, § 1, 5-11-82)