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HomeMy WebLinkAboutRES NO 75-90RESOLUTION NO. 75-90 A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD CONCERNING THE EXECUTION AND DELIVERY OF NOT TO EXCEED $6,000,000.00 CERTIFICATES OF PARTICIPATION ON BEHALF OF UNITED COMMUNITY HOUSING AND DEVELOPMENT AUTHORITY TO FINANCE A CERTAIN RESIDENTIAL CARE FACILITY FOR THE ELDERLY. WHEREAS, the City of Bakersfield, a municipal corporation and charter city duly organized and existing under and pursuant to the Constitution and laws of the State of California (the "City"), is authorized under provisions of the California Government Code, particularly Chapter 5 of Part 2 of Division 3 of Title 4 thereof (the "Act"), to purchase, sell and lease both personal and real property for the common benefit and as is necessary or proper for municipal purposes; and WHEREAS, United Community Housing and Development Authority, a nonprofit corporation organized under the nonprofit corporation law of the State of California and an organization described in Section 501(c) (3) of the Internal Revenue Code of 1986, as amended (the "Corporation"), has proposed that the City provide financing for the development of a certain fifty (50) unit licensed residential care facility for the elderly to be located within the City (the "Residential Care Facility"), including but not limited to the land acquisition, construction and permanent financing of the Residential Care Facility and payment of fees and expenses incurred in connection with the foregoing financing, which financing shall be accomplished by means of a lease and sublease arrangement (the "Project"); and W14FA~EAS, the City has full legal right, power and authority under its Charter and the Act to purchase, sell and lease real and personal property for the common benefit and as is necessary or proper for municipal purposes; and WHEREAS, the City now desires to give its preliminary approval to such financing. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield, California, as follows: Section 1. The Council of the City hereby finds and determines that it is for the common benefit of the City and its residents and it is necessary and proper for municipal purposes within the terms of the Act that the City assist the Corporation in financing the Project in the manner hereinafter in this Resolution provided in order to provide essential residential care services and facilities to the residents of the City, and to OR~.dNAL aid in containing costs of such residential care services and facilities and thereby enable the Corporation to establish lower rates and charges than would otherwise prevail and to provide better service to the citizens of the City at such rates and charges. Section 2. Pursuant to the Act, a lease and sublease financing through the execution and delivery of certificates of participation (the "Certificates") in an aggregate principal amount of not to exceed $6,000,000 is hereby authorized in order to finance the Project through the lease and sublease of the Residential Care Facility to the Corporation. Section 3. The Certificates, representing proportionate interests in payments received by the City from the Corporation pursuant to the sublease, shall be payable solely from such sublease payments. The financing hereby authorized shall be consummated subject to the conditions that: (i) the City by resolution shall have first agreed to acceptable final terms and conditions for the lease and sublease agreements and all other documents and agreements to be executed by the City in connection with such financing, (ii) all requisite governmental approvals shall have first been obtained, (iii) the City's obligations under the lease and sublease agreements with the Corporation shall be payable solely from payments received from the Corporation pursuant to the sublease agreement, and neither the taxing power nor the full faith and credit of the City shall be pledged to the payment of or interest on any such lease or sublease agreements, nor shall the City incur any liability by reason of its participation in this financing; and (iv) the Corporation shall have agreed to pay or cause to be paid: (A) an issuer's fee of not to exceed 40 basis points to the City; and (B) all costs of issuance. Section 4.. It is hereby acknowledged and recognized that the adoption of this Resolution by the City shall not be deemed to be final approval of the Project. Nothing contained in this Resolution shall require or obligate the City to undertake the financing of said Project. All requirements, ordinances, procedures and guidelines established by the City and laws of the State of California shall be adhered to for the review and consideration of the following, including but not limited to: parcel maps, site plans, the obtaining of building permits, environmental considerations, design review approvals, and related matters. Nothing contained herein shall unconditionally commit the City to take any further action in connection with the financing of said project until all required processing of the City and the appropriate departments thereof shall have been completed and approved. - 2 - ORIGINAL Section 5. The City Clerk is hereby authorized and directed to prepare and submit for publication in the Bakersfield Californian a notice conforming to the requirements of the Internal Revenue Code of 1986 of a public hearing to be held by the City on the subject of the execution and delivery of the Certificates. Section 6. Hawkins, Delafield & Wood, Los Angeles, California, is hereby designated special counsel to the City with respect to the financing hereby authorized. Section 7. This resolution shall take effect immediately upon passage. .......... o0o .......... - 3 - 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 JUN 1 ~ ;q~ , by the following vote: AYES; COUNCrLMEMBERS: EDWARDS, DeMOND. SMITH. ?..~:;,~;1, PETERSON. ~.~cDERMOTr, SALVAGGIO NOES; COUNCiLMEMBERS ABSENT COUNCILMEMBERS: ABSTAIN: COBNC~LMEMBERS and EX OFFICIO CLERK of the Council of the City of Bakersfield CLARENCE E. MEDDERS MAYOR of the City of Bakersfield APPROVED as to form: / AJS/meg CARE-FAC. R 6/6/90 ORIGINAL