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HomeMy WebLinkAboutRES NO 015-14RESOLUTION NO. 015-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD APPROVING THE ISSUANCE OF TAX EXEMPT MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TO BENEFIT MILL CREEK COURTYARD CIC, L.P. (CHELSEA INVESTMENT CORPORATION) FOR THE ACQUISITION AND CONSTRUCTION OF A 62 -UNIT MULTIFAMILY RENTAL SENIOR HOUSING PROJECT LOCATED AT 1303 S STREET, BAKERSFIELD, CALIFORNIA KNOWN AS THE MILL CREEK COURTYARD. WHEREAS, the California Municipal Finance Authority, a joint exercise of powers agency consisting of California public agencies, which was created to assist in obtaining financing for projects and purposes serving the public interest (the "Authority "), proposes to issue multifamily housing revenue bonds (the "Bonds ") in an amount not to exceed $12,000,000 and to lend the proceeds thereof to Mill Creek Courtyard CIC, L.P., a California limited partnership, on behalf of and together with its successors or assigns or any limited partnership or limited liability company established by Chelsea Investment Corporation (the "Borrower "), to be used for acquisition, construction and development of a 62- unit multifamily housing senior rental development to be commonly known as Mill Creek Courtyard to be located at 1303 S Street in the City of Bakersfield, California (the "Project "), to be owned and operated by the Borrower; and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, requires the City Council (the "City Council "), as the elected representative of the City of Bakersfield (the "City "), the host jurisdiction of such facilities, to approve the issuance of the Bonds after a public hearing has been held following reasonable notice; and WHEREAS, a public hearing was held by the City Council on the 22nd day of January, 2014, following duly published notice thereof, and all persons desiring to be heard have been heard; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement "), among certain local agencies, including the City; and G 01 in �) C7 ORIGINAL WHEREAS, it is in the public interest and for the public benefit that the City Council, as the elected representatives of the City, the host jurisdiction of such facilities, approve the issuance and delivery by the Authority of the Bond. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAKERSFIELD AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. The City Council hereby approves the financing of the Project by the Authority with the proceeds of the Bonds. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 3. The issuance and delivery of the Bonds shall be subject to approval by the Authority of all financing documents relating thereto to which the Authority is a party and subject to the sale of the Bonds by the Authority to the purchasers thereof. Section 4. The Bonds will be paid 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 the principal of, premium, if any, or interest with respect to the Bonds, nor shall the City, the Authority and its members, the State, or any other political corporation, subdivision or agency of the State be liable or obligated to pay the principal of, premium, if any, or interest with respect to the Bonds. Section 5. This resolution shall take effect immediately. o��AK�9 01 � r c� O ORIGINAL HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the City Council of the City of Bakersfield at a regular meeting thereof held on JAN 2 2 2014 , by the fo llowing vote: V"e AY P COUNCIL MEMBER HANSO✓N, JOHNSON, MAXWELL, RIRA, SMITH, SULLIVAN, WEIR NOES: COUNCIL MEMBER ABSTAIN: COUNCIL MEMBER _ WrA-Q ABSENT: COUNCIL MEMBER oz-)r%4- CITY CLERK and Ex Officio rk of the JAN 2 2 2014 ncil of the City of Bakersfield APPROVED va�a HARVEY L. HAIL MAYOR of the City of Bakersfield APPROVED as to form: VIRGINIA GENNARO City Attorney , H. RUDNICK City Attorney II �gAK�r9 CZ cP� m ,DRIGINAL.