HomeMy WebLinkAbout2014-293 1 RESOLUTION NO. 2014-293
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO AMENDING THE
3
REGULATORY AGREEMENT AND DECLARATION OF
4 RESTRICTIVE COVENANTS IN PLACE AT "TUSCANY
APARTMENTS"(2225 PUMALO STREET).
5
6 WHEREAS, the Issuer and U.S. Bank National Association, successor by merger to
7 U.S. Bank Trust National Association formerly known as First Trust of California, National
Association (the "Trustee") entered into that certain Indenture of Trust, dated as of May 1,
8 1996(the "Indenture"), in connection with the issuance of the Issuer's $7,000,000 Variable
9 Rate Demand Multifamily Housing Revenue Bonds (Silverwoods Apartments Project) Series
1996 (the "Bonds"); and
10
WHEREAS, the Issuer loaned the proceeds of the Bonds to Magellan Silverwoods
11 Partnership, an Arizona general partnership (the "Original Borrower"), pursuant to the original
12 Loan Agreement, dated as of May 1, 1996 (the "Loan Agreement"), among the Issuer, the
Trustee and the Original Borrower; and
13
WHEREAS, proceeds of the Bonds were used, in part, to construct and pay other
14 costs associated with the construction and development of a multi-family residential rental
housing project originally known as Silverwoods Apartments and now known as Tuscany
15 Apartments (the "Project") located in San Bernardino, California; and
16
WHEREAS, the Issuer, Original Borrower and Trustee entered into that certain
17 Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory
Agreement") which was recorded against the Project in the records of the office of the San
18 Bernardino County Recorder as Instrument Number 19960251735 as a requirement to the
19 issuance of the Bonds; and
20 WHEREAS, the Project was sold to San Bernardino 328/AF XXX, LLC, a California
limited liability company in 2001, and San Bernardino 328/AF XXX, LLC caused the
21 delivery to the Trustee of a letter of credit providing credit support for the Bonds issued by
22 Wells Fargo Bank, National Association, to replace the existing letter of credit issued by Bank
One. Arizona, NA; and
23
24 WHEREAS, the Project was acquired by MG Tuscany Apartments LP in 2003, a
25 California limited partnership (the "Borrower") and the Borrower has caused the delivery to
the Trustee of a direct pay in transferable credit enhancement instrument (the "Credit
26 Facility") issued by FANNIE MAE, a corporation organized and existing under the Federal
National Mortgage Association Charter Act (12 USC Section 1716 et seq.) (the "Credit
27 Facility Provider") to replace the existing letter of credit issued by Bank One, Arizona, NA;
28 and
1
2014-293
1 WHEREAS, to preserve 66 affordable housing units, MG Tuscany Apartments has
2 requested to amend the Regulatory Agreement in place to allow for extension of the affordability
covenants.
3
4 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND
5
ORDER, AS FOLLOWS:
6
SECTION 1. The City Manager is hereby authorized to execute Amendment No. 2
7 to the Regulatory Agreement in place at 2225 Pumalo Street (Tuscany Apartments), attached
8 hereto as Exhibit "A" and incorporated herein.
9 SECTION 2. This Resolution shall take effect from and after its date of adoption by
the Mayor and Common Council.
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2014-293
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO AMENDING THE
2 REGULATORY AGREEMENT AND DECLARATION OF
RESTRICTIVE COVENANTS IN PLACE AT "TUSCANY
3 APARTMENTS"(2225 PUMALO STREET).
4
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6 meeting
Common Council of the City of San Bernardino at a joint regular
7
thereof, held on the 4th day of Angust , 2014, by the following vote, to wit:
s
9 Council Members: AYES NAYS ABSTAIN ABSENT
10 MARQUEZ x
11 x
BARRIOS
12
VALDIVIA x
13
141 SHORETT x
1
15 NICKEL x
I
16 ' JOHNSON x
17 MULVIHILL x
18 �
1« .40i _�� /1t
2 O George, Hanna/ty Clerk
21 The foregoing resolution is hereby approved this 1 day of , _ , 2014.
22 i G;
/L, x " �Lyy'x'
23 . Carey D is, Mayor
24 City of San Bernardino
25 Approved as to form:
Gary D. Saenz, City Attorney
2{
27
By: . _IIAAP_ L _ •
28 416
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2014-293
AMENDMENT NO. 2 TO THE REGULATORY AGREEMENT FOR THE TUSCANY
APARTMENTS LOCATED AT 2225 PUMALO STREET
This Amendment No. 2 to the Regulatory Agreement for the Tuscany Apartments located
at 2225 Pumalo Street is dated July 21, 2014 between the City of San Bernardino and MG
Tuscany Apartments LP.
WITNESSETH:
WHEREAS, the Issuer and U.S. Bank National Association, successor by merger to U.S.
Bank Trust National Association formerly known as First Trust of California, National
Association (the "Trustee") entered into that certain Indenture of Trust, dated as of May 1,
1996(the "Indenture"), in connection with the issuance of the Issuer's $7,000,000 Variable Rate
Demand Multifamily Housing Revenue Bonds (Silverwoods Apartments Project) Series 1996
(the "Bonds"); and
WHEREAS, the Issuer loaned the proceeds of the Bonds to Magellan Silverwoods
Partnership, an Arizona general partnership (the "Original Borrower"), pursuant to the original
Loan Agreement, dated as of May 1, 1996 (the "Loan Agreement"), among the Issuer, the
Trustee and the Original Borrower; and
WHEREAS, proceeds of the Bonds were used, in part, to construct and pay other costs
associated with the construction and development of a multi-family residential rental housing
project originally known as Silverwoods Apartments and now known as Tuscany Apartments
(the "Project") located in San Bernardino, California; and
WHEREAS, the Issuer, Original Borrower and Trustee entered into that certain
Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement")
which was recorded against the Project in the records of the office of the San Bernardino County
Recorder as Instrument Number 19960251735 as a requirement to the issuance of the Bonds; and
WHEREAS, the Project was sold to San Bernardino 328/AF XXX, LLC, a California
limited liability company in 2001, and San Bernardino 328/AF XXX, LLC caused the delivery to
the Trustee of a letter of credit providing credit support for the Bonds issued by Wells Fargo
Bank, National Association, to replace the existing letter of credit issued by Bank One, Arizona,
NA; and
WHEREAS, the Project was acquired by MG Tuscany Apartments LP in 2003, a
California limited partnership (the "Borrower") and the Borrower has caused the delivery to the
Trustee of a direct pay in transferable credit enhancement instrument (the "Credit Facility")
issued by FANNIE MAE, a corporation organized and existing under the Federal National
Mortgage Association Charter Act(12 USC Section 1716 et seq.) (the "Credit Facility Provider")
to replace the existing letter of credit issued by Bank One, Arizona,NA; and
2014-293
WHEREAS, to preserve 66 affordable housing units, MG Tuscany Apartments has
requested to amend the Regulatory Agreement in place to allow for extension of the affordability
covenants.
NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
Sections 2a and 2b are stricken from the agreement and replaced entirely with the
following new text:
"Section 2. Term of Restrictions and Agreement
a) Occupancy Restrictions. Occupancy Restrictions as defined and cited in Section 4
shall commence on August 1, 2014 and shall end on the date which is 15 years from
the commencement date.
b) Rental Restrictions. The term of the Rental Restrictions as defined and cited in
Section 5 shall commence and end according to the term of the Occupancy
Restrictions set forth in Section 2(a)."
IN WITNESS THEREOF, the parties hereto have caused this Amendment No. 2 to be
executed by and through their respective authorized officers, as of the date first above written.
City of San Bernardino MG Tuscany Apartments, LP
By: By:
Allen J. Parker, City Manager Its:
APPROVED AS TO FORM:
Gary D. Saenz, City Attorney
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