HomeMy WebLinkAboutReso 2019-004RESOLUTION NO. 2019-004
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER TO
EXECUTE ANY AND ALL NECESSARY DOCUMENTS
RELATED TO THE PARTICIPATION OF THE HUD PUBLIC
OFFERING AS PART OF THE SECTION 108 LOAN
GUARANTEE ASSISTANCE PROGRAM TO REFINANCE
THE EXISTING NOTE B-08-MC-06-0547 OR OTHER
OBLIGATION IN THE ORIGINAL PRINCIPAL AMOUNT OF
$5,886,000, FOR THE 2008 CASTLEPARK
INFRASTRUCTURE PROJECT
WHEREAS, the City of Chula Vista adopted Resolution 2006-359 on December 12,
2006, accepting $9,500,000 plus interest thereon of United States Department of Housing and
Urban Development (“HUD”) loan funds under Section 108 of the Housing and Community
Development Act of 1974, as amended, for the Castle Park Capital Improvement Projects
STU03, STL304, STU05, and STL306 (the “Project”) and executed that Section 108 note
number B-08-MC-06-0547 for the Project under a Section 108 Contract for Loan Guarantee
Assistance dated May 27, 2008; and
WHEREAS, HUD has notified the City of Chula Vista that a public offering will occur in
February 2019 to enable those borrowers that participated in certain prior public offerings to
refinance their existing loans at more favorable interest rates and to participate, the City of Chula
Vista must immediately notify HUD of its intention to refinance all or a portion of its existing
Section 108 commitment through the public offering; and
WHEREAS, HUD may require, as a condition of participation in the public offering, that
the City of Chula Vista execute documents related to the transaction, and whereas the City has
previously agreed to pay its 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 Chula Vista 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 that the City Council of the City of Chula
Vista, the City Manager, or his duly authorized agent, shall notify HUD of the City’s desires to
participate in the February 2019 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-08-MC-06-0547 in the original principal amount of
$9,500,000 and to refinance the existing principal amount of $5,886,000 at such rates of interest
that will be determined by HUD at the time of the public offering.
DocuSign Envelope ID: 9106DA44-6CC0-4FC7-9FB9-C79852EA69D8
Resolution No. 2019-004
Page No. 2
BE IT FURTHER RESOLVED HEREBY, the 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.
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DocuSign Envelope ID: 9106DA44-6CC0-4FC7-9FB9-C79852EA69D8
Resolution No. 2019-004
Page No. 3
Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of C hula Vista,
California, this 15th day of January 2019 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2019-004 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 15th day of January 2019.
Executed this 15th day of January 2019.
Kerry K. Bigelow, MMC, City Clerk
DocuSign Envelope ID: 9106DA44-6CC0-4FC7-9FB9-C79852EA69D8