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HomeMy WebLinkAboutReso 69-2014RESOLUTION NO. 69 -2014 CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO APPROVINGTHE ISSUANCE OF TAX - EXEMPT BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR ROTARY PLAZA, L.P. OR BY ANOTHER A LIMITED PARTNERSHIP TO BE ESTABLISHED BY AMERICAN BAPTIST HOMES OF THE WEST OR AN AFFILIATE THEREOF, WITH RESPECT TO A MULTIFAMILY APARTMENT PROJECT WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act "), certain public agencies (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 California Municipal Finance Authority (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, the City of South San Francisco (the "City ") is a member of the Authority; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing capital projects; and WHEREAS, American Baptist Homes of the West (the "Applicant "), have requested that the Authority assist in the financing of the acquisition and rehabilitation of a 181 unit multifamily housing development, which will have 179 units after rehabilitation (the "Project "), located at 433 Alida Way in the City of South San Francisco, County of San Mateo, California 94080, which is expected to be owned by Rotary Plaza, L.P. or another limited partnership or limited liability company to be established by the Applicant or a related entity (the "Borrower "), and has requested the Authority to issue tax - exempt bonds (the "Bonds ") in the not -to- exceed amount of $40,000,000, the proceeds of which shall be used for the purpose of financing the acquisition, rehabilitation and equipping of the Project; and WHEREAS, a portion of the units in the Project will be occupied by persons or families of lower or very low income; and WHEREAS, in order for the interest on the Bonds to be tax - exempt, Section 147(f) of the Internal Revenue Code of 1986 (the "Code ") requires that the "applicable elected representative" with respect to the Project to approve the issuance of the Bonds with respect to the Project after a public hearing has been held concerning the issuance and delivery of the Bonds with respect to the Project; and WHEREAS, the City Council 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 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, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds at which all those interested in speaking with respect to the financing of the Project were heard, and now desires to approve the issuance of the Bonds by the Authority, as provided below; WHEREAS, it is in the public interest and for the public benefit that the City Council approve the issuance of the Bonds by the Authority for the aforesaid purposes; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco, 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 issuance of the Bonds by the Authority with respect to the Project in the not -to- exceed amount of $40,000,000. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority only for the purposes of (i) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project will be located, in accordance with said Section 147(f), and (b) Section 4 of the Agreement. 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. 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, 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. The payment of the principal, prepayment premium, if any, and purchase price of and interest on the Bonds shall be solely the responsibility of Borrower. The Bonds shall not constitute a debt or obligation of the City. Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 6. 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 650 California Street, 18th Floor San Francisco, CA 94108 Section 7. This Resolution shall take effect from and after the date of its passage and adoption. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 11th day of June, 2014 by the following vote: AYES: Councilmembers Mark N. Addiego, Pradeep Gupta, and Liza Normandy Vice Mayor Richard A. Garbarino and Mayor KgMI Matsumoto NOES: ABSTAIN: None ABSENT: None ATTEST: �iiti_ Ttct. —, Anna Brown, Deputy City Clerk