HomeMy WebLinkAboutResolution 92-143 06/15/1992•~:
ReS®IL,ltlOrl ~®. 92-143 N ~.5.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PETALUMA INDICATING INTENT TO
ISSUE REVENUE BONDS FOR VALLEY ORCHARDS PROJECT
1 AND 2 TO FINANCE THE CONSTRUCTION
OF MULTIFAMILY RENTAL HOUSING DEVELOPMENT
WHEREAS, the City of Petaluma has an adopted and State-certified
Housing Element which delineates certain goals, policies and programs regarding
the need and provision of affordable housing for the low-income elders of our
community; and
WHEREAS, an analysis of 1990 Census data regarding household
income and housing costs of elder renters substantiates the current validity of
those General Plan goals, policies and programs; and
WHEREAS, the City is empowered to incur long term indebtedness
for the purpose of making loans or otherwise providing funds to finance the
development of multi-family rental housing including units for households
meeting certain income limits; and
WIIEREAS, the City Council has now determined to provide
financing for the multi-family rental housing developments containing an
aggregate of approximately 179 units (the "Projects"), owned by Washington
Retirement Apartments and Petaluma Property Partners, both General
Partnerships (the "Applicants"), as more fully described herein, to be located in
the City of Petaluma, California at 2100 E. Washington Street; and
WHEREAS, to finance the Projects, the City intended to issue
revenue bonds or other evidences of indebtedness;
N®W, TIIEREF®RE, BE I'I' IZES®LVED by the City Council of
the City of Petaluma as follows:
1. The City Council hereby determines that it may be desirable to
provide construction and permanent financing for the Projects by the issuance of
mortgage revenue bonds or other evidences of indebtedness (the "Bonds") as
follows:
A. Project 1: An Aggregate principal amount of Bonds not to exceed
$4,750,000 with respect to an existing Project containing 103 units
B. Project 2: An aggregate principal amount of Bonds not to exceed
$.5,500,000 with respect to a Project containing approximately 76 units,
constituting a separate project but a second phase of Project 1.
His. No..........9..2..-.1.4.3 v.c.s.
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1
2 Each of the Projects are to be located at 2100 E. Washington Street in
3 the City of Petaluma, and each Project shall meet the requirements of California
4 law and any Federal requirements for tax exemption of interest on the bonds.
5 Subject to final approval by the City Council, the Mayor, City Manager and other
6 officers of the City are hereby authorized and directed, for and. in the name and on
7 behalf of the City, to take all necessary actions to finance the Projects, including
8 the actions necessary for the issuance of the Bonds.
9
10 2. The Bonds shall. be payable solely from revenues to be received by
11 the City in connection with the Projects and the financing therefor. Neither the
12 faith and credit not the taxing powers of the City shall be pledge to the payment of
13 principal of, premium, if any, or interest on the Bonds.
14
15 3. The City Council hereby declares the City's official intent to make
16 proceeds of the Bonds available to the Applicant for its use in paying or
17 reimbursing itself for Project expenditure. The Bonds shall be issued only if the
18 City and the Applicant first shall have agreed to mutually acceptable terms for the
19 Bonds, for the security therefor, for the sale and delivery of the Bonds, and for the
20 loan agreement, regulatory agreement and other agreements pursuant to which
21 proceeds of the Bonds will be made available to the Applicant. This Resolution
22 doe snot bind the City to incur any debt.
23
24 4. The City Council intends that this resolution shall constitute
25 "official action" toward the issuance of the Bonds as contemplated herein to
26 finance the Projects within the meaning of United States Treasury Regulation
27 Section 1.103-8(a) (5).
28
29 5. Sutro and Company is designated as Underwriter in connection
30 with the issuance of the Bonds for each Projects. Orrick, Herrington & Sutcliffe is
31 hereby designated as Bond Counsel. in connec#ion with the issuance of the Bonds
32 for each Project. Other members of the financing team will be named at a
33 subsequent date.
34
35 6. The Mayor, City Manager and other officers of the City are hereby
36 authorized and directed, for and in the name.and on behalf of the City, to take all
37 actions and to sign all documents necessary or desirable to effectuate the
38 purposes of this resolution including, but not limited to, making application to the
39 Callfornia Debt Limit Allocation Committee for allocation in accordance with
40 this resolution under the 1992 or 1993 State of California ceiling on private
41 activity bonds.
42
43 7. This resolution shall take effect immediately upon its 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 Approved as to
Council of the City of Petaluma at a (Regular) (~g~,~~i~l) meeting'~~ form
on the .............fl5---•.-.. day of .............-Jtu-e....................---............, 19......92by the ^_y~~
following vote: •-•--•,!•`-. •-•--•• - -----••-----••----•
City At , rney
AYES: READ, DAVIS, VICE 111mIAY0It WOOLSEY, MAYOR HILLIGOSS, SOBEL, NELSON
NOES: NONE
,~
ABSENT: C VANA
ATTES'T': ..---- •--• . ....................... ............................................................
Ci y Clerk
~~
D'7lJ
Mayor
Council File ....................................
ca io-as Res. No......92-143....... N.cs.