Loading...
HomeMy WebLinkAbout7988RESOLUTION NO. 7988 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY AND APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY REVENUE BONDS, SERIES 2019 (HUMANGOOD) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $180,000,000 FOR THE PURPOSE OF FINANCING AND REFINANCING THE ACQUISITION, CONSTRUCTION, FURNISHING AND EQUIPPING OF PLYMOUTH VILLAGE AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, pursuant to Chapter 5 of Division 7 of Title I of the Government Code of the State of California (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement") in order to form the California Municipal Finance Authority (the "Authority"), for the purpose of promoting economic, cultural and coirnnunity development, and in order to exercise any powers coiTi non to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the City of Redlands, California (the "City") has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority it order to facilitate the promotion of economic, cultural and community development activities in the City, including the frianciig of projects therefor by the Authority; and WHEREAS, there is now before this City Council of the City (the "Council") the form of the Agreement-, and WHEREAS, the Agreement has been filed with the City, and the members of the Council, with the assistance of its staff, have reviewed said document; and WHEREAS, the Authority is authorized to issue and sell revenue bands for the purpose, among others, of financing or refinancing the construction of capital projects; and WHEREAS, HumanGood, HumanGood NorCal (formerly known as American Baptist Homes of the West), HumanGood SoCal (formerly known as Southern California Presbyterian Homes), HumanGood Fresno (formerly known as The Terraces at San Joaquin Gardens), Redwood Senior Homes and Services and Westminster Gardens, each a California nonprofit public benefit corporation .(collectively, the "Cofporation "), has requested that the Authority issue bonds in one or more series in an aggregate principal amount not to exceed $180,000,000 (the "Bonds "), the proceeds of which will be used, among other things, (a) in a principal amount not to exceed $65,000,000, to refund all or a portion of the outstanding 577,805,000 original principal amount California Statewide Communities Development Authority Senior Living Revenue Bands, Series 2009 (Southern California Presbyterian Homes) (the "Series 2009 Bonds"), (b) in a principal amount not to exceed $95,000,000, to refund all or a portion of the outstanding $106,580,000 original principal amount California Statewide Cormrmunities Development Authority Revenue Bonds, Series 2010 (American Baptist Homes of the West) (the "Series 2010 Bonds"), (c) in a principal amount not to exceed $35,000,000, to finance or reimburse the cost of remodeling, renovating, furnishing and equipping certain of the Corporation's continuing care I \Resolutions\Res 7900-7999%7998 HwnanGood 2019 - TEFRA Resolution.docx.jn communities located in several jurisdictions throughout the state of California, including in the City of Redlands, (d) to pay a portion of the interest on the Bonds, if deemed necessary or advisable by the Authority or the Corporation, (e) to provide working capital to the Corporation, if deemed necessary or advisable by the Authority or the Corporation, (f) to fund a debt service reserve fund, if deemed necessary or advisable by the Authority or the Corporation, and (g) to pay certain expenses incurred in carnnnection with the issuance of the Bonds (collectively, the "Projeet" ); and WHEREAS, a portion of the proceeds of the Bonds in a principal amount not to exceed $20,000,000 will be used to finance or refinance expenditures at the following continuing care coininunity owned and operated by the Corporation and located in the City: Plymouth Village located at 900 Salem Drive, Redlands, California 92373 (the "Connnzuniiy "); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), in order for the interest on the Bonds to be tax-exempt, the issuance of the Bonds by the Authority must be approved by the City because the Co>ninunity is located within the territorial limits of the City; and WHEREAS, the Council is the elected legislative body of the City and is one of the applicable elected representatives required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Council understands that its actions in holding the public hearing and in adopting this Resolution do not obligate the City in any manner for payment of the principal, interest, fees or any other costs associated with the issuance of the Bonds, and the Council expressly conditions its approval of the issuance of the Bonds by the Authority by the adoption of this Resolution on this understanding; and WHEREAS, the Authority has requested that the Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement; and WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS as follows: Section 1. The Council accepts the above recitals as true and correct. Section 2. The Agreement is hereby approved and the [City Manager] or the designee thereof is hereby authorized and directed to execute said document, and the [City Clerk] or such Clerk's designee is hereby authorized and directed to attest thereto. Section 3. The Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the Council that this Resolution constitute approval of the issuance of the Bonds by the Authority for the purposes of (a) Section 147(D of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Community is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. 2 1:l1Zeso1utions\Res 7900-7999W998 HuinanGood 2019 - TEFRA Resolution.docx Section 4. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. Section 5. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (11) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 6. The officers and employees of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby. Section 7. The Council expressly conditions its approval of this Resolution on its understanding that the City shall have no obligation whatsoever to pay any principal, interest, fees or other costs associated with the Authority's issuance of the Bonds. Section 8. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: Ronald E. Lee, Esq. Jones Hall, APLC 475 Sansome Street, Suite 1700 San Francisco, CA 94111 Section 9. This Resolution shall take effect immediately upon its adoption. ADOPTED, SIGNED AND APPROVED this 2nd day of July, 2019. Paul W. Foster, Mayor Attest: ,�U -e - Lndj�/� - nne Donaldson, City Clerk 3 1:1Resolutions\Res 7900-7999\7988 Hun=Good 2019 - TEFRA Resolutionhocx I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 2nd day of July, 2019, by the following vote: AYES: Councilmembers Barich, Tejeda, Momberger, Davis; Mayor Foster NOES: None ABSTAIN: None ABSENT: None Je Donaldson, City Clerk 4 I:1Resolutions\Res 7900-7999\7998 HumanGood 2019 - TEFRA Resolution.doox