1993 CC MIN SEP 21 - Laserfiche WebLink

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meet the debt service payments of the bond issue. As to Leba.noff -McKnight the City is pursuing foreclosure proceedings and Leba.noff-McKnight is counter -suing the City for Breach of Contract. The matter is unresolved but the City is complying with the ,indenture of trust for the bond issue by pursuing the foreclosure action.. City Treasurer Williams reported a meeting with Mr. Randy Sultan, General Partner of Plaza Las Glorlas, who disclosed financial difficulties over the closure of the supermarket and the bankruptcy of another tenant. He asked for financial assistance from the City and restructuring of the debt service payments on the outstanding bond issue Franklin. Fund owns all the bonds that were issued. for CFD 90-1. They had a. discussion with Mr. Sultan and Mr. Harrington of said fund stated they are not interested in restructuring the bond issue. He emphasized that the City in general and the City Treasurer in particular are expected to abide by the indenture of trust and to protect the bond holders, who are actually thousands of individuals who own fractional interests in the Franklin Tax Exempt Fund. As required by the indenture of trust, City Treasurer Williams declared he would initiate, on behalf of the City, foreclosure proceedings against Plaza Las Morias Partners b October 1. 1993. City Treasurer Williams suggested the unique nature of the law and impact of bond issue defaults requires staff to study and recommend special legal counsel to handle all of the foreclosure work related to Mello --Roos Districts. City Treasurer Williams concluded that no action was sought on this matter. He stated that he was required by the trust indenture of the bond issue to advise the Council that the Reserve Fund has been used to pay the debt. service. Discussion evolved on the necessity of having the Law Firm of Best, Best & Krieger initiate these proceedings as opposed to City Attorney Biggs. City Attorney Biggs indicated this type of proceeding required certain expertise and she would contact the Law Firm of Brunick, Alvarez and Battersby, City's General Counsel. City Attorney Biggs confirmed that Best, Best & Krieger had assembled a specialty team for such proceedings. City Treasurer Williams indicated that attorney fee costs are part of foreclosure proceedings. He stressed the importance of handling these sensitive proceedings with good counsel. CITY ATTORNEY'S REPORTS AND RECOMMENDATIONS: Mobile Home Pent StabilIzation Ordinance 2