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HomeMy WebLinkAboutResolution 2003-074 N.C.S. 04/07/2003~Zesolution No.2003-074N.C.S. of the City of Petaluma, California RESOLUTION AUTHORIZING AN APPLICATION TO THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE TO PERMIT THE ISSUANCE OF QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS AND DECLARATION OF OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS WHEREAS, the City of Petaluma (the "City") desires to engage in a program (the "Program") of financing the acquisition and construction of a multifamily rental housing .development; and, WHEREAS, Eden Housing, Inc., a California not-for-profit corporation (the "Borrower") (together with its successor or assigns or any partnership or limited liability company of which it or an affiliate is a partner or a member), has made a request to the City for assistance with respect to the financing of the acquisition and construction of the Downtown River Apartments, an 81 unit multi-family rental apartment project located at 3 through 39 East Washington Boulevard, in Petaluma, California 94953 (the "Project"); and, WHEREAS, the assistance requested is the issuance by the City of its tax-exempt multi-family housing revenue bonds (the "Bonds") in an amount not to exceed $11,500,000, the proceeds of which would be used by the Borrower or by an entity created by the Borrower for the purpose of acquiring and constructing the Project; and, WHEREAS, the Borrower expects to pay certain expenditures (the "Reimbursement Expenditure") in connection with the Project prior to the issuance of the Bonds for the purpose of financing costs associated with the Project on a long-term basis; and, WHEREAS, Section 1.103-8(a)(5) and Section 1.150-2 of the Treasury Regulations require the City to declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds of a subsequent borrowing; and, WHEREAS, the Internal Revenue Code of 1986 and the applicable regulations thereunder require the Borrower to take this action in connection with the payment of certain expenses in connection with the Project prior to issuance of tax-exempt bonds in order to allow the Borrower to be reimbursed for such expenditures; and, Resolution No. 2003-074 N.C.S. WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of California governs the allocation in the State of California of the state ceiling established by Section 146 of the Code among governmental units in the State having the authority to issue private activity bonds; and, WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an application for a portion of the state ceiling with or upon the direction of the California Debt Limit Allocation Committee ("CDLAC") prior to the issuance of private activity bonds; and, WHEREAS, CDLAC procedures require an applicant for a portion of the state ceiling to certify to CDLAC that the applicant has on deposit an amount equal to one-half percent (0.5%) of the amount of allocation requested (not to exceed the maximum provided in such procedures). NOW, THEREFORE, BE IT RESOLVED, as follows: 1. The statements contained in this Resolution with respect to the reimbursement of the expenditure described in this Resolution are intended to be the statements of official intent as required by, and in conformance with, the provisions of Treasury Regulations Section 1.150-2(e). 2. The expenditures to be reimbursed pursuant to this resolution have been incurred within 60 days prior to the date hereof or will be incurred after the date hereof in connection with the acquisition and construction by the Borrower of the Project. 3. The maximum principal amount of debt expected to be issued for the Project is $11,500,000. 4. The Borrower reasonably expects to reimburse the expenditures set forth in this resolution with the proceeds of tax-exempt debt to be issued by the Issuer subsequent to the date hereof, but this Resolution does not constitute a binding obligation to issue such debt. 5. The City Manager and the Finance Director, each acting alone, are hereby authorized to submit an application to CDLAC for an allocation of a portion of the state ceiling (as that term is used in the California Government Code) in an amount not to exceed $11,500,000 for application toward the issuance of the Bonds by the City to finance the Project. All actions heretofore taken by the City Manager or the Finance Director in connection with the filing of an application with CDLAC are hereby approved and ratified. The City Manager or the Finance Director, with the advice of legal counsel, is hereby authorized, on behalf of the City, to submit all such other documents as may be required to CDLAC pursuant to Government Code Section 8869.85 in furtherance of Resolution No. 2003-074 Page 2 ti the application. The City Manager or the Finance Director are each hereby authorized to assigned any allocation of a portion of the state ceiling received from CDLAC to any other entity eligible to issue the Bonds, including a joint powers authority of which the City is a member. 6. An amount equal to one-half of one percent of the amount of allocation requested (not to exceed any maximum deposit pursuant to CDLAC guidelines), to be provided by the Borrower, is hereby authorized to be placed into an escrow account, and the City Manager or the Finance Director, or the designee of either, is authorized to execute an Escrow Deposit Agreement, or other agreement as maybe required with respect to such deposit, and to certify to CDLAC that such funds are available. 7. This Resolution shall take effect immediately upon its passage and adoption. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the A s to Council of the City of Petaluma at a (Regular) (Adjourned) (Special) meeting orm on the .........7.t17............ day of ........1~~2I'~1 ...................................... 20.Q~., by the following vote: •••••••••••••v '•'•'•' Cit, o e AYES: Canevaro, Mayor Glass, Harris, Healy, Vice Mayor O'Brien, Torliatt NOES: Moynihan ABSENT: N/one ~ ~ ) /J ~ ATTEST: ...........4~~ ~`~..:~~ ......................................................... ... ....L.Lij ...........:. t.......... ......................................... City Clerk Mayor Council File ................................... Res. No.......20Q3.:OZ4.........N.C.S.