HomeMy WebLinkAboutResolution 2006-039 N.C.S. 03/06/2006 Resolution No. 2006-039 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, California 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 $8,800,000, 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 147(f) of the 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
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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 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;
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 true and correct.
Section 2. The City Council hereby approves the issuance of the 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 by the Authority only for the purposes of (i)
Section 147(f) of the Code by the applicable elected representative of the 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 Borrower. 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
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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.
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 Apr ve as to
Council of the City of Petaluma at a Regular meeting on the 6`h day of March, 2006, I orrti':
by the following vote:
City.At omey
AYES: Vice Mayor Canevaro, Harris, Healy, Nau, O'Brien, Torliatt
NOES: None
ABSENT: Mayor Glass
ABSTAIN: None
ATTEST:
City Clerk or
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