Richmond Municipal Code Ch. 13.55 City of Richmond Economic Development Revenue Bond Law

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

The Council hereby finds and determines as follows:

(a) The full and gainful employment of residents of the City, the full and efficient utilization and modernization of existing industrial, commercial and business facilities, the encouragement of expanded industrial, commercial and business development, the expansion of the City's tax base and financial resources, the stability and diversification of the City's economy, the environmentally optimum disposition of waste materials of the City, the lowering of the cost to Richmond consumers of necessary goods and services and the enhancement of the general economic prosperity, health, safety and welfare of the residents of the City are essential to the well-being of the City, are public purposes in which the City of Richmond has a unique interest, and constitute municipal affairs of the City of Richmond.

(b) The unemployment and underemployment of many residents of the City is detrimental to the health, safety and general welfare of all residents of the City. The low rate of income growth and the reduction of purchasing power attributable in part to widespread unemployment have reduced the standard of living of residents of the City, reduced the real property tax base, reduced sales tax revenues, fostered urban ills such as crime and unsanitary conditions, and increased the cost of social services, welfare and other remedial programs. These resulting problems are generally beyond the ability of unassisted private enterprise to prevent, and beyond complete solution by regulation and other traditional means. New employment opportunities being provided by private enterprise and government are inadequate to reduce sufficiently the unemployment problem in the face of stagnation in some economic sectors, slow rates of growth in others, physical deterioration of some industrial, commercial and business facilities, the unavailability of adequate private financing, and reduced tax revenues and social services. Full employment increases incomes and purchasing power, increases the standard of living, increases sales tax revenues and reduces crime, unsanitary conditions, and other conditions which require expensive remedial programs. Less crime, improved sanitation and reduced demand for welfare and other social assistance alleviate the drain on limited public and private resources and thereby enhance the financial well-being of the City.

(c) Significant portions of the industrial, commercial and business sectors of the City are economically distressed. Business activity has not grown at a rate commensurate with the needs of the City and its residents. Many industrial, commercial and business facilities are underutilized, deteriorating or vacant. Many such facilities are antiquated and inefficient and use processes which damage the environment and waste increasingly scarce resources. Private investment in industrial, commercial and business facilities in the City is inadequate, due in part to the unavailability of sufficient private financing and the lack of incentives to invest in areas of economic blight. The rehabilitation, revival and further development of the City's commercial, industrial and business areas will increase employment, stem the tide of deterioration and abandonment of existing facilities, increase the stability and diversity of the local economy, increase the City's tax base by increasing property values, incomes and spending and thereby will enhance the physical and financial well-being of the City.

(d) The City's participation in the encouragement and financing of economic development within the City, pursuant to this chapter, will serve the public interests of the City's residents by providing private enterprises with new methods of financing capital outlays in the City, 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 and by lowering the cost to the Richmond consumer of necessary goods and services. The City can 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.

Unless the context otherwise requires, the terms defined in this chapter 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 as provided in this chapter.

(b) "City" means the City of Richmond.

(c) "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 costs for construction undertaken by a participating party as its own contractor. "Cost" may also include working capital incident to the operation of a facility.

(d) "Council" means the City Council of the City of Richmond.

(e) "Facility" means any facility, place or building within the City which is maintained and operated for industrial, commercial or business purposes (including the purpose of providing recreational or health-related services which promote the general welfare of the residents of the City), conforms to the general plan of the City and is approved by the City for financing pursuant to this chapter, such approval to be given only if the City finds and determines that such financing will substantially promote one or more of the public purposes listed in Section 13.55.020. A "facility" may include, without limitation, real and personal property, land, buildings, structures, fixtures, machinery and/or equipment. "Facility" also includes, without limitation, all such property related to or required or useful for the operation of a facility. "Facility" shall 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.

(f) "Participating party" means any individual, association, corporation (including any not-for-profit corporation), partnership or other entity which is approved by the City to undertake the financing of the costs of a facility pursuant to this chapter.

(g) "Revenues" means amounts received by the City as payments of principal, interest, and all other charges with respect to a loan under this chapter, such as payments under a lease, sublease or sale agreement with respect to a facility, 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 under this chapter, any amounts received by the City as investment earnings on moneys deposited in any fund securing bonds, and such other legally available moneys as the Council may, in its discretion, lawfully designate as revenues.

None of the revenues, as defined by this chapter, shall be taken into account in any manner in determining the City's compliance with Article XIIIB of the California Constitution.

The City may use the proceeds of bonds 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 participating party for the costs of a facility.

The City may use the proceeds of bonds, or other moneys provided by or on behalf of a participating party, to acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip and lease as lessee a facility solely for the purpose of selling or leasing as lessor such facility to such participating party, and may contract with such participating party 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 participating party any facility owned by the City under this chapter, including a facility conveyed to the City in connection with a financing under this chapter but not being financed hereunder.

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 require in order to enable the City to evaluate the applicant, the proposed facility and its proposed costs.

The City may 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. The Council may direct the City Clerk to transmit a letter agreement or contract to a participating party which will obligate such party to pay such fees as the Council may charge hereunder.

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 chapter; and may accept payment in such manner and form as provided therein in the event of default by a participating party, and may assign any such insurance or guarantee as security for bonds.

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

The City may hold deeds of trust or mortgages or security interests in personal property as security for loans under this chapter and may 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.

The City may 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.

The City may require 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, sexual orientation, sex, color, religion, national origin or ancestry. The City may also require that participating parties engaged in the acquisition, construction, rehabilitation or improvement of facilities financed under this part shall submit and receive approval from the City of an affirmative action program prior to the issuance of bonds for such facility.

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, except as expressly required by the Charter and other applicable law.

The City Manager may adopt rules or regulations establishing such standards, requirements and conditions applicable to the financing of facilities and the eligibility of participating parties and costs as the City Manager deems necessary or desirable to effectuate the purposes of this chapter.

In addition to all other powers specifically granted by this chapter, the City may do all things necessary or convenient to carry out the purposes of this chapter; provided, however, that 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.

(a) The City may, from time to time, issue bonds for any of the purposes specified in Sections 13.55.050 or 13.55.060. 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 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 under the provisions of 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, 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.

In determining the amount of bonds to be issued, the City may include all costs of the issuance of such bonds, reserve funds, and capitalized bond interest.

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 public or private sale and for such prices as the City shall determine.

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 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 and the use and disposition of such revenues, moneys and assets,

(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 specification of 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, sale contracts or 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 proportion of the aggregate principal amount of bonds outstanding the holders of which must consent to such amendment or abrogation, 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.

Any pledge of revenues or other moneys or assets pursuant to the provisions of 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 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.

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.

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.

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 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, and charges authorized and required by the provisions of such resolution or indenture to be fixed, charged, and collected.

The City may issue bonds for the purpose of refunding any bonds then outstanding.

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 enter into any agreement, for which bonds are authorized to be issued under this chapter.

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

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.

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

This chapter shall be deemed to provide a complete, additional, and alternative method for doing the things authorized hereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The purposes authorized hereby may be effectuated and bonds may 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.

To the extent that the provisions of this chapter are inconsistent with the provisions of any general statute or special act or parts thereof the provisions of this chapter shall be deemed controlling.

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provision 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 hereby declares that it would have adopted and passed this chapter and each chapter, section, subsection, sentence, clause, phrase and word hereof, irrespective of the fact that any one or more of the other chapters, sections, subsections, sentences, clauses, phrases or words hereof be declared invalid or unconstitutional.

(Source: Ordinance No. 10-90 N.S.)