HomeMy WebLinkAboutResolution 2023-149 N.C.S. 09/18/2023 DocuSign Envelope ID:8873FB56-63FF-4ECB-B209-7F1F70CE9CE5
Resolution No. 2023-149 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING A PLAN OF
FINANCING FOR THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$35,000,000 TO FINANCE AND REFINANCE AN AFFORDABLE RENTAL HOUSING FACITLIY
FOR THE BENEFIT OF DOWNTOWN RIVER TWO, L.P.,AND CERTAIN OTHER MATTERS
RELATING THERETO,AND FINDING THAT THIS ITEM IS NOT A "PROJECT" PURSUANT TO
CEQA GUIDELINES
WHEREAS, Downtown River Two LLC, a California limited liability company(the "General Partner"), an
affiliate of Eden Housing Inc. (the "Sponsor"), on behalf of Downtown River Two, L.P., a California limited
partnership, or another ownership entity to be created by the General Partner (such limited partnership or other
ownership entity being referred to herein as the"Borrower"),has requested that the California Municipal Finance
Authority (the "Authority") undertake a plan of finance for the issuance from time to time of one or more series
of revenue bonds in an aggregate principal amount not to exceed $35,000,000 (the "Bonds") to finance and
refinance the acquisition, rehabilitation and improvement of an existing 81-unit affordable rental housing facility
for low-income households, which when complete will consist of 87 residential units (the "Project"), located at
35 E. Washington Street in the City of Petaluma, California(the"City"), and to be owned and/or operated by the
Borrower; and
WHEREAS, an "applicable elected representative" of the jurisdiction in which the Project is located is
required to approve the plan of finance for the Project, including the issuance of the Bonds, under Section 147(f)
of the Code; and
WHEREAS,the City Council of the City(the "City Council") is the elected legislative body of the City and
is an"applicable elected representative" for purposes of Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the City Council approve the plan of finance for the Project,
including 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 Joint Exercise of Powers Agreement Relating to the
California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local
agencies, including the City; 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, and now desires to approve the plan of finance for the
Project, including the issuance of the Bonds by the Authority; and
WHEREAS, a resolution by the City Council approving the issuance of multi-family revenue bonds by the
Authority does not commit, approve, or constitute any other action or funding for the project by the City; and
WHEREAS, the City supports the production and preservation of affordable housing for its lower income
and vulnerable populations; and
WHEREAS,the Petaluma General Plan 2025 includes policies to provide essential housing to all Petalumens
and including Policy 6.1 to support efforts to prevent homelessness, and Policy 9.1 to promote the integration of
affordable and special needs housing projects on existing neighborhoods; and
Resolution No. 2023-149 N.C.S. Page 1
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WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality
Act(CEQA)in accordance with CEQA Guidelines Section 15378, as the action does not meet CEQA's definition
of a "project," because approving financing by the Authority is not a project as it does not commit the City to a
definite course of action (See City of Irvine v. County of Orange (2013) 221 Cal 4th 846, 865) and because
approving a loan extension is not a project because this action constitutes organizational or administrative
activities of governments that will not result in direct or indirect physical changes in the environment pursuant to
CEQA Guidelines Section 15378; and
WHEREAS, environmental compliance was already completed when the initial loan was approved.
Moreover, the project would be exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities).
WHEREAS, Eden Housing plans to continue operation of the Project in accordance with all requirements
of the two Affordability Restrictions Agreement pertaining to 35 East Washington Street entered into by the
City of Petaluma and Eden Housing on 10-20-2003 and recorded with the Sonoma County Recorder as record
number 2003-218628 and 2003-218635218628; and
WHEREAS, this item was agenized in compliance with state and local laws.
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Petaluma as follows:
1. Declares the above recitals to be true and correct and are incorporated herein by reference.
2. Finds that the proposed action is exempt from the requirements of the California Environmental Quality Act
(CEQA) in accordance with CEQA Guidelines Section 15378, as the action does not meet CEQA's definition
of a "project," because approving a loan extension is not a project because this action constitutes
organizational or administrative activities of governments that will not result in direct or indirect physical
changes in the environment pursuant to CEQA Guidelines Section Furthermore, environmental compliance
was already completed when the initial loan was approved.
3. Approves the plan of financing for the issuance of the Bonds by the Authority to finance or refinance the
Project. It is the purpose and intent of the City Council that this resolution constitute approval for the purposes
of (a) Section 147(f) of the Code by the applicable elected representative of a 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.
4. This resolution shall take effect immediately upon its adoption.
Resolution No. 2023-149 N.C.S. Page 2
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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 Approved as to
Council of the City of Petaluma at a Regular meeting on the 18th day of DocuSigned fgrrn:
September 2023,by the following vote: �'7
ity Attorney
AYES: Mayor McDonnell,Barnacle,Vice Mayor Cader Thompson,Healy,Nan,Pocekay,Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
DocuSigned by: DocuSigned by:
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ATTEST: i
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City 867e9rt29E4492... Mayor
Resolution No. 2023-149 N.C.S. Page 3