HomeMy WebLinkAbout2002-10-15; City Council; Resolution 2002-3031
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CITY COUNCIL RESOLUTION NO. 2002-303
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING THE ISSUANCE OF
ACTIONS AND AUTHORIZING THE FINANCE DIRECTOR, OR
DESIGNEE, TO HOLD THE DEVELOPER'S BOND ALLOCATION
APPLICATION DEPOSIT IN THE AMOUNT NOT TO EXCEED
ONE HUNDRED THOUSAND DOLLARS (%lOO,OOO), AND THEN TO
RELEASE THE 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: CHELSEA INVESTMENT CORPORATION
CASE NO: SDP 01-05
TAX-EXEMPT OBLIGATIONS AND DIRECTING CERTAIN
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 Chelsea
Investment Corporation ("Chelsea") or a limited partnership or limited liability company to be
established by Chelsea (the "Developer"), the proceeds of which shall be used by the
Developer to finance the acquisition, construction and development of a multifamily housing
rental facility to be located on the west side of the future extension of College Boulevard,
approximately !4 mile south of Carlsbad Village Drive, in what is known as Village Y of the
Calavera Hills Master Plan Phase I1 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 Code of the State of California (the "Law") 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 low and very low income tenants; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Carlsbad DECLARES and ORDERS as follows:
1. The City hereby finds and determines that the foregoing recitals are true and
correct.
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CC Resolution No. 2002-303
Page 2
2.
3.
4.
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6.
7.
8.
The City intends to issue the Obligations for the purpose of paying the costs of
financing the acquisition, construction and development of the Project.
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 development of the Project that are paid before
the date of initial execution and delivery of the Obligations.
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 is $8,500,000.
The foregoing declaration is consistent with the budgetary and financial
circumstances of the City in that there are no funds (other than proceeds of the
Obligations) that are reasonably expected to be (i) reserved, (ii) allocated or (iii)
otherwise set aside, on a long-term basis, by or on behalf of the City, or any
public entity controlled by the City, for the expenditures for the acquisition,
construction and development of the Project that are expected to be reimbursed
from the proceeds of the Obligations.
The Developer shall be responsible for the payment of all present and future
costs in connection with the issuance of the Obligations, including but not
limited to, any fees and expenses incurred by the City in anticipation of the
issuance of the Obligations, the City’s financing fee with respect to the issuance
of the Obligations, the City’s annual administration fee with respect to
administering the provisions of a regulatory agreement with respect to the
Project, the cost of printing any official statement, rating agency costs, bond
counsel fees and expenses, underwriting discount and costs, financial advisor’s
fees and expenses, trustee fees and expense, and the costs of printing the
Obligations. The payment of the principal, redemption premium, if any, and
purchase price of and interest on the Obligations shall be solely the
responsibility of the Developer. The Obligations shall not constitute a debt or
obligation of the City.
The City of Carlsbad will collect from the Developer and will place on deposit
an amount not to exceed One Hundred Thousand Dollars. The City Council
hereby authorizes the Finance Director or designee to hold said deposit and then
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 the procedures of the Committee.
The City Clerk is hereby directed to publish on or before October 25,2002 in a
paper of general circulation within the City of Carlsbad a notice of public
hearing with respect to a public hearing to be held by the City Council on
November 12,2002 regarding the financing of the Project.
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9.
10.
The appropriate officers or staff of the City are hereby authorized, for and in the
name of and on behalf of the City, to make an application to the California Debt
Limit Allocation Committee for an allocation of private activity bonds for the
financing of the Project.
The adoption of this Resolution is solely for the purpose of meeting the
requirements of the provisions of the Internal Revenue Code of 1986, as
amended, and shall not be construed in any other manner, with neither the City
nor its staff having fully reviewed or considered the financial feasibility of the
Project or the expected operation of the project with regards to any State of
California statutory requirements, and such adoption shall not obligate, without
further formal action to be taken by this City Council, including but not limited
to, (i) the approval of the financing documents by the City Council by
resolution, (Ii) the City to provide financing to the Developer for the
acquisition, construction and development of the Project or to issue the
Obligations for purposes of such financing; or (iiI) the City, or any department
of the City, to approve any application or request for, or take any other action in
connection with any environmental, General Plan, zoning or any other permit or
other action necessary for the acquisition, construction and development of the
Project.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 15" day of October
2002, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Finnila, Nygaard,
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
CC Resolution No.
Page 3
2002-303
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