HomeMy WebLinkAboutReso 1985-12233 RESOLUTION NO. i2233
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF CITY OF
CHULA VISTA MULTIFAMILY HOUSING REVENUE BONDS (EUCALYPTUS
GROVE PROJECT), SERIES 1985, AUTHORIZING THE EXECUTION AND
DELIVERY OF AN INDENTURE, LOAN AGREEMENT, ADMINISTRATION
AGREEMENT, REGULATORY AGREEMENT, HOUSING COOPERATION
AGREEMENT, INTERCREDITOR AGREEMENT, OFFICIAL STATEMENT AND
BOND PURCHASE CONTRACT, AND AUTHORIZING THE EXECUTION AND
DELIVERY OF AND APPROVING OTHER RELATED DOCUMENTS AND
APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH AND
RESCINDING CITY COUNCIL RESOLUTION NO. 12152 APPROVED
AUGUST 27, 1985
WHEREAS, Chapter ? of Part 5 of Division 31 of the Heal th and Safety
Code of the State of California (the "Act") authorizes cities to incur
indebtedness for the purpose of financing the construction or development of
multifamily rental housing and for the provisions of capital improvements in
connection with and determined necessary to such multifamily housing, and the
Act provides a complete, additional and alternative method for doing the
things authorized thereby;
WHEREAS, the City Council (the "Council") of the City of Chula Vista
(the "City") hereby finds and declares that it is necessary, essential and a
public purpose for the City to engage in a program (the "Program") of
financing the construction and development of multifamily rental housing, and
has determined to borrow money for such purpose by the issuance of revenue
bonds as authorized by the act;
WHEREAS, this Council hereby finds and declares that this resolution
is being adopted pursuant to the powers granted by the Act;
WHEREAS, a notice of a public hearing with respect to the proposed
issuance of the Bonds (hereinafter defined) and the financing of the
multifamily rental housing development (the "Project") with the proceeds
thereof has been published in a newspaper of general circulation in the City
not less than fourteen days prior to the date of such hearing;
WHEREAS, on August 6, 1985, said public hearing was held before this
Council, and an opportunity was provided for interested parties to present
arguments for and against the issuance of the Bonds;
WHEREAS, except as stated in the preceding paragraph, all conditions,
things and acts required to exist, to have happened and to have been performed
precedent to and in the issuance of the Bonds and the implementation of the
Program as contemplated by this resolution and the documents referred to
herein exist, have happened and have been performed in due time, form and
manner as required by the laws of the State of California, including the Act;
WHEREAS, the City Council Resolution No. 12152, approving the old
bond documents on August 27, 1985, is rescinded.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chula Vista,'as follows:
1. This Council does hereby find and declare that the above
recitals are true and correct.
2. Pursuant to the Act and the Indenture (hereinafter defined),
revenue bonds of the City, designated as "City of Chula Vista Multifamily
Housing Revenue Bonds, Series 1985" in an aggregate principal amount not to
exceed $21,885,000 (the "Bonds"), are hereby authorized to be issued. The
Bonds shall be executed by the manual or facsimile signature of the Mayor, the
facsimile of the seal of the City shall be reproduced thereon and attested by
the manual or facsimile signature of the City Clerk, in the form set forth in
and otherwise in accordance with the Indenture.
3. The proposed form of indenture {the "Indenture") between the
City and Security Pacific National Bank (the "Trustee"), in substantially the
form presented to this meeting, is hereby approved. The City Manager is
hereby authorized and directed, for and in the name and on behalf of the City,
and to execute and deliver the Indenture, and the City Clerk is hereby
authorized and directed, for and in the name and on behalf of the City, to
attest the signature of the City Manager, in substantially said form, with
such additions thereto or changes therein as are approved by the City Manager
upon consultation with the City Attorney and Bond Counsel to the City
{including such additions or changes as are necessary or advisable in
accordance with Section 13 hereof, provided that no addition or changes shall
authorize an aggregate principal amount of Bonds in excess of $21,885,000 or
result in an interest rate on the Bonds in excess of 9.15% per annum), the
approval of such additions or changes to be conclusively evidenced by the
execution and delivery of said Indenture by the City Manager. The date,
maturity dates, interest rate or rates, interest payment dates, denominations,
form, registration privileges, manner of execution, place of payment, terms of
redemption and other terms of the Bonds shall be as provided in the Indenture
as finally executed.
4. The proposed form of Loan Agreement, between the City and
Eucalyptus Grove International, A California Limited Partnership (the
"Developer"), in substantially the form presented to this meeting, is hereby
approved. The City Manager is hereby authorized and directed to execute and
deliver the Loan Agreement in substantially said form, with such additions
thereto or changes therein as are recommended or approved by the City Manager
upon consultation with the City Attorney and Bond Counsel to the City,
including such additions or changes as are necessary or advisable in
accordance with Section 13 hereof, the approval of such changes to be
conclusively evidenced by the execution and delivery of said Loan Agreement by
the City Manager.
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5. The proposed form of Intercreditor Agreement, among the City,
the Trustee and Continental Casualty Company (the "Surety"), in substantially
the form presented to this meeting, is hereby approved. The City Manager is
hereby authorized and directed to execute and deliver the Intercreditor
Agreement in substantially said form, with such additions thereto or changes
therein as are recommended or approved by the City Manager upon consultation
with the City Attorney and Bond Counsel to the City, including such additions
or changes as are necessary or advisable in accordance with Section 13 hereof,
the approval of such changes to be conclusively evidenced by the execution and
delivery of said Intercreditor Agreement by the City Manager.
6. The proposed form of administration agreement {the
"Administration Agreement") among the City and the Trustee, in substantially
the form presented to this meeting, is hereby approved. The City Manager is
hereby authorized and directed, for and in the name and on behalf of the City,
to execute and deliver the Administration Agreement in substantially said
form, with such additions thereto or changes therein as are recommended or
approved by the City Manager upon consultation with the City Attorney and Bond
Counsel to the City including such additions or changes as are necessary or
advisable in accordance with Section 13 hereof, the approval of such additions
or changes to be conclusively evidenced by the execution and delivery of said
Administration Agreement by the City Manager.
7. The proposed form of housing cooperation agreement (the "Housing
Cooperation Agreement") among the City and the Developer, in substantially the
form presented to this meeting, is hereby approved. The City Manager is
hereby authorized and directed for and in the name of and on behalf of the
City, to execute and deliver the Housing Cooperation Agreement in
substantially said form, with such additions thereto or changes therein as are
recommended or approved by the City Manager upon consultation with the City
Attorney and Bond Counsel to the City, including such additions or changes as
are necessary or advisable in accordance with Section 13 hereof, the approval
of such changes to be conclusively evidenced by the execution and delivery of
said Housing Cooperation Agreement by the City Manager.
8. The proposed form of regulatory agreement (the "Regulatory
Agreement") among the City, the Trustee and the Developer, in substantially
the form presented to this meeting, is hereby approved. The City Manager is
hereby authorized and directed for and in the name of and on behalf of the
City, to execute and deliver the Regulatory Agreement in substantially said
form, with such additions thereto or changes therein as are recommended or
approved by the City Manager upon consultation with the City Attorney and Bond
Counsel to the City, including such additions or changes as are necessary or
advisable in accordance with Section 13 hereof, the approval of such changes
to be conclusively evidenced by the execution and delivery of said Regulatory
Agreement by the City Manager.
9. The proposed form of bond purchase contract (the "Bond Purchase
Contract") among the City, Newman and Associates, Inc. (the "Underwriter"),
and the Developer, in substantially the form presented to this meeting, is
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hereby approved. The City Manager is hereby authorized and directed, for and
in the name and on behalf of the City, to accept the offer of the Underwriter
to purchase the Bonds contained in the Bond Purchase Contract (when such offer
is made and if such offer is consistent with Section 3 of this resolution) and
to execute and deliver said Bond Purchase Contract.
10. The proposed form of official statement relating to the Bonds
(the "Official Statement") in substantially the form presented to this
meeting, is hereby approved. The City Manager is hereby authorized and
directed, for and in the name and on behalf of the City, to execute the
Official Statement in substantially said form, with such additions thereto or
changes therein as are recommended or approved by the City Manager upon
consultation wi th the City Attorney and Bond Counsel to the City, the approval
of such additions or changes to be conclusively evidenced by the execution and
delivery of said Official Statement by the City Manager. The Underwriter is
hereby authorized to distribute copies of said Official Statement to persons
who may be interested in the purchase of the Bonds and are directed to deliver
such copies to all actual purchasers of the Bonds. Distribution by the
Underwriter of a preliminary official statement relating to the Bonds is
hereby approved and ratified.
ll. The Bonds, when executed, shall be delivered to the Trustee for
authentication. The Trustee is hereby requested and directed to authenticate
the Bonds by executing the Trustee's certificate of authentication and
registration appearing thereon, and to deliver the Bonds, when duly executed
and authenticated, to the Underwriter in accordance with written instructions
executed on behalf of the City by the City Manager, which instructions said
officer is hereby authorized and directed, for and in the name and on behalf
of the City, to execute and deliver to the Trustee. Such instructions shall
provide for the delivery of the Bonds to the Underwriter in accordance with
the Bond Purchase Contract, upon payment of the purchase price therefor.
12. It is the purpose and intent of this Council that this
resolution constitute approval of the Bonds by the applicable elected
representative in accordance with Section 103(k) of the Internal Revenue Code
of 1954, as amended.
13. All actions heretofore taken by the officers and agents of the
City with respect to the establishment of the Program and the sale and
issuance of the Bonds are hereby approved, confirmed and ratified, and the
proper officers of the City are hereby authorized and directed, for and in the
name and on behalf of the City, to do any and all things and take any and all
actions and execute any and all certificates, agreements and other documents,
which they, or any of them, may deem necessary or advisable in order to
consummate the lawful issuance and delivery of the Bonds in accordance with
this resolution and resolutions heretofore adopted by the City and in order to
carry out the Program, including but not limited to those certificates,
agreements and other documents described in the Indenture, the Loan Agreement,
the Intercreditor Agreement, the Administration Agreement, the Housing
Cooperation Agreement, the Regulatory Agreement, the Bond Purchase Contract
and the other documents herein approved, but which shall not create any
obligation or liability of the City other than with respect to the reven~e$
and assets derived from the proceeds of the Bonds.
14. City Council Resolution No. 12152 approving previous bond
documents, on August 27, 1985, is rescinded.
15. This Resolution shall take effect immediately upon its adoption.
PRESENTED BY:
APPROVED AS TO FORM BY:
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<~ ~°~SA~O~°n
On motion of Councilmember Mayor ¢o× , seconded by
Councilmember Moore , the foregoing Resolution was passed and
adopted thisBth day of November , 1985, by the following vote:
AYES: Cox, Moore, Malcolm, McCandliss
NOES: None
ABSENT: None
ABSTAIN: Scott
~/ /~ Mayor /
City of Chl~l a Vi sta, Cali forni a
ATTEST:
City Clerk
WPC 190BH
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