Loading...
RES-8475 Intent to Provide for the Issuance Multi-Family Housing Revenue BondsRESOLUTION NO. 8475 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE INDICATING ITS INTENT TO PROVIDE FOR THE ISSUANCE OF MULTI- FAMILY HOUSING REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $22,000,000 FOR A MULTI-FAMILY HOUSING PROJECT TO BE DEVELOPED BY AN AFFILIATE OF FOREST CITY PROPERTIES CORPORATION.WHEREAS, The City Council of the City of Orange (the "City Council") is authorized pursuant to the California Health and Safety Code Section 52075 et seq. (the "Act") to provide assistance in financing the acquisition and rehabilitation of multi-family housing projects within the City of Orange ( the "City"); and WHEREAS, Forest City Properties Corporation, a California corporation, intending to act through a corporation which it expects to incorporate in the State of California, F. C. Orange, Inc.the "Developer"), has requested assistance in financing the acquisition and rehabilitation of a 260-unit apartment community knownas "Villa Santiago," consisting of 77 two-story buildings (15 duplexes, 18 triplexes and 44 fourplexes) with all townhouse units located on approximately 17 acres ofland at the corner of Prospect and Maple in the City of Orange ( the "Project"), whichwill be owned and/or operated by the Developer or its successor or assignee; and WHEREAS, the City Council, in order to encourage and foster the acqUiSItIOn and rehabilitation of multi-family housing projects within the City and as an aid and inducement to the Developer, is willing to authorize the issuance of multi-family housing revenue bonds (the Bonds") in an amount sufficient to provide financing for the Project subject to the restrictions of the Act and all applicable California and federal laws as they presently exist, provided that the Project receives all necessary local government approvals of the City; and WHEREAS, the Developer has paid, beginning no earlier than 60 days prior to the date of adoption hereof, and will pay, on and after the date hereof, certain expenditures (the Expenditures") in connection with the acquisition and rehabilitation of the Project; and WHEREAS, the City Council, upon advice from the Developer, has determined that those moneys previously advanced by the Developer no more than 60 days prior to the date hereof and to be advanced on and after the date hereof to pay the Expenditures are to be available only for a temporary period, and it is necessary to reimburse the Developer for the Expenditures from the proceeds of the Bonds.NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF Section I: Findimzs. The City Council hereby determines that the undertaking of the financing of the Project by the City wiIl be a substantial factor in the accrual of public benefits to be received from the Project, should the Project be approved, and that the proposed financing is in accord with the purposes and requirements of the Act. Section II: Issuance of obligations. Subject to the negotiation of final terms and conditions, the completion of the necessary legal proceedings and other matters relating thereto to the fuIl satisfaction of the City Council and subject to the proposed Project receiving all necessary local government approvals, the City Council hereby declares its present intention to provide financing to the Developer and its successors or assigns or such other person or entity approved by the City Council for the Project through the issuance of multifamily housing revenue bonds in an amount not to exceed $22,000,000. Section ill: Reimbursement of Develooer. The City Council hereby declares the intention of the City to reimburse the Developer with proceeds of the Bonds for the Expenditures with respect to the Project made on and after a date 60 days prior to the date hereof The City reasonably expects on the date hereof that it wiIl reimburse the Expenditures with the proceeds of the Bonds. The acquisition of the Project by the Developer has not yet occurred, and the rehabilitation of the Project by the Developer has not yet commenced. Section IV: Nature of Obligations. The obligations to be issued shall be special obligations of the City payable solely from revenues to be received by the City pursuant to all agreements in connection with the financing of the Project, all in a form acceptable to the City Council and the City Attorney, and shaIl not be a general obligation of the City, the State of California, or any political subdivision thereof. Section V: Official Action. It is the purpose and intent of the City Council that this Resolution constitute "official action" toward the issuance of obligations by the City to finance the Project within the meaning of United States Treasury Regulation Section 1.1 03-8(a)(5). The City wiIl cause the Developer to make a reimbursement aIlocation, which is a written allocation that evidences the use of proceeds of the Bonds to reimburse an Expenditure, no later than 18 months after the later of the date on which an Expenditure is paid or the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid.Section VI:Prooer Charge. Each Expenditure was and will be either (a) ofa type properly chargeable to capital account under general federal income tax principles (determined in each case as of the Reso.No.8475 2-AMG: date of the Expenditure), (b) a cost of issuance with respect to the Bonds, (c) a non recurring item that is not customarily payable from current revenues, or (d) a grant to a party that is not related to or an agency of the City or the Developer so long as such grant does not impose any obligation or condition (directly or indirectly) to repay any amount to or for the benefit of the City or the Developer. Section VII: Other Approvals. The adoption of this Resolution shall not bind the City to issue bonds or other obligations until and unless all other necessary actions and approvals are taken or received in accordance with all applicable laws. The adoption of this Resolution does not and shall not limit in any manner whatever the City's full discretion to deny any further permit or approval that may be necessary for ultimate completion of the proposed Project. In this connection: a) All contracts relating to the acquisition, rehabilitation, installation and equipping of the Project shall be solicited, negotiated, awarded and executed by the Developer for its own account, subject to applicable federal, state and local laws. b) The City shall have no pecuniary liability to the Developer for any fees in connection with the Project. c) The City shall recover any and all costs which are incurred by the City in furtherance of or attributable to the issuance of its bonds. If no bonds are issued, all such costs shall be paid by the Developer. Section VIII: Approval of Financing Team. Brown & Wood is hereby appointed bond counsel with respect to the issuance of the bonds. Westhoff, Cone & Holmstedt is hereby appointed underwriter of the bonds. The fees and expenses of bond counsel and the underwriter shall be paid from the proceeds of the bonds or, if no bonds are issued, from amounts paid by the Developer. The fees and expenses of bond counsel and the underwriter shall not be a responsibility of the City. ADOPTED this 25th day of April, 1995. MARILYN J. JENSEN City Clerk of the City of Orange By:l~ rk ATTEST: AMG:aii 3-Reso.No.8475 I hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 25th of April, 1995, by the foIlowing vote: AYES: NOES: ABSENT: ABSTAIN: Reso.No.8475 COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: MURPHY, BARRERA, MAYOR C0JNTZ, SPURGEON, SLATER NONE NONE NONE MARILYN J. JENSEN City Clerk of the City of Orange T Deputy City J rk '. , 4 -AMG:a.ii