HomeMy WebLinkAbout1999-01-12; City Council; Resolution 99-20c
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0 CITY COUNCIL RESOLUTION NO. 99-20 0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PRIVATE ACTIVITY BOND OBLIGATIONS IN AN AMOUNT
NOT TO EXCEED $6.5 MILLION TO FINANCE THE
APARTMENT UNITS WITHIN THE POINSETTIA PROPERTIES
SPECIFIC PLAN; AND AUTHORIZING THE FINANCE
DIRECTOR OR DESIGNEE TO HOLD THE DEVELOPER'S
BOND ALLOCATION APPLICATION DEPOSIT IN THE
AMOUNT OF THIRTY TWO THOUSAND FIVE HUNDRED
DOLLARS, WHICH THE CITY HAS PREVIOUSLY COLLECTED
AND PLACED ON DEPOSIT IN AN ACCOUNT IN A FINANCIAL
INSTITUTION, AND TO RELEASE THE DEPOSIT FOLLOWING
CITY RECEIPT OF A WRITTEN NOTIFICATION FROM THE
CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE
AUTHORIZING RELEASE OR FORFEITURE OF THE DEPOSIT,
IN WHOLE OR IN PART, PURSUANT TO COMMITTEE
PROCEDURES.
APPLICANT: POINSETTIA HOUSING ASSOCIATES
CASE NO: SDP 98-09
CARLSBAD DECLARING ITS INTENT TO ISSUE TAX-EXEMPT
CONSTRUCTION OF NINETY-TWO AFFORDABLE
WHEREAS, the Master Developer of the Poinsettia Properties Specific Plan,
HSL/BP/Michan, L.L.C, has proposed to construct 92 apartment units affordable to lower
income households as a means to satisfy their affordable housing obligation as permitted by
Carlsbad Municipal Code Section 21.85 of the City's Inclusionary Housing Ordinance; and,
WHEREAS, the Master Developer will contract with Poinsettia Housing Associates,
a California limited partnership, the general partner of which is BRIDGE Housing Corporation
of Southern California, a nonprofit public benefit corporation ("BRIDGE"), or such other
limited partnership or limited liability of which BRIDGE is the general partner or managing
member, respectively, to construct said affordable apartment units; and,
WHEREAS, the City of Carlsbad (the "City") intends to issue tax-exempt bond
obligations (the "Obligations") for the primary purpose of making a loan of the proceeds to
Poinsettia Housing Associates to be used to finance the acquisition, construction and
development of a multifamily housing rental facility to be located at the northwest corner of
Poinsettia Lane and Avenida Encinas, in the City of Carlsbad, California and commonly known
as Poinsettia Gardens Apartments, (the "Project"); and,
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0 0
Council Resolution No.
Page 2
WHEREAS, the City is authorized by Chapter 7 of Part 5 of Division 3 1 of the Health
and Safety Code of the State of California (the llLaw") to issue and sell revenue bonds for the
purpose of financing the acquisition, construction and development of multifamily rental
housing facilities to be occupied in part by very low income tenants; and
WHEREAS, the Obligations, if issued, will be considered to be "qualified exempt
facility bonds" under Section 142(a) of the Internal Revenue Code of 1986, as amended (the
Tode"); and,
WHEREAS, Section 147(f) of the Code requires that the "applicable elected
representative" with respect to the City hold a public hearing on and approve the City's intent to
issue the Obligations; and
WHEREAS, the Carlsbad City Council is the elected legislative body of the City and
therefore serves as the appropriate "applicable elected representative" to hold the required
public hearing and accept public testimony on the City's intent to issue bond obligations; and
WHEREAS, a notice of public hearing in a newspaper of general circulation in the City
has been published, to the effect that a public hearing would be held by the Carlsbad City
Council on January 12, 1999, regarding the issuance of the Obligations by the City and the
nature and location of the Project; and
WHEREAS, the City Council has held said public hearing on such date, at which time
an opportunity was provided to present arguments both for and against the issuance of such
Bonds and the nature and location of the Project; and
WHEREAS, it is in the public interest and for the public benefit that the City declare
its official intent to issue the subject bond obligations and to reimburse the expenditures
referenced herein.
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Council Resolution No. 99- 2 0
Page 3
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. The City hereby finds and determines that the foregoing recitals are true and correct.
2. The City of Carlsbad hereby approves this declaration of intent to issue and deliver
Bond Obligations in an amount not to exceed $6.5 million for the purpose of paying the
to review and approval of the documents to be executed and delivered at a later date in
connection with the Bond Obligations.
costs of financing the acquisition, construction and development of the Project, subject
3. The City of Carlsbad has collected from the Developer and has placed on deposit the
thirty two thousand five hundred dollars ($32,500) which equals one half of one per
amount of private activity bond allocation being requested. The City Council hereby ax
Finance Director or designee to hold said deposit and then to release the deposit foll
receipt of a written notification from the California Debt Limit Allocation Committee
release or forfeiture of the deposit, in whole or in part, pursuant to the procedures of the (
4. This resolution shall take effect upon its date of adoption.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
of Carlsbad, California, held on the @ day of January, 1999 by the following vote, to wit:
AYES: Council Members Lewis, Hall, Finnila, Nygaard and
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
stant City Clerk
(SEAL)
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