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Home My WebLink About4557_CCv0001.pdf I RESOLUTION NO. 4557 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS INDICATING ITS INTENTION TO PROVIDE FOR THE ISSUANCE OF OBLIGA- TIONS TO PROVIDE ASSISTANCE IN FINANCING A MULTIFAMILY RENTAL HOUSING PROJECT (STONE CREEK PARK APARTMENTS PROJECT) WHEREAS, the City of Redlands ( 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 residential rental housing developments within the City; and WHEREAS, Salar Investments, Inc. ( the "Developer" ) has requested assistance in financing the acquisition and construction of an approximately 68--unit multifamily rental housing project proposed to be located on approximately 4. 5 acres at the southwest corner of Orange Avenue and Kansas Street in the City ( the "Project" ) ; and WHEREAS, this City Council, in order to encourage and foster the construction of multifamily rental housing development within the City and as an aid and inducement to the Developer, is willing to authorize the issuance of obligations in an amount sufficient to provide financing for the Project subject to the restrictions of the Act and all applicable California and federal laws as they presently exist, provided that the Project receives all necessary local government approvals of the City; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows: Section 1 . Findings. This City Council hereby determines that the undertaking of the financing of the proposed Project by the City will be a substantial factor in the accrual of public benefits to be received from the Project, should the Project be approved and constructed, and that the proposed financing is in accord with the purposes and requirements of the Act . Section 2 . Issuance of Obligations . Subject to the completion of the proceedings and other matters relating thereto to the full satisfaction of this City Council, and subject to the proposed Project receiving all necessary local governmental approvals, this City Council hereby agrees to provide financing to the Developer and its assigns or such other person or entity approved by the City for the Project through the issuance of obligations as described in Section 3 of this Resolution in an amount not to exceed $4, 000,000 . Section 3. Nature of Obligations . The obligations to be issued shall be special obligations of the City payable solely from revenues to be received by the City pursuant to all agreements in connection with the financing of the Project , all in a form acceptable to the City, and shall not be a general obligation of the City, the State of California or any political subdivision thereof. Section 4. Official Action. It is intended that this Resolution shall constitute "some other similar official action" toward the issuance of indebtedness within the meaning of Section 103 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder . Section 5. Other Approvals. The adoption of this Resolution shall not bind the City to issue bonds or other obligations until and unless all other necessary actions and approvals are taken or received in accordance with all applicable laws. The adoption of this Resolution does not and shall not limit in any manner whatever the City' s full discretion to deny any further permit or approval that may be necessary for ultimate completion of the proposed Project. In this connection: (a) All contracts relating to the acquisi- tion, construction, installation and equipping of the Project shall be solicited, negotiated, awarded and executed by the Developer for its own account, subject to applicable federal, state and local laws. (b) The City shall have no pecuniary liability to the Developer for any fees in connection with the Project . (c) The City shall recover any and all costs to the City which are incurred in furtherance of or attri- butable to the issuance of its bonds. If no bonds are issued, all such costs shall be paid by the Developer . (d) The adoption of this Resolution shall not in any manner obligate the City to approve the conversion by the Developer of any portion of the Project at any time to condominium units. Section 6. Other Conditions. Unless otherwise waived by the City, the following conditions shall apply to -2- i E the Project and any bonds issued by the City to assist in the financing of the Project : (a) At or prior to the time any bonds are issued, the City shall receive an amount equal to one percent of the principal amount of any such bonds. (b) The Project shall comply with all Federal and State requirements. (c) The maximum rent for any reserved unit not under Federal or State rent restrictions shall be not greater than 40% x 50% x median income for the particular size of household. (d) No tenant in a reserved unit shall have his or her rent increased for at least 180 days after his or her tenancy begins. (e) In the event the Project is completed prior to the time bonds are issued, no tenant who has signed a rental agreement for a unit in the Project prior to the issuance of the bonds shall have his or her rental arrangement terminated for the sole reason of having an income in excess of the maximum amount otherwise permitted in order to qualify for a reserved unit . (f) The Developer shall pay all costs of the City related to the monitoring of the Project for compliance with Federal, State and City requirements . (g) There shall be at least one reserved unit per building in the Project. Section 7 . Bond Counsel . The law firm of Best, Best & Krieger is hereby retained as Bond Counsel . Section 8. Effective Date. This Resolution shall take effect immediately upon adoption. Mayor of the City of Redlands, California ATTEST: CityC'le k of 4.b4ty of Redlande,, California _3_ FJB0823 CERTIFICATION I , Lorrie Poyzer , City Clerk of the City of Redlands, California, do hereby certify that the foregoing Resolution No. 4957 was regularly introduced and adopted by the City Council of the City of Redlands, California, at a regular meeting thereof held on the 31st day of July, 1989 , by the following vote of the City Council : AYES: Councilmembers Wormser, DeMir}yn, Cunningham, Larson; Mayor Beswick NOES: None ABSENT: None ABSTAINED: None IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of the City of Redlands, Califor- nia, this ist day of August, 1989 . City Cle k of th C' ty of Redland , California FJB0823 BEST, BEST & KRIEGER A PARTNERSHIP INCLUDING PROFESSIONAL CORPORA.T[ONS LAWYERS ARTHUR L.L9TLEWOR TH* WILLIAM W. FLOYD,JR CARL F, HERUOLO ELISE K.TRAYNUM 400 MISSION SQUARE GLEN E.STEPHENS, MICHAEL A.CRISTE- STEPHANIE K.HARLAN DAVID A.BRANDENBURG 3750 UNIVERSITY AVENUE WILLIAM R.DEWOLFE• GREGORY L.HAROKE MARC E.EMPEY WILLIAM 0.DAHLING,JR. B;AR'PON C.GAUT. KENDALL H.MAcVEY JOHN R.ROTTSCHAEFER TERESA J. PRISTOJKOVIC POST OFFICE SOX 1028 CHARLES D.FIELD` CLARK H.ALSOP MARTIN A.MUELLER VICTORIA N.KING RIVERSIDE,CALIFORNIA 92502 PAUL T. SELZER• DAVID J.ERWIN- J.MICHAEL SUMMEROUR BETTY S.N.AUTON DALLAS HOLMES" MICHAEL J.ANDERSON- HOWARD B.GOLDS MATT H.MORRIS TELEPHONE.{714)686-1450 CHRISTOPHER CARPENTER"DOUGLAS S.PHILLIPS" MARGARET F. TANAKA JEFFREY V.DUNN TELECOPIER(7(4)686-3083 RICHARD T.ANDERSON- CHARLES M.ELL 15r JEFFERY J.CRANDALL JAMES E.NEUERBURG JOHN D.WAHUN- LANTSON E.ELDRED- SCOTT C.SMITH STEVEN C.OcOAUN MICHAEL D.HARRISIRWIN L.GOLDS JACK B.CLARKE BRANT H.DVEIRIN GORDON COLOGNE,OF COUNSEL W.CURT EALY- ANTONIA G.WEINER JEANNETTE A_PETERSON ERIC L.GARNER .JAMES S.CORISON,OF COUNSEL THOMAS S.SLOVAKGREGORY K.WILKINSON TERO L.VOLLNOGLE DENWS M.COTA RICHARD A.OSa-TINS,OF COUNSEL JOHN E.BROWN+ WYNNE S.FURTH BARBARA E.KRISTAL RONALD J.KOHUT DAVID L.BARON BRIAN M.LEWIS AONITrED IH HEW TDRK,NEVADA, MICHAEL T- RIDDELL• VIRGINIA A.ETTI.NGER GEORGE H.CHANT ill —S—GTO.,D.C.COURT OF".1.3 MEREDITH A-JURY* EUGENE TANAKA RONALD A.VAN BLARCOM MICHAEL GRANT- BASIL T.CHAPMAN BRADLEY E.NEUFELD FRANCIS J.SAUM- TIMOTHY M.CONNOR- CECILIA S.WU OFFICES IN ANNE T.THOMAS- VICTOR L.WOLF' MICHAEL E.HULME,JR. RAYMOND UE5T(I868.1957) PALM SPRINGS 1619)325-7264 D.MARTIN N£THERY- DANIEL E.OLIVIER GEOFFREY K.WILLIS JAMES H.KRIEGER(1913-1975) RANCHO MIRAGE(619)5662611 GEORGE M.REYES DANIEL J.M4HUGH KANDY LEE ALLEN EUGENE BEST(1893-1981) ONTARIO 1714)989.8584 a PROFESSIQ NA!_GgR�RATION July 20, 1989 Mr . John Holmes City Manager City of Redlands 30 Cajon Street Redlands, CA 92373 Re: Inducement Resolution for Stone Creek Park Apartments Project Dear John: At the request of Darrell Cozen, I am enclosing twelve agenda packets in connection with a request from Salar Investments, Inc. for an inducement resolution for a proposed 68-unit apartment project to be located at the southwest corner of Orange Avenue and Kansas Street and to be known as Stone Creek Park Apartments . Each agenda package contains our covering memorandum, a memorandum submitted by Darrell to the Housing Commission at its July meeting and an inducement resolution. The inducement resolution incorporates at Section 6 requirements imposed on the Project by the Housing Commission. Darrell indicated that he would like to have this matter placed on the agenda for the council meeting of July 31, 1989. Presumably, it can be placed on the consent calendar, unless you desire otherwise. The original of the resolution is separately enclosed. LAW OFFICES 6F BEST, BEST & KRIEGER Mr . John Holmes July 20, 1989 Page 2 If you have any questions, please call. Very truly yours, Al Francis J. Baum of Best, Best & Krieger FJB: jcq cc: Mr. Darrell Cozen (w/encl. ) Redevelopment Agency of the City of Redlands i