HomeMy WebLinkAboutCC RESO 2015-53RESOLUTION NO. 2015 — 53
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING T',-IE CITY TO PARTICIPATE IN A U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT PUBLIC OFFERING AS PART OF
THE SECTION 108 LOAN GUARANTEE ASSISTANCE PROGRAM TO
REFINANCE THE EXISTING NOTE IN THE ORIfGINAl PRINCIPAL AMnUNT
OF $6,900,000 USED TO FUND THE CONSTRUCTION OF FIRE STATION 34
WHEREAS, on July 15, 2003, the City Council adopted Resolution No. 2003-
103 authorizing an application seeking loan guarantee assistance under Section 108 of the
Housing and Community Development Act of 1974, as amended, from the United States
Department of Housing and Urban Development ("HUD'), and accepting HUD's guarantee of
Section 108 note number B-00-MC-06-0560 for the construction of the new main fire station,
Fire Station 34, under a Section 108 Contract for Loan Guarantee Assistance executed by the
Mayor on July 20, 2003; and
WHEREAS, the assistance provided by HUD was the guarantee of a note in the
original principal amount of $6,900,000, plus interest thereon; and
WHEREAS, HUD has notified the City of National City ("Borrower) that a public
offering will occur in May 2015, and to participate, the Borrower must immediately notify HUD of
its intention to refinance all or a portion of its existing Section 108 commitment through the
public offering; and
WHEREAS, HUD may require, as a condition of participation in the public
offering, that the Borrower execute documents related to the transaction, and whereas the
Borrower has previously agreed to pay the Borrower's share, as determined by HUD, of the
customary and usual issuance, underwriting, and other costs related to the public offering and
future administration of the Note and the trust certificates; and
WHEREAS, it is economically sound and in the best interest of the Borrower to
accept more favorable fixed rates of interest under the Section 108 Loan Guarantee Program
offered by HUD under the public offering.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor, or his duly authorized agent, to notify HUD of the
City of National City's desire to participate in the May 2015 public offering by HUD through the
Loan Guarantee Assistance Program under Section 108 of the Housing and Community
Development Act of 1974, as amended, for the existing obligation B-00-MC-06-0560 in the
original principal amount of $6,900,000, and to refinance the current estimated amount of
$4,140,000 at such rates of interest that will be determined by HUD at the time of the public
offering.
BE IT FURTHER RESOLVED that the City Council of the City of National City
hereby authorizes the Mayor to execute the necessary documents as required by HUD to
refinance the existing guaranteed Section 108 Note, and to execute such other documents,
contracts, amendments, and agreements with HUD.
BE IT FURTHER RESOLVED that the City Council hereby authorizes payment of
any required fees, as may be necessary to effectuate this refinancing transaction.
Resolution No. 2015 — 53
Page Two
PASSED and ADOPTED this 21s1 day of April, 2015.
lUtorrison, Mayor
ATTEST:
...;4,11 DA,
Mich ei R. Dalla, ty Cleric
PROVED AS TO FORM:
Claudia Gaci ua Silva
City Attorney
Passed and adopted by the Council of the City of National City, California, on April 21,
2015 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY• RON MORRISON
Mayor of the City of National City, California
City CIrk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUT!ON NO. 2015-53 of the City of National City, California, passed and adopted
by the Councii of said City on April 21, 2015.
City Clerk of the City of National City, California
By:
Deputy