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HomeMy WebLinkAboutReso 1985-12152 tease'. eturn To: 85-371322 P. O. Box 1087 3ula Vista, California 92012 '' RESOLUTION NO. 12152 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING DOCUMENTS ASSOCIATED WITH SALE OF $2],8]5,000 PRINCIPAL AMOUNT OF MULTI- FAMILY HOUSING REVENUE BONDS (EUCALYPTUS GROVE PROOECT), ]985 SERIES, AND APPROVING OFFICIAL ACTION NO FEE WHEREAS, the City Council of the City of Chula Vista, by Resolution No, 12123, has authorized the sale of $21,815,000 principal amount of multi-family housing revenue bonds for Eucalyptus Grove Apartment project in order to provide financing to Eucalyptus Grove International, a California Limited Partnership, whose general partner will be Morgan-Gardner Subdivision (the "Developer") for the acquisition and construction of an approximately 376 unit multi-family residential rental project to be located at the north- west and northeast corners of "E" Street and Flower Street in the City (the "Project"), subject to subsequent approval of associated documents; and, WHEREAS, those associated documents have been prepared and are on file with the City Clerk; and, WHEREAS, the bonds are to be marketed substantially under the terms and conditions as set forth in the preliminary official statement; and, WHEREAS, the bonds are to be issued under and pursuant to an Indenture of Trust (the "Indenture"), dated as of August 27, 1985, between the City and the Bank of California, NA, as Trustee (the "Trustee"); and, WHEREAS, pursuant to the terms of a proposed Regulatory Agree- ment and Declaration of Restrictive Covenants dated as of August 27, 1985, among the City and Developer and the Trustee; (the "Regulatory Agreement"), at least 20 percent of the dwelling units in the Project are required to be leased or rented to persons or families of low or moderate income; and, WHEREAS, the Project is further to be owned and operated in accordance with the provisions of Housing Cooperation Agreement, dated as of August 27, 1985, between the City and the Developer (the "Cooperation Agreement"); and, - WHEREAS, thE~ proceeds of the bonds are to be loaned to the Developer under a loan agreement dated as of August 27, 1985, by and among the City, the Trustee, and the Developer (the "Loan Agreement") pursuant to which the City has agreed to lend the proceeds of the bonds to the Developer to finance the Project; and, WHEREAS, certain obligations of the Developer under the Loan Agreement are to be secured by a Qualified Credit Instrument delivered by a Credit Instrument Obligor in the manner described in the Indenture and the Loan Agreement, that Credit Instrument Obligor being CNA Insurance Company, and the relative rights of the City and the Credit Instrument Obligor are to governed in part by the provisions of the Intercreditor Agreement, dated as of August 27, 1985, between the City and the Credit Instrument Obi.igor; and, WHEREAS, Newman and Associates, Incorporated, as Underwriters (the "Underwriters"), have submitted a Bond Purchase Agreement which itemizes the terms and conditions of their offer to purchase the bonds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: Section l~ Official Statement. The final Official Statement relating to the bonds, to be dated as of the date of the Bond Purchase Agreement, substantially in the form presented at this meeting, is hereby approved and the Mayor or the City Manager of the City is hereby authorized and directed to execute said Official Statement for and in the name and on behalf of the City, and to approve any additions to or changes in the form of said Official Statement as the Mayor or the City Manager of the City may deem necessary or advisable, such approval to be conclusively evidenced by the execution of said Official Statement as so added to or changed. The Underwriters are hereby authorized to distribute copies of said Official Statement (as so added to or changed) in connection with their reoffering and resale of the bonds. Distribution by the Underwriters of the preliminary Official Statement relating to the bonds is hereby approved, confirmed and ratified. Section 2. Indenture. The Indenture, in substantially the form cn file with the City Clerk, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor or the City Manager, upon the advice of bond counsel, is hereby approved. The Mayor, the City Clerk and the City Manager of the City, or any of them, are hereby authorized and directed to execute and deliver the Indenture for and in the name and on behalf of the City. Section 3. Regulatory Agreement. The Regulatory Agreement, in substantially the form on file in the City Clerk's Office, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor, the City Clerk or the City Manager of the City upon the advice of bond counsel, is hereby approved. The Mayor, the City Clerk and the City Manager of the City, or any of them, are hereby authorized and directed to execute and deliver the Regulatory Agreement for and in the name and on behalf of the City. Section 4. Housing Cooperation Agreement. The Housing Coopera- tion Agreement in substantially the form on file in the City Clerk's Office, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor, the City Clerk or the City Manager of the City upon the advice of bond counsel, is hereby approved. The Mayor, the City Clerk and the -2- 2229 City Manager of the City, or any of them, are hereby autborized and directed to execute and de]iver the Housing Cooperation Agreement for and in the name and on behalf of the City. Section 5. Loan A~reement. The Loan Agreement, in substantially the form on file in the City Clerk's Office, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor, the City Clerk or the City Manager of the City upon advice of bond counsel, is hereby approved. The Mayor, the City Clerk or the City Manager of the City, or any of them, are hereby authorized and directed to execute and deliver the Loan Agreement for and in the name and on behalf of the City. Section 6. Intercreditor Agreement. The Intercreditor Agreement, in substantially the form on file in the City Clerk's Office, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor, the City Clerk or the City Manager of the City upon the advice of bond counsel, is hereby approved. The Mayor, the City Clerk and the City Manager of the City, or any of them, are hE~reby authorized and directed to execute and deliver the Intercreditor Agreement for and in the name and on behalf of the City. Section 7. Bond Purchase A~reement. The Bond Purchase Agreement, in substantially' the form on file in the City Clerk's Office, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor or the City Manager, upon the advice of bond counsel, is hereby approved. The bonds are hereby authorized to be sold to the Underwriters pursuant to and in accordance with the terms of the Bond Purchase Agreement. The Mayor or the City Manager of the City is hereby authorized and directed to approve the terms of and accept an offer to purchase the bonds which is acceptable to either of them, and to execute the Bond Purchase Agreement for and in the name and on behalf of the City. Section 8. Official Action. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the bonds are hereby approved, confirmed and ratified, and the Mayor, the City Clerk and the City Manager of the City, or any of them, and any and all othe~r 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 relating to the execution and delivery of any and all certificates, requisitions, agreements and other documents, including but not limited to those described in the Bond Purchase Agreement, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the bonds in accord- ance with the Bond Purchase Agreement, the Indenture, and this Resolution. 'SeCtion 9~ Approval of sale b~ InYestment F~rm.~ The City Manager is hereby authorized to retain an investment'firm which has had no prior under- writing relationship with the City relating to the issuance ef housing bonds within the last three years, in order to comply with Section 52032.5 of the California Health and Safety Code. The sale of bonds is contingent upon such investment firm's certification that: (a) The Underwriter's spread is -3- reasonable; and (b) The final negotiated offering is consistent with common practices in the industry and is comparable to other bond offerings of a comparable amount being offered within the last six months. Section 10. Effective Date. This Resolution shall take effect from and after its adoption. Presented by Approved as to form by DeUelo~mDe'srO~c'he?t~COmmunityvpen~ulrectOr Thomas J. Harron, City Attorney -4- 2231 ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, fhis. 27th dOy Of,, Auqust 19 85, by the following vote, to--wit: AYES: Councilmen :. Malcolm, McCandliss, Moore NAYES: Councilmen: None ABSTAIN: Co[~cilmen :.. None ABSENT: Councilmen: Scott, Cox MAYOR PRO TEMPORE cit , STATE OF CALIFORNIA ) ;OUNTY OF SAN DIEGO ) ss. ;ITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Visto, Colifornio, 0 HEREBY CERTIFY -1hot the obove ond foregoing is 0 full, true ond correct copy of RESOLUTION NO. 12152 ,ond fhot the some hos not been omended or repeoled. October 2, 1985 ~TED ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this. 27th cloy of- Auqust 19 85, by the following vote, to-wit: AYES: Councilmen:, Malcolm, McCandliss, Moore NAYES: Councilmen :.. None ABSTAIN: Co~x~lmen :. None ABSENT: Councilmen: scott, cox MAYOR PRO TEMPORE City Clerk ~ )TATE OF CALIFORNIA ) ;OUNTY OF SAN DIEGO ) ss. ]TY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Visto, Californio, O HEREBY CERTIFY ~thot the ob(we ond foregoing Js o full, true and correct copy of RESOLUTION NO. 12152 ,end that the s~me hos not been omended or repealed. aTED (seal) City Clerk