HomeMy WebLinkAboutRES NO 18-97RESOLUTION NO. 8 ' 9 ?
RESOLUTION OF THE CITY OF BAKERSFIELD
PRELIMINARILY AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $4,250,000 MULTIFAMILY REVENUE BONDS IN
CONNECTION WITH THE FINANCING OF THE CAMLU
RETIREMENT APARTMENTS AND AUTHORIZING
REPRESENTATIVES OF THE CITY TO TAKE ACTIONS
INCIDENTAL THERETO
WHEREAS, the City of Bakersfield (the "City) is a
charter city and municipal corporation organized and existing
pursuant to the laws of the State of California; and
WHEREAS, by request to the City (the "Request"),
National Healthplex, Inc., a non profit public benefit
corporation ("NHI") has requested that the City assist in
financing the acquisition of the Camlu Retirement Apartments (the
"Project") located in the City of Bakersfield, California (the
"City"), to be owned by NHI for use as an assisted living center
for seniors; and
WHEREAS, the City desires to encourage NHI to proceed
with the Project to further the purposes of California law in
promoting housing and services for seniors; and
WHEREAS, the City reasonably expects that when the
permanent financing contemplated hereunder is completed, certain
expenditures of NHI on the Project will be reimbursed with the
proceeds of the permanent financing; and
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W~EREAS, to comply with the provisions of the Internal
Revenue Code of 1986, as amended (the "Code") and the Treasury
regulations thereunder, the City desires that this Resolution
constitute its declaration of "official intent" to reimburse such
expenditures with proceeds of the permanent financing for the
Project.
NOW, THEREFORE, THE CITY COUNCIL HEREBY FINDS,
DETERMINE AND RESOLVES as follows:
1. A~proval of the Project; Findings. Based upon
representations made and information supplied by NHI on file with
the City Clerk, the City hereby approves the Project and makes
the following findings in connection therewith:
(a) The City is authorized to issue multifamily
revenue bonds for the acquisition and permanent financing of the
Project.
(b) The Project will promote the public purposes of
the City by increasing the supply of adequate, safe, and sanitary
housing for seniors.
2. Authorization of Bond Financing. The Request and
permanent financing are hereby preliminarily approved, and the
City preliminarily authorizes permanent financing for the Project
which will: (i) not exceed a maximum aggregate principal amount
of $4,250,000 and (ii) be accomplished by the issuance of bonds
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by the City (the "Bonds"), the interest of which is to be
excluded from gross income for Federal income tax purposes. Such
Bonds shall be issued in compliance with the California law and
the Code, shall be subject to such terms and conditions as NHI
and the City approve by resolution and shall be payable solely
from the revenues derived from payments to be made by NHI and
other funds to be pledged pursuant thereto.
This Resolution expresses the City's expectations as of
the date hereof with respect to financing of the Project. Future
events or extraordinary circumstances beyond the control of the
city may result in the Project being financed in a manner other
than as described herein, and nothing contained herein
constitutes an irrevocable commitment by the City to finance the
Project.
3. E~penditures to be Reimbursed. NHI has expended
and intends to obtain short term financing for all or a certain
portion of the acquisition, construction and rehabilitation of
the Project prior to issuance of the Bonds. NHI and the City
reasonably expect that proceeds of the Bonds will be used to
reimburse such expenditures.
4. Reimbursement Period. The reimbursement
allocation to be made with respect to such expenditures will
occur not later than eighteen (18) months after the later of:
(i) the date on which the expenditure is paid by NHI, or (ii) the
date on which the Project is placed in service, but in no event
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more than three (3) years after the original expenditure is paid.
No reimbursement allocation will be made with respect to an
expenditure paid prior to the sixty (60) day period preceding the
date of this Resolution unless otherwise expressly permitted
under Section 1.150-2 of the Treasury regulations.
allocation
regulations
appropriate
Reimbursement Allocation. A written reimbursement
described in Section 1.150-2 of the Treasury
shall be made, being generally the transfer of the
amount of Bond proceeds to reimburse the source of
temporary financing obtained by NHI to pay the reimbursable costs
of the Project. Each allocation shall: (i) be evidenced by an
entry on the official books and records of the City maintained
for the Bonds, and (ii) specifically identify the actual prior
expenditure being reimbursed or, in the case of reimbursement of
a fund or account in accordance with Section 1.150-2 of the
Treasury regulations, the fund or account from which the
expenditure was paid. Such allocation shall be made within
thirty (30) days of the issuance of the Bonds.
6. Action by City Representatives. The appropriate
officials of the City are hereby authorized and directed to take
all actions necessary to accomplish the purposes of this
Resolution, including the negotiation of agreements in connection
with the financing of the Project.
7. Severability. If any provision of this Resolution
is judicially determined to be invalid or unenforceable, such
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determination shall not affect the remaining provisions hereof,
the intention being that the provisions hereof are severable.
8. Effective Date. The findings and determinations
herein shall be final and conclusive. This Resolution shall take
effect upon the date of its adoption.
I 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 JAN 22 1997 , by the
following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
COUNCILMEMBERS
COUNCILMEMBERS
COUNCILMEMBERS
COUNCILMEMBERS
CITY CLERK and EX OFFICIO ~L~RK of the
Council of the City of Bakesfield
APPROVED~ ~/~
Bt~OyBoPRRoI~th~! ~y of Bakersfield
Countersigned:
CITY ATTORNEY of th~ City/~akersfleld
BAKE\0003\DOC\l
1\8\97 240 law
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