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HomeMy WebLinkAboutReso 2001-148 - Revenue Bonds t RESOLUTION NO. Zr' (� RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING, CALIFORNIA,AUTHORIZING THE ISSUANCE AND SALE OF REVENUE BONDS BY THE ABAG FINANCE AUTHORITY FOR NONPROFIT CORPORATIONS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $3,600,000 FOR REDDING ASSISTED LIVING CORP. WHEREAS, the ABAG Finance Authority for Nonprofit Corporations, a joint powers agency established pursuant to the laws of the State of California(the "Authority"), has proposed to issue and sell its revenue bonds (the"Bonds") in an aggregate principal amount not to exceed $3,600,000 for the purpose of making a loan to Redding Assisted Living Corp., a nonprofit public benefit corporation(the"Corporation"); WHEREAS, the City of Redding(the "City") is an Associate Member of the Authority; WHEREAS, the project to be financed with the proceeds of the Bonds is the refinancing of an existing assisted living facility consisting of approximately 40 units (the "Project") which provides residential and other services to the elderly and which is owned by the Corporation and located in the City at 395 Hilltop Drive; WHEREAS, the interest on the Bonds may qualify for tax-exemption under Section 103 of the Internal Revenue Code of 1986, as amended(the"Code") only if the Bonds are approved in accordance with Section 147(f) of the Code; WHEREAS, the Authority has requested the City Council of the City of Redding(the "City Council") to approve the issuance and sale of the Bonds in order to satisfy the public approval requirements of Section 147(f) of the Code; WHEREAS, on September 18, 2001, a notice stating that a public hearing with respect to the issuance of the Bonds would be held by the City Council on October 2, 2001, appeared in the Redding Record Searchlight, a newspaper of general circulation in the City; WHEREAS, the City Council held the public hearing described above on October 2, 2001, and an opportunity was provided for persons to comment on the issuance and sale of the Bonds and the Project; WHEREAS, the City Council is the elected legislative body of the City and is an applicable elected representative within the meaning of Section 147(f) of the Code; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF REDDING RESOLVES AS FOLLOWS: Section 1. The City Council does hereby find and declare that the above referenced recitals are true and correct. 890413.2 09/14/01 -1- (14C) Section 2. Pursuant to Section 147(f) of the Code, the City Council held a public hearing on October 2, 2001, and provided an opportunity to present arguments both for and against the issuance of the Bonds and the Project. This City Council has further considered all testimony and comments submitted in connection with the issuance of the Bonds and Project at the public hearing. Section 3. After consideration of comments received at the public hearing, the City Council hereby approves the issuance of the Bonds, the operation of the Authority within the City to provide financing for the Project, and the execution and delivery of a loan agreement by and between the Corporation and the Authority, in the maximum principal amount of$3,600,000 for the purposes described above. Section 4. It is the purpose and intent of the City Council that this Resolution constitutes approval by the applicable elected representative in accordance with the terms of Section 147(f) of the Code. Section 5. This Resolution shall take effect from and after the date of its passage and adoption. Section 6. The Clerk of the City Council shall certify to the adoption of this Resolution. I I hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Redding at a meeting thereof held on the 2nd day of October, 2001 by the following vote: AYES: Cibula, Kight, Pohlmeyer, Stegall and McGeorge NOES: None ABSENT: None ABSTAIN: None 1 , CITY CLER / 890413.2 09/14/01 -2..