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HomeMy WebLinkAbout17252 - RESOLUTIONS - 9/5/1990 PALM0001-2\es 08/24/90 3 : 00 RESOLUTION NO. 17252 RESOLUTION OF THE COUNCIL OF THE CITY OF PALM SPRINGS CONCERNING THE EXECUTION AND DELIVERY OF CERTIFICATES OF PARTICIPATION TO FINANCE A CERTAIN RESIDENTIAL CARE FACILITY FOR THE ELDERLY WHEREAS, the City of Palm Springs, a municipal corporation and general law city duly organized and existing under and pursuant to the constitution and laws of the State of California (the "City") , has full legal right, power and authority under provisions of the California Government Code, particularly Chapter 5 of Part 2 of Division 3 of Title 4 thereof (the "Act") , r to purchase, sell and lease both personal and real property for the common benefit and as is necessary or proper for municipal purposes; WHEREAS, United Community Housing and Development Authority, a nonprofit company organized under the nonprofit company law of the State of California and an organization described in Section 501(c) (3) of the Internal Revenue Code of 1986, as amended (the "company") , has proposed that the City provide financing for the development of a certain forty-six (46) unit licensed residential care facility for the elderly to be T located within the city (the "Facility") , including but not limited to the acquisition, construction and equipping and operation of the Facility and payment of fees and expenses incurred in connection with the foregoing financing, which financing shall be accomplished by means of a purchase and sale arrangement (the "Project") ; WHEREAS, the City now desires to give its preliminary approval to such financing; NOW, THEREFORE, BE IT RESOLVED by the Council of the city of Palm Springs, California, as follows; Section 1. The City council hereby finds and determines that it is for the common benefit of the City and its residents and it is necessary and proper for municipal purposes within the terms ' of the Act that the City assist the Company in financing the c Project in the manner hereinafter provided in order to provide essential residential care services and facilities to the residents of the City, and to aid in containing costs for such residential care services and facilities and thereby enable the Company to establish lower rates and charges than would otherwise prevail and to provide better service to the citizens of the city at such rates and charges. Section 2 . Pursuant to the Act, financing through the execution and delivery of certificates of participation (the "Certificates") in an aggregate principal amount of not to exceed $6, 000, 000 is hereby authorized in order to finance the Project through the City's purchase of the Facility from the Company and the City's sale of the facility to the Company. Section 3. The Certificates, representing proportionate interests in payments received by the Company from the City pursuant to the purchase agreement, shall be payable solely from such installment payments. The financing hereby authorized shall be consummated subject to the conditions that: (i) the City by resolution shall have first agreed to acceptable final terms and conditions for the purchase and. sale agreements and all other documents and agreements to be executed by the City in connection with such financing, (ii) all requisite governmental approvals shall have first been obtained, (iii) the City's obligations under the purchase and sale agreements with the Company shall be payable solely from payments received from the Company ;.pursuant to the purchase agreement, and neither the taxing power nor the full. faith and credit of the City shall. be pledged to the! payment of or interest on any such purchase and sale agreements, nor shall the City incur any liability by reason of its participation in this financing; and (iv) the Company shall have agreed to pay or cause to be paid: (a) fee not to exceed 40 basis points to the City; and (b) all costs of issuance. Section 4. It is hereby acknowledged and recognized that 'the adoption of this Resolution by the City shall not be deemed to be final approval of the Project. Nothing contained in this Resolution shall require or obligate the City to undertake the financing of said Project. All requirements, ordinances, procedures and guidelines established by the City and laws of the State of California shall be adhered to for the review and consideration of the following, including but not limited to: parcel maps, site plans, the obtaining of building permits, environmental considerations, design review approvals, and related matters. Nothing contained herein shall unconditionally commit the City to take and further action in connection with the financing of said project until all required processing of the City and the appropriate departments thereof shall have been completed and approved. Section 5. The City Clerk is hereby authorized and directed to prepare and submit: for publication in The Desert Sun, a notice conforming to the requirements of the :internal Revenue Code of 1986 of a public: hearing to be held by the City on the subject of the execution and delivery of the Certificates. I Section 6. Hawkins, Delafield & Wood, Los Angeles, California, is hereby designated special counsel to the City with respect to the financing hereby authorized. Section 7. This resolution shall take effect immediately upon passage. ADOPTED THIS 5th DAY OF September 1990. AYES: Councilmembers Hodges, Murawski , Neel and Mayor pro tem Broich NOES: None ABSENT: Mayor Bono ABSTAIN: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By �Cify Clerk Acting City Manager REVIEWED AND APPROVED: