RES-8075 Approving Installment Sale AgreementsRESOLUTXON NO. 8075
A RESOLUTXON 01' THE CXTY COUNCXL 01' THE
CXTY 01' ORANGE APPROVXNG EXBCUTXON AND
DELXVERY BY THE LOCAL MEDXCAL I'ACXLXTXES
I'UIANCXNG AUTHORXTY XV 01' XNSTALLHBNT SALE
AGREBJlBNTS WXTH OLXVE CREST TREATMENT
CENTERS, XNC. AND SOCXAL MODEL RECOVERY
SYSTBH8, XNC.
RESOLVED by the City Council of the City of Orange ("city"),
as follows:
WHEREAS, the Local Medical Facilities Financing Authority
IV, a joint exercise of powers authority consisting of
governmental units in California created to assist in the
financing of facilities for local, nonprofit health corporations
the "Authority"), proposes to enter into an installment sale
agreement, by and between Olive Crest Treatment Centers, Inc., a
nonprofit, public benefit corporation organized and existing
under the laws of the state of California ("Olive Crest"), as
seller, and the Authority, as purchaser, in the maximum principal
amount of $2,600,000, for the purpose, among other things, of
providing moneys to (i) finance the purchase of buildings located
at (1) 1614 East Palm, Orange, (2) 3840 Casselle, Orange, and (3)
159 North Wheeler, Orange, to be owned and operated by Olive
Crest, as residential group homes, in connection with its abused
children treatment services; and (ii) refinance the purchase of
buildings located at (1) 2438 East Garfield, Orange, and (2) 3650
Hartman, Orange, to be owned and operated by Olive Crest as
residential group homes in connection with its abused children
treatment services; and
WHEREAS, the Authority proposes to enter into an installment
sale agreement, by and between Social Model Recovery Systems,
Inc., a nonprofit, public benefit corporation organized and
existing under the laws of the State of California ("Social
Model"), as seller, and the Authority, as purchaser, in the
maximum principal amount of $1,050,000, for the purpose, among
other things, of providing moneys to finance the acquisition of a
two-building complex located at 525 North Parker Street,
Orange,to be owned and operated by Social Model as treatment centers
in connection with its programs for adolescents addicted to
alcohol and nonprescription drugs;
and WHEREAS, section 147(f) of the Internal Revenue Code
of 1986, requires the City council, as the elected representative
of the City, the host jurisdiction of such facilities, to
approve the execution and delivery by the Authority of the
proposed installment sale agreements after a public hearing
following reasonable
notice;WHEREAS, a public hearing was held by the Chairman of
the Authority on Thursday, August 13, 1992, in the Anaheim City
Hall,Finance Conference Room, 7th Floor, 100 South Anaheim
Boulevard,Anaheim, California, following duly published notice thereof,
and all persons desiring to be heard have been heard;
WHEREAS, it is in the public interest and for the public
benefit that the City Council, as the elected representative of
the City, the host jurisdiction of such facilities, to approve
the execution and delivery by the Authority of the proposed
installment sale agreements.
NOW, THEREFORE, BB :IT RESOLVED by the city Council of the
City of Orange as follows:
section 1. Execution and delivery by the Authority of an
installment sale agreement, by and between Olive Crest, as
seller, and the Authority, as purchaser, in the maximum principal
amount of $2,600,000, among other things, for the purposes
described above, is hereby approved.
section 2. Execution and delivery by the Authority of an
installment sale agreement, by and between Social Model, as
seller, and the Authority, as purchaser, in the maximum principal
amount of $1,050,000 among other things, for the purposes
described above, is hereby approved.
ADOPTBD this 8th day of September 1992.
ATTEST:
C~ V ",..~.-..- --ci ty
cler~
f th it of Orange I hereby certify
that the foregoing regularly adopted by
the City Council of regular meeting thereof
held on the 8th by the following
vote:Resolution was duly
and the City of
Orange at a of September , 1992,
AYES:NOES:ABSENT:
COUNCIL
MEMBERS: ,
STEINER.
BARRERA. MAYOR BEYER. COONTZ, SPURGEON COUNCIL MEMBERS: NONE
COUNCIL MEMBERS: NONE
n..I",",~"'-l~)
3-~~City Clerk offtheC' OrangeReso No. 8075
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