HomeMy WebLinkAboutRES NO 039-15RESOLUTION NO.0 3 9- 15
RESOLUTION AUTHORIZING CITY OF BAKERSFIELD TO
PARTICIPATE IN THE HUD PUBLIC OFFERING AS PART OF
THE SECTION 108 LOAN GUARANTEE ASSISTANCE
PROGRAM TO REFINANCE THE EXISTING NOTE OR OTHER
OBLIGATION IN THE ORIGINAL PRINCIPAL AMOUNT OF
$800,000, FOR THE SOUTHEAST STREETSCAPE AND STREET
IMPROVEMENT PROJECT.
WHEREAS, the City of Bakersfield, by Resolution No. 202 -02 adopted
November 20, 2002, authorized an application seeking loan guarantee
assistance under Section 108 of the Housing and Community Development Act
of 1974, as amended, from the United States Department of Housing and Urban
Development ( "HUD "), and did authorize the City Manager to execute the
documents necessary to accomplish the transaction, and did accept HUD's
guarantee of Section 108 note number B- 02- MC- 06- 0510 -A for the Southeast
Streetscape and Street Improvement Project under a Section 108 Contract for
Loan Guarantee Assistance dated July 9, 2003; and
WHEREAS, the assistance provided by HUD was the guarantee of a note in
the original principal amount of $800,000, plus interest thereon; and
WHEREAS, HUD may require, as a condition of participation in the public
offering, that the City of Bakersfield execute documents related to the
transaction, and whereas City of Bakersfield has previously agreed to pay City of
Bakersfield's share, as determined by HUD, of the customary and usual issuance,
underwriting, and other costs related to the public offering and future
administration of the Note and the trust certificates; and
WHEREAS, it is economically sound and in the best interest of the City of
Bakersfield to accept more favorable fixed rates of interest under the Section
108 Loan Guarantee program offered by HUD under the public offering;
NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Bakersfield,
the City Manager, or his duly authorized agent, shall notify HUD of the City of
Bakersfield's desires to participate in the May 2015 public offering by HUD
through the loan guarantee assistance program under Section 108 of the
Housing and Community Development Act of 1974, as amended, for the existing
obligation B- 02- MC -06- 0510 -A in the original principal amount of $800,000, and
to refinance the current principal amount of $454,000 at such rates of interest
that will be determined by HUD at the time of the public offering.
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BE IT FURTHER RESOLVED HEREBY, City Manager is authorized to execute
the necessary documents as required by HUD to refinance the existing
guaranteed Section 108 Note, and to execute such other documents,
contracts, amendments and agreements with HUD, and to authorize payment
of any required fees, as may be necessary to effectuate this refinancing
transaction.
PASSED AND ADOPTED by the City Council of the City of Bakersfield on this 22nd
day of April, 2015.
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
April 22, 2015, by the following vote: -1 J ✓
AYE '
ES:
ABSTAIN:
BSENT:.
COUNCILMEMBER RIVERA, MAXWELL, WEIR, SMITH, HANSON, SULLIVAN, PARLIER
COUNCILMEMBER N�
COUNCILMEMBER N
COUNCILMEMBER C
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ROBERTA GAFFORD,
CITY CLERK and Ex O ficio Clerk of the
Council of the City of Bakersfield
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
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JOSHUA H. RUDNICK
Deputy City Attorney
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ORIGINAL