HomeMy WebLinkAbout2005-12-20; City Council; Resolution 2005-3801
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CITY COUNCIL RESOLUTION NO. 2005-380
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EXEMPT OBLIGATIONS IN AN AMOUNT NOT TO EXCEED $30
MILLION TO FINANCE THE CONSTRUCTION OF ONE HUNDRED
VILLAGES OF LA COSTA AND DIRECTING CERTAIN ACTIONS
APPLICANT: CHELSEA INVESTMENT CORPORATION
CARLSBAD, CALIFORNIA, APPROVING THE ISSUANCE OF TAX-
SIXTY-EIGHT (1 68) AFFORDABLE APARTMENT UNITS WITHIN
CASE NO: SDP 04-13
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 east side of the realigned Rancho Santa Fe Road, south of San Elijo Road, and west of the
City limit for the City of San Marcos 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
WHEREAS, the Obligations will be considered to be "qualified exempt facility bonds''
inder Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and
Section 147(f) of the Code requires that the "applicable elected representative" with respect to the
Clity hold a public hearing on and approve the issuance of the Obligations; and
WHEREAS, this City Council is the elected legislative body of the City; and
WHEREAS, a notice of public hearing in a newspaper of general circulation in the City
ias been published, to the effect that a public hearing would be held by this City Council on the
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date hereof regarding the issuance of the Obligations by the City and the nature and location of
the Project; and
WHEREAS, this City Council held said public hearing, 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 approve the
issuance and delivery of the Obligations for the purpose of financing the acquisition, construction
and development of the Project;
WHEREAS, the City shall not have any liability for the repayment of the Obligations or
any responsibility for the Project; and
WHEREAS, the City reasonably expects to use a portion of the proceeds of such
Obligations to reimburse the City and/or the Developer for certain expenditures eligible for
reimbursement (the “Reimbursement Expenditures”) made prior to the date such Obligations are
issued.
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 hereby approves its intent to issue and deliver the said Obligations for the
purpose of paying the costs of financing the acquisition, construction and development of
said Project, subject to the final review and approval of the documents to be executed and
delivered in connection with the Obligations. It is intended that this Resolution shall
constitute a declaration of “official intent’’ within the meaning of Section 1.150-2 of the
Treasury Regulations promulgated under the Code for purposes of providing for and
authorizing the reimbursement of Reimbursement Expenditures from the proceeds of the
Obligations.
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3. The City staff is hereby authorized and directed to submit, or cause to be submitted, an
application with the California Debt Allocation Committee (“CDLAC”) for allocation by
CDLAC to the City of a portion of the “State ceiling” for private activity bonds pursuant
to Section 146 of the Code for use in connection with the issuance of the Bonds.
4. The adoption of this Resolution shall not bind the City to issue the Obligations until
and unless all other necessary actions and approvals are taken or received in accordance
with all applicable laws. Additionally, the adoption of this Resolution does not and shall
not limit in any manner whatever the full discretion of either the City to deny any fbrther
permit or approval that may be necessary for ultimate completion of the proposed Project.
5. This resolution shall take effect upon its adoption.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
day of December, 2005, by Council of the City of Carlsbad, California, held on the
the following vote, to wit:
20th
AYES: Council Members Lewis, Hall, Packard, Sigafoose
NOES: None
ABSENT: Council Member Kulchin
ABSTAIN: None
W "I v\/ CLAUDE AYLEWIS , Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)