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HomeMy WebLinkAbout4057_CCv0001.pdf RESOLUTION NO. 4057 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING DOCUMENTS; APPOINTING A TRUSTEE AND BOND COUNSEL AND AUTHORIZING THE SALE OF ITS MULTIFAMILY RENTAL HOUSING REVENUE BONDS AND MAKING CERTAIN FINDINGS IN CONNECTION WITH THE ISSUANCE OF SAID BONDS WHEREAS, there is a shortage in the City of Redlands ( the "City" ) and the County of San Bernardino ( the "County" ) of decent, safe and sanitary housing which is affordable by persons in the lower end of the income spectrum and a consequent need to encourage the construction of rental units affordable by such persons and otherwise to increase the housing supply in the City and in the County for such persons; and WHEREAS, the City is authorized pursuant to Chapter 7 (commencing with Section 52075) of Part 5 of Division 31 of the California Health and Safety Code ( the "Act" ) to provide assistance in financing multifamily resi- dential rental housing developments within the City; and WHEREAS, on December 4 , 1984 , the City Council of the City adopted its resolution declaring its intention to issue bonds for a multifamily rental housing project ( the "Project" ) to be constructed by Gibraltar Community Builders ( the "Developer" ) ; and WHEREAS, the City Council has conducted a public hearing regarding the issuance of its bonds for the Project , all in accordance with Section 103 ( X) of the Code, at which public hearing interested individuals were given a reasonable opportunity to express their views on the Project and its proposed financing; and WHEREAS, it is in the public interest to issue bonds, the proceeds of which will be used to make a loan to Gibraltar Savings ( the "Lender" ) for the purpose of financing the Project, all in furtherance of the purposes of the Act ; and WHEREAS, all acts, conditions and things required by the Act, and by all other laws of the State of Cali- fornia, to exist , to have happened and to have been performed precedent to and in connection with the issuance of the aforesaid revenue bonds exist, have happened, and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to issue such revenue bonds for the purpose, in the manner and upon the terms herein provided; and WHEREAS, said revenue bonds are to be issued pursuant to an Indenture of Trust (the "Indenture" ) in the form presented to this meeting by and between the City and Security Pacific National Bank ( the "Trustee" ) in an aggre- gate principal amount not to exceed $25 , 000 , 000 and are to be designated as the "City of Redlands, California, Multi- family Rental Housing Revenue Bonds (Gibraltar Community Builders) ( the "Bonds" ) ; NOW, THEREFORE, BE IT RESOLVED DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS: Section 1 . Recitals . The above recitals , and each of them, are true and correct . Section 2. Regulatory Agreement_. The proposed form of the Regulatory Agreement and Declaration of Restric- tive Covenants ( the "Regulatory Agreement" ) between the City, the Developer , the Trustee and the Lender presented at this meeting is hereby approved and the Mayor or Mayor Pro Tem and the City Clerk or Assistant City Clerk are hereby authorized and directed, for and in the name of the City, to execute the Regulatory Agreement in substantially the form hereby approved, with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof and are further authorized and directed to cause said Regu- latory Agreement to be recorded in the official records of San Bernardino County. Section 3 . Official Statement. The draft of the Preliminary Official Statement relating to the Bonds pre- sented at this meeting is hereby approved in substantially the form presented with such changes thereto as may be approved by the Mayor , or her designee, and the Mayor or Mayor Pro Tem is hereby authorized and directed, for and in the name and on behalf of the City, to execute the Prelim- inary Official Statement and a Final Official Statement in substantially the form of the Preliminary Official State- ment, together with such changes thereto as may be approved by the Mayor, or her designee (collectively the "Official Statement" ) and the distribution of such Official Statement in connection with the sale of the Bonds is hereby autho- rized. Section 4. Appointment of Trustee. Security Pacific National Bank is hereby appointed as Trustee under the Indenture for the City and the owners of the Bonds, with the duties and powers of such Trustee as are set forth in the Indenture. -2- Section 5 . Indenture . The proposed form of the Indenture presented at this meeting by and between the City and the Trustee is hereby approved and the Mayor or Mayor Pro Tem and the City Clerk or Assistant City Clerk are hereby authorized and directed, for and in the name and on behalf of the City, to execute, acknowledge and deliver to the Trustee the Indenture in substantially the form hereby approved, with such additions or changes as the officers executing the same may approve and which may be consistent with the Bond Purchase Agreement hereinafter referred to, such approval to be conclusively evidenced by the execution and delivery thereof . Section 6. Form of Bonds . The form of the Bonds as set forth in the Indenture as presented to this meeting is hereby approved and the Mayor , or in her absence the Mayor Pro Tem, and the City Clerk , or in her absence the Assistant City Clerk are hereby authorized and directed to execute by manual or facsimile signature, in the name and on behalf of the City and under its seal , such Bonds in either temporary and/or definitive form in the aggregate principal amount set forth in the Indenture and all in accordance with the terms and provisions of the Indenture. Section 7 . Lender Loan Agreement . The form of the Lender Loan Agreement as presented to this meeting by and between the City, the Lender and the Trustee, whereby the proceeds of the Bonds are to be loaned to the Lender for the purpose of making a loan to the Developer for the financing the Project, is hereby approved and the Mayor or Mayor Pro Tem and the City Clerk or Assistant City Clerk are hereby authorized and directed, for and in the name of the City, to execute the Lender Loan Agreement in substantially the form hereby approved, with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof . Section 8 . Purchase Contract . The form of Pur- chase Contract as presented to this meeting by Paine Webber ( the "Underwriter" ) and the sale of the Bonds pursuant thereto upon the terms and conditions set forth therein is hereby approved and, subject to such approval and subject to the provisions of Section 9 hereof, the Mayor or the Mayor Pro Tem is hereby authorized and directed to evidence the City' s acceptance of the offer made by said Purchase Con- tract by executing and delivering said Purchase Contract in said form with such changes therein as the officers exe- cuting the same may approve and such matters as are authorized by Section 9 hereof, such approval to be conclu- sively evidenced by the execution and delivery thereof . -3- Section 9 . City Manager Authorized to Establish Final Terms of Sale of Bonds . The City Manager , based on such advice of Bond Counsel as he may deem necessary, is hereby authorized and directed to act on behalf of the City Council to establish and determine ( i ) the final principal amount of the Bonds , which amount shall not exceed $25,000 , 000 ; ( ii ) the final maximum interest rate on the Bonds, which rate shall not exceed 10 . 5 percent per annum; ( iii ) the Underwriter ' s discount , which amount shall not exceed 3 . 5 percent of the principal amount of the Bonds , and ( iv) such other matters as may relate to the final terms and provisions for the sale of the Bonds. The City Manager , upon the determination of such matters, is further autho- rized and directed, in and for the name of the City, to execute any supplements or amendments to the Purchase Contract as, based on advice of Bond Counsel, may be necessary to include such matters as so determined as a part of the Purchase Contract. The authorization and powers delegated to the City Manager by this Section 9 shall be valid for a period of 75 days from the date of adoption of this resolution. Section 10 . Requisitions. The City Manager , or his designee, is hereby authorized and directed to execute one or more requisitions authorizing the Trustee to pay the cost of issuing the Bonds from the proceeds of the Bonds pursuant to the Indenture. Section 11 . Other Acts . The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things , to execute and deliver any and all documents, including but not limited to, the Final Official Statement, which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds, or otherwise to effectuate the purposes of this Reso- lution, and any such actions previously taken by such officers are hereby ratified and confirmed. Section 12 . Findings as to Vel Low Income Tenants. This City Council hereby finds and determines that it is infeasible that it be required that any of the units in the Project be reserved for occupancy on a priority basis by individuals or families whose adjusted gross income does not exceed 50 percent of the median adjusted gross income for the area, as median adjusted gross income is referred to in Section 52080 (a ) of the Act . In making this finding, this City Council has considered the matters referred to in Section 52080 (c) of the Act, and in accordance with the pro- visions of Section 52080 (x) of the Act, the above findings and determinations are final and conclusive. -4- Section 13 . Bond Counsel . The law firm of Best , Best & Krieger is hereby retained as bond counsel on the terms set forth in the proposal letter of said firm pre- sented to this meeting and the Mayor or Mayor Pro Tem is hereby authorized and directed to execute said proposal letter for and in the name of the City. Section 14 . Effective Date. This Resolution shall take effect immediately upon adoption. ADOPTED this 16th day of April , 1985 . Mayor of tyre i�y of Redlands , California ATTEST: Cityrk, Crit Redlan s , Calif is I -5- I , LORRIE POYZER, City Clerk of the City of Redlands, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Redlands, California, at a regular meeting thereof held on the 16th day of April , 1985 , by the following vote of the City Council: AYES: Councilmembers Johnson, DeMirjyn and Larsen NOES: None ABSENT: Councilman Martinez ; Mayor Beswick ABSTAINED: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Redlands, Cali- fornia, this 16th day of April, 1985 . City erk of t ity of Redlan s, Calif rnia ZPF0039