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HomeMy WebLinkAbout1985-194 -..--.-..-.... - .. -- .. .____.._ ~ n _ 2,14l-l3/0629S/krl 5/9/85 RESOLUTION NO. 85-104 A. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNU, APPROVING CERTAIN DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH THE AUTHORIZATION, SALE AND ISSUANCE OF ITS CITY OF SAN BERNAROINO, CALIFORNIA, MULTIFAMILY HOUSING REVENUE BONDS (PUMALO PALMS PROJECT - FANNIE MAE PROGRAM) SERIES 1985 IN A PRINCIPAL AMOUNT OF $9,350,000 WHEREAS, the City of San Bernardino. Calilornia (the .City"), is authorized and empowered by Ordinance No. 3815, as amendea (the .Ordinance"), to make construction loans and mortqac;e loans to finance various types of projects, as defined in the Ordinance, ana to issue its special revenue bonds for the purpose of paying the cost of financing 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 availability of safe and sanitary housinc; which is affordable at rental rates by persons and families in the lower end of the rental spectrum and there is a consequent need to encourac;e the construction or development of rental units affordable by such persons and otherwise to increase the rental housing supply in the City for such persons; and - 1 - WHEREAS, the City has accepted an Application for Financing from Fredericks Development Corporation, a California corporation (the .Company.), as a general partner on behalf of pumalo Palms Investors I, a California limited partnership and PumalO Palms Investors II, a California limited partnership for the issuance of multifamily mortgage revenue bonds for the financing of the hereinafter referred to Project pursuant to and in accordance with the provisions of the Ordinance; and WHEREAS, the City has, by the approval of the Mayor and Common Council after a duly noticed public hearing held on November 8, 1984, adopted its Resolution No. 84-462, and found and determined that the purposes and intent of the Ordinance will be furthered by the iuuance by the City of its multifamily mortgage revenue bonds as provided therein; and WHEREAS, the City has, by said approval of said Resolution No,R4-46;? indicated its intent to issue its multifamily mortgage revenue bonds to finance the construction and provide the permanent financing for an approximately three hundred twenty-eight (328) unit development located on an approximately fifteen and forty-nine hundredths (l~9) acre site on the south side of pumalo street, west of Arden Avenue and bordered on the south by State Highway 30 in the City (the .project"); and WHEREAS, the Project shall consist of thirty-five (35) eight (8) unit buildings and three (3) sh:teen (16) unit buildings - 2 - and included a total of six hundred twenty-five (625) vehicle parking spaces, landscaping, three (3) swimming pools and other amenities comprised Of one hundred eight (108) one bedroom, one bath rental units, one hundred eighty (180) two bedroom, one bath rental units, twenty-eight (28) two bedroom and two bath rental units and twelve (12) two bedroom, one bath rental units designed for handicapped persons, for which bonds shall be issued in the approximate principal amount of not to exceed $12,000,000 (the "Bonds.) to provide the financing for the Project; and to be undertaken in two phases by the Company as general partner of Pumalo Palms Investors 1, a California limited partnership as to the Hrst phase of development, and as the general partner of Pumalo Palms Investors II, a California limited partnership, as to the second phase of development; and WHEREAS, the construction and development of the project may occur in two phases and the first such phasemay consist of one hundred and sixty (160) units and the second such phase may consist of one hundred and sixty-eight (168) units; and WHEREAS. the Company shall have an equity interest in each of said partnerships and shall have management responsibilities in each of said partnerships in connection wi th the construct ion and development of each of said phase of the Project; and - 3 - ^t:..,,",U^ 1t:..L.t:.........Ur It:.." 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WHEREAS, the Company has submitted to the City a written description of the ownership interest which the Company, and its wholly-owned subsidiary, Ankirk shall retain in each of said partnerships and the Company has also informed the City that the Company may in the future either syndicate interests in Pumalo Palms Investors I and/or Pumalo Palms Investors II or cause either or both of said partnerships to convey the respective ownership interests in the Project; and WHEREAS, the Federal National Mortgage Association ("Fannie Mae") has agreed to purchase from California Federal Savings and Loan Association or any successor or assignee thereto as approved by Fannie Mae (the "Seller") a project mortgage (including all related instruments given to secure or evidence the indebtedness as secured by the mortgage, collectively referred to herein as the "Mortgage") for the Project; and WHEREAS, the Mortgage will be financed through the issuance of the tax-exempt bonds hereinafter referred to by the City pursuant to a program of the City applicable to such financing (the .Program"); and WHEREAS, Fannie Mae commits to purchase the Mortgage (the "Commit:ment") and to issue a pass-through certi ficate pursuant to Fannie Mae's Mortgage-Backed Securities Program, which furnishes security for such tax-exempt bonds; and - 4 - WHEREAS, all acts, conditions and things required by the Ordinance, 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 multifamily residential mortgage revenue bonds list, 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 multifamily residential mortqage revenue bonds for the purpose, in the manner and upon the terms herein provided; and WHEREAS, said multifamily mortgage revenue bonds are to be issued hereunder in an aggregate principal amount not to exceed $9 I 350,000 for the purpose, among others, of providinq moneys to purchase mortgage loans pursuant to the Program and are to be designated 815 the "City of San Bernardino, California, Multifamily Housing Revenue Bonds (Pumalo Palms Project - Fannie Mae Program) Series 1985" (the "Bonds"). NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: Section 1. true and correct. The above recitals, and eech of them, are - 5 - Section 2. The Ci ty hereby finds and determines that the public purpose of increasing the supply of rental housing in the City Of San Bernardino will be furthered hereby, and this Resolution is being adopted pursuant to the powers granted by the Ordinance. The City hereby aCknowledges and approves that the Bonds may be issued in one or more series or phases of financing for both of each said phases of construction and development of the Project to be undertaken by Pumalo Palms Investors I and/or Puma 10 Palms Investors II, as described in the reei te Is hereof, provided however that the total principal amount of the Bonds which shall be issued for the Project shall not exceed $9,350,000. Section 3. The Executive Director of the Redevelopment Agency of the City of San Bernardino, or such other penon as the Council may from time-to-time designate, is hereby designated to administer the Program as shall be undertaken by the Company. Section 4. The Indenture hy and between the City and the trustee for the Bonds as shall be appointed prior to the date of issuance of the Bonds (the "Trustee"), securing the Bonds, dated aB of May 1, 1985 (the "Indenture"), and as presented to the City at this meeting is hereby approved; and the Mayor and the City Clerk are hereby authorized and directed, for and in the name of the City, to execute such Indenture. Said Indenture Bhall be executed in substantially the form hereby approved, with such changes therein as the officers executing the same may approve prior to the issuance - 6 - and delivery of the Bonds with the approval by Bond Counsel of any changes, amendments or modifications, and such approval to be conclusively evidenced by the execution and delivery thereof. Section 5. The Financing Agreement dated as of May 1, 1985, by and among the City, the Seller and the Company (the "Financing Agreement"), as presented to the City at this meeting is hereby approved; and the Mayor and the City Clerk are hereby authori~ed and directed, for and in the name of the City, to execute the Financing Agreement with the Seller and the Company. The Financing Agreement shall be executed in substantially the form hereby approved. with such changes therein as the officers executing the same may approve with the approval thereot by Bond Counsel, and such approval to be conclulSively evidenced by the execution and delivery therof. Section 6. The form of the Regulatory Agreement by and between the City and the Company (the "Regulatory Agreement") presented at this meeting and on file with the City Clerk is hereby approved. and the Mayor and the City Clerk are hereby authori~ed and directed for and in the name and on behalf of the City to execute such Regulatory Agreement in said form with such changes therein as the officers executing the same may approve with the approval thereof by Bond Counsel, such approval to be conclusively evidenced by the execution thereof. - 7 - Section 7. The Mayor and the City Clerk are hereby authorized to execute any and all documents or agreements required by Fannie Mae relating to mortgage insurance as shall be applicable to the mortgage loan as said agency may require in connection with the issuance and delivery of the Bonds. Section 8. Pursuant to the Ordinance, the Bonds shall be sold and issued as hereinafter provided in the aQQregate principal amount of $9,350,000 as specified in the Bond Purchase Agreement hereinafter mentioned. The purposes for which the proceeds of the Bonds shall be expended are for the deposit of a portion or all of the Bond proceeds with the Trustee for the funding of the Project and for such other purposes as are set forth in the proposed form of Indenture presented at this meeting and on file with the City Clerk. Section 9. The trustee for the Bonds as shall be appointed and designated to serve 85 Trustee for the City and the owners of the Bonds prior to the date of issuance of the Bonds, with the duties and powers of such Trustee as set forth in the Indenture is hereby approved, and the City shall enter into such agreement with the Trustee for the payment of fees which shall only be payable from amounts so avai lable pursuant to the Indenture and not any other assets or funds of the City. Section 10. The form of the Bonds as set forth in the Indenture (as the Indenture may be modi fied as hereinbefore - 8 - provided) is hereby approved. The Mayor and the City Clerk are hereby authorized and directed to execute, in the name and on behalf of the City and under its seal, such Bonds in the aggregate not to exceed the principal amount set forth hereinabove in accordance with the Indenture. Section 11. The proposed form of the Bond Purchase Agreement and the sale of the Bonds pursuant thereto are hereby approved, provided that the purchase price of the Bonds represents a principa 1 amount of the Bond5 and at a rate or rates of interest thereon to enable the City to provide for the funding of the mortgage loan bearing an interest rate not in excess of that rate which may be acceptable to Fannie Mae. and provided further that such purchase price and rate or rates of interest shall have been approved by the Mayor or the Executive Director of the Redevelopment Agency of the City of San Bernardino and, subject to such approval, the Mayor or the Executiv,e Director of the Redevelopment Agency of theCity of San Bernardino are hereby authorized and directed to evidence the City's acceptance of the offer made by said Bond purch815e Agreement by e:ll:ecuting and delivering said Bond Purchase Agreement in said form with such Changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 12. The Executive Director of the Redevelopment Agency of the City of San BernlHdino or other city official are hereby authorized and directed to execute one or more requisitions authorizing the Trustee under the aforesaid Indenture to pay the - 9 - Costs of ISsuance for the Bonds from the Funds and Accounts established under and pursuant to the Indenture. Section 13. The officers of the City are hereby authorized and directed, jOintly and severally, to do any and all thin'ils to execute and deliver any and a 11 documents, inClUding the bondS, whicn they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds, and otherwise to effectuate the purposes of this Resolution; and any such actions as previOUSly taken by such officers in furtherence of the issuance and delivery of the Bonds are hereby ratified and confirmed. I HEREBY CERTIFY that foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at aregular meeting thereof, held on the fOllowing vote, to wit: 20th day of Mnv , 1985, by the AYES: Council Members Castaneda, Reilly, Hernandez. Frazier. Strickler NAYS: None ABSENT: Council Mp.mhp.rc:. M;:!rk-c Qn;......l - 10 - 1 day of The foreioing ThAt Approved as to form: resolution . /9t-:;- ~~~~ )1. ",City Attorney h hereby approved this City Clerk - 11 - . I~~~~~~'~ I r , ? {.,/ f I ! I I CITY OF SAN BERNARDINO - MEMORANDUM To Shauna Clark City Clerk From Allen R. Briggs Sr. Asst. City Attorney Subject Date May 22, 1985 Resolution No. 8S-l94 Approved Date 770. 9b I have approved with changes Resolution No. 8S-l94. If Mr. Sabo's office or the RDA asks for certified copies of this resolution, please insist that the copies furnished to you for certification conform exactly to the original as approved. The changes are strictly as to typographical errors, but these errors were called to the attention of Mr. Sabo's office well in advance of the Council meeting, and were ignored. The first typographical error was the insertion of a decimal point between the numbers "lS" and "49" on line 6 of the third paragraph on page 2, and the other typographical error is on page 9, line II of Section ll, where the word "Execution" has been corrected to "Executive". Also, on page 2, the resolution number has been inserted in paragraph 3. Please note that on Resolution No. 8S-l93 relating to the KCKC Building Project, I have approved the resolution despite the fact that it places the location of the project on the wrong street. The KCKC Building Project, as I understand, is for redesigning and outfitting of the pirates Den building which is located on "G" Street, between 4th and Sth Streets; however, it does have an extension of its parking lot over onto 4th Street so the description of the project as being located "on the north side of 4th Street between 'G' Street and 'H' Street" is not totally incorrect -- just misleading. Mr. Sabo's office apparently chose not to make that correction, either. ~:C~ Sr. Asst. City Attorney ARB:nb cc: Redevelopment Agency Timothy J. Sabo, Esq. It: Cd 8Z AVW SB. ~dj (: -L!~;\13J3l/ ClrY' Oil rHI;;MiO..