HomeMy WebLinkAboutResolution 2007-017 N.C.S. 01/22/2007 Resolution No. 2007-017 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
APPROVING THE ISSUANCE OF TAX-EXEMPT BONDS BY THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY FORA MULTIFAMILY HOUSING PROJECT
TO BE OWNED BY A LIMITED PARTNERSHIP OR A LIMITED LIABILITY
COMPANY IN WHICH PETALUMA ECUMENICAL PROPERTIES OR AN
AFFILIATE WILL SERVE AS A GENERAL PARTNER OR MEMBER
WHEREAS, Petaluma Ecumenical Housing ("PEP") intends to establish a limited
partnership or limited liability company in which PEP or an affiliate will serve as a general partner
or member (the "Borrower"); and,
WHEREAS, PEP intends that the Borrower will acquire and construct a 58-unit
multifamily rental housing development (the "Project") to be located at 400 Casa Grande Road,
Petaluma, Califo;7lia 94954, and has requested the California Municipal Finance Authority (the
"Authority") to issue tax-exempt bonds (the "Bonds") in the not-to-exceed amount of
$l 5,000,000, the proceeds of which shall be used for the purpose of financing the acquisition and
construction of the Project; and,
WHEREAS, 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 of the City of Petaluma (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 1470 ofthe 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 12 of the Joint Exercise of Powers Agreement, dated
as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; and,
WHEREAS, the City Council, on March 6, 2006, heretofore approved the issuance of
the Bonds in the not-to-exceed amount of $8,000,000, but the Bon-ower subsequently ~detennined
that Bonds in the amount of only $8,000,000 would be insufficient for the completion of the
Project, and has therefore requested that the City Council approve the issuance of Bonds in the
not-to-exceed amount of $15,000,000; 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.
Resolution No. 2007-017 N.C.S. Page ]
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Petaluma, as follows:
Section 1. The City Council hereby finds and determines that the foregoing recitals are hue
and correct.
Section 2. The City Council hereby approves the issuance ofthe 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 in the not-to-exceed amount of $15,000,000 by
the Authority only for the purposes of (i) Section 147(f) of the Code by the applicable elected
representative ofthe governmental unit having jurisdiction over the area in which the Project will
be located, in accordance with said Section 147(f), and (b) Section 12 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 payment of the principal, prepayment premium, if any, and purchase price of
and interest on the Bonds shall be solely the responsibility of BoiTOwer. 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. This Resolution shall take effect. immediately upon its adoption.
Under the power and authority conferred upon this Council by the Chaster of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the A roe as o
Council of the City of Petaluma at a Regular meeting on the 22"d day of January, f ~
2007, by the following vote:
City A rney
AYES:
NO GS: None
ABSENT: None
ABSTAIN: None
ATTEST: ~,vc~` , E' t,
City Clerk Mayor f`- '„J'
Resolution No. 2007-O17 N.C.S. Page 2