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HomeMy WebLinkAbout22269 - RESOLUTIONS - 7/9/2008 RESOLUTION NO. 22269 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE ISSUANCE OF TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CITY OF PALM SPRINGS (CONDUIT FINANCING) NOT-TO-EXCEED $13,000,000 AGGREGATE PRINCIPAL AMOUNT FOR THE BENEFIT OF THE COACHELLA VALLEY HOUSING COALITION, A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION, FOR THE ACQUISTION, CONSTRUCTION, AND DEVELOPMENT OF THE ROSA GARDENS APARTMENTS AT 3603 MC CARTHY ROAD. WHEREAS, the California Municipal Finance Authority (the "Authority") intends to issue tax-exempt obligations (the "Obligations") at the request of Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, on behalf of and together with its successors or assigns or any limited partnership or limited liability company established by Coachella Valley Housing Coalition (the "Developer"), for the purpose, among other things, of making a loan to the Developer, the proceeds of which shall be used by the Developer to finance the acquisition, construction and development of a 57- unit multifamily housing rental facility to be known as Rosa Gardens Apartments and to be located at 3603 McCarthy Way in the City of Palm Springs, California (the "Project'); 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 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, there is now before the City Council of the City (the "City Council") the form 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; and WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; 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 Obligations; and Resolution No. 22269 Page 2 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 Obligations by the Authority and the nature and location of the Project; and WHEREAS, on July 9, 2008 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 Project; and WHEREAS, it is in the public interest and for the public benefit that the City approve the issuance and delivery of the Obligations for the purpose of financing the acquisition, construction and development of the Project; and WHEREAS, the City shall not have any liability for the repayment of the Obligations or any responsibility for the Project. 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 Agreement in substantially the form presented and subject to final approval of said agreement by the City Attorney and the City becoming a member of the Authority and hereby authorizes the Mayor to execute the Agreement to allow the City to become a member of the Authority. SECTION 3. The City Council hereby approves the issuance of the Bonds in an aggregate principal amount not to exceed $13,000,000 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 Project 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 4. 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 5. 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 Resolution No. 22269 Page 3 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 6. 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 7. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: Harriet M. Welch, Esq. Squire, Sanders & Dempsey LLP 666 South Flower St., Suite 3100 Los Angeles, CA 90071-2300 SECTION 8. This resolution shall take effect upon its adoption. ADOPTED THIS 9T" day of July, 2008. David H. Ready, City ger ATTEST: ames Thompson, City Clerk Resolution No- 22269 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. 22269 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 the 91" day of July, 2008, by the following vote: AYES: Councilmember Hutcheson, Councilmember Mills, and Mayor Pro Tern Foat. NOES: None- ABSENT: Councilmember Weigel and Mayor Pougnet- ABSTAIN: None. f s Thompson, City Clerk of Palm Springs, California Z5