HomeMy WebLinkAboutResolution 91-367 12/16/1991ReSOIUtIOrl N®. 91-367 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 LYNCH CREEK CO., L.P.
TO FINANCE THE CONSTRUCTION OF
MULTIFAMILY RENTAL HOUSING
DEVELOPMENT
WHEREAS, the City Council of the City of Petaluma, after careful study
and consideration, has determined that there is a shortage of safe and sanitary
housing within the City, particularly for low and moderate income elderly
families, and that it is m the best interest of the residents of the City and in
furtherance of the health, safety, and welfare of the public for the City of
Petaluma to assist in the financing of multifamily rental housing units;
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
WHEREAS, the City Council has now determined to provide financing
for two multifamily rental housing developments containing an aggregate of
approximately 300 units (the "Projects"), as more fully described herein, to be
developed by Lynch Creek Co., L.P., a California limited partnership (the
"Applicant"), or assigns (which assigns must be affiliated with the Applicant), to
be located in the City of Petaluma, California at 325 North McDowell Blvd.; and
W>FIEREAS, to finance the Projects; the City intends to issue revenue
bonds or other evidences of indebtedness;
NOW, THEREFORE, BE IT RESOLVED 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
$23,365,000 with respect to a Project containing approximately 210 units
(b) Project 2: An aggregate principal amount of Bonds not to exceed
$$6,500,000 with respect to a Project containing approximately 90 units,
constituting a separate project but a second phase of Project 1.
Each of the Projects is to be located at 325 North McDowell Blvd. in the City of
Petaluma, and each Project shall meet the requirements of California law and any
Federal requirements for tax exemption of interest on the bonds. Subject to final
approval by the City Council, the Mayor, City Manager and other officers of the
City are hereby authorized and directed, for and in the name and on behalf of the
City, to take all necessary actions to finance the Projects, including the actions
necessary for the issuance of the Bonds.
Res. No. .........9.1.-3.6.7.... N.C,S.
2. The Bonds shall be payable solely from revenues to be received by the
City in connection with the Projects and the flnancing therefor. Neither the faith
and credit nor the taxing powers of the City shall be pledged to the payment of
principal of, premium, if any, or interest on the Bonds.
3. The City Council hereby declares the City's official intent to make
proceeds of the Bonds available to the Applicant for its use in paying or
relmbursing itself for Project expenditures. The Bonds shall be Issued only if the
City and the Applicant first shall have agreed to mutually acceptable terms for the
Bonds, for the security therefor, for the sale and delivery of the Bonds, and for the
loan agreement or other arrangement pursuant to which. proceeds of the Bonds
will be made available to the Applicant. This Resolution does not bind the City to
incur any debt.
4. The City Council intends that this resolution shall constitute "official
,~
action toward the issuance of the Bonds as contemplated herein to finance the
Projects within the meaning of United States Treasu-ry Regulation Section 1.103-
8(a) (5).
5. Orrick, Herrington & Sutcliffe is hereby designated as Bond Counsel in
connection with the issuance of the Bonds for each Project.
6. The Mayor, City Manager and other officers of the City are hereby
authorized and directed, for and in the name and on behalf of the City, to take all
actions and to sign all documents necessary or desirable to effectuate the
purposes of this resolution including, but not limited to, making application to the
California Debt Limit Allocation Committee for allocation in accordance with
this resolution under the 1.992 State of California ceiling on private activity bonds.
7. Resolution No. 88-398 adopted on December 19, 1988 (except Section 5
thereof) and Resolution No. 90-21 adopted on July 2, 1990 relating generally to
the Projects are intended to and shall remain in full force and effect.
8. 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) (A~it~ meeting ~.
on the .....16th.------... day of ...........December---•• ..................... 19-.- 9-~ by the
following vote: .............................
ty Attorney
AYES: Read, Davis, Nelson, 1VIayor Hilligoss
NOES: None
ABSENT: avana o ,Vice Mayor Woolsey
ATTEST : . ................................•- -.................. ..... .-....................._...
City Clerk
Mayor
Council File.. ..... . .
91-~ ~ ,r............_
CA 10-85 ~ Kes. No . .............................. N.C.S.