1988-15 RESOLUTION NO. . 88-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE, CALIFORNIA, AUTHORIZING LEASE
AGREEMENT AND SIGNATORIES
WHEREAS , the City of Grand Terrace , County of San Bern-
ardino , State of California ("City") is duly authorized and
existing under the laws of said State ; and
WHEREAS , governing body of said City solicited third
party proposals for lease purchase financing of newly acquired
land ("Property") having an approximate purchase cost of
$325 , 000 .00 ; and
WHEREAS, Municipal Leasing Associates , Inc . on behalf of
itself or its nominee ("Lessor") has offered the district the
most cost effective financing requiring periodic lease payments
including principal plus interest computed at a 7 . 92% annual
percentage rate ;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND.
TERRACE DOES HEREBY RESOLVE that the Mayor acting on behalf of
the City Council be hereby authorized in the name and on behalf
of City to enter into binding agreements for leasing the Property
upon such terms as may seem advisable to said Mayor , and to
execute , as agent for the City , the agreements , leases , consents
to assignment , acceptance certificates , and any other documents
in connection therewith. Said officer is also authorized to
accept or direct delivery of the Property. The authority here-
under performed prior to the passage of this resolution is hereby
ratified and affirmed.
BE IT FURTHER RESOLVED that the contemplated lease
transaction be designated by this body as a qualified tax exempt
obligation pursuant to Section 265(b) of the Internal Revenue
Code of 1986 and the authorized officer be directed to execute
the "Designation of Qualification" document .
ADOPTED: August 25 , 1988
9&01
Mayor
ATTEST:
F16puty =City C1 rk
_ RESOLUTION NO. 88-15
PAGE 2
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss .
CITY OF GRAND TERRACE )
I , JUANITA BROWN, Deputy City Clerk of the City of Grand
Terrace , do hereby- certify that the foregoing Resolution was duly
and regularly adopted by the City Council of the City of Grand
Terrace at a regular meeting thereof held on the 25th day of
August , 1988 , by the following vote :
AYES : Councilmembers Grant , Shirley; Mayor Matteson;
NOES : Mayor Pro Tem Pfennighausen , Councilmember
Evans
ABSENT: None
ABSTAIN: None
uty. City MeYk
INCUMBENCY
TITLE OF OFFICER NAME OF OFFICER SI}G�NATURE
MAYOR BYRON R. MATTESON (
Date :
D p "ty City C1,6rR
min
Municipal Leasing Associates, Inc.
16133 Ventura Blvd.•13th FL, Suite D•Encino, California 91436•(818)788-5797
August 18, 1988
City of Grand Terrace
22795 Barton Rd.
Grand Terrace, CA 92324
Attention: Mr. Tom Schwab,
Treasurer
Subject: Lease Purchase Financing
Dear Mr. Schwab
We are pleased to submit a lease financing proposal in accordance with
the terms and conditions set forth below:
Lessor: Municipal Leasing Associates or its nominee
Lessee: City of Grand Terrace
Property: Acquisition of raw land
Property Cost: $325, 000.00
Expected Property
Acceptance Date: September, 1988
Lease Term: Five (5) years
Interest Rate: The lease payments are computed at a 7.92%
annual percentage rate.
Rentals: The lease will specify ten (10) equal
consecutive lease payments payable semi-
annually in arrears. Based upon a total cost
of $325, 000. 00 the lease payments will be
$39,990.00 each with the first payment .due
six months from date of closing. The lease
payment factor of . 123046 when multiplied by
the final Property cost will compute the
final periodic payments.
Legal/Closing Fees: Lessor legal and closing fees for this real
� estate transaction will be $2, 000. 00. In
�` addition, Lessee shall be responsible for
standard CLTA land title insurance premiums,
applicable escrow charges and Lessee outside
counsel fees.
Agency Agreement: Lessor shall appoint Lessee its agent to act
in Lessee's own name in handling all matters
concerning the acquisition of the land.
Purchase Option: The Lessee will enjoy an option to purchase
the Property for $1. 00 upon making the last
lease payment. Purchase options at the end of
each lease period will be stipulated in the
final Payment Schedule.
Type of Lease: The agreement will be a net- lease whereby the
Lessee is responsible for the expense of
maintenance, insurance, and taxes.
Documentation: This proposal is offered subject to final
approval by the Lessor and completion of
documentation to the satisfaction of Lessor's
counsel.
Small Issuer Status: The issuance of this proposal is based upon
the Lessee qualifying as a "small issuer" of
tax-exempt obligations pursuant to
limitations on financial institutions
�j instituted by the. 1986 Tax. Reform Act. For
purposes of this proposal, a small issuer is
defined as one who shall not create in total
more than $10-, 000, 000 of tax-exempt
obligations (including leases) during the
calendar year in which the term of this
proposed lease purchase financing commences.
Expiration Date: The period for acceptance of this proposal
shall expire on August 29, 1988.
If this proposal is acceptable, please sign below and return the
acknowledgment copy.
Sincerely,
MUNICIPAL LEASING ASSOCIATES, INC. ACCEPTED BY:
CITY OF GRAND TERRACE
SIGNED:
h .
William A. Morton DATE: