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HomeMy WebLinkAbout1986-417 RESOLUTION NUMBER 86-417 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, REGARDING ITS INTENTION TO ISSUE ITS MULTIFAMILY MORTGAGE REVENUE BONDS; DIRECTING THE PREPARATION OF CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (SANDAL- WOOD APARTMENTS PARK PROJECT). WHEREAS, the City of San Bernardino, California (the "City"), is a "home rule city" duly organized and existing under and pursuant to a Charter adopted under the provisions of the Constitution of the State of California; and WHEREAS, pursuant to its home rule powers, the City duly and regularly enacted Ordinance No. 3815 (the "Ordinance") to finance various types of projects, as defined in the Ordinance, and to issue its special revenue bonds for the purpose of enabling various developers to finance the cost of such projects, and has amended the same from time to time; and WHEREAS, said Ordinance No. 3815, as amended, is intended to finance the development of industry and commerce and to thereby broaden the employment opportunities and to increase the avail- ability of moderately priced rental units for residents of the City and to broaden the tax and revenue base of the City without any liability whatsoever to the City; and WHEREAS, the City is authorized and empowered to issue multi- family mortgage revenue bonds pursuant to Health and Safety Code Section 52000, et seq. (the "Act"); and WHEREAS, Debkar Investment Company, a California Corporation, or their predecessors, successors or assigns (the "Applicant"), has previously submitted a certain application (the "Application"), to the Mayor and Common Council of the City of San Bernardino, California (the "Mayor and Common Council"), for tax exempt financing for a certain multifamily rental housing development pursuant to Ordinance No. 3815, as amended, and the Act, as more fully described in said Application (the "Project"); and WHEREAS, the Project consists of the construction and permanent financing of two hundred, sixteen (216) unit multifamily rental housing development on two (2) adjacent parcels of land totalling approximately ten and one-half (10.5) acres located near the northwest corner of Baseline Street and Victoria Avenue in the City as more fully described in the Application; and WHEREAS, pursuant to Resolution No. 85-291 of the Mayor and Common Council, said Mayor and Common Council have on August 5, 1985, previously accepted the Application and declared its intent to issue multifamily mortgage revenue bonds in an aggregate princi- pal amount not to exceed $9,300,000 for the purpose of financing the Project (the "Inducement Resolution"); and WHEREAS, the Inducement Resolution was effective as "official action" pursuant to Section 103 of the Internal Revenue Code of 1954, as amended (the "Code") on or before September 25, 1985; and WHEREAS, pursuant to Resolution No. 85-543 of the Mayor and Common Council, adopted on December 23, 1985, said Mayor and Common Council established certain requirements concerning Inducement Resolutions and TEFRA Resolutions, including, but not limited to, establishing a six (6) month limit of effectiveness for Inducement Resolutions and TEFRA resolutions if any such resolutions are adopted after December 23, 1985; and WHEREAS, pursuant to an appropriate motion on June 23, 1986, the Mayor and Common Council allowed certain Inducement Resolu- -2- tions, including Resolution No. 85-291 to expire for the sole purpose of administrative record-keeping; and WHEREAS, the Mayor and Common Council intend to reinstate Resolution No. 85-291 by the adoption of this Resolution and said Resolution No. 85-291 shall hereafter be deemed to have been in full force and effect as of August 5, 1985 and for all times thereafter; and WHEREAS, the provisions of the Tax Reform Act of 1986 require that certain industrial development revenue bond financing projects receive an allocation equal to the aggregate principal amount of bonds to be issued for said projects; and WHEREAS, the City may apply to the Mortgage Bond Allocation Committee ("MBAC") for a calendar year 1986 Private Activity Bond Limit of the State of California of $10,000,000 in accordance with the procedures established in the Proclamation of the Governor, dated September 30, 1986, and Resolution No. 86-1 of the California Debt Limit Allocation Committee ("CDLAC"), for use by the City in connection with the issuance of bonds or other obligations for qualifying projects, including the Project; and WHEREAS, the City has been requested by the Developer to submit an application to MBAC for a portion of the calendar year 1986 Private Activity Bond Limit of the State in an amount equal to Eight Million, Six Hundred Thousand Dollars ($8,600,000) and the Developer has, in accordance with Section 52097.5(b) of the Health and Safety Code, established escrow in the amount of $86,000, which escrow amount will be retained and used by the City or otherwise disposed of in accordance with the rules promulgated by MBAC. NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF -3- SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the recitals set forth hereinabove are true and correct in all respects. Section 2. The City is a municipal corporation duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Constitution and laws of the State of California, and the City Charter of the City, and the powers of the City include the power to issue bonds for any of its corporate purposes. Section 3. Pursuant to the Charter of the City and the Ordinance and the Act, the City is legally authorized to issue special revenue bonds for the construction and permanent financing of the Project as more fully described in the recitals thereof. Section 4. This body constitutes the governing body of the City and is legally authorized to provide for the issuance .of such special revenue bonds by the City. Section 5. The Project referred to in the recitals hereof constitutes a project which may be financed by the issuance of such special revenue bonds by the City and located within the jurisdiction of the City. Section 6. The Mayor and Common Council do hereby reinstate Resolution No. 85-291 by the adoption of this Resolution and said Resolution No. 85-291 shall hereafter be deemed to have been in full force and effect as of August 5, 1985, and for all times thereafter. Section 7. The City hereby declares its intention to exercise the authority referred to in Section 3 by issuing multi- -4- family mortgage revenue bonds of the City in such amounts as will be adequate to implement the City financing of the Project. Section 8. The bonds shall be payable from the revenues described in the Ordinance and/or the Act. Section 9. The bonds shall be and are special obligations of the City, and, subject to the right of the City to apply monies as provided in the applicable laws, are secured by such revenues as are specified in the proceedings for the issuance of such bonds and funds and accounts to be held by the trustee or fiscal agent, and are payable as to principal, redemption price, if any, and interest from the revenues of the City as therein described. The bonds are not a debt of the City, the State of California or any of its political subdivisions, and neither the City, the State, nor any of its political subdivisions is liable thereon, nor in any event shall the bonds be payable out of the funds or properties other than all or any part of the revenues, mortgage loans and funds and accounts as in this Resolution set forth. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither the persons serving as the Mayor and Common Council nor any persons executing the bonds shall be liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance thereof. Section 10. The details of such bonds, including the establishing of the aggregate face amount of such obligations, shall be authorized by indenture, resolution or resolutions of the City at a meeting or meetings to be held for such purpose. The City staff, Sabo and Deitsch, a Professional Corporation, as Bond Counsel to the City, Underwriters, the Applicant and the agents and -5- representatives of same are hereby authorized and directed to prepare or cause to be prepared the necessary legal documents, including the Project Agreement, Resolution of Issuance, and such other documents as may be necessary to effect said Project and the issuance of industrial development revenue bonds therefor and to present same to said Mayor and Cornmon Council. The Mayor of the City is hereby authorized and directed to coordinate the efforts of all concerned relating to the issuance and sale of the bonds, and the City Staff, consultants, legal counsel to the City and Bond Counsel as referenced above are hereby directed to take such steps as shall be appropriate to implement such sale and delivery of the bonds including working with persons who may acquire vested rights as the result of such actions. Section 11. The issuance of multifamily mortgage revenue bonds may be authorized by appropriate resolution or resolutions of the City at a meeting or meetings to be held for such purpose, subject to the execution of appropriate agreements by the Applicant and the City as required by the Ordinance and/or the Act and the industrial development bond financing program of the City. Section 12. At the closing of the financing there shall be paid to the City the fee set forth in Resolution No. 81-108 of the Mayor and Cornmon Council, adopted March 13, 1981, as amended by Resolution No 81-410, of the Mayor and Common Council, adopted September 24, 1981. Section 13. The Applicant shall provide appropriate covenants in the tax-exempt financing documents as may hereinafter be submitted to the City for consideration and approval in a form acceptable to the City Attorney and Bond Counsel to assure that not -6- less than twenty percent (20%) of the multifamily rental housing units included in the Project are to be occupied or reserved for occupancy by individuals of low and moderate income as provided in the Code or such other percentage amount as may be permitted by the Tax Reform Act of 1986. Section 14. Prior to issuance of any bonds for the Project as may hereafter be approved pursuant to the appropriate resolution or resolutions of the City, the Applicant shall provide for the recordation of a covenant running with the land in a form approved by the City Attorney of the City whereunder the Applicant (i) waives any claim under State law to a density bonus, as defined by Government Code Sections 65915 and 65915.5, for the property on which the Project is to be constructed and (ii) agrees not to seek or accept any other forms of public assistance for the purpose of financing the Project including, but not limited to, tax-increment financing from the Redevelopment Agency of the City of San Bernardino (the "Agency"). Section 15. The approval as herein granted and the final approval of the Project and the financing thereof are specifically conditioned upon the Mayor and Common Council approving the final environmental assessments and other environmental documents pre- pared or to be prepared pursuant to the provisions of the Califor- nia Environmental Quality Act of 1970, as amended ("CEQA"), with respect to any and all environmental conditions with regard to the operations of the Project as proposed by the Applicant in the Application. All such assessments and documents needed to comply with the provisions of CEQA shall be the sole responsibility of the Applicant. Adoption of this Resolution shall not be construed as approval of the plans or concept of the proposed development, nor -7- as an indication that the Mayor and Common Council will hereafter take any particular action toward granting any planning, zoning or other approval relating to a plan of development. The Mayor and Common Council reserve the right to evaluate any future adminis- trative procedures and appeals based soley on the information available at the time of consideration, including any actions or recommendations by or appeals from the Development Review Committee and the Planning Commission. Nothing herein shall be construed as advance commitment or approval as to any such matter, and the Applicant is hereby notified that normal planning processing shall be required, in accordance with the standard procedure of the City and that the Applicant will be required to comply with all applic- able laws and ordinances of the City, State and federal govern- ments. Section 16. The issuance of bonds or other obligations of the City for the Project is authorized and empowered by the Ordinance and/or the Act shall be subject to any changes in applicable laws, ordinances or regulations of the State and federal government including, but not limited to, the imposition of any calendar year volume limitation on the issuance of such multifamily mortgage revenue bonds. Section 17. The approval as herein granted and the final approval of the Project are specifically conditioned upon the conformance of all documents required to be executed and delivered by the City to the "Policy Guidelines on Public and Negotiated Bond Sale Procedures for the City of San Bernardino and the Redevelop- ment Agency of the City of San Bernardino" as said Policy Guide- lines are on file with the City Clerk. -8- Section 18. At least twenty-one (21) days prior to the anticipated date for the public hearing as required by TEFRA, each of the following items shall be submitted to the Staff of the City. After review of the items by the Staff of the City, the date of the TEFRA hearing will be designated and a notice thereof shall be published. The items shall include: a) Evidence that the Applicant is an entity duly formed and validly existing and has the full right, power and authority under the laws of the State of California to own the Project Site and carryon the Project as contemplated by this Resolution. b) A market feasibility study by an expert as retained by the Applicant and acceptable to or approved by the City, which study shall have been paid for and submitted by the Applicant at least twenty-eight (28) days prior to the anticipated date for the public hearing as required by TEFRA. c) Payment of the TEFRA hearing fee of $10,000. d) A tentative tract map or the approval by the Develop- ment Review Committee. e) Environmental clearance. f) Compliance with all zoning requirements (i.e., obtain- ing of required conditional use permits) . g) Proof of land ownership or an escrow report including the full legal description of the property on which the Project is to be located. h) Final Project pro forma. i) Evidence that adequate sewer, water, gas and electric facilities will be fully installed prior to completion of the Project and that necessary public streets, sidewalks and curbing -10- outside the Project site, if not yet constructed, will be fully completed within a reasonable time after completion of the Project. j) Resumes of the firms providing expert services. k) Final renderings, floor layouts, site plan and eleva- tions. Section 19. The Staff of the City is hereby authorized and directed to submit an application to MBAC requesting that MBAC assign a portion of the State's calendar year 1986 Private Activity Bond Limit to the City for use in the Project in the amount of $8,600,000. Said application shall be to the effect that the City requests that to the extent any of the $10,000,000 limit that the City may submit MBAC applications for is unused because bonds are not issued for a particular development, said unused amount be assigned by CDAC to this project. Section 20. This Resolution shall take affect upon adoption. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernar- dino at a special meeting thereof, held on the 15th day of October , 1986, by the following vote, to wit: AYES: COUNCIL MEMBERS Estrada. Reillv. Hernandez. Ouiel. Frazier. Strickler NAY S : Council Member Marks ABSENT: None dF2M'~~~/ / CITY CLERK THE FOREGOING resolution is hereby approved this o</~ day of October , 1986. -11- AP~O fOr~: .... ~..' t:/ ~ ~.J City Attorney -12-