Salinas Municipal Code § 10-11 Security for loans

Following approval of an application, the city is authorized to finance the costs of a project. In connection with such financing, the city may make, purchase, or otherwise contract for the making of, a mortgage or other secured or unsecured loan to a participant, with the proceeds of bonds.

(Ord. No. 1841 (NCS), § 1.)

The city is authorized to acquire, construction, enlarge, remodel, renovate, alter, improve, furnish, equip and lease as lessee, with the proceeds of bonds, projects solely for the purpose of selling or leasing as lessor such project to a participant, and is further authorized to make any contracts for such purposes. The city is also authorized to contract with such participant to undertake on behalf of the city to construct, enlarge, remodel, renovate, alter, improve, furnish and equip such project. The city is authorized to sell or lease to a participant, upon such terms and conditions as the city shall deem proper any project owned by the city under this division, including a project conveyed to the city in connection with a financing authorized by this division but not being financed hereunder.

(Ord. No. 1841 (NCS), § 1.)

The city shall enter into a loan agreement with any participant, and related parties, if applicable, with respect to the financing of a project. Such loan agreement may provide that the architectural and engineering design of the project shall be subject to such standards as may be established by the city and that the undertaking and completion of the project shall be subject to such supervision as the city deems necessary. The terms and conditions of such loan agreements may be as mutually agreed upon, but shall be consistent with the provisions of this division and the rules and regulations. Any such loan agreement may provide the means or methods by which any mortgage or other financing instrument taken by the city shall be discharged, and it shall contain a covenant by the participant to complete the project whether or not bond proceeds are sufficient for such purpose, and may contain such other terms and conditions as the city may require.

(Ord. No. 1841 (NCS), § 1.)

The city is hereby authorized to charge a participant reasonable application, commitment, financing and other fees in connection with the financing of projects pursuant to this division, such fees to be specified in the rules and regulations.

(Ord. No. 1841 (NCS), § 1.)

The city is authorized to fix, revise, charge and collect interest and principal, rents and all other rates, fees and charges with respect to the financing of a project. Such rents, rates, fees, charges and interest shall be fixed and adjusted so that the aggregate thereof will provide funds sufficient, together with other revenues and moneys which it is anticipated will be available for the project, to complete such project, pay all initial costs therefor, including all fees and expenses of the city which may be incurred in connection with financing the project.

(Ord. No. 1841 (NCS), § 1.)

The city is hereby authorized to hold deeds of trust or mortgages or security interest in personal property as security for loans and other obligations authorized by this division 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 project, 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. No. 1841 (NCS), § 1.)

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 division and the implementation of any project.

(Ord. No. 1841 (NCS), § 1.)

The acquisition, construction, installation, reconstruction, rehabilitation or improvement of projects financed under this division 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 article, unless otherwise required by law.

(Ord. No. 1841 (NCS), § 1.)

In addition to all other powers specifically enumerated by this division, the city is hereby authorized to contract for and do all things necessary or convenient to carry out the purposes of this division, provided, however, that the city shall not have the power to operate a project financed under this division as a business, except temporarily in the case of a default by a participant.

(Ord. No. 1841 (NCS), § 1.)

All proceedings taken in connection with the processing of applications and the financing of projects shall be in accordance with this division and with such rules and regulations as shall be adopted, and as may be amended or supplemented from time to time, by the city council.

(Ord. No. 1841 (NCS), § 1.)