HomeMy WebLinkAboutReso 73-2010RI~SOLUTION NO. 73-2010
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING, AUTHORIZING AND
DIRECTING EXE(:UTION OF A JOINT EXERCISE OF
POWERS AGREEMENT RELATING TO THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY, AND APPROVING
THE ISSUANCE OF TAX-EXEMPT BONDS BY THE
CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR A
LIMITED PARTNERSHII' TO BE ESTABLISHED BY MID-
PENINSULA HOUSING COALITION OR AN AFFILIATE
THEREOF, WITH RESPECT TO A MULTIFAMILY
APARTMENT PRO.IECT.
WHEREAS, pursuant Chapt:er 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"), has determined that it is in the
public interest and for the public benefit that the City become a Member of the Authority in
order to facilitate the promotion of economic, cultural and community development activities in
the City, including the financing of ;projects therefore by the Authority; and
WHEREAS, there is now before this City Council (the "City Council") the form of the
Agreement; and
WHEREAS, the Agreement: has been filed with the City Clerk, and the members of the
City Council, with the assistance of its staff, have reviewed said document; and
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, Mid-Peninsula. Housing Coalition, a California non-profit corporation (the
"Applicant"), has requested that t]he Authority assist in the financing of the acquisition and
construction of a 47-unit multifamily rental housing development (the "Project") to be located at
636 El Camino Real, South San Francisco, California, which will be owned by a limited
partnership to be established by t]he 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
$17,000,000, the proceeds of which shall be used for the purpose of financing the acquisition,
construction 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 SE;ction 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 be it resolved by the City Council of the City
of South San Francisco, as follows:
The City Council hereby finds and determines that the foregoing recitals are true and
correct.
2. The Agreement is hereby approved and the Mayor, City Manager or designee thereof is
hereby authorized and directed to execute said document, and the City Clerk or such Clerk's
designee is hereby authorized and directed to attest thereto.
3. The City Council hereby approves the issuance of the Bonds with respect to the Project
by the Authority. 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.
4. 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.
5. 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.
6. 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.
7. The Clerk shall forward a certified copy of this Resolution and an originally executed
Agreement to the Authority in care of its counsel:
Harriet M. Welch, Esq.
Squire, Sanders & Dempsey LLP.
555 South Flower St., Suite 3100
Los Angeles, CA 90071-2300
8. This Resolution shall take effect from and after the date of its passage and adoption.
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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 28th day of
July, 2010 by the following vote:
AYES: Councilmembers Peciro Gonzalez, Richard A. Garbarino, and Karyl Matsumoto,
Vice Mayor Kevin Mullin and Mayor Mark Addiego
NOES: None
ABSTAIN: None
ABSENT: N
ATTEST:
Clerk