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HomeMy WebLinkAbout3973_CCv0001.pdf RESOLUTION NO . 3973 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING DOCUMENTS FOR THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE 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 spec- trum 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 January 17 , 1984 , the City Council of the City adopted Resolution No . 3942 declaring its inten- tion to issue bonds for a multifamily rental housing project (the "Project" ) , which Project is to be constructed by Redlands Northview II , Ltd . , a California limited partner- ship (the "Developer" ) ; and WHEREAS , the City Council has duly caused to be published a notice of a public hearing regarding the issuance of revenue bonds for the Project in accordance with the requirements of Section 103 (k) of the Internal Revenue Code of 1954 , as amended; and VrIEREAS , the members of the City Council are the applicable elected representatives to conduct a public hearing regarding the issuance of the revenue bonds for the Project ; and WHEREAS , the City Council has conducted a public hearing regarding the issuance of the revenue bonds for the Project and has determined it to be in the public interest to issue bonds , the proceeds of which will be used to make a loan to the Developer, 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 California, to exist , to have happened and to have been performed pre- cedent to and in connection with the issuance of the afore- said revenue bonds exist , have happened , and have been performed in regular and due time , form and manner as re- quired 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 (the "Indenture" ) in the form presented to this meeting by and between the City and Seattle-First National Bank (the "Trustee" ) in an aggregate principal amount not to exceed $6 , 500 , 000 and are to -2- be designated as the "City of Redlands Multifamily Housing Revenue Bonds Series 1984A (North View Apartments Project )" (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 thein, are true and correct . Section 2 . Regulatory Agreement . The proposed form of the Regulatory Agreement and Declaration of Restric- tive Covenants between the City and the Developer (the "Regulatory Agreement" ) attached as an exhibit to the Financing Agreement hereinafter referred to and presented at this meeting is hereby approved and the Mayor and/or the 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 officer or 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 Regulatory 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 City Manager and the City Manager is hereby -3- authorized and directed , for and in the name and on behalf of the City, to execute the Preliminary Official Statement and a Final Official Statement in substantially the form of the Preliminary Official Statement , together with such changes thereto as may be approved by the City Manager (collectively the "Official Statement" ) and the distribu- tion of such Official Statement in connection with the sale of the Bonds is hereby authorized . Section 4 . Appointment of Trustee . Seattle- First National Bank, Seattle , Washington, is hereby appointed as Trustee under the Indenture (the "Trustee" ) for the City and the owners of the Bonds , with the duties and powers of such Trustee as are set forth in the Indenture . 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 and the 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 and City Clerk are hereby -4- ............-.......... 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 provi- sions of the Indenture . Section 7 . Financing Agreement . The forin of the Financing Agreement (the "Financing Agreement- ) as pre- sented to this meeting by and between the City , the Developer and Beverly Hills Savings & Loan Association, a California charter savings and loan association (the "Lender") , whereby the proceeds of the Bonds are to be loaned to the Developer for the purpose of financing the Project is hereby approved and the Mayor and the City Clerk are hereby authorized and directed, for and in the name of the City, to execute the Financing Agreement in substan- tially 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 . Assignment of Note and Deed of Trust . By the terms of the Financing Agreement , the Developer is to deliver to the City a note and deed of trust of the Developer (referred to in the Financing Agreement as the "Mortgage Note" and the "Mortgage , " respectively) . By the terms of the Indenture , the City is to assign the Mortgage Note and the Mortgage to the Trustee as additional security -5- for the Bonds . The Mayor and/or the City Clerk are hereby authorized and directed to cause the Mortgage to be recorded in the official records of San Bernardino County and are further authorized and directed, for and in the name of the City . (a) to deliver the Mortgage Note to the Trustee with an appropriate endorsement thereon, for the purpose of transferring title therein to the Trustee ; (b ) to cause to be recorded in the official records of San Bernardino County , immediately following the recordation of the Mortgage , an appropriate assignment of the Mortgage to the Trustee . Section 9 . Construction Loan Agreement . The fora of the Construction Loan Agreement (the "Construction Loan Agreement" ) by and between the Developer , the Lender and the Trustee , pursuant to which the Lender has agreed to act as construction servicer for the City is hereby approved and consented to by the City , and the Mayor and/or the City Clerk are hereby authorized to evidence such approval by executing the Construction Loan Agreement in substantially the form hereby approved , with such changes therein as the officer or officers executing the same may approve , such approval to be conclusively evidenced by the execution and delivery thereof . Section 10 . Bond Purchase Agreement . The form of Bond Purchase Agreement for the purchase of the Bonds as presented to this meeting by Merrill Lynch Capital Markets -6- and Allen & Company Incorporated as underwriters and the sale of the Bands 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 11 hereof , the Mayor and/or the City Clerk are hereby authorized and directed to evidence the City ' s acceptance of the offer made by said Bond Purchase Agree- ment by executing and delivering said Bond Purchase Agree- ment in said form with such changes therein as the officer or officers executing the same may approve and such matters as are authorized by Section 11 hereof , such approval to be conclusively evidenced by the execution and delivery thereof . Section 11 . 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 $6 ,500 ,000 , (ii ) the final interest rate on the Bonds , which rate shall not exceed per annum; (iii ) the underwriters ' discount for the purchase of the Bonds , which amount shall not exceed io 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 authorized and directed , in and for the name of the City , to execute any supplements or amendments to the Bond -7- Purchase Agreement as , based on advice of Bond Counsel , may be necessary to include such matters as so determined as a part of the Bond Purchase Agreement . The authorization and powers delegated to the City Manager by this Section 11 shall be valid for a period of 30 days from the date of adoption of this resolution. Section 12 . 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 13 . 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 Resolution, and any such actions pre- viously taken by such officers are hereby ratified and confirmed. Section 14 . Findings as to Very Low Income Tenants . This City Council hereby finds and determines that it is infeasible that any of the units in the Project be required to be reserved for occupancy on a priority basis by individuals or families whose adjusted gross income does not exceed 50 percent of themedian adjusted -8- 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 (a) of the Act, and in accordance with the provisions of Section 52080 (a) of the Act, the above findings and determinations are final and conclusive. Section 15 . Effective Date . This Resolution shall take effect immediately upon adoption. ADOPTED this Mayor of the City –o-f—Redlands , California ATTEST: City Clerk of the City of Redlands , California -9- 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 by the following vote of the City Council : AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Redlands , California, this City Clerk of the- Ci-t-yof Redlands , California -10-