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HomeMy WebLinkAbout2002-07-09; City Council; Resolution 2002-2091 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 21 28 RESOLUTION NO. 2002-209 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD DECLARING INTENTION TO REIMBURSE OBLIGATIONS AND DIRECTING CERTAIN ACTIONS INCLUDING AUTHORIZATION TO THE FINANCE DIRECTOR, OR DESIGNEE, TO HOLD THE DEVELOPER'S BOND ALLOCATION APPLICATION DEPOSIT IN THE AMOUNT OF ONE HUNDRED THOUSAND DOLLARS ($100,000), AND THEN TO RELEASE SAID DEPOSIT FOLLOWING CITY RECEIPT OF A WRITTEN NOTIFICATION FROM THE CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE (CDLAC) AUTHORIZING RELEASE OR FORFEITURE OF THE DEPOSIT, IN WHOLE OR IN PART, PURSUANT TO CDLAC PROCEDURES. APPLICANT: DOVE FAMILY HOUSING ASSOCIATES CASE NO: SDP 01-17 EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT WHEREAS, the City of Carlsbad (the "City") intends to issue tax-exempt obligations (the 'Obligations") for the purpose, among other things, of making a loan to the Dove Family Housing 4ssociates ("Dove") or a limited partnership or limited liability company to be established by Dove (the 'Developer"), the proceeds of which shall be used by the Developer to finance the acquisition, :onstruction and development of a multifamily housing rental facility to be located near the Northeast :orner of Alga Road and El Camino Real in the City of Carlsbad, California (the "Project"); and WHEREAS, the City is authorized by Chapter 7 of Part 5 of Division 3 1 of the Health and Safety :ode of the State of California (the "Law") to issue and sell revenue bonds for the purpose of financing :he acquisition, construction and development of multifamily rental housing facilities to be occupied in ,art by low and very low income tenants; and WHEREAS, it is in the public interest and for the public benefit that the City declare its official ntent to reimburse the expenditures referenced herein; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Carlsbad 3ECLAFES and ORDERS as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 X ResolutionNo. 2002-209 Page 2 1. The City intends to issue the Obligations for the purpose of paying the costs of financing the acquisition, construction and development of the Project. 2. The City hereby declares that it reasonably expects that a portion of the proceeds of the Obligations will be used for reimbursement of expenditures for the acquisition, construction and ievelopment of the Project that are paid before the date of initial execution and delivery of the 3bligations. 3. The maximum amount of proceeds of the Obligations to be used for reimbursement of :xpenditures for the acquisition, construction and development of the Project that are paid before the date )f initial execution and delivery of the Obligations is $20,000,000. 4. The foregoing declaration is consistent with the budgetary and financial circumstances If the City in that there are no funds (other than proceeds of the Obligations) that are reasonably :xpected to be (i) reserved, (ii) allocated or (iii) otherwise set aside, on a long-term basis, by or on behalf )f the City, or any public entity controlled by the City, for the expenditures for the acquisition, :onstruction and development of the Project that are expected to be reimbursed kom the proceeds of the lbligations. 5. The Developer shall be responsible for the payment of all present and future costs in :onnection with the issuance of the Obligations, including, but not limited to, any fees and expenses ncurred by the City in anticipation of the issuance of the Obligations, the City's financing fee with ,espect to the issuance of the Obligations, the City's annual administration fee with respect to Idministering the provisions of a regulatory agreement with respect to the Project, the cost of printing my official statement, rating agency costs, bond counsel fees and expenses, underwriting discount and :osts, financial advisor's fees and expenses, trustee fees and expense, and the costs of printing the Ibligations. The payment of the principal, redemption premium, if any, and purchase price of and nterest on the Obligations shall be solely the responsibility of the Developer. The Obligations shall not :onstitute a debt or obligation of the City. IO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ZResolutionNo. 2002-209 'age 3 6. The City of Carlsbad will collect from the Developer and will place on deposit One Iundred Thousand Dollars which equals one half of one percent of the amount of private activity bond llocation being requested. The City Council hereby authorizes the Finance Director or designee to hold aid deposit and then to release the deposit following City receipt of a written notification from the Zalifornia Debt Limit Allocation Committee authorizing release or forfeiture of the deposit, in whole or n part, pursuant to the procedures of the Committee. 7. The City Clerk is hereby directed to publish on or before July 22, 2002 in a paper of ;enera1 circulation within the City of Carlsbad a notice of public hearing with respect to a public hearing J be held by the City Council on August 6,2002 regarding the financing of the Project. 8. The law firm of Jones Hall, A Professional Law Corporation, is hereby named as bond ounsel to the City in connection with the issuance of the Obligations. The fees and expense of bond ounsel are to be paid solely from the proceeds of the Obligations or directly by the Developer 9. The appropriate officers or staff of the City are hereby authorized, for and in the name of nd on behalf of the City, to make an application to the California Debt Limit Allocation Committee for n allocation of private activity bonds for the financing of the Project. 10. The adoption of this Resolution is solely for the purpose of meeting the requirements of le provisions of the Internal Revenue Code of 1986, as amended, and shall not be construed in any other lanner, with neither the City nor its staff having fully reviewed or considered the financial feasibility of le Project or the expected operation of the Project with regards to any State of California statutory Zquirements, and such adoption shall not obligate, without further formal action to be taken by this City :ouncil, including, but not limited to, the approval of the financing documents by the City Council by :solution, (i) the City to provide financing to the Developer for the acquisition, construction and evelopment of the Project or to issue the Obligations for purposes of such financing; or (ii) the City, or ny department of the City, to approve any application or request for, or take any other action in onnection with, any environmental, General Plan, zoning or any other permit or other action necessary x the acquisition, construction, development or operation of the Project. II 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2( 2: 21 CC ResolutionNo. 2002-209 Page 4 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California on the 9” day of Julv, 2002, by the following vote, to wit: AYES: Council Members Lewis, Finnila, Hall NOES: None ABSENT: Council Member Ny ABSTAIN: Council Member ‘I I 11 ATTEST: