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HomeMy WebLinkAbout22543 - RESOLUTIONS - 7/15/2009 RESOLUTION NO. 22543 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AUTHORIZING THE ISSUANCE OF TAX- EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY NOT TO EXCEED $10,000,000 AGGREGATE PRINCIPAL AMOUNT FOR THE BENEFIT OF THE SA INVESTMENT LLC, A CALIFORNIA LIMITED LIABILITY PARTNERSHIP, FOR THE ACQUISTION, CONSTRUCTION AND DEVELOPMENT OF THE VISTA SAN JACINTO APARTMENTS AT 301 ROSA PARKS ROAD. WHEREAS, Sherman Associates, Inc. ("SAI") has requested that the California Municipal Finance Authority (the "Authority") issue one or more series of revenue bonds in an aggregate principal amount not to exceed $10,000,000 (the `Bonds"), and lend the proceeds of the Bands to a limited partnership to be sponsored by SAI, or related entities, (the 'Borrower") for the purpose of financing the costs of construction by the Borrower of a 73-unit multifamily residential rental facility currently known as Vista San Jacinto (the "Facilities") to be owned by the Borrower and to be located at 301 Rosa Park Road in the City of Palm Springs (the "City"); and WHEREAS, the City of Palm Springs (the "City") had determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefore by the Authority; and WHEREAS, the City Council of the City (the "City Council") approved entering into the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority (the "Agreement') on July 9, 2008, among certain local agencies; and WHEREAS, the Obligations will be considered to be "qualified exempt facility bonds" under Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section 147(f) of the Code requires that the "applicable elected representative" with respect to the City hold a public hearing on and approve the issuance of the Bonds; and WHEREAS, this City Council is the elected legislative body of the City; and WHEREAS, a notice of public hearing in a newspaper of general circulation in the City has been published, to the effect that a public hearing would be held by this City Council on the date hereof regarding the issuance of the Bonds by the Authority and the nature and location of the Facilities; and WHEREAS, on July 15, 2009 the City Council held said public hearing, at which time an opportunity was provided to present arguments both for and against the issuance of such Bonds and the nature and location of the Facilities; and Resolution No.22543 Page 2 WHEREAS, it is in the public interest and for the public benefit that the City approve the issuance and delivery of the Bonds for the purpose of financing the acquisition, construction and development of the Facilities; and WHEREAS, the City shall not have any liability for the repayment of the Obligations or any responsibility for the Facilities; THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1, The City Council hereby finds and determines that the foregoing recitals are true and correct. SECTION 2. The City Council hereby approves the issuance of the Bonds in an aggregate principal amount not to exceed $10,000,000 by the Authority. It is the purpose and intent of the City that this resolution constitute approval of the issuance of the Bonds (a) by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Facilities is to be located, in accordance with said Section 147(f) and (b) by the City in accordance with 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 Facilities or any refinancing of the Facilities; (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 or operation of the Facilities; (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 Mayor, or designee thereof, the Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. SECTION 6. The Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel: Paul J. Thimmig, Esq. Quint & Thimmig LLP 575 Market Street, Suite 3600 San Francisco, CA 94105-2874 SECTION 7. This resolution shall take effect upon its adoption. Resolution No.22543 Page 3 ADOPTED THIS 15TH DAY OF JULY, 2009. David H. Ready, Citager ATTEST: mes Thompson, City Clerk 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. 22543 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 July 15, 2009, by the following vote: AYES: Councilmember Hutcheson, Councilmember Weigel and Mayor Pougnet. NOES: None. ABSENT: Councilmember Foat and Mayor Pro Tern Mills. ABSTAIN: None. mes Thompson, City Clerk . / p City of Palm Springs, Californa��V Z�YLoo -