HomeMy WebLinkAbout2008-435
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RESOLUTION NO. 2008-435
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE ISSUANCE OF HEALTH CARE
REVENUE BONDS FOR THE PURPOSE OF FINANCING THE
ACQUISITION OF LICENSED HEALTH CARE FACILITIES BY
MOUNTAIN SHADOWS SUPPORT GROUP, INC.
7 WHEREAS, Mountain Shadows Support Group, Inc., a California nonprofit public benefit
8 corporation (the "Borrower"), has requested the California Statewide Communities Development
9 Authority (the "Authority") to issue and deliver health care revenue bonds in the anticipated
10 principal amount of approximately $55,000,000 (the "Obligations"), a portion of the proceeds 0
11 which shall be used for the purpose of financing the acquisition of licensed health care facilities
12 commonly known as Jane House located at 2661 Mercedes Avenue, Highland House located at
13 3465 Darren Place, La Paix House located at 2107 East Jane Avenue, Elm House located at 2917
14 Roadrunner Court, and Robinson House located at 25787 Mesa Court, each in the City of San
15 Bernardino, California (collectively, the "Project"); and
16 WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"),
17 the issuance of the Obligations by the Authority must be approved by the City of San Bernardino
18 ("City") because the facilities constituting the Project are located within the territorial limits of the
19 City; and
20 WHEREAS, the Obligations to be issued and delivered to finance the acquisition of the
21 Project will be considered "qualified 501(c)(3) bonds" under Section 145 of the Code subject to the
22 requirements of Section 147(f) of the Code as set forth above; and
23 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the "Council")
24 is the elected legislative body of the City and constitutes the applicable elected representatives
25 required to approve the issuance of the Obligations under Section 147(f) of the Code; and
26 WHEREAS, the Authority has requested that the Council approve the issuance of the
27 Obligations by the Authority in order to satisfy the public approval requirement of Section 147(f) 0
28 the Code and the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers
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2008-435
1 Agreement, dated as of June 1, 1988 (the "Agreement"), among certain local agencies, including the
2 City; and
3 WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following notice, duly
4 given on November 3, 2008, held a public hearing regarding the issuance of the Obligations, and
5 now desires to approve the issuance of the Obligations by the Authority solely for the purpose 0
6 satisfying the requirement of said Section 147(f) of the Code.
7 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
8 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
9 FOLLOWS:
10 Section 1. The Council hereby approves the issuance of the Obligations by the Authority for
11 the purposes of fmancing the acquisition of licensed health care facilities. It is the purpose and
12 intent of the Council that this Resolution shall constitute approval of the issuance of the Obligations
13 by the Authority solely for the purposes of satisfying the requirements of (a) Section 147(f) of the
14 Code by the applicable elected representatives of the governmental unit having jurisdiction over the
15 area in which the Project is located, in accordance with said Section 147(f), and (b) Section 9 of the
16 Agreement. The Council recognizes that the Borrower has been advised by other parties
17 independent of the City as to the structure, terms and provisions of the Obligations and the economic
18 viability of proceeding with the issuance and delivery of the Obligations. The City assumes no
19 liability or responsibility of any nature whatsoever with respect to the Obligations and any aspects
20 thereof as to compliance with any and all applicable federal tax and securities laws when the
21 Obligations are issued and delivered.
22 The adoption of this Resolution is solely for the purpose of complying with the requirements
23 of the provisions of the Code and shall not be construed in any other manner. Neither the City nor
24 its staff has fully reviewed or considered the financial feasibility of the Project or the expected
25 operation of the Project. The City has not evaluated this transaction with regards to any State 0
26 California statutory requirements. The adoption of this Resolution shall not obligate the City to (i)
27 provide any financing to the Borrower for any purpose or to issue the Obligations or any obligation
28 in the name of the City or its departments, agencies, authorities, board or commission, or (ii) either
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2008-435
1 directly or indirectly through any department, agency, authority, board or commission of the City,
2 approve any application or request for, or take any other action in connection with, any
3 environmental review or proceeding, General Plan Amendment, zone change or approval of any
4 other permit or other action as may be deemed necessary for the acquisition or operation of the
5 Project.
6 Section 2. This Resolution shall take effect upon its adoption and execution in the manner
7 as required by the City Charter.
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2008-435
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE ISSUANCE OF HEALTH CARE
REVENUE BONDS FOR THE PURPOSE OF FINANCING THE
ACQUISITION OF LICENSED HEALTH CARE FACILITIES BY
MOUNTAIN SHADOWS SUPPORT GROUP, INC.
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a ; oint regular
meeting
7 thereof, held on the 17th
8 Council Members:
9 ESTRADA
10 BAXTER
11 BRINKER
12 DERRY
13 KELLEY
14 JOHNSON
15 MCCAMMACK
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day of November , 2008, by the following vote to wit:
Abstain
Absent
Aves
Navs
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x
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Rache G. Clark, City Clerk
19 The foregoing Resolution is hereby approved this ";;'0"" day of Novembe,
,2008.
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24 Approved as to Form:
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