HomeMy WebLinkAboutr10290bondrefinancingstabarbaraministryRESOLUTION NO . 10290 (2011 Series )
A RESOLUTION OF THE CITY OF SAN LUIS OBISP O
APPROVING THE ISSUANCE OF BONDS BY THE CALIFORNIA MUNICIPA L
FINANCE AUTHORITY FOR THE PURPOSE OF FINANCING OR REFINANCING A
HOUSING DEVELOPMENT FOR UNIVERSITY MINISTRY BOARD OF THE SANT A
BARBARA AND CERTAIN OTHER MATTERS RELATING THERET O
WHEREAS,pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of th e
State of California (the "Act"), certain public agencies (the "Members") have entered into a Join t
Exercise of Powers Agreement, effective on January 1, 2004 (the "Agreement") in order to for m
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 ; and
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; and
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 ; and
WHEREAS,the University Ministry Board of the Santa Barbara Presbytery, a Californi a
nonprofit religious corporation (the "Borrower") has requested that the Authority issue and sel l
revenue bonds in the maximum principal amount of $4,000,000 (the "Bonds") for the purpose o f
making a loan to the Borrower, to enable the Borrower to finance or refinance the costs o f
refinancing a campus ministry and student housing development at California Polytechnic Stat e
University located at 1468 E . Foothill Blvd . San Luis Obispo, California (the "Project"); and
WHEREAS,in order for the interest on the Bonds to be tax-exempt, Section 147(f) of
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 ; an d
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 10290
Resolution No . 10290 (2011 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 .
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 .
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 & Dempsey 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 .
Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Carter, and on th e
following vote :
AYES :
Council Members Carpenter, Carter and Smith, Vice Mayor Ashbaug h
and Mayor Marx
NOES :
None
ABSENT : None
Resolution No . 10290 (2011 Series )
Page 3
The foregoing resolution was adopted this 16 t h day of August 2011 .
ATTEST :
APPROVED AS TO FORM :