HomeMy WebLinkAbout2003-05-20; City Council; Resolution 2003-1301
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CITY COUNCIL RESOLUTION NO. 2003-130
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD AUTHORIZING THE ISSUANCE OF
MULTIFAMILY HOUSING REVENUE BONDS AND THE
LOAN OF THE PROCEEDS THEREOF FOR THE
FINANCING OF THE MARIPOSA APARTMENTS AND
APPROVING OTHER RELATED DOCUMENTS AND
ACTIONS
APPLICANT: CHELSEA INVESTMENT CORPORATION
CASE NO: SDP 01-05
WHEREAS, Chapter 7 of Part 5 of Division 31 (commencing with Section 52075) of the
Health and Safety Code of the State of California (the "Act") authorizes cities to incur
indebtedness for the purpose of financing the acquisition and construction of multifamily rental
housing facilities;
WHEREAS, the City Council of the City of Carlsbad (the "City") hereby finds and
declares that it is necessary, essential and a public purpose for the City to engage in a program
(the "Program") of issuing revenue bonds to finance the acquisition and construction of
multifamily rental housing, and has determined to borrow money for such purpose by the
issuance of revenue bonds as authorized by the Act;
WHEREAS, the City Council hereby finds and declares that this resolution is being
adopted pursuant to the powers granted by the Act;
WHEREAS, CIC Calavera, L.P., a California limited partnership (the "Borrower"), has
requested that the City issue and sell the Bonds (hereinafter defined) for the purpose of financing
the acquisition and construction of a multifamily rental housing development to be known as the
Mariposa Apartments (the "Project"); and
WHEREAS, all conditions, things and acts required to exist, to have happened and to
have been performed precedent to and in the issuance of the Bonds and the implementation of the
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CC Resolution No. 2003-130
Page 2
program as contemplated by this resolution and the documents referred to herein exist, have
happened and have been performed in due time, form and manner as required by the laws of the
State of California, including the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CARLSBAD THAT:
1. The City Council hereby finds and declares that the above recitals are true and correct.
2. Pursuant to the Act and the Indenture (hereinafter defined), revenue bonds of the City,
designated as “City of Carlsbad Multifamily Housing Revenue Bonds (Mariposa Apartments)
2003 Series A” and designated as “City of Carlsbad Multifamily Housing Revenue Bonds
(Mariposa Apartments) 2003 Series B” in a combined aggregate principal amount not to exceed
$8,107,000 (the “Bonds”) are hereby authorized to be issued. The Bonds shall be executed by the
manual or facsimile signature of the Mayor, City Manager or Finance Director (the “Designated
Officers”) and attested by the manual or facsimile signature of the City Clerk, in the form set
forth in and otherwise in accordance with the Indenture (as hereinafter defined).
3.
and/or among the City and the institution’s named therein, in the forms on the file with the City
Clerk, are hereby approved:
The following documents with respect to the Bonds (the “Bond Documents”) between
(a) the trust indenture with respect to the Bonds while credit enhanced by
Provident Bank (the “Original Indenture”) between the City and Wells Fargo Bank,
National Association (the “Trustee”);
(b) the financing agreement with respect to the Bonds while credit enhanced
by Provident Bank (the “Original Financing Agreement”) among the City, the Trustee and
the Borrower;
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CC Resolution No. 2003-130
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(c) the trust indenture with respect to the Bonds while credit enhanced by
Fannie Mae (the “Fannie Mae Indenture”) between the City and the Trustee;
(d) the financing agreement with respect to the Bonds while credit enhanced
by the Fannie Mae (the “Fannie Mae Financing Agreement”) among the City, the Trustee
and the Borrower;
(e) the regulatory agreement declaration of restrictive covenants (the
“Regulatory Agreement”) among the City, the Trustee and the Borrower; and
(0 the bond purchase agreement (the “Purchase Contract”) among the City,
the Borrower and Red Capital Markets, Inc.
The Designated Officers, or their designee, is hereby authorized and directed, for and in
the name and on behalf of the City, to execute and deliver the Bond Documents, and the City
Clerk, or its designee, is hereby authorized and directed to attest the Designated Officer’s (or its
designee‘s) signature, if required, in said forms with such additions thereto or changes therein as
are recommended or approved by the Designated Officers upon consultation with bond counsel
and the City Attorney, including such additions or changes as are necessary or advisable in
accordance with Section 6 hereof, the approval of such additions or changes to be conclusively
evidenced by the execution and delivery by the City of the Bond Documents.
The date, maturity dates, interest rate or rates, interest payment dates, denominations,
form, registration privileges, manner of execution, place of payment, terms of redemption and
other terms of the Bonds shall be as provided in the Indenture as finally executed.
4.
Statement”), in substantially the form on file with the City Clerk, is hereby approved. The
A preliminary official statement relating to the Bonds (the “Preliminary Official
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CC Resolution No. 2003-130
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Designated Officers, or their designee, is hereby authorized, for and in the name and on behalf of
the Authority, to bring to final form a Preliminary Official Statement (the “Official Statement”)
upon sale of the Bonds and to execute the Official Statement in said form, with such additions
thereto or changes therein as are recommended or approved by such officers upon consultation
with bond counsel to the Authority, the approval of such additions or changes to be conclusively
evidenced by the execution and delivery by the Authority of the Official Statement. The
Underwriter is hereby authorized to distribute copies of the Preliminary Official Statement to
persons who may be interested in the purchase of the Bonds and are directed to deliver copies of
the Official Statement to all actual purchasers of the Bonds.
5. The Bonds, when executed, shall be delivered to the Trustee for authentication. The
Trustee is hereby requested and directed to authenticate the Bonds by executing the Trustee’s
certificate of authentication and registration appearing thereon, and to deliver the Bonds, when
duly executed and authenticated, to the purchasers thereof in accordance with written instructions
executed on behalf of the City by the Designated Officers, or their designee, which instructions
such officer (or their designee) is hereby authorized and directed, for and in the name and on
behalf of the City, to execute and deliver to the Trustee. Such instructions shall provide for the
delivery of the Bonds in accordance with the Purchase Contract, upon payment of the applicable
purchase price therefore.
6.
establishment of the Program and the sale and issuance of the Bonds are hereby approved,
confirmed and ratified, and the proper officers of the City, including the Designated Officers, or
their designees, are hereby authorized and directed, for and in the name and on behalf of the City,
All actions heretofore taken by the officers and agents of the City with respect to the
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CC Resolution No. 2003-130
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to do any and all things and take any and all actions and execute and deliver any and all
certificates, agreements and other documents which they, or any of them, may deem necessary or
advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance
with this Resolution and resolutions heretofore adopted by the City in order to carry out the
Program, including but not limited to those certificates, agreements and other documents
described in the Original Indenture, the Original Financing Agreement, the Fannie Mae Indenture,
the Fannie Mae Financing Agreement, the Regulatory Agreement, the Purchase Contract and the
other documents herein approved, including, but not limited to any intercreditor agreements with
other parties lending amounts to the Borrower in connection with the acquisition and construction
of the Project, and any certificates, agreements or documents as may be necessary to further the
purpose hereof, but which shall not create any obligation or liability of the City other than with
respect to the revenues and assets derived from the proceeds of the Bonds.
7. This Resolution shall take effect immediately upon its adoption.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
20*- dayof May Council of the City of Carlsbad, California, held on the
2003, by the following vote, to wit:
AYES: Council Members Lewis, Hall, Packard
NOES: None
ABSENT: Council Members
ABSTAIN: None
" v- 'V' CLAUDE A. LEWIS, Mayor
ATTEST:
v LORRAINE M. WOOD, City Clerk
(SEAL)
CC Resolution No. 2003-130
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