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HomeMy WebLinkAbout8258RESOLUTION NO 8258 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY REVENUE BONDS, SERIES 2021 (HUMANGOOD) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $150,000,000 FOR THE PURPOSE OF FINANCING THE CONSTRUCTION, FURNISHING AND EQUIPPING OF PLYMOUTH VILLAGE AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, HumanGood, HumanGood NorCal, HumanGood SoCa1 and HumanGood Fresno, each a California nonprofit public benefit corporation (collectively, the "Corporation"), has requested that the California Municipal Finance Authority (the "Authority") participate in the issuance of one or more series of revenue bonds in an aggregate principal amount not to exceed one hundred fifty million dollars ($150,000,000) (the "Bonds"), the proceeds of which will be used, among other things, (a) to finance or reimburse the cost of remodeling, renovating, furnishing and equipping certain of the Corporation's continuing care communities located in several jurisdictions throughout the state of California, including in the City of Redlands, (b) to pay a portion of the interest on the Bonds, if deemed necessary or advisable by the Authority or the Corporation, (c) to provide working capital to the Corporation, if deemed necessary or advisable by the Authority or the Corporation, (d) to fund a debt service reserve fund, if deemed necessary or advisable by the Authority or the Corporation, and (e) to pay certain expenses incurred in connection with the issuance of the Bonds (collectively, the "Project"), and WHEREAS, a portion of the proceeds of the Bonds in a principal amount not to exceed twenty five million dollars ($25,000,000) will be used to finance expenditures for various renovations to existing infrastructure and upgrades to housing units and amenities at the following continuing care community owned and operated by the Corporation and located in the City of Redlands (the "City") Plymouth Village located at 900 Salem Drive, Redlands, California, 92373 (the "Community"), 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 Community 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 1 I:\Resolutions\Res 8200-8299\8258 HumanGood 2021 TEFRA.docx 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 Joint Exercise of Powers Agreement relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; 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 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(f) 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. Section 3. 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 hability whatsoever with respect to the Bonds Section 4. 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; (ii) 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 5. 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 6. 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 7. This Resolution shall take effect immediately upon its adoption. 2 ADOPTED, SIGNED AND APPROVED this 21st day of September, 2021 ATTEST ine Donaldson, City Clerk 3 Paul T Banch, Mayor 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 21 st day of September, 2021 AYES Councilmembers Tejeda, Davis, Guzman -Lowry, Mayor Banch NOES None ABSENT Councilmember Foster ABSTAINED None 4 Donaldson, City Clerk