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HomeMy WebLinkAboutResolution 2012-019 N.C.S. 02/06/2012 Resolution No. 2012-019 N.C.S. of the City of Petaluma, California APPROVING THE ISSUANCE OF TAX-EXEMPT BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR A LIMITED PARTNERSHIP TO BE ESTABLISHED BY PETALUMA ECUMENICAL PROPERTIES OR AN AFFILIATE OF PETALUMA ECUMENICAL PROPERTIES WITH RESPECT TO A MULTIFAMILY APARTMENT PROJECT WHEREAS, a limited partnership to be established by Petaluma Ecumenical Properties, or an affiliate thereof(the `Borrower) intends to acquire and construction a 50-unit multifamily housing development known as Kellgren Senior Apartments, located at 855 Wood Sorrel Drive in the City of Petaluma, California (the "Project"), and has requested the California Municipal Finance Authority (the "Authority") to issue tax-exempt bonds (the `Bonds") in the not-to- exceed principal amount of Twelve Million Five Hundred Thousand Dollars ($12,500,000), 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, as amended (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(t) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement, 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 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: 1. The City Council hereby finds and determines that the foregoing recitals are true and correct. 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(0 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 (ii) Section 4 of the Agreement. Resolution NO. 2012-019 N.C.S. Page I 3. The issuance and delivery of the Bonds shall be subjectto 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. 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 the Borrower. The Bonds shall not constitute a debt or obligation of the City. 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. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby cenify the foregoing Resolution was introduced and adopted by the of d is to Council of the City of Petaluma at a Regular meeting on the 6`h day of February, Orr: 2012. by the following vote: City A orney AYES: Albertson, Barrett, Mayor Glass, Harris, 1-lealy.Kearney. Vice Mayor Renee NOES: None ABSENT: None ABSTAIN: None ATTEST: /K Jf / / Q . 40 City Clerk Mayor Resolution No. 2012-019 N.C.S. Page 2