HomeMy WebLinkAboutr10340approvebondsbycamunicipalfinanceauthorityfinancehousingdevelopmentvitusdevllcRESOLUTION NO . 10340 (2012 Series )
A RESOLUTION OF CITY OF SAN LUIS OBISPO APPROVING THE ISSUANCE O F
BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR TH E
PURPOSE OF FINANCING A HOUSING DEVELOPMENT FOR VITU S
DEVELOPMENT LLC AND CERTAIN OTHER MATTERS RELATING THERET O
WHEREAS,pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code o f
the State of California (the "Act"), certain public agencies (the "Members") have entered into a
Joint Exercise of Powers Agreement, effective on January 1, 2004 (the "Agreement") in order t o
form the California Municipal Finance Authority (the "Authority"), for the purpose of promotin g
economic, cultural and community development, and in order to exercise any powers common t o
the Members, including the issuance of bonds, notes or other evidences of indebtedness ; an d
WHEREAS,the City of San Luis Obispo (the "City"), had determined that it was in th e
public interest and for the public benefit that the City become a Member of the Authority i n
order to facilitate the promotion of economic, cultural and community development activities i n
the City, including the financing of projects therefor by the Authority ; an d
WHEREAS,the California Municipal Finance Authority (the "Authority") is authorize d
to issue and sell revenue bonds for the purpose, among others, of financing or refinancing th e
construction of capital projects ; an d
WHEREAS,Vitus Development LLC and/or Vitus Group Inc . (the "Borrower") ha s
requested that the Authority issue and sell revenue bonds in the maximum principal amount o f
$15,000,000 (the "Bonds") for the purpose of making a loan to the Borrower, to enable th e
Borrower to finance the costs of acquiring, rehabilitating, and developing a 120-unit multifamil y
housing residential facility located at 1550 Madonna Road, San Luis Obispo, California (th e
"Project"); and
WHEREAS,in order for the interest on the Bonds to be tax-exempt, Section 147(f) o f
the Internal Revenue Code of 1986, as amended (the "Code"), requires that an "applicabl e
elected representative" with respect to the Authority hold a public hearing on the issuance of th e
Bonds and approve the issuance of the Bonds following such hearing ; and
WHEREAS,the Authority has determined that the Council is an "applicable electe d
representative" for purposes of holding such hearing ; and
WHEREAS,notice of such public hearing has been duly given as required by the Code ,
and the Council has heretofore held such public hearing at which all interested persons wer e
given an opportunity to be heard on all matters relative to the financing or refinancing of th e
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 Council approv e
the issuance of the Bonds by the Authority for the aforesaid purposes .
R 10340
Resolution No . 10340 (2012 Series )
Page 2
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s
Obispo as follows :
SECTION 1 .The Council hereby approves the issuance of the Bonds by the Authorit y
for the purpose of providing funds to make a loan to the Borrower to enable the Borrower t o
finance or refinance the Project . It is the purpose and intent of the City Council that thi s
resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes o f
(a) Section 147(f) of the Internal Revenue Code by the applicable elected representative of th e
governmental unit having jurisdiction over the area in which the Project is to be located, i n
accordance with said Section 147(f).
SECTION 2 . The issuance of the Bonds shall be subject to the approval of the Authorit y
of all financing documents relating thereto to which the Authority is a party . The City shall hav e
no responsibility or liability whatsoever with respect to the Bonds . The Bonds will be pai d
entirely from repayments by the Borrower . Neither the full faith and credit nor the taxing power ,
if any, of the City, the Authority and its members, the State of California (the "State") or any
other political corporation, subdivision or agency of the State is pledged to the payment of th e
principal of, premium, if any, or interest with respect to the Bonds, nor shall the City, th e
Authority and its members, the State, or any other political corporation, subdivision or agency o f
the State be liable or obligated to pay the principal of, premium, if any, or interest with respect t o
the Bonds .
SECTION 3 .The adoption of this Resolution shall not obligate the City or an y
department thereof to (i) provide any financing to acquire or construct the Project or any
refinancing of the Project ; (ii) approve any application or request for or take any other action i n
connection with any planning approval, permit or other action necessary for the acquisition ,
rehabilitation or operation of the Project ; (iii) make any contribution or advance any fund s
whatsoever to the Authority ; or (iv) take any further action with respect to the Authority or it s
membership therein .
SECTION 4 .The Mayor, the Clerk and all other proper officers and officials of the Cit y
are hereby authorized and directed to execute such other agreements, documents and certificates ,
and to perform such other acts and deeds, as may be necessary or convenient to effect the
purposes of this Resolution and the transactions herein authorized .
SECTION 5 .The Clerk shall forward a certified copy of this to the Authority in care o f
its counsel :
Harriet M . Welch, Esq .
Squire, Sanders LLP .
555 South Flower St ., Suite 310 0
Los Angeles, CA 90071-230 0
SECTION 6 .This resolution shall take effect immediately upon its passage .
Resolution No . 10340 (2012 Series)
Page 3
Upon motion of Council Member Carter, seconded by Council Member Ashbaugh, an d
on the following vote :
AYES :
Council Members Ashbaugh, Carter and Smith, and Mayor Mar x
NOES :
Non e
ABSENT :
Vice Mayor Carpente r
the foregoing resolution was adopted this 13 th day of March 2012 .
ATTEST :
Elaina Can o
City Clerk