HomeMy WebLinkAboutReso 2008-215
RESOLUTION NO. 2008-215
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA PURSUANT TO SECTION 147(F) OF THE
INTERNAL REVENUE CODE APPROVING THE
CONVERSION OF TAXABLE BONDS ISSUED BY THE CITY
OF CHULA VISTA FOR TERESINA APARTMENTS TO TAX
EXEMPT STATUS AND APPROVING THE MATURITY
DATE THEREOF
I
WHEREAS, Chapter 7 of Part 5 of Division 31 of the Health and Safety tode of the
State of California (the Act) authorizes cities to finance the acquisition, conskction and
development of multifamily rental housing for persons and families meeting Ithe income
limitations contained in the Act; and
I
,
WHEREAS, in November, 1998, pursuant to the Act, the City of Chula Vist~, California
(the City) issued Multifamily Housing Revenue Bonds, Series 1998A (Gateway T~v.'ll Center)
(the Series 1998A Bonds) and Subordinate Multifamily Housing Revenue Bonds (Gateway
ToVo.'ll Center), Series 1998B (the Series 1998B Bonds and, together with the S~ries 1998A
Bonds, the Prior Bonds) in total aggregate principal amount of $43,000,000, to firjance a 440-
unit multifamily housing project knOVo.'ll as "Teresina Apartments" located at th~ southwest
corner of East Palomar Street and La Media Road (the Project), which is currentl~ ov.'lled by
EQR - Teresina Limited Partnership, a Delaware limited partnership (the Borrower1; and
WHEREAS, in connection with the issuance of the Prior Bonds, the City C~uncil of the
City (the City Council) approved the issuance of the Prior Bonds pursuant to Sectibn 147(f) of
the Internal Revenue Code of 1986 (the Code), after a public hearing following reasopable public
notice; and '
WHEREAS, pursuant to the provisions of Article II of Chapter 3 of Part I if Division 2
of Title 5 of the Government Code of the State of California (the Refunding Law), n April 27,
2006, the City issued its Variable Rate Demand Multifamily Housing Refunding Re enue Bonds
(Teresina Apartments), Series 2006A, in the aggregate principal of S37,940,00 an a final
maturity date of May 15, 2036 (the Refunding Bonds), pursuant to the Trust Inden e, by and
between the City and U.S. Bank National Association, as trustee (the Trustee), date as of April
I, 2006 (the Indenture); and !
WHEREAS, the proceeds of the Refunding Bonds were used to refund alII' outstanding
Prior Bonds and pay a portion of the costs of issuing the Refunding Bonds; and i
I
I
WHEREAS, the Refunding Bonds were initially issued as taxable bords, which,
pursuant to the terms and conditions set forth in Section 2.19 of the Indenture, may ~e converted
to tax exempt bonds on a date 88 days prior to December 30, 2008 (the Effective Dat~); and
Resolution No. 2008-215
Page 2
WHEREAS, in order for interest on the Refunding Bonds to be tax-exempt, Section
I 47(f) of the Code requires approval by the City Council of the issuance of the Refunded Bonds,
the maturity date of the Refunding Bonds of May IS. 2036 (the Maturity Date), and the
conversion of the Refunding Bonds to tax-exempt bonds after a public hearing following
reasonable public notice; and
WHEREAS, notice of a public hearing with respect to the proposed issuance of the
Bonds was published in a newspaper of general circulation in the City on August 29,2008; and
WHEREAS, the hearing was held on September 16, 2008, and an opportunity was
provided for interested persons to express their views on the issuance of the Refunding Bonds,
the maturity date of the Refunding Bonds of May 15, 2036 (the Maturity Date), and the
conversion of the Refunding Bonds to tax-exempt bonds.
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Chula Vista
as follows:
I. The above recitals, and each of them, are true and correct.
2. The City Council of the City of Chula Vista, pursuant to Section 147(f) of the
Code, hereby approves the Maturity Date of the Refunding Bonds and the conversion of the
Refunding Bonds to tax-exempt bonds.
3. The remarketing of the Refunding Bonds as tax-exempt bonds on the Effective
Date is hereby authorized pursuant to the terms and conditions set forth in the Indenture.
4. All actions heretofore taken by the officers and agents of the City with respect to
the sale and issuance of the Refunding Bonds and the conversion of the Refunding Bonds to tax-
exempt bonds are hereby approved, confirmed and ratified. The Mayor, the City Manager, the
Deputy City Manager, the Finance Director, the City Attorney, and their designees, 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 and deliver 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 remarketing of the Refunding Bonds as tax-exempt bonds in accordance
with this Resolution in accordance with the terms of the Indenture and other documents relating
to the Refunding Bonds.
5. If any section, paragraph or provision of this Resolution shall be held to be invalid
or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or
provision shall not affect any remaining provisions of this Resolution.
6. This Resolution shall take effect immediately upon its adoption.
Resolution Np. 2008-2] 5
Page 3
Presented by
Approved as to form by
r::~.
Eric Crockett
Redevelopment and Housing Assistant Director
~(0
Bart C. lesfeld
Interim City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of C~ula Vista,
California, this] 6th day of September 2008 by the following vote: '
AYES:
Councilmembers:
Castaneda, McCann, Ramirez, Rindone,!and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
~.
Cheryl . oSayor
ATTEST:
J~ It ;(QjJuL
Donna R. Norris', CMt;, Interim City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA V]ST A )
], Donna R. Norris, Interim City Clerk of Chu]a Vista, California, do hereby certifY that the
foregoing Resolution No. 2008-2]5 was duly passed, approved, and adopted by the q:ity Council
at a regular meeting of the Chula Vista City Council held on the ] 6th day ofSeptemb~r 2008.
,
Executed this] 6th day of September 2008.
Donna R. Norris, CMC, Interim ity Clerk