HomeMy WebLinkAboutRES NO 142-09
RESOLUTION NO. 1 2 - 0 9
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 CIC SOUTH MILL CREEK, L.P. (CHELSEA
INVESTMENT CORPORATION) FOR THE ACQUISITION AND
CONSTRUCTION OF A 70-UNIT MULTIFAMILY HOUSING PROJECT
LOCATED AT 1401 S STREET, BAKERSFIELD, CALIFORNIA KNOWN AS
THE SOUTH MILL CREEK APARTMENTS.
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 $10,500,000 and to lend the proceeds
thereof to CIC South Mill Creek, 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 70-
unit multifamily rental housing development to be commonly known as South
Mill Creek Apartments to be located at 1401 S Street in the City of Bakersfield,
California (the "Project"), to be owned and operated by the Borrower.
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;
WHEREAS, a public hearing was held by the City Council on the 6th day of
December, 2009, 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
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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 Bonds;
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.
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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
DEC l 6 1008 by the following vote:
YE COUNCIL MEMBER BENF~AM, CARSON, SCRIVNER, SULLIVAN, WEIR
COUNCIL MEMBER
AB COUNCIL MEMBER C f3 (A
ENT: COUNCIL MEMBER
CITY CLERK and Ex Officio Clerk f the
APPROVED DEC 6 Council of the City of Bakersfiel
HARVEY L. HALL
MAYOR of the City of Bakersfield
APPROVED as to form:
VIRGINIA GENNARO
City Attorney
#By:
H. RL IDNICK
ity Attorney II
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