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HomeMy WebLinkAboutReso 2026-092RESOLUTION NO. 2026-092 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS FOR A QUALIFIED RESIDENTIAL RENTAL PROJECT IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND EQUIPPING OF OTAY RANCH II AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, Otay Affordable II V8, LP (“Borrower”), a partnership of which Meta Development, LLC (“Developer”) or a related person to Developer is the general partner, intends to develop an affordable multifamily rental housing project to be located at the northwest corner of State Route 125 and Rock Mountain Road in the City of Chula Vista, California (the “Project”); and WHEREAS, Borrower intends to finance the Project partly with an issuance of exempt facility bonds pursuant to Section 142(f) of the Internal Revenue Code of 1986 (“Code”); and WHEREAS, in order to submit a competitive application for exempt facility bonds, the Project must also have received a commitment for recycled bonds, which the Chula Vista Housing Authority does not possess; and WHEREAS, the California Municipal Finance Authority (”CMFA”) does have a recycled bond allocation available to deploy to the Project; and WHEREAS, Borrower has requested that the CMFA adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Code in one or more series issued from time to time, and at no time to exceed $80,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement, and equipping of the Project; and WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the CMFA must be approved by the City of Chula Vista (“City”) because the Project is located within City’s territorial limits; and WHEREAS, the City Council of the City of Chula Vista (“City Council”) is the elected legislative body of City and is one of the applicable elected representatives required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the CMFA has requested that City Council approve the issuance of the Bonds by the CMFA 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 (“Agreement”), among many certain local agencies, including City; and Docusign Envelope ID: AB609931-AA15-86F1-80C6-54650E8DDC0F Resolution No. 2026-092 Page No. 2 WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve of the issuance of the Bonds by the CMFA. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, as follows: Section 1. The foregoing resolutions are true and correct. Section 2. City Council hereby approves the issuance of the Bonds by the CMFA. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the CMFA, 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 located, in accordance with said Section 147(f) and (b) Section 4 of the Agreem ent. Section 3. The issuance of the Bonds shall be subject to the approval of the CMFA of all financing documents relating thereto to which the CMFA is a party. City shall have no responsibility or liability whatsoever with respect to the Bonds. Section 4. The adoption of this Resolution shall not obligate City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the CMFA; or (iv) take any further action with respect to the CMFA or its membership therein. Section 5. The officers of City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 6. This resolution shall take effect immediately upon its adoption. [SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: AB609931-AA15-86F1-80C6-54650E8DDC0F Resolution No. 2026-092 Page No. 3 Presented by Approved as to form by Stacey Kurz Marco A. Verdugo Director of Housing and Homeless Services City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 19th day of May 2026, by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: None John McCann, 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. 2026-092 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 19th day of May 2026. Executed this 19th day of May 2026. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: AB609931-AA15-86F1-80C6-54650E8DDC0F