HomeMy WebLinkAbout1998-12-08; City Council; Resolution 98-399' /I 4 0 0
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
CITY COUNCIL RESOLUTION NO. 98-399
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO APPROVE THE CITY'S
INTENTION TO ISSUE TAX-EXEMPT MULTI-FAMILY
REVENUE BONDS FOR THE PURPOSES OF FINANCING THE
CONSTRUCTION OF NINETY-TWO (92) AFFORDABLE
APARTMENT UNITS, KNOWN AS POINSETTIA GARDENS
APARTMENTS, WITHIN THE POINSETTIA PROPERTIES
SPECIFIC PLAN AND TO APPROVE $6,500,000 AS THE
MAXIMUM AMOUNT OF PROCEEDS OF THE
OBLIGATIONS TO BE USED FOR REIMBURSEMENT OF
EXPENDITURES FOR THE ACQUISITION, CONSTRUCTION
AND DEVELOPMENT OF THE PROJECT THAT ARE PAID
BEFORE THE DATE OF INITIAL EXECUTION AND
DELIVERY OF THE OBLIGATIONS.
APPLICANT: POINSETTIA HOUSING ASSOCIATES
CASE NO: SDP 98-09
WHEREAS, the City of Carlsbad (the "City") intends to issue tax-exempt obligation
"Obligations") for the purpose, among other things, of making a loan to Poinsettia Housing Assoc
a California limited partnership, the general partner of which in BRIDGE Housing Corporati'
Southern California, a nonprofit public benefit corporation ("BRIDGE") or such other li.
partnership or limited liability of which BRIDGE is the general partner or managing me1
respectively, (the "Developer"), the proceeds of which shall be used by the Developer to financ
acquisition, construction and development of a multifamily housing rental facility to be locat
Northwest corner of Poinsettia Lane and Avenida Encinas in the City of Carlsbad, Californiz
commonly known as Poinsettia Gardens Apartments, (the "Project"); and
WHEREAS, the City is authorized by Chapter 7 of Part 5 of Division 3 1 of the Healtl
Safety Code of the State of California (the "Law") to issue and sell revenue bonds for the purpo
financing the acquisition, construction and development of multifamily rental housing facilities 1
occupied in part by low income tenants; and
WHEREAS, it is in the public interest and for the public benefit that the City declaI
official intent to reimburse the expenditures referenced herein;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the
of Carlsbad, California, as follows:
~
~ I
t
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 l
e 0
1. The City intends to issue the Obligations for the purpose of paying the costs of fin:
the acquisition, construction and development of the Project.
2. The City hereby declares that it reasonably expects that a portion of the proceeds
Obligations will be used for reimbursement of expenditures for the acqui
construction and development of the Project that are paid before the date of
execution and delivery of the Obligations.
3. The maximum amount of proceeds of the Obligations to be used for reimbursem
expenditures for the acquisition, construction and development of the Project that ar
before the date of initial execution and delivery of the Obligations is $6,500,000.
4. The foregoing declaration is consistent with the budgetary and financial circumstan
the City in that there are no funds (other than proceeds of the Obligations) th
reasonably expected to be (i) reserved, (ii) allocated or (iii) otherwise set aside
long-term basis, by or on behalf of the City, or any public entity controlled by the Ci
the expenditures for the acquisition, construction and development of the Project tl
expected to be reimbursed from the proceeds of the Obligations.
5. The Developer shall be responsible for the payment of all present and future c(
connection with the issuance of the Obligations, including, but not limited to, any fe
expenses incurred by the City in anticipation of the issuance of the Obligations, the
financing fee with respect to the issuance of the Obligations, the City's ,
administration fee with respect to administering the provisions of a regulatory agre
with respect to the Project, the cost of printing any official statement, rating agency
bond counsel fees and expenses, underwriting discount and costs, financial advisor
and expenses, trustee fees and expense, and the costs of printing the Obligations
payment of the principal, redemption premium, if any, and purchase price of and i
on the Obligations shall be solely the responsibility of the Developer. The Oblie
shall not constitute a debt or obligation of the City.
6. The City shall hold a public hearing on January 12, 1999 to receive comments
City's intent to issue bonds for the subject project.
7. The City Clerk is hereby directed to publish on or before December 1 1, 1998 in a pi
general circulation within the City of Carlsbad a notice of public hearing with res
the public hearing to be held by the City Council on January 12, 1999 regardi
issuance of bonds to finance the subject Project.
8. The law firm of Jones Hall, A Professional Law Corporation, is hereby named a
counsel to the City in connection with the issuance of the Obligations. The fe
expense of bond counsel are to be paid solely from the proceeds of the Obligatj
directly by the Developer.
9. Subject to prior City Staff review of the application, the Developer is hereby author
make an application to the California Debt Limit Allocation Committee for an all1
of private activity bonds for the financing of the Project, in the name of and on be
the City of Carlsbad.
....
....
....
CC Resolution No. 98-399
Page 2
~
- I1 0 e
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
10. The adoption of this Resolution is solely for the purpose of meeting the requireme
the Tax Law Reimbursement Provisions and the Code and shall not be construed
other manner, the City nor its staff having fully reviewed or considered the fir
feasibility of the Project or the expected operation of the Project with regards to an)
of California statutory requirements, and such adoption shall not obligate without 1
formal action to be taken by this City Council, including, but not limited to, the ap
of the financing documents by the City Council by resolution, (i) the City to p
financing to the Developer for the acquisition, construction and development
Project or to issue the Obligations for purposes of such financing; or (ii) the City,
department of the City, to approve any application or request for, or take any other
in connection with, any environmental, General Plan, zoning or any other permit 01
action necessary for the acquisition, construction, development or operation of the PI
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City C
of the City of Carlsbad, California, held on the 8th day of December, 1998 by the following VI
wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin anc
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk \
(SEAL)
CC Resolution No. 98-399
Page 3