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HomeMy WebLinkAboutCC RESO 2018-120RESOLUTION NO. 2018 — 120 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS WITH NO FISCAL IMPACT TO THE CITY AND IN AN AMOUNT NOT TO EXCEED $120,000,000 IN OUTSTANDING AGGREGATE PRINCIPAL TO FINANCE THE ACQUISITION AND REHABILITATION OF TWO EXISTING AFFORDABLE SENIOR RENTAL HOUSING PROJECTS KNOWN AS KIMBALL AND MORGAN TOWERS RESPECTIVELY, LOCATED AT 1317 "D" AVENUE AND 1415 "D" AVENUE IN NATIONAL CITY WHEREAS, the California Statewide Communities Development Authority (the "Authority"), of which the City of National City (the "City") is a member pursuant to the provisions of that certain Amended and Restated Joint Exercise of Powers Agreement Relating to the California Statewide Communities Development Authority, dated as of June 1, 1988 (the "Agreement"), is authorized by the laws of the State of California (the "Law") to issue tax-exempt obligations and taxable obligations for the purpose of financing multifamily rental housing to be occupied, in whole or in part, by persons or families of low and very low income; and WHEREAS, Community HousingWorks (the "Applicant") has requested that the Authority cause the issuance of one or more series of tax-exempt bonds (collectively, the "Bonds") in the aggregate not -to -exceed amount of $120,000,000, the proceeds of which shall be used for the purpose of financing the acquisition and rehabilitation of the following multifamily rental housing developments (collectively, the "Projects," and each, a "Project), provided that the amount of Bonds to be issued for a Project shall not exceed the applicable maximum shown below: Name and Location Approximate Number of Units Maximum Amount of Bonds Kimball Tower Apartments 1317 D Avenue National City, California 91950 151 $70,000,000 Morgan Tower Apartments 1415 D Avenue National City, California 91950 152 $50,000,000 ; and WHEREAS, each Project is expected to be owned by a limited partnership to be established by the Applicant or an affiliate thereof (each such limited partnership, a "Borrower," and collectively, the "Borrowers"); and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that the "applicable elected representative" with respect to the Projects approve the issuance of the Bonds with respect to the Projects after a public hearing has been held concerning the issuance and delivery of such Bonds; and Resolution No. 2018 — 120 Page Two WHEREAS, the City Council of the City of National City is the elected legislative body of the City and is one of the applicable elected representatives required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the City Council has, on July 3, 2018, held said public hearing after due public notice and, at said meeting, all those interested in speaking with respect to the financing of the Projects were heard. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. This City Council hereby finds and determines that the foregoing recitals are true and correct. Section 2. This City Council hereby approves the issuance of the Bonds with respect to the Projects by the Authority for the purposes of Section 147(f) of the Code. Section 3. The issuance and delivery of the Bonds shall be subject to the approval of and execution by the Authority of all financing documents relating thereto to which the Authority is a party and subject to the sale of the Bonds by the Authority. Section 4. Each Borrower shall be responsible for the payment of all present and future costs in connection with the issuance of the Bonds for the Project to be owned by such Borrower, including, but not limited to, any fees and expenses incurred by the City in anticipation of the issuance of such Bonds. The payment of the principal, prepayment premium, if any, and purchase price of and interest on such Bonds shall be solely the responsibility of such Borrower. The Bonds shall not constitute a debt or obligation of the City. Section 5. This City Council hereby determines that it is appropriate for the Authority to cause the issuance of the Bonds to finance the acquisition and rehabilitation of the Projects and hereby approves the issuance of the Bonds. It is the purpose and intent of this City Council that this resolution constitute approval of the Bonds for the purposes of Section 9 of the Agreement. Section 6. The adoption of this Resolution is solely for the purpose of meeting the requirements of the Code and Section 9 of the Agreement and shall not be construed in any other manner, neither the City nor its staff having fully reviewed or considered the financial feasibility of the financing of the Projects or the expected operation of the Projects with regard to any State of California statutory requirements, and such adoption shall not obligate, without further formal action to be taken by this City Council, (i) the City to provide financing to the Borrowers for the financing of the acquisition and rehabilitation of the Projects or to cause the delivery of the Bonds for the purpose of such financing; or (ii) the City, or any department of the City, to approve any application or request for, or take any other action in connection with the ownership or operation of the Projects. Resolution No. 2018 — 120 Page Three Section 7. The Clerk of the City Council shall forward a certified copy of this Resolution to: Josh D. Anzel Jones Hall, A Professional Law Corporation 475 Sansome Street, Suite 1700 San Francisco, California 94111 Section 8. This Resolution shall take effect from and after the date of its passage and adoption. PASSED and ADOPTED this 3rd day of July, 2018. ATTEST: N Michael R. Dalla, City Clerk APPROVED AS TO FOR/ rri -J Attorney Ron Morrison, Mayor 0r behal. € fv)a or (Zon Noin13 ` Passed and adopted by the Council of the City of National City, California, on July 3, 2018 by the following vote, to -wit: Ayes: Councilmembers Mendivil, Morrison, Rios, Sotelo-Solis. Nays: Cano. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California City CI rk 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 RESOLUTION NO. 2018-120 of the City of National City, California, passed and adopted by the Council of said City on July 3, 2018. City Clerk of the City of National City, California By: Deputy