HomeMy WebLinkAboutReso 2005-079 - Revenue Bonds
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RESOLUTION NO. 2005-79
A RESOLUTION OF THE OTY COUNOL OF THE OTY OF REDDING
APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY FOR THE PURPOSE OF FINANCING THE
ACQUISITION AND CONSTRUCTION OF AMUL TIFAMIL Y RENTAL HOUSING
DEVELOPMENT TO BE LOCATED AT 2795 WEST STREE T, AND APPROVING AND
DIRECTING EXECUTION OF THE JOINT EXEROSE OF POWERS AGREEMENT
RELATING TO THE AUTHORITY
WHEREAS, the California Municipal Finance Authority (the" Authority") is authorized to issue and
sell revenue bonds for the purpose, among others, of financing multifamily rental housing developments; and
WHEREAS, the Community Housing Improvement Program, Incorporated ("CI-llP"), on behalf of
a limited partnership (the "Borrower") to be formed with Queen Ann Housing Corporation, an affiliate of
CI-llP, as a general partner, has requested that the Authority issue and sell revenue bonds in the approximate
principal amount of $4,500,000 (the "Bonds") for the purpose of making a loan to the Borrower, to enable
the Borrower to finance the costs of acquisition and construction of an 30-unit residential rental housing
development to be located at 2795 West Street in the City of Redding (the "Project"); and
WHEREAS, as required by the Internal Revenue Code of 1986, as amended (the "Code"), a portion
of the housing units in the Project will. be rented to persons and families of very low income; and
WHEREAS, in order for the interest on the BOr;1ds to be tax-exempt, Section 147(f) of the Code
requires that an "applicable elected representative" with respect to the Authority hold a public hearing on the
issuance of the Bonds and approve the issuance of the Bonds following such hearing; and
WHEREAS, the Authority has determined that the City Council of the City of Redding (the "City")
is an "applicable elected representative" to hold said public hearing; and
WHEREAS, notice of said public hearing has been duly given as required by the Code, and this City
Council has heretofore held the public hearing at which all interested persons were given an opportunity to be
heard on all matters relative to the financing of the Project and the Authority's issuance of the Bonds
therefor, and
WHEREAS, it is in the public interest and for the public benefit that the City Council approve the
issuance of the Bonds by the Authority for the aforesaid purposes; and
WHEREAS, in order for the Authority to have jurisdiction to issue the Bonds it is necessary for the
City to become a member of the Authority; and
WHEREAS, the Joint Exercise of Powers Agreement providing for the Authority (the
"Agreement") has been filed with the City Oerk, and the City Council now desires to approve the Agreement
and to direct its execution and delivery by the City so that the Bonds can be issued by the Authority to finance
the Project.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Redding, that:
1. The City Council of the City hereby approves the issuance of the Bonds by the Authority for
the purpose of providing funds to make a loan to the Borrower to enable the Borrower to finance the Project.
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2. The issuance'the Bonds shall be subject to the approval'the Authority of all financing
documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability
whatsoever with respect to the Bonds.
3. The City Council hereby approves the form of, and authorizes and directs the Mayor, the
City Manager or any designee of such officers, to execute the Agreement in the form on file with the City
Clerk, and authorizes and directs the City Clerk to attest to such signature.
4. The City Council hereby authorizes the Mayor, the City Manager or any designee of such
officers, to take whatever actions may be necessaI}' to allow the City, following the issuance of the Bonds, to
withdraw from the Authority as described in Section 12 of the Agreement, if determined by the City Manager
or the City Attorney that such withdra.wal is in the best interests of the City.
5. The adoption of this Resolution shall not obligate (~ the City to provide any financing to
acquire or construct the Project; (il) the City, the Planning Department of the City or any other department of
the City to approve any application or request for, or take any other action in connection with, any planning
approval, permit or other action necessaI)' for the acquisition, construction or operation of the Project; (ill)
the City to make any contribution or advance any funds whatsoever to the Authority; or (iv) the City to take
any further action with respect to the Authority or its membership therein.
6. This Resolution shall take effect immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was introduced and read at the regular
meeting of the City Council of the City of Redding on the 21st day of June 2005, and was adopted by the
following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Council Members:
Council Members:
Council Members:
Council Members:
Dickerson, Murray, Pohlmeyer, Stegall, and Mathena
None
None
None
Attest:
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Form Approved:
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RICHARD A DUVERNAY Ity Attorney
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