Long Beach Municipal Code Div. II Industrial Development Revenue Bonds

For the purpose of this Division, the following recitals shall apply:

A. The City of Long Beach (the "City") is a municipal corporation and Charter City duly organized and existing under a freeholders' Charter pursuant to which the City has the right and power to make and enforce all laws and regulations in respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Section 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 109 of Article I of the Charter of the City (the "Charter").

B. The City Council of the City acting under and pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 109 of Article I of the Charter, finds that the public interest and necessity require the establishment by the procedural ordinance codified in this Division of a procedure for the authorization, issuance and sale of revenue bonds by the City for the purpose of providing financing or refinancing to certain industrial, commercial and manufacturing participants, or to certain nonprofit participants, for certain purposes as specified herein.

(Ord. C-7058 § 1, 1992: Ord. C-5971 § 1 (part), 1983)

This Division contains a procedural ordinance for the authorization, issuance and sale of industrial development bonds in the City of Long Beach and may be cited as the "City of Long Beach Industrial Development Revenue Bond Law."

(Ord. C-5971 § 1 (part), 1983)

The City Council finds and declares that it is necessary, essential, a public purpose and a municipal affair for the City to be authorized to provide financing to induce manufacturing, industrial, commercial and nonprofit enterprises to locate in the City, to expand, enlarge or modernize existing enterprises, to promote commerce and industry, as well as educational and cultural opportunities, within the City.

(Ord. C-7058 § 2, 1992: Ord. C-5971 § 1 (part), 1983)

Unless the context otherwise requires, the terms used in this Division shall have the following meanings:

A. "Bonds" means any bonds, notes, certificates, debentures or other obligations issued by the City pursuant to this Chapter and payable exclusively from revenues as in this Chapter defined and from any other funds specified in this Chapter upon which such obligations may be made a charge and from which they are payable.

B. "City" means the City of Long Beach.

C. "Cost" means the total of all costs incurred by or on behalf of a participant as are approved by the City as reasonable and necessary for carrying out all works and undertakings necessary or incident to acquisition, construction, financing or refinancing of a facility. "Cost" shall include all such costs, including costs for construction undertaken by a participant as its own contractor, which under generally accepted accounting principles are not properly chargeable as an expense of operation and maintenance.

D. "Council" means the City Council of the City of Long Beach.

E. "Facility" means any land, building or other improvement for use by any industry for manufacturing, processing or assembling any agricultural or manufactured products, by any commercial enterprise in storing, warehousing, distributing or selling products of agriculture, mining or industry, or by any person for the carrying on of commercial and/or retail enterprises, or the providing of offices for any business, educational or cultural purpose, on a rental or lease basis, or for the support or operation of airport facilities and related hotels, roadways and parking facilities; or any research enterprise for the foregoing; including without limitation all real or personal property necessary to the operation of such facility.

F. "Participant" means any person, company, corporation, partnership, firm, or other entity or group of entities engaged in operations within this City or desiring to establish, improve or expand such operations, which requires financing pursuant to the terms of this Chapter.

G. "Revenues" means amounts received by the City as repayment of principal, interest, and all other charges with respect to a loan under this Chapter, any proceeds received by the City from mortgage, hazard or other insurance on or with respect to such a loan, all other rents, charges, fees, income and receipts derived by the City from the financing or refinancing of a facility under this Chapter, any amounts received by the City as investment earnings on moneys deposited in a reserve fund or any similar fund securing bonds, and such other moneys as the Council may, in its discretion lawfully designate as revenues.

(Ord. C-7058 § 3, 1992; Ord. C-5971 § 1 (part), 1983)

A. The City may use the proceeds of bonds issued hereunder to make, purchase, or otherwise contract for the making of, a mortgage or other secured or unsecured loan, upon such terms and conditions as the City shall deem proper, to any participant for the cost of acquiring or constructing a facility or financing thereof; provided, however, that no such loan shall exceed the total cost of such facility as determined by the participant and approved by the City.

B. The City may sue the proceeds of bonds, or other moneys provided by or on behalf of a participant, to acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip and lease a facility solely for the purpose of selling or leasing such a facility to such participant, and may contract with such participant to undertake on behalf of the City to construct, enlarge, remodel, renovate, alter, improve, furnish and equip such facility.

The City may sell or lease, upon such terms and conditions as the City shall deem proper, to a participant any facility owned by the City under this Chapter, including a facility conveyed to the City in connection with a financing under this Division but not being financed hereunder.

(Ord. C-5971 § 1 (part), 1983)

Any person may apply to the City for approval as a participant and for approval of a facility for financing under this Division by submitting an application to the City in the form approved by the City.

(Ord. C-5971 § 1 (part), 1983)

The City shall require the participants and contractors or subcontractors engaged in the construction of a facility financed under this Division to provide equal opportunity for employment, without discrimination as to race, marital status, sex, color, religion, national origin or ancestry. The City shall also require that participants engaged in the acquisition, construction, installation, reconstruction, rehabilitation or improvement of a facility financed under this Division shall submit as a part of their applications hereunder an affirmative action program.

(Ord. C-5971 § 1 (part), 1983)

The City Manager shall propose standards and procedures for applications submitted under this Division and shall prepare a form for such applications, such standards, procedures and form to be approved by the City before participants may apply for the financing of facilities hereunder.

(Ord. C-5971 § 1 (part), 1983)

The City may charge participants application, commitment, financing and other fees, in order to recover all direct administrative and other costs and expenses incurred in the exercise of the powers and duties conferred by this Division.

(Ord. C-5971 § 1 (part), 1983)

The City may 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, or any part thereof, on any loan, lease or sale obligation or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this Division; and may accept payment in such manner and form as provided therein in the event of default by a participant, and may assign any such insurance or guarantee as security for bonds.

(Ord. C-5971 § 1 (part), 1983)

The City may fix rents, payments, fees, charges and interest rates for financing under this Division and may 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 Division, including City administrative expenses.

(Ord. C-5971 § 1 (part), 1983)

The City may hold deeds of trust or mortgages as security for loans under this Division and may pledge or assign the same as security for repayment of bonds. Such deeds of trust or mortgages 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.

(Ord. C-5971 § 1 (part), 1983)

The City may employ such engineering, architectural, financial, accounting, legal or other services as may be necessary in the judgment of the City for the purposes of this Division.

(Ord. C-5971 § 1 (part), 1983)

In addition to all other powers specifically granted by this Division, the City may do all things necessary or convenient to carry out the purposes of this Chapter.

(Ord. C-5971 § 1 (part), 1983)

A. The City may, from time to time, issue bonds for any of the purposes specified in Section 3.52.208. Bonds shall be negotiable instruments for all purposes, subject only to the provisions of such bonds for registration.

B. Every issue of bonds shall be a limited obligation of the City payable from all or any specified part of the revenues and the moneys and assets authorized in this Division 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 under the provisions of this Division 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, 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 any appropriation for their payment.

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 is pledged to the payment of the principal of, or premium or interest on this bond.

(Ord. C-5971 § 1 (part), 1983)

Bonds may be issued as serial bonds, term bonds, installment bonds or pass-through certificates or any combination thereof. Bonds shall be authorized by resolution of the 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, be subject to such terms of redemption and have such other terms and conditions as such resolution or any indenture authorized by such resolution to be entered into by the City may provide. Bonds may be sold at either a public or private sale and for such prices as the City shall determine. Pending preparation of definitive bonds, the City may issue temporary bonds, which shall be exchanged for such definitive bonds when prepared.

(Ord. C-5971 § 1 (part), 1983)

Any resolution authorizing any bonds or any issue of bonds, or any indenture authorized by such resolution to be entered into by the City, 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 bond 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 such other funds as are necessary and the regulation and disposition thereof;

E. The pledge or assignment of all or any part of the revenues and the use and disposition thereof, subject to such agreements with the holders of bonds as may then be outstanding;

F. Limitation on the use of revenues for expenditures for operating, administration or other expenses of the City or a participant;

G. Specification of the acts or omissions to act which shall constitute a default in the duties of the City or a participant 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 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.

(Ord. C-5971 § 1 (part), 1983)

Any pledge of revenues or other moneys or assets pursuant to the provisions of this Division shall be valid and binding from the time such pledge is made. Revenues, moneys 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.

(Ord. C-5971 § 1 (part), 1983)

Neither the members of the Council, 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.

(Ord. C-5971 § 1 (part), 1983)

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 and in accordance with agreements with bondholders.

(Ord. C-5971 § 1 (part), 1983)

Any holder of bonds issued under the provisions of this Division or any of the coupons appertaining thereto, and any trustee appointed pursuant to any resolution authorizing 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, the charges authorized and required by the provisions of such resolution or indenture to be fixed, charged, and collected.

(Ord. C-5971 § 1 (part), 1983)

A. The City may issue bonds for the purpose of refunding any bonds then outstanding including the payment of any redemption premiums thereof and any interest accrued or to accrue to the earliest or any subsequent date or dates of redemption, purchase, or maturity of such bonds.

B. The proceeds of bonds issued for the purpose of refunding any outstanding bonds may, in the discretion of the City, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds, either at their earliest or any subsequent redemption date or dates or upon the purchase or retirement at the maturity thereof and may, pending such application, be placed in escrow, to be applied to such purchase or retirement at maturity or redemption on such date or dates as may be determined by the City.

C. Pending use for purchase, retirement at maturity or redemption of outstanding bonds, any proceeds held in escrow pursuant to Subsection 3.52.237.B may be invested and reinvested as provided in the resolution or indenture. Any interest or other increment earned or realized on any such investment may be applied to the payment of the outstanding bonds to be refunded or to the payment of interest on the refunding bonds. After the terms of escrow have been fully satisfied and carried out, any balance of such proceeds and any interest or increment earned or realized from the investment thereof may be returned to the City to be used by it for any lawful purpose.

D. All bonds issued pursuant to this Section shall be subject to the provisions of this Division in the same manner and to the same extent as other bonds issued pursuant to this Division.

(Ord. C-5971 § 1 (part), 1983)

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 making of any loan or the entering into of any agreement, or by the failure to make any load or enter into any agreement, for which bonds are authorized to be issued under this Chapter.

(Ord. C-5971 § 1 (part), 1983)

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

(Ord. C-5971 § 1 (part), 1983)

If the jurisdiction of the Council to order the proposed act is not affected, any omission of any officer of the City in proceedings under this Division or any other defect in the proceedings shall not invalidate such proceedings or the bonds issued pursuant to this Division.

(Ord. C-5971 § 1 (part), 1983)

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

(Ord. C-5971 § 1 (part), 1983)

This Division 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 Division 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 may be issued for any such purposes under this Division 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.

(Ord. C-5971 § 1 (part), 1983)