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HomeMy WebLinkAboutCC RESO 2001 - 63RESOLUTION NO. 2001 -6 3 RESOLUTION OF CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST AMENDMENT TO FINANCING AGREEMENT, AND AUTHORIZING THE EXECUTION AND DELIVERY OF AND APPROVING OTHER RELATED DOCUMENTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH WHEREAS, the Community Development Commission of the City of National City (the "Commission") is authorized by Chapter 8 of Part 1 of Division 24 (commencing with Section 33750) of the Health and Safety Code of the State of California (the "Act"), to (a) to issue revenue bonds for the purpose of financing the construction, development or rehabilitation of multifamily rental housing; (b) to enter into agreements for the purpose of providing revenues to pay such revenue bonds upon such terms and conditions as the Commission may deem advisable; and (c) to secure the payment of such revenue bonds; and WHEREAS, at the request of Copper Hills Apartments Limited Partnership, a California limited partnership (the "Borrower"), of which The Southern California Housing Development Corporation of Orange is the general partner, the Commission has issued the two series of bonds described in the following clause (collectively, the "Bonds") under the Act for the purpose (hereinafter referred to as the "Program") of financing the Borrower's acquisition, development and rehabilitation of a 132-unit multifamily housing rental project (the "Project") located in the City of National City, California; and WHEREAS, the Bonds to be issued, in an aggregate principal amount not to exceed $4,000,000, shall be named as follows: (i) the "Community Development Commission of the City of National City Multifamily Housing Revenue Bond (Q Avenue Project) 1999 Series A (Tax -Exempt)" (the "Series a Bond") and (ii) the "Community Development Commission of the City of National City Multifamily Housing Revenue Bond (Q Avenue Project) 1999 Series B (Taxable)" (the "Series B Bond"); and WHEREAS, the Borrower has decided to redeem the entire principal amount of the Series B Bond and to redeem $535,000 principal amount of the Series A Bond, and Washington Mutual Bank, FA has agreed to purchase the remaining $2,600,000 principal amount of the Series A Bond and establish a permanent fixed interest rate on the loan purchased with the proceeds of the Bonds and on the Series A Bond to remain outstanding; and WHEREAS, in connection with redemption of Bonds as set forth above and the establishment of the fixed interest rates, certain amendments to the Financing Agreement executed by the Commission, the Borrower and Sanwa Bank California (the "financing Agreement") at the time of issuance of the Bonds are necessary; and Resolution No. 2001 - 6 3 May 1, 2001 Page Two WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in connection with the amendment of the Financing Agreement as contemplated by this resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: SECTION 1. Findings The Commission hereby finds and declares that the above recitals are true and correct. SECTION 2. First Amendment to Financin A reement. A First Amendment to Financing Agreement (the "Amendment to Financing Agreement") among Sanwa Bank California, Washington Mutual Bank, FA, as the fixed rate bondholder, the Commission and the Borrower, in the form presented to this meeting, is hereby approved. The Chairman, Executive Director, Treasurer or Secretary of the Commission (the "Designated Officers") are, and each of them acting alone is, hereby authorized and directed, for and in the name and on behalf of the Commission, to execute and deliver the Amendment to Financing Agreement in said form, with such additions thereto or changes therein as are recommended or approved by such officers upon consultation with Jones Hall, A Professional Law Corporation, bond counsel to the Commission ("Bond Counsel"), including such additions or changes as are necessary or advisable in accordance with Section 4 hereof, the approval of such additions or changes to be conclusively evidenced by the execution and delivery by the Commission of the Amendment to Financing Agreement. SECTION 3. Subordination A reement . The ent with respect to certain loans made by the Commission in connection Subordination ithe acquisitionand rehabilitation of the Project (the "Subordination Agreement") among the Commission, Washington Mutual Bank, FA, and the Borrower, as presented to this meeting, is hereby approved. The Designated Officers of the Commission are, and each of them acting alone is, hereby authorized and directed for and in the name of and on behalf of the Commission, to execute and deliver the Subordination Agreement in said form, with such additions thereto or changes therein as are recommended or approved by such officers upon consultation with Bond Counsel to the Commission including such additions or changes as are necessary or advisable in accordance with Section 5 hereof, the approval of such changes to be conclusively evidenced by the execution and delivery by the Commission of the Subordination Agreement. Resolution No. 2001 - 6 3 May 1, 2001 Page Three SECTION 4. Official Actions. All actions heretofore taken by the officers and agents of the Commission with respect to the establishment of the Program and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the proper officers of the Commission, including the Designated Officers, are hereby authorized and directed, for and in the name and on behalf of the Commission, to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful amendment of the Financing Agreement and the establishment of the fixed interest rate for the Series a Bond in accordance with this Resolution and resolutions heretofore adopted by the Commission and in order to carry out the Program, including, but not limited to, those certificates, agreements and other documents described in the Financing Agreement, the Amendment to Financing Agreement and the Subordination Agreement, and any certificates, agreements or documents as may be necessary to further the purpose hereof, but which shall not create any obligation or liability of the Commission other than with respect to the revenues and assets derived from the proceeds of the Bonds. SECTION 5. Effective This Resolution shall take effect from and after the date of its passage and adoption. PASSED and ADOPTED this 1d day of May, 2001. George H. W terser, Mayo ATTEST: Michael R. Dalla, /ty Clerk APPROVED AS TO FORM: er, III, City Attorney By: Rudolf Hradecky nior Assistant City Attorney