Loading...
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 -1- 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 -2- 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 -3- 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 -4- 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 -5-