HomeMy WebLinkAbout2003-05-20; City Council; Resolution 2003-1311
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CITY COUNCIL RESOLUTION NO. 2003-131
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 GREENS APARTMENTS AND
APPROVING OTHER RELATED DOCUMENTS AND
ACTIONS
APPLICANT: DOVE FAMILY HOUSING ASSOCIATES, LP
CASE NO: SDP 01-17
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, construction and development of
multifamily rental housing facilities;
WHEREAS, the City Council hereby finds and declares that it is necessary, essential and
a public purpose for the City of Carlsbad (the "City") to engage in a program (the "Program") of
issuing revenue bonds of the City to finance the acquisition, construction and development 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, Dove Family Housing Associates, 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, construction and development of a multifamily rental
housing development to be known as The Greens Apartments to be located in the City (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
Program as contemplated by this resolution and the documents referred to herein exist, have
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CC Resolution No. 2003-131
Page 2
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 Variable Rate Demand Multifamily Housing Revenue Bonds
(The Greens Apartments) 2003 Series A” in an aggregate principal amount not to exceed
$20,000,000 (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 of the City (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. The following documents with respect to the Bonds (the “Bond Documents”) between
and/or among the City and the institution’s named therein, in the forms on the file with the City
Clerk, are hereby approved:
(a) the trust indenture (the “Indenture”) between the City and Wells Fargo
Bank, National Association (the “Trustee”);
(b) the loan agreement (the “Loan Agreement”) among the City, the Trustee
and the Borrower;
(c) the regulatory agreement declaration of restrictive covenants (the
“Regulatory Agreement”) among the City, the Trustee and the Borrower;
and
(d) the bond purchase agreement (the “Purchase Contract”) among the City,
the Borrower and Red Capital Markets, Inc.
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CC Resolution No. 2003-131
Page 3
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. A preliminary official statement relating to the Bonds (the “Preliminary Official
Statement”), in substantially the form on file with the City Clerk is hereby approved. The
Designated Officers, or their designee, are 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.
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CC Resolution No. 2003-131
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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) are 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. All actions heretofore taken by the officers and agents of the City with respect to the
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 behaIf of the City,
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 Indenture, the Loan 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
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he City other than with respect to the revenues and assets derived from the proceeds of the
3onds.
7. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of
he City of Carlsbad, California, held on the 2@ day of May, 2003, by the following vote,
.o wit:
ATTEST:
AYES: Council Members Lewis, Hall, Packard
NOES: None
ABSENT: Council Members Finnila and Kulchin
ABSTAIN: None
CLAUDE A. LEWIS, Mayor
LORRAINE M. WOOD, City Clerk
2003-131 (SEAL)
CC Resolution No.
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