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HomeMy WebLinkAbout23121 RESOLUTION NO. 23121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF AN ASSOCIATE MEMBERSHIP AGREEMENT WITH THE INDEPENDENT CITIES FINANCE AUTHORITY AND APPROVING THE ISSUANCE OF BONDS BY THE AUTHORITY WITH RESPECT TO THE SAHARA MOBILE HOME PARK AT 1955 SOUTH CAMINO REAL, PALM SPRINGS, CALIFORNIA. A6230. WHEREAS, certain cities of the State of California (collectively, the "Members") have entered into a Joint Powers Agreement (the "Joint Powers Agreement') establishing the Independent Cities Finance Authority (the "Authority') and prescribing its purposes and powers, and providing, among other things, for associate members of the Authority(an "Associate Member"); and WHEREAS, the Authority has been formed for the purpose, among others, of assisting its Members and Associate Members in the raising of capital to finance the capital improvement needs of Local Agencies (as defined in the Joint Powers Agreement), to provide for home mortgage financing with respect to those Members or Associate Members that are either a city or a county of the State of California, to provide financing in connection with the improvement, construction, acquisition, creation, rehabilitation and preservation of affordable housing within the boundaries of the Members and Associate Members, and to provide financing in accordance with the provisions of applicable law in connection with other projects and programs that are in the public interest and which benefit Members and Associate Members including making loans to tax-exempt organizations from the proceeds of mortgage revenue bonds to finance the acquisition of multifamily rental housing, including mobile home parks, under the provisions of Chapter 8 of Part 5 of Division 31 (commencing with Section 52100) of the Health and Safety Code; and WHEREAS, the City of Palm Springs (the "City") has determined that it is in the public interest and for the public benefit that the City become an Associate Member of the Authority in order to facilitate the provision of affordable and other housing opportunities within the City; and WHEREAS, there is now before this City Council (the "City Council") the form of an associate membership agreement; and WHEREAS, the Authority proposes to issue its Mobile Home Park Revenue Refunding Bonds (Sahara Mobile Home Park) Series 2012A (the "Series A Bonds"), its Mobile Home Park Subordinate Revenue Refunding Bonds (Sahara Mobile Home Park) Series 2012E (the "Series B Bonds) and its Mobile Home Park Subordinate Revenue Refunding Bonds (Sahara Mobile Home Park) Series 2012C (Federally Taxable) (the Resolution No. 23121 Page 2 "Series C Bonds" and together with the Series A Bonds and the Series B Bonds, the 'Bonds'); and WHEREAS, Millennium Housing LLC, a California limited liability company (the "Owner"), has requested that the Authority issue and sell the Bonds in an aggregate principal amount of not to exceed $15,500,000 to (i) refund certain revenue bonds previously issued by the City, the proceeds of which were loaned to the Owner in order to finance the acquisition and renovation of a 254-space mobile home park known as the Sahara Mobile Home Park located at 1955 South Camino Real, Palm Springs, California (the "Project'), (ii) finance additional renovations to be made to the Project and (iii) finance certain costs of issuing the Bonds; and WHEREAS, the Owner will be the sole owner of the Project; and WHEREAS, the City Council of the City has determined that the operation of the Project by the Owner in accordance with the laws and ordinances of the City and in accordance with a proposed regulatory agreement to be recorded on the Project shall help the City satisfy its affordable housing obligations and will lessen the burden of the City to provide affordable housing for low and very low income residents of the City; and WHEREAS, the Bonds will be qualified "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the "Code"); and WHEREAS, pursuant to Section 147(f) of the Code, the proposed issuance of private activity bonds is required to be approved by the "applicable elected representative' of the governmental unit having jurisdiction over the area in which the Project is to be located, after a public hearing held after reasonable public notice; and WHEREAS, the members the City Council are the applicable elected representatives of the City; and WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the proposed issuance of the Bonds would be held on the date hereof; and WHEREAS, such public hearing was conducted on the date hereof by the City Council at which time an opportunity was provided to interested parties to be heard with respect to the proposed issuance of the Bonds and financing of the Project; and WHEREAS, it is intended that this resolution shall constitute the approval of the proposed issuance of the Bonds required by Section 147(f) of the Code. Resolution No. 23121 Page 3 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves the City's membership in the Authority as an Associate Member and the Associate Membership Agreement, in substantially the form on file with the City Clerk, pursuant to which the City shall become an Associate Member of the Authority. The Mayor, City Manager, City Clerk, and any other proper officers and officials of the City, are hereby authorized and directed to take all actions and do all things necessary or desirable hereunder with respect to the Associate Membership Agreement including, but not limited to, the execution and delivery of any agreements, certificates, instruments and other documents which they, or any of them, may deem necessary or desirable and not inconsistent with the purposes of this Resolution. SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of this City Council that this resolution constitutes approval of issuance of the Bonds for the purposes of Section 147(f) of the Code. 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 or the Project. 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 to provide 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 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. This resolution shall take effect upon its adoption. ADOPTED THIS 18TH DAY OF APRIL, 2012. cif David H. Ready, CI ager ATTEST: ames Thompson, City Clerk Resolution No. 23121 Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 23121 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on April 18, 2012, by the following vote: AYES: Councilmember Hutcheson, Councilmember Lewin, Councilmember Mills, Mayor Pro Tern Foat, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. ?a - .,�mesThompson, CityClerk as ,v12oi2.Cy of Palm Springs, California `