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HomeMy WebLinkAboutCC RES 85-041RESOLUTION NO. 85-�=1 A RESOLUTION OF THE CITY COIINCIL OF THE CITY OF PALM DESERT APPROVING DOCQMENTS; APPOINTING A TRUSTEE AND BOND COUNSEL AND AUTHORIZING THE SALE OF ITS MULTIFAMILY HOUSING REVENUE BONDS AND MAKING CERTAIN FINDINGS IN CONNECTION WITH THE ISSUANCE OF SAID BONDS WSEREAS, there is a shortage in the City of Palm Desert (the "City") and the County of Riverside (the "County") of decent, safe and sanitary housing which is affordable by persons in the lower end of the income spectrum and a consequent need to encourage the construction of rental units affordable by such persons and otherwise to increase the housing supply in the City and in the County for such persons; and WBEREF,S, the City is authorized pursuant to , Chapter 7(commencing with Section 52075) of Part 5 of Division 31 of the California Health and Safety Code (the "Act") to provide assistance in financing multifamily residential rental housing developments with the City; and WH�EREAS, the City Coun�il of the City has hereto- fore adopted its resolution decZaring its intention to issue bonds for a multiFamily rental housing project (the "Project"), which Project is to be constructed by Western Cotatnunity Developers, a California limited partnership ( the "Developer"); and WSEREAS, the City Council has duly caused to be published a notice of a public hearing regarding the issuance of revenue bonds for the Project in accordance with the requirements of Section 103(k) of the Internal Revenue Code of 1954, as amended, which notice set 7:00 p.m. on May 23rd , 1985 and the City Ball of the City as the time and place for said hearing; and WHEREAS, the members of the City Council are the applicable elected representatives to conduct a public hearing regarding the issuance of revenue bonds for the Project; and WHEREAS, the City Council on this date has conducted a public hearing regarding the issuance of revenue bonds for the Project and has determined it to be in the public interest to issue bonds, the proceeds of which will be used to make a loan to the Developer, all in furtherance of the purposes of the Act; and WHEREAS, all acts, conditions and things required by the Act, and by all other laws of the State of California, to exist, to have happened and to have been performed precedent to and in connection with the issuance of the aforesaid revenue bonds exist, have happened, and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to issue such revenue bonds for the purpose, in the manner and upon the terms herein provided; and WSEREAS, said revenue bonds are to be issued pursuant to an Indenture (the "Indenture") in the form presented to this meeting by and between the City and the trustee named in the Indenture (the "Trustee") in an aggregate principal amount not to exceed $22,400,000 and are to be designated as the "City of Palm Desert Multifamily Housing Revenue Bonds Series 1985 (Fannie Mae Program)" (the "Bonds"); NOW, THEREFORE, HE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. -2- Section 2. Regulatory Agreement. The proposed form of the Regulatory Agreement between the City and the Developer (the "Regulatory Agreement") attached as an exhibit to the Financing Agreement hereinafter referred to and presented at this meeting is hereby approved and the Mayor or Mayor Pro Tem and the City Clerk or Deputy City Clerk are hereby authorized and directed, for and in the name of the City, to execute the Regulatory Agreement in substantially the form hereby approved, with such non- substantive changes therein as the officer or officers executing the same may approve, such approval to be con- clusively evidenced by the execution and delivery thereof and are further authorized and directed to cause said Regulatory Agreement to be recorded in the official records of Riverside County. Section 3. Official Statement. The draft of the Preliminary Official Statement relating to the Bonds pre- sented at this meeting is hereby approved in substantially the form presented with such non-substantive changes thereto as may be approved by the Mayor and the Mayor is hereby authoriaed and directed, for and in the name and on behalf of the City, to execute the Preliminary Official Statement and a Final Official Statement in substantially the form of the Preliminary Official Statement, together with such non- substantive changes thereto as may be approved by the Mayor (collectively the "Official Statement") and the distribution of such Official Statement in connection with the sale of the Honds is hereby authorized. Section 4. Appointment of Truste. The Bank of California, San Francisco, California, is hereby appointed as Trustee under the Indenture (the "Trustee") for the City and the owners of the Bonds, with the duties and powers of such Trustee as are set forth in the Indenture. -3- Section 5. Indenture. The proposed form of the Indenture presented at this meeting by and between the City and the Trustee is hereby approved and the Mayor or Mayor Pro Tem and the City Clerk or Deputy City Clerk are hereby authorized and directed, for and in the name and on behalf of the City, to execute, acknowledge and deliver to the Trustee the Indenture in substantially the form hereby approved, with such non-substantive additions or changes as the officers executing the same may approve and which may be consistent with the Purchase Contract hereinafter referred to, such approval to be conclusively evidenced by the execution and delivery thereof. Section 6. Form of Bonds. The form of the Bonds as set forth in the Indenture as presented to this meeting is hereby approved and the Mayor or Mayor Pro Tem and the City Clerk or Deputy City Clerk are hereby authorized and directed to execute by manual or facsimile signature, in the name and on behalf of the City and under its seal, such Bonds in either temporary and/or definitive form in the aggregate principal amount set forth in the Indenture and all in accordance with the terms and provisions of the Indenture. Section 7. Financing Agreement. The form of the Financing Agreement (the "Financing Agreement") as presented to this meeting by and between the City, the Developer and Wells Fargo Realty Finance (the "Lender"), whereby the proceeds of the Bonds are to be loaned to the Developer for the purpose of financing the Project is hereby approved and the Mayor or Mayor Pro Tem and the City Clerk or Deputy City Clerk are hereby authorized and directed, for and in the name of the City, to execute the Financing Agreement in substa�tially the form hereby approved, with such non- substantive changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. -4- Section 8. Purchase Contract. The form of Purchase Contract for the purchase of the Bonds as presented to this meeting by Cranston Securities Company, as under- writer and the sale of the Bonds pursuant thereto upon the terms and conditions set forth therein is herby approved and, subject to such approval and subject to the provisions of Section 9 hereof, the Mayor, or his designee, is hereby authorized and directed to evidence the City's acceptance of the offer made by said Purchase Contract by executing and delivering said Purchase Contract in said form with such non-substantive changes therein as the officer executing the same may approve and such matters as are authorized by Section 9 hereof, such approval to be conclusively evidenced by the execution and delivery thereof. Section 9. Mayor or Designee Authorized to Establish Final Terms of Sale of Bonds. The Mayor or the ti Mayor Pro Tem, based on such advice of the City Attorney and Bond Counsel as he may deem necessary, is hereby authorized and directed to act on behalf of the City Council to estab- lish and determine (i) the final principal amount of the Bonds, which amount shall not exceed $22,400,000; (ii) the final interest rate on the Bonds, which rate shall not exceed 11$ per annum; (iii) the underwriter's discount for the purchase of the Bonds, which amount shall not exceed 3.0$ of the principal amount of the Bonds, and (iv) such other matters as may relate to the final terms and provi- sions for the sale of the Bonds as may be consistent with the Indenture. The Mayor, or the Mayor Pro Tem, upon the determination of such matters, is further authorized and directed, in and for the name of the City, to execute any supplements or amendments to the Purchase Contract as, based on advice of the City Attorney and Bond Counsel, may be necessary to include such matters as so determined to be a part of the Purchase Contract. The authorization and powers delegated to the Mayor by this Section 9 shall be valid for -5- 0 a period of 60 days from the date of adoption of this Resolution. Section 10. Requisitions. The Mayor, or the Mayor Pro Tem, is hereby authorized and directed to execute one or� more requisitions authorizing the Trustee to pay the cost of issuing the Bonds from the proceeds of the Bonds pursuant to the Indenture. Section 11. Other Acts. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents, including but not limited to, the Final Official Statement, which in consultation with the City Attorney and Bond Counsel, they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds, or otherwise to effectuate the purposes of this Resolution, and any such actions previously taken by such officers are hereby ratified and confirmed. Section 12. Findings as to Very Low Income Tenants. This City Council hereby finds and determines that it is infeasible that any of the units in the Project be required to be reserved for occupancy on a priority basis by individuals or families whose adjusted gross income does not exceed 50 percent of the median adjusted gross income for the area, as median adjusted gross income is referred to in Section 52080(a) of the Act. In making this finding, this City Council has considered the matters referred to in Section 52080(a) of the Act, and in accordance with the provisions of Section 52080(a) of the Act, the above findings and determinations are final and conclusive. � � Section 13. Effective Date. This Resolution shall take effect immediately upon adoption. ADOPTED this 23rd day of May, 1985. Mayor o the City of Pa Desert, California ATTEST: - /, � ; �. `: /�, , ��-c i , ;-- �� City Clerk the Cit Palm Desert, Californ I,SHEILA P..GILLIGAN, City Clerk of the City of Palm Desert, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Palm Desert, California, at a regular meeting thereof held on the 23rd day of May, 1985, by the following vote of the City Council: AYES: JACKSON, KELLY, T�JILSON AND SNYDE� NOES: BENSON ABSENT: NONE ABSTAINED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, this23rd day of May, 1985. �—� Palm Desert, Calif