Loading...
HomeMy WebLinkAboutCC RESO 2016-135RESOLUTION NO. 2016 — 135 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING MEMBERSHIP IN THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY ("AUTHORITY"), AUTHORIZING THE MAYOR TO EXECUTE AN INDEMNIFICATION AND INSURANCE AGREEMENT WITH SDG HOUSING PARTNERS, LLC ("BORROWER"); AND APPROVING THE ISSUANCE OF REVENUE BONDS BY THE AUTHORITY TO FINANCE A 180-UNIT MULTIFAMILY AFFORDABLE HOUSING FACILITY FOR THE BENEFIT OF GRANGER HOUSING, L.P., AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the California Government Code, commencing with Section 6500 (the "JPA Law"), the City, upon authorization of the City Council, may enter into a joint exercise of powers agreement with one or more other public agencies pursuant to which such contracting parties may jointly exercise any power common to them; and WHEREAS, the California Municipal Finance Authority (the "Authority") is a joint exercise of powers authority, the members of which include numerous cities and counties in the State of California ("Members"); and WHEREAS, the Members have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement") in order to form the Authority, for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, under the JPA Law and the Agreement, the Authority is a public entity separate and apart from the parties to the Agreement, and the debts, liabilities and obligations of the Authority will not be the debts, liabilities or obligations of the City or the other members of the Authority. WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the construction of capital projects; and WHEREAS, Granger Housing, L.P., a California limited partnership, or another partnership to be established by the Borrower, has requested that the Authority issue and sell revenue bonds in the maximum principal amount of $50,000,000 (the "Bonds") for the purpose of making a loan to the Borrower, to enable the Borrower to finance or refinance the costs of the acquisition, rehabilitation and improvement of an existing 180-unit multifamily affordable facility located at 2700 East 8th Street in the City (the "Project"); and WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that an "applicable elected representative" of the governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the Bonds following such hearing; and WHEREAS, the Authority has determined that the City Council is an "applicable elected representative" for purposes of holding such hearing; and Resolution No. 2016 — 135 Page Two WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and, the requirements of Section 4 of the Agreement; and WHEREAS, notice of such public hearing has been duly given as required by the Code, and this City Council has held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the financing or refinancing of the Project and the Authority's issuance of the Bonds therefor; and WHEREAS, to protect the City in connection with the development of the Project, SDG Housing Partners, LLC has agreed to defend and indemnify the City and to execute an indemnification and insurance agreement on substantially similar terms as presented herewith; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. The City Council finds and declares that the actions authorized hereby constitute public affairs of the City. The City Council further finds that the statements, findings, and determinations of the City set forth in the recitals above are true and correct. Section 2. The Agreement is hereby approved, and is on file in the Office of the City Clerk. The Mayor is hereby authorized, for and on behalf of the City, to execute and deliver a signed counterpart of the Agreement, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 3. The City Council hereby approves the issuance of the Bonds in the maximum amount of $50,000,000 by the Authority. It is the purpose and intent of the City Council 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 located in accordance with Section 147(f) of the Code and (b) by the City Council in accordance with Section 4 of the Agreement. This approval is conditioned on execution of the Indemnification and Insurance Agreement between the City and SDG Housing Partners, LLC, the developer of the Project, on substantially similar terms as presented herewith. 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 financirig 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, rehabilitation 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. Resolution No. 2016 — 135 Page Three Section 6. The Mayor is authorized to execute the Indemnification and Insurance Agreement between the City and SDG Housing Partners, LLC, the developer of the Project on substantially similar terms as presented herewith. Section 7. The Mayor, 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 8. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: Ronald E. Lee, Esq. Jones Hall, APLC 475 Sansome Street, Suite 1700 San Francisco, CA 94111 Section 9. This resolution shall take effect immediately upon its passage. PASSED and ADOPTED this 6th day of Septemb- , 3►16. ATTEST: /A Micha-I R. Dalla, Cit Clerk PROVE i_• S TO FORM: C" dia Gaci City Attorn Morrison, Mayor Passed and adopted by the Council of the City of National City, California, on September 6, 2016 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 /'i 4O�/uv City Clerk of the City of N tional City, California it By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2016-135 of the City of National City, California, passed and adopted by the Council of said City on September 6, 2016. City Clerk of the City of National City, California By Deputy