HomeMy WebLinkAboutResolution 2015-091 Executing the 5th Amendment to the Series 1992 Lease with the MMPCMARANA RESOLUTION NO. 2015 -091
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
TOWN OF MARANA, ARIZONA AUTHORIZING THE EXECUTION
AND DELIVERY BY THE TOWN AND THE TOWN OF MARANA
MUNICIPAL PROPERTY CORPORATION OF A FIFTH AMEND-
MENT TO AMENDED AND RESTATED TOWN LEASE AND
SERIES 1992 TOWN LEASE
WHEREAS, the Town of Marana Municipal Property Corporation
(the "Corporation ") was formed to transact any or all lawful business
for which nonprofit corporations may be incorporated under the laws of
the State of Arizona, including, without limiting the generality of
the foregoing, any civic or charitable purpose such as financing the
cost of acquiring, constructing, reconstructing or improving
buildings, equipment or other real and personal properties suitable
for use by and for leasing to the Town of Marana, Arizona (the
"Town "), or its agencies or instrumentalities; and
WHEREAS, the 'Town heretofore determined that it was
beneficial to its citizens (i) to acquire the water system owned by
Clifford. Ray Honea and Ethel Wynema Honea, husband and wife, doing
business as Honea Water Company (the "First Water System "), consisting
of certain real property and certain personal property (the "Initial
First Water System Improvements ") with respect to the First Water
System and (ii) to acquire the facility presently being used as the
municipal complex for the Town (the "Municipal Complex "), consisting
of certain other real property and to make certain necessary
improvements to the First Water System (the "New First Water System
Improvements" and collectively, with the Initial First Water System
Improvements, the "First Water System Improvements" and the
acquisition of the First Water System, the acquisition of the
Municipal Complex and the making of the New First Water System
Improvements, collectively, the "First Project ") ; and
WHEREAS, the Corporation assisted. the Town in financing the
First Project; and
WHEREAS, in order to finance the costs of the First
Project, the Corporation issued its $280,000 aggregate principal
amount of Town of Marana Municipal Property Corporation Municipal
Facilities Revenue Bonds, Series 1990, dated as of March 1, 1990 its
$315,000 aggregate principal amount of Town of Marana Municipal
Property Corporation Municipal Facilities Revenue Bonds, Series 1992,
dated as of June 1, 1992 (collectively, the "outstanding Bonds "); and
WHEREAS, the Town further heretofore determined that it was
beneficial to its citizens (1) to refinance the outstanding Bonds and
(ii )(A) to acquire the water systems known as "Cortaro Marana,"
"Marana Water Service," "Tucson Water," "Lynn Lee" and "RLOS"
( collectively, the "Second Water Systems"), consisting of certain real
property and certain personal property (the "Second Water Systems
Mai Rcsolutimi No. 2015 -091
Improvements" and collectively, with the First Water System
Improvements, the "Water System Improvements ") with respect to the
Second Water Systems and (B) to (I) make certain improvements to the
Water System Improvements, (II) make certain road and related improve-
ments, (III) acquire certain real property upon which to construct a
town hall (the "Town Hall Property ") and (IV) acquire a modular
building (the "Modular Building "), the property described in clauses
(B) (I) , (II) and. ( IV) being as described on Exhibit E attached to the
hereinafter described Base Town Lease and collectively, with the
acquisition of the Second Water Systems and the project described in
clause ( B) (I I) , being referred to herein as the "Second Project"; and
WHEREAS, the corporation assisted the Town in refinancing
the outstanding Bonds and in financing the Second Project; and
WHEREAS, in order to refinance the outstanding Bonds and to
finance the costs of the Second Project, the corporation issued its
$8,175,000 Town of Marana Municipal Property Corporation Municipal
Facilities Revenue Bonds, Series 1997, dated as of October 1, 1997
(the "Series 1997 Bonds "); and
WHEREAS, the Town further heretofore determined that it was
beneficial to its citizens (i) instead of acquiring the water systems
known. as "Tucson," "Lynn Lee" and 11RLOS, 11 to apply the proceeds of the
sale of the Series 1997 Bonds which were to be applied thereto, along
with approximately $260,000 of proceeds of the sale of the Series 1997
Bonds which remained after the acquisition of the Town Hall Property,
to certain road projects and (ii) instead of acquiring the Modular
Building, to apply the proceeds of the sale of the Series 1997 Bonds
which were to be applied thereto to certain tenant improvements to a
building being leased by the Town; and
WHEREAS, pursuant to a First Amendment to Amended and
Restated Town Lease and Series 1992 Town Lease, dated as of February
1 2000, by and between the Corporation, as lessor, and the Town, as
lessee, among other things, certain amendments were made to the Base
Town Lease for purposes of the foregoing; and
WHEREAS, the Town also further heretofore determined that
it was beneficial to its citizens to design, acquire, construct and
equip a municipal complex on the Town Hall Property (the "Third
Project and
WHEREAS, the Corporation assisted the Town in financing the
Third Project; and
WHEREAS, in order to finance the costs of the Third
Project, the Corporation issued its Town of Marana Municipal Property
Corporation Municipal Facilities Revenue Bonds, Series 2000, dated as
of February 1, 2000 ( the "Series 2000 Bonds 1 T) ; and
WHEREAS, in connection with the issuance of the Series 2000
Bonds, the Corporation entered into a First Supplement to Amended. and
Mar•aiia rZesolutiori No. 2015 -091
Restated Town Lease and Series 1992 Town Lease, dated as of February
1 2000 (the "First Supplement to Base Town Lease ") , with the Town
pursuant to which (i) the Corporation extended the lease of the Town
Hall Property to the Town and leased improvements with respect to the
Third Project ( the "Town Hall. Improvements") to the Town and (I the
Town (A) extended the lease of the Town Hall Property from the Corpo-
ration and leased the Town Hall Improvements from the Corporation and
(B) as agent for the Corporation, agreed to design, acquire, construct
and equip, as the case may be, the Third Project; and
WHEREAS, the Town also further heretofore determined that
it was beneficial to its citizens to use a portion of the remaining
proceeds of the sale of the Series 2000 Bonds to acquire certain prop-
erty to serve as an operations center for the Town (the "operations
Center Property ") and to include such property as part of the property
which is the subject of the First Supplement to Base Town Lease; and
WHEREAS, pursuant to a Combined operations Center Property
Ground. Lease and Second Amendment to Amended. and Restated. Town Lease
and Series 1992 Town Lease (as supplemented by the First Supplement to
Base Town Lease) , dated as of April 1, 2002, by and between the Corpo-
ration, as lessor, and the Town, as lessee, among other things, cer-
tain amendments were made to the First Supplement to Base Town Lease
for purposes of the foregoing; and
WHEREAS, thereafter the Town determined for the benefit of
its citizens that a portion of the operations Center Property and a
portion of the Municipal Complex Real Property should be released from
the terms and provisions of the First Supplement to Base Town Lease
affecting it and that other property transferred to the Corporation
should be made a part of the Town Hall Property pursuant to a Third.
Amendment to Amended and Restated Town Lease and Series 1992 Town
Lease (as supplemented by the First Supplement to Town Base Lease),
dated as of September 1, 2003, by and between the Corporation, as
lessor, and the Town, as Lessee, and;
WHEREAS, the Town also further heretofore determined that it
was beneficial to its citizens to design, acquire, construct and equip,
as the case may be, additional parts of the new municipal complex on
the Town Hall Property ( the "Fourth Project"); and
WHEREAS, the Corporation assisted the Town in financing the
Fourth Project; and
WHEREAS, in order to finance the costs of the Fourth
Project, the Corporation issued. its $19,700,000 Town of Marana
Municipal Property Corporation Municipal Facilities Revenue Bonds,
Series 2003, dated as of September 1, 2003 (the "Series 2043 Bonds " ) ;
and
WHEREAS, in connection with the issuance of the Series 2003
Bonds, the Corporation entered into the Second. Supplement to Amended
and Restated Town Lease and Series 1992 Town Lease, dated as of
Maraiia Resolution No. 2015091
September 1, 2003 (the "Second Supplement to Base Town Lease ") , with
the Town pursuant to which (i) the Corporation extended the lease of
the Town Hall Property to the Town and leased improvements with respect
to the Fourth Project (the "Additional Town Hall Improvements ") to the
Town and (ii) the Town (A) extended the lease of the Town Hall Property
from the Corporation and leased the Additional Town Hall Improvements
from the Corporation and ( B ) as agent for the Corporation, agreed to
design, acquire, construct and equip, as the case may be, the Fourth
Project; and
WHEREAS, the Town also
was beneficial to its citizens to
as the case may be, final parts
Town Hall Property (the "Fifth Pr
the bonds heretofore issued by
Refunded"); and
further heretofore determined that it
design, acquire, construct and equip,
of the new municipal complex on the
of ect " ) and to refinance a portion of
the Corporation (the "Bonds Being
WHEREAS, the Corporation assisted the Town in financing the
Fifth Project and refinancing the Bonds Being Refunded (the "Second
Refunding ") ; and
WHEREAS, in order to finance the costs of the Fifth Project
and the Second Refunding, the Corporation issued its $8,675,000 aggre-
gate principal amount of Town of Marana Municipal Property Corporation
Municipal Facilities Revenue Bonds, Series 2004, dated as of August 1,
2004 ( the "Series 2004 Bonds ") ; and
WHEREAS, in connection with the issuance of the Series 2004
Bonds, the Corporation entered into the 'Third Supplement to Amended and
Restated Town Lease and Series 1992 Town Lease, dated as of August 1,
2404 (the "Third. Supplement to Base Town Lease "), with the Town
pursuant to which (i) the Corporation extended the lease of the Town
Hall Property to the Town and leased improvements with respect to the
Fifth Project (the "Final Town Hall Improvements ") to the Town and
(ii) the Town (A) extended the lease of the Town Hall Property from the
Corporation and leased the Final Town Hall Improvements from the
Corporation and (B) as agent for the Corporation, agreed to design,
acquire, construct and equip, as the case may be, the Fifth Project and
provide for matters related to the Second Refunding; and
WHEREAS, the Town also further heretofore determined that it
was beneficial to its citizens to design, acquire, construct and equip,
as the case may be, extensions and additions to the sewer lines and
interceptors in Silverbell Road and to the Town's Airport, extensions
and improvements to Camino de Marana and Dove Mountain Roads and
improvements to Cortaro Silverbell District Park as well as other
sewer, transportation and park projects ( the "Sixth Project"); and
WHEREAS, the Corporation assisted the Town in financing the
Sixth Project; and
WHEREAS, in order to finance the costs of the Sixth Project,
the Corporation issued its $39,790,000 aggregate principal amount of
Mar•atia Resolution No. 2015 -091
Town of Marana Municipal Property Corporation Municipal Facilities
Revenue Bonds, Series 2008, dated August 13, 2008 (the "Series 2008
Bonds"); and
WHEREAS, in connection with the issuance of the Series 2008
Bonds, the corporation entered into the combined. Cortaro Silverbell
District Park Ground Lease and Fourth Supplement to Amended. and
Restated Town Lease and Series 1992 Town Lease, dated as of August 1,
2008 (the "Fourth Supplement to Base Town Lease "), with the Town pur-
suant to which (i) the corporation extended the lease of the First
Water System Real Property, the Municipal Complex Real Property, the
First Water System Improvements, the Second. Water System Real Prop-
erty, the Second Water System Improvements, the Town Hall Property,
the Town Hall Improvements, the Additional Town Hall Improvements and
the Final Town Hall Improvements and the operations Center Property
(collectively, the "Existing Leased Property ") to the Town, leased
back the real property described as "Cortaro Silverbell Park Prop-
erty," ground leased by the Town to the corporation pursuant thereto
and leased the Sixth Project to the Town and (ii) the Town (A) ground
leased the Cortaro Silverbell Park Property to the Corporation and
leased the same back from the Corporation, extended the lease of the
Existing Leased Property from the corporation and lease the Sixth
Project from the Corporation and (B) as agent for the corporation,
agreed to design, acquire, construct and equip, as the case may be,
the Sixth Project; and
WHEREAS, the Town also further heretofore determined that
it was beneficial to its citizens to add another part to the Sixth
Project; and
WHEREAS, pursuant to a Fourth Amendment to Amended and
Restated Town Lease and Series 1992 Town Lease as supplemented by
First, Second, Third and Fourth Supplements to Amended and Restated
Town Lease and Series 1992 Town Lease, dated as of September 1, 2009
( the "Fourth Amendment to Base Town Lease ") , by and between the Corpo-
ration, as lessor, and the Town, as lessee, an amendment was made to
the Fourth Supplement to Base Town Lease for purposes of the
f oregoing ; and
WHEREAS, the Series 1997 Bonds, the Series 2000 Bonds, the
Series 2003 Bonds, the Series 2004 Bonds, the Series 2008 Bonds and
any additional obligations on a parity therewith shall be secured by a
Trust Indenture, dated as of October 1, 1997, as supplemented by a
Series 2000 Supplemental Trust Indenture, dated as of February 1,
2000, a Series 2003 Supplemental Trust Indenture, dated as of Septem-
ber 1, 2003, a Series 2004 Supplemental Trust Indenture, dated as of
August 1, 2004, and a Series 2008 Supplemental Trust Indenture, dated
as of August 1, 2008 (collectively, the "Indenture ") , from the Corpo-
ration to Norwest Bank Arizona, N.A. (now Wells Fargo Bank Arizona,
N.A., as trustee (the "Trustee " ) , pursuant to which is pledged, among
other things, rental payments made pursuant to the Base Town Lease,
the First Supplement to Base Town Lease, the Second Supplement to Base
Maraiia Resolutioji No. 2015.091
Town Lease, the Third Supplement to Base Town Lease and the Fourth
Supplement to Base Town Lease; and
WHEREAS, pursuant to Section 11.08 of the Indenture, the
Corporation will not, without written consent of the Trustee, alter,
modify or cancel, or agree or consent to alter, modify or cancel, the
Fourth Supplement to Base Town Lease or any other agreements thereto-
fore or thereafter entered into by the Corporation which relate to or
affect the security of the Series 2008 Bonds, but with the written
consent of the Trustee, may consent to alterations and modifications
thereof, provided that no such alterations or modifications will
decrease the amounts available for payment of the Series 2008 Bonds or
will render the income of the Corporation or the interest on the
Series 2008 Bonds taxable to the recipient, and provided further that
prior to giving its consent with respect to an alteration or
modification of the Fourth Supplement to Base Town Lease, the Trustee
shall obtain an opinion of counsel or financial consultant selected by
the Trustee that the proposed alteration or modification will not be
materially adverse to the interests of the owners of the Series 2008
Bonds, will not decrease the amounts of available for payment of the
Series 2008 Bonds and will not render the income of the Corporation or
the interest on the Series 2008 Bonds taxable under the income tax
laws of the United States of America; and
WHEREAS, pursuant to a Fifth Amendment to Amended and
Restated. Town Lease and Series 2992 Town Lease (as supplemented by the
First Supplement to Base Town Lease, the Second Supplement to Base
Town Lease, the Third. Supplement to Base Town Lease and the Fourth
Supplement to Base Town Lease), to be dated as of September 1, 2015
(the "Fifth Amendment to Base Town Lease "), by and between the Corpo-
ration and the Town, among other things, an amendment is being made to
the Fourth Supplement to Base Town Lease; and
WHEREAS, there have been placed on file with the Clerk of
the Town and presented at the meeting at which this Resolution was
adopted the proposed form of the Fifth Amendment to Base Town Lease;
and
WHEREAS, it is hereby
formed to assist the Town in
projects at no profit to the Cor
and shall not make any profit by
the Town in connection with this
to Base Town Lease;
determined that the Corporation was
financing its capital improvement
poration and the corporation has not
reason of the assistance it renders
Resolution and the Fourth Amendment
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF TOWN OF MARINA, ARIZON.A., THAT:
Section 1 . All actions (not inconsistent with the
provisions of this Resolution) heretofore taken by or at the direction
of the Town and its officers directed toward the approval and authori-
zation of the execution and delivery of the Fifth Amendment to Base
Town Lease are hereby approved and ratified.
Mat Resoltitioti No. 2015 -091
Section 2 . The form, terms and provisions of the Fifth
Amendment to Base Town Lease in substantially the form of such
document (including the exhibits thereto) presented at the meeting at
which this Resolution was adopted, is hereby approved, with such
insertions, deletions and changes as are not inconsistent herewith and
as are approved by the officers authorized to execute the documents
(which approval will be conclusively demonstrated by their execution
thereof), and the Mayor and Vice Mayor and Clerk of the Town are
hereby authorized to execute and attest and deliver, respectively, the
Fifth Amendment to Base Town Lease and the President or Vice President
and Secretary of any other member of the Board of the Corporation are
hereby authorized to execute and attest and deliver, respectively, the
Fifth Amendment to Base Town Lease.
Section 3 . The officers of the Town shall take all action
necessary or reasonably required to carry out, give effect to and
consummate the transactions contemplated thereby, including without
limitation the execution and delivery of the closing and other docu-
ments required to be delivered in connection with the Fifth Amendment
to Base Town Lease.
Section 4 . This Resolution shall be and remain irrepeal-
able until the Series 1997 Bonds, the Series 2000 Bonds, the Series
2003 Bonds, the Series 2004 Bonds and the Series 2008 Bonds and the
interest thereon shall have been fully paid, cancelled and discharged.
Section 5 . If any section, paragraph, clause or provision
of this Resolution shall for any reason be held to be invalid or
unenforceable, the invalidity or unenforceability of such section,
paragraph, clause or provision shall not affect any of the remaining
provisions of this Resolution.
Section 5 . Any provisions of any bylaws, orders, proced-
ural pamphlets and resolutions inconsistent herewith are hereby waived
to the extent only of such inconsistency. This waiver shall not be
construed as reviving any bylaw, order, procedural pamphlet or resolu-
tion or any part thereof.
Section 7 . It is hereby found and determined that all
formal actions of the Mayor and common council of the Town and its
Board of Directors concerning and relating to the adoption of this
Resolution were adopted in an open meeting and that all deliberations
that resulted in those formal actions were in meetings open to the
public, in compliance with all legal requirements of the State of
Arizona and the Town.
Mai - aria 1Zesolutiozi No. 201 5 -091
ADOPTED AND APPROVED
NOW N (Y
t A 7
;5,N�
ATTEST:
this 1st day of September, 2015.
a
By ........ .....: . . . . . . . . . . . . . . . . . . . .
Ed Hone a , ayo r , Town of Marana ,
Arizona
. .... ........ . ............
J rely C. Bronson, Town Clerk,
own o Marana, Arizona
331530185.1- 8119115
Marana Resolution No, 2015 -091