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