HomeMy WebLinkAboutResolution No. 8685RESOLUTION NO. 8685
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY REVENUE AND REFUNDING BONDS, SERIES
2025 (HUMANGOOD — CALIFORNIA OBLIGATED GROUP) IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $205,000,000 FOR
THE PURPOSE OF FINANCING OR REFINANCING THE
CONSTRUCTION, FURNISHING AND EQUIPPING OF PLYMOUTH
VILLAGE AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, HumanGood, HumanGood NorCal, HumanGood SoCal or 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 $205,000,000 (the "Bonds"), the proceeds of which will be
used, among other things, (a) in a principal amount not to exceed $35,000,000, to refund all
or a portion of the outstanding $52,080,000 original principal amount California Statewide
Communities Development Authority Revenue Bonds, Series 2015 (American Baptist Homes
of the West) (the "Series 2015 NorCal Bonds"), (b) in a principal amount not to exceed
$40,000,000, to refund all or a portion of the outstanding $47,900,000 original principal
amount California Municipal Finance Authority Senior Living Revenue Bonds (Southern
California Presbyterian Homes) Series 2015 (the "Series 2015 SoCal Bonds"), (c) in a
principal amount not to exceed $15,000,000, to refund all or a portion of the outstanding
$15,480,000 original principal amount California Municipal Finance Authority Revenue and
Refunding Bonds, Series 2020A (HumanGood — California Obligated Group) (the "Series
2020A Bonds"), (d) in a principal amount not to exceed $60,000,000, to refund all or a portion
of the outstanding $64,765,000 original principal amount California Municipal Finance
Authority Revenue and Refunding Bonds, Series 2020B (HumanGood — California Obligated
Group) (the "Series 2020B Bonds"), (e) in a principal amount not to exceed $55,000,000, to
finance or reimburse the cost of constructing, building, remodeling, renovating, rehabilitating,
upgrading, furnishing and equipping certain of the Corporation's continuing care retirement
communities located in several jurisdictions throughout the state of California, including in
the City of Redlands, (f) to pay a portion of the interest on the Bonds, if deemed necessary or
advisable by the Authority or the Corporation, (g) to provide working capital to the
Corporation, if deemed necessary or advisable by the Authority or the Corporation, (h) to fund
a debt service reserve fund, if deemed necessary or advisable by the Authority or the
Corporation, and (i) 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
$20,000,000 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
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1AReso1utions\Res 8600-8699\8685 Approving Issuance of CMFA Bonds - HumanGood 2025.docx-ins
"Community"); and
WHEREAS, the proceeds of the Series 2015 NorCal Bonds were used, among other
things, to (1) refund all or a portion of the $50,000,000 original principal amount California
Statewide Communities Development Authority Variable Rate Demand Revenue Bonds, Series
2006 (American Baptist Homes of the West) (the "Series 2006 Bonds"), (2) finance or reimburse
the cost of the remodeling, renovation, furnishing and equipping of the Corporation's continuing
care facilities located in several jurisdictions, including at the Community in the City, (3) pay a
portion of the interest on the Series 2015 NorCal Bonds, (4) provide working capital to the
Corporation, (5) fund a debt service reserve fund, and (6) pay certain expenses incurred in
connection with the issuance of the Series 2015 NorCal Bonds; 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
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, BEIT 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
E\Resolutions\Res 8600-8699\8685 Approving Issuance of CMFA Bonds-HumanGood 2025.docx-tns
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 liability 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.
ADOPTED, SIGNED AND APPROVED this Yd day of June, 2025.
4�,
Mario Saucedo, Mayor
ATTEST:
e Donaldson, City Clerk
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1, 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 Yd
day of June 2025, by the following vote:
AYES: Councilmembers Barich, Tejeda, Davis, Shaw; Mayor Saucedo
NOES: None
ABSTAIN: None
ABSENT: None
w
e Donaldson, City Clerk
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