Loading...
HomeMy WebLinkAboutReso 179-10 Arroyo Vista JPARESOLUTION NO. 179-10 A RESOLUTION OF THE CtTY COUNCIL OF THE CITY OF DUBLIN ********** APPROVING A JOINT EXERCISE OF POWERS AGREEMENT RELATtNG TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY, AND APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE AUTHORITY FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF A MULTIFAMILY RENTAL HOUSING FACILITY KNOWN AS ARROYO VISTA FAMILY & SENIOR HOUSING WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the State of Cafifornia (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement, effective on 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 Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the acquisition and construction of multifamily rental housing projects; and WHEREAS, Eden Housing, Inc. ("Eden Housing") has requested that the Authority issue one or more series of revenue bonds in an aggregate principal amount not to exceed $35,000,000 (the "Bonds"), and lend the proceeds of the Bonds to a California limited partnership (the "Borrower") to be formed by or on behalf of Eden Housing for the purpose of financing the costs of the acquisition and construction of a 180 unit multifamily residential rental facility (to consist of 50 units o.f senior housing and 130 units of family housing) to be located at 6700 Dougherty Road in the City of Dublin, California (the "City"), currently identified as Arroyo Vista Family & Senior Housing (the "Project"), to be owned by the Borrower and to be operated initially by Eden Housing Management, Inc.; and WHEREAS, in order for the Authority to have the legal authority to issue the Bonds, it is necessary for the City to become a Member of the Authority, and the City Council of 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 financing of the acquisition and construction of the Project; and WHEREAS, a copy of the Agreement has been filed with the City Clerk, and the City Council, with the assistance of City staff, has reviewed the Agreement; 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 approve the issuance of the Bonds after a public hearing has been held regarding the financing of the Project; and Page 1 of 3 WHEREAS, the City Council of the City is the elected legislative body of the City and is an app{icab{e elected representative with respect to the approval of the issuance of the Bonds under Section 147(f) of the Code because the Project wilt be located in the City; and WHEREAS, the Authority has requested that the City Councif 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 pubfic hearing regarding the issuance of the Bonds at which all those interested in speaking with respect to the financing of the Project and the Authority's issuance of the Bonds therefore were heard, and now desires to approve the issuance of the Bonds by the Authority. NOW, THEREFORE, the City Council of the City of Dublin does hereby resolve as follows: The Agreement is hereby approved and the City Manager or designee thereof is hereby authorized and directed to execute the Agreement, and the City Clerk is hereby authorized and directed to attest thereto. 2. The City Council hereby approves the issuance of the Bonds 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 for the purposes of (a) Section 147(f) of the Code, by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. 3. The issuance of the Bonds shall be subject to approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to repayment or administration of the Bonds. 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; (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 construction 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. 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. 6. The City Clerk is hereby directed to forward a certified copy of this Resolution and an originally executed signature page of the City to the Agreement to the Authority in care of its counsel, addressed as follows: Page 2 of 3 Andrea Caruso Townsend Squire, Sanders & Dempsey LLP. 555 South F{ower Street, Suite 3100 Los Angeles, CA 90071-2300; and the City Clerk is hereby directed to forward a certified copy of this Resolution to the bond counsel for the Bonds, addressed as follows: Paul J. Thimmig, Esq. Quint & Thimmig LLP 575 Market Street, Suite 3600 San Francisco, CA 94105-2874 7. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED, AND ADOPTED this 21St day of December, 2010, by the following vote: AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor Sbranti NOES: None ABSENT: None ABSTAIN: None ( `~ Vn~:..... ' Mayor ATTEST: ._ ~ City Clerk Reso No. 179-10, Adopted 12-21-10, Item 6.2 Page 3 of 3