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HomeMy WebLinkAbout1984-2222,097-6/860 6/13/84 RESOLUTION NO. 84-222 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DECLARING THE INTENTION TO ISSUE ITS MULTIFAMILY MORTGAGE REVENUE BONDS; DIRECTING THE PREPARATION OF CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (PATTON FARMS APARTMENTS) WHEREAS, the City of San Bernardino, California ("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, as amended (the "Ordinance"), to finance various types of projects, as defined in the Ordinance, and 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, in addition to industry and commerce, multifamily rental housing within the City and to thereby broaden the employment opportunities and to increase housing availability for residents of the City and to broaden the tax and revenue base of the City; and WHEREAS, Nu -Tech Developers, a California limited partnership (the "Developer"), in furtherance of the goals and intent of the Ordinance has proposed to acquire, construct and equip a multifamily rental housing complex within the City of San Bernardino, California (the "City"), and within the Tri-Cities Redevelopment Project (the "Project Area") for the purposes as hereinafter set forth; and WHEREAS, the City has been requested by the Developer to issue and sell its mortgage revenue bonds to provide funds for the making of construction and permanent mortgage loans for the financing of the project as more fully described herein; and - 1 - WHEREAS, the City desires to declare its intention to authorize and issue multifamily mortgage revenue bonds of the City for the purpose of paying the costs of financing development of multifamily rental housing complex as more fully described herein and the costs of issuing such revenue bonds, upon such terms and conditions as may be agreed upon by the City and the purchasers of the revenue bonds. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Section 1. The recitals set forth hereinabove are true and correct in all respects. Section 2. The City of San Bernardino, California, 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 Ordinance No. 3815, as amended, � of the City, the City is legally authorized to issue special revenue bonds for the construction and permanent financing of the project as described in this Resolution. 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 City Council does hereby declare its intention to issue multifamily mortgage revenue bonds of the City for the acquisition, construction, -2- equipping and permanent financing of the herein described project under and in accordance with the Ordinance, in amounts sufficient to pay the costs of financing such development to be located in the City and of paying the costs of issuance of the multifamily mortgage revenue bonds and for the establishment of the necessary reserve funds to provide for the further security of the multifamily mortgage revenue bonds for the project. The mortgage loan to be funded with the proceeds of the bonds shall be insured in accordance with the FHA 221(d)(4) Multi -Family Low and Moderate Income Rental Insurance Program and the project shall include units available for the partially assisted HUD Section 8 Rental Assistance Program. The project is described as follows: A one hundred and sixty (160) unit multifamily rental housing complex to be constructed upon a six and four -tenths (6.4) acre site located near the northwest corner of the intersection of Del Rosa Avenue and Ninth Street within the Project Area. Said multifamily rental housing complex shall include forty (40) one bedroom, one bath rental units, seventy-two (72) two bedroom, one bath rental units and forty-eight (48) three bedroom, two bath rental units, and shall also include the construction of parking facilities for two hundred and forty (240) vehicles, a swimming pool, appropriate laundry facilities, common areas and recreation building and suitable landscaping. The total construction cost of said multifamily rental housing development, including land acquisition, funded interest and financing costs, is estimated to be an amount equal to approximately $5,860,000 and shall have an FHA insured mortgage loan presently estimated to be approximately $5,000,000. Said multifamily rental housing complex is presently identified as the "Patton Farms Apartments". Section 7. The City hereby declares its intention to exercise the authority referred to in Section 3 hereof by issuing 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 said Ordinance No. 3815, as amended. Section 9. The bonds shall be and are special obligations of the City, and, subject to the right of the City to apply moneys as provided in the applicable laws, are secured by such revenues as are specified in the proceedings for the -3- 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, the Law Offices of Timothy J. Sabo as Bond Counsel to the City, Cranston Securities, Inc. as Underwriter for the project, the Developer and the agents and representatives of same are hereby authorized and directed to prepare or cause to be prepared the necessary legal documents, including the Loan Agreement, Resolution of Issuance, or Trust Indenture and such other documents as may be necessary to effect said multifamily rental housing complex and the issuance of revenue bonds therefor and to present same to the Mayor and Common 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 Developer and the City as required by the Ordinance and the industrial development bond financing program of the City; provided, further, that -4- this Resolution shall be subject to and conditioned upon the Developer submitting a formal Application to the City in accordance with the adopted Guidelines of the City together with the payment of the applicable application fees and other amounts as required pursuant to the industrial development bond financing program of the City and compliance with all other provisions of said program. Section 12. This Resolution constitutes a proper exercise of the powers of this Mayor and Common Council and conforms to State and local legal requirements relating to the issuance of such special revenue bonds and other bonds or debt obligations by a charter city in this State. Section 13. It is intended that this Resolution shall constitute such "official action" toward the issuance of the bonds within the meaning of the United States Treasury Regulations, the United States Tax Laws, and any legislation now or hereafter pending in the Congress of the United States which may require official action in order for the bonds to be exempt from Federal income taxation. Section 14. 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 Common Council, adopted March 13, 1981, as amended by Resolution No. 81-410, of the Mayor and Common Council, adopted September 24, 1981. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the 18th day of June , 1984, by the following vote, to wit: AYES: Council Members Castaneda, Reilly, Marks, Frazier NAYS: Council Member Hernandez ABSENT: Council Members Quiel, Strickler 9Z-��,a*oz--A My Clerk IWO The foregoing resolution is hereby approved this ,Oiffv of June , 1984. Approved as to form: City Attorney I San Bernardino ty -6-