HomeMy WebLinkAboutReso 58-198729070-11 JHHW:PJT:clt 05/05/87 J3397
RESOLUTION NO. 58-87
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF
MULTIFAMILY HOUSING REVENUE BONDS
(MAGNOLIA PLAZA APARTMENTS PROJECT),
ASSIGNING ALLOCATION AND APPROVING
OTHER RELATED DOCUMENTS AND ACTIONS
WHEREAS, Chapter 7 of Part 5 of Division 31 (Section 52075 et seq.) of the Health and
Safety Code of the State of California (the "Act") authorizes cities to incur indebtedness for the
purpose of financing the construction or development of multifamily rental housing within their
jurisdiction, and the Act provides a complete, additional and alternative method for doing the
things authorized thereby;
WHEREAS, the City hereby finds and declares that it is necessary, essential and a public
purpose for the City to engage in a program (the "Program") of financing the construction and
development of multifamily rental housing, and has determined to borrow money for such
purpose by the issuance of revenue bonds as authorized by the Act;
WHEREAS, the City hereby finds and declares that this Resolution is being adopted
pursuant to the powers granted by the Act;
WHEREAS, on December 10, 1985, the County of San Mateo adopted a resolution
declaring its intent to issue bonds to provide financing for the multifamily rental housing
development known as Magnolia Plaza Apartments (the "Project") and the City now desires to
approve said resolution as if adopted by the City on said date;
WHEREAS, a notice of a public hearing with respect to the proposed issuance of the
Bonds (hereinafter defined) and the financing of the Project with the proceeds thereof has been
published in a newspaper of general circulation in the City not less than fourteen days prior to the
date of such hearing;
WHEREAS, on May 13, 1987, said public hearing was held before this City Council, and
an opportunity was provided for interested parties to present arguments for and against the
issuance of the Bonds and the financing of the Project with the proceeds of the Bonds; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to have
been pedormed precedent to and in the issuance of the Bonds and the implementation of the
Program as contemplated by this Resolution and the documents referred to herein exist, have
happened and have been performed in due time, form and manner as required by the laws of the
State of California, including the Act.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco, as follows:
1. The City hereby finds and declares that the above recitals are true and correct.
2. Pursuant to the Act and the Indenture (hereinafter defined), revenue bonds of the City,
designated as "City of South San Francisco Variable Rate Demand Multifamily Housing Revenue
Bonds, 1987 Series A (Magnolia Plaza Apartments Project)" in an aggregate principal amount not
to exceed $6,100,000 (the "Bonds"), are hereby authorized to be issued. The Bonds shall be
executed in the form set forth in and otherwise in accordance with the Indenture.
3. The proposed form of indenture of trust (the "Indenture") between the City and a
Seattle-First National Bank (the "Trustee"), loan agreement, among the City, the Trustee and
South San Francisco Magnolia Plaza Associates, A California Limited Partnership (the
"Developer"), regulatory agreement and declaration of restrictive covenants, among the City, the
Trustee and the Developer, remarketing agent agreement, among the City, the Developer and
Wells Fargo Bank, N.A. (the "Bank"), intercreditor agreement, among the City, the Bank and the
Trustee, administration agreement, among the City, the County of San Mateo and the Developer,
and the Official Statement for the Bonds (the "Official Statement"), are hereby approved. The City
Manager is hereby authorized and directed to execute and deliver each of said documents 'in
substantially said forms, with such additions thereto or changes therein as are approved by the
City Manager upon consultation with the City Attorney and Bond Counsel (including such
additions or changes as are necessary or advisable in accordance with Section 9 hereof the
approval of such additions or changes to be conclusively evidenced by the execution and
delivery of said documents by the City Manager. The date, maturity dates, interest rate or rates,
interest payment dates, denominations, form, registration privileges, manner of execution, place
of payment, terms of redemption and other terms of the Bonds shall be as provided in the
Indenture as finally executed.
4. The proposed form of bond purchase agreement (the "Purchase Contract") among the
City, Wells Fargo Bank, N.A. (the "Underwriter"), and the Developer is hereby approved. The
City Manager is hereby authorized and directed to accept the offer of the Underwriter to purchase
the Bonds contained in the Purchase Contract (when such offer is made and if such offer is
consistent with Section 3 of this Resolution) and to execute and deliver said Purchase Contract in
substantially said form, with such additions thereto or changes therein as are recommended or
approved by the City Manager upon consultation with the City Attorney and Bond Counsel
including such additions or changes as are necessary or advisable in accordance with Section 9
hereof (provided that no such change shall increase the principal amount of the Bonds over
$6,100,000 and the interest rate to be borne by any maturity of the Bonds initially shall not be in
excess of 8.5% and the Underwriter's fee and/or discount shall not be in excess of 2% of the
principal amount of the Bonds sold), the approval of such additions or changes to be conclusively
evidenced by the execution and delivery of said Purchase Contract by the City Manager.
5. The Underwriter is hereby authorized to distribute copies of the Official Statement to
persons who may be interested in the purchase of the Bonds and is directed to deliver such
copies to all actual purchasers of the Bonds. Distribution by the Underwriter of the Preliminary
Official Statement relating to the Bonds is hereby approved and authorized.
6. The Bonds, when executed, shall be delivered to the Trustee for authentication. The
Trustee is hereby requested and directed to authenticate the Bonds by executing the Trustee's
certificate of authentication and registration appearing thereon, and to deliver the Bonds, when
duly executed and authenticated, to the Underwriter in accordance with the Purchase Contract,
upon payment of the purchase price therefor.
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7. The private activity bond allocation heretofore assigned to the City by the State of
California is hereby irrevocably designated to the Project and the Bonds. The City Manager is
hereby authorized and directed to file an appropriate form with the Internal Revenue Service, as
directed by Bond Counsel, upon the closing for the Bonds, indicating that portion of said
allocation used in connection with the issuance of the Bonds.
8. Resolution No. 47577 of the Board of Supervisors of the County of San Mateo, adopted
on December 10, 1985, is hereby approved, the findings of the County of San Mateo contained in
said resolution are hereby confirmed and approved as the findings of the City; and the City
hereby agrees to be bound by said resolution and to issue the Bonds for the Project referenced
therein and herein on the terms stated in said resolution and herein, all effective, and as if the
City had adopted said resolution on, December 10, 1985.
9. All actions heretofore taken by the officers and agents of the City with respect to the
establishment of the Program and the sale and issuance of the Bonds are hereby approved,
confirmed and ratified, and the proper officers of the City are hereby authorized and directed to
do any and all things and take any and all actions and execute any and all certificates,
agreements and other documents, which they, or any of them, may deem necessary or advisable
in order to consummate the lawful issuance and delivery of the Bonds in accordance with this
resolution, including but not limited to those certificates, agreements and other documents
described in the documents herein approved.
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 13th day of May,
1987, by the following vote:
AYES: Counci lmembers John
Roberta Cerri
NOES: None
ABSENT: None
"Jack" Drago, Richard A. Haffey, Gus Nicolopulos,
Teglia, and Mark N. Addiego
/~ Attest:
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