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HomeMy WebLinkAboutCity Council - 5582 RESOLUTION NO. 5582 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING SALE, NOT TO EX- CEED $10,000,000, OF PRINCIPAL AMOUNT OF VARI- ABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS (HOUSEHOLD BANK, F.S.B./RIVERMEADOWS APARTMENTS PROJECT) 1985 SERIES B, APPROVING RELATED DOCUMENTS AND OFFICIAL STATEMENT AND AUTHORIZING OFFICIAL ACTION WHEREAS, the City of Huntington Beach proposes to issue its City of Huntington Beach Variable Rate Demand Multifamily Housing Revenue Bonds (Household Bank, f.s .b./Rivermeadows Apartments Project) 1985 Series B, in the aggregate principal amount of $10,000,000 pursuant to the California Health and Safety Code sections 52075 et seq. , in order to provide fi- nancing to Rivermeadows Apartments, a California limited part- nership, for the acquisition and construction of an approxi- mately 152-unit multifamily residential rental project to be located at the southwest corner of Magnolia Street and the San Diego Freeway; and The developer is the successor in interest to Hoelscher/Guggenheim Partnership, a California general part- nership, which was the subject of previous Resolution No. 5460 of the City Council, inducing the development of the proj- ect in the city; and The bonds are to be issued pursuant to an Indenture of Trust, dated as of October 1, 1985, between the city and Seattle-First National Bank, as trustee, and prior to their conversion to a fixed interest rate, the bonds are to be re- marketed pursuant to a TENR Service and Remarketing Agreement, dated as of October 1, 1985, among the city, the developer, Bankers Trust Company and Household Bank, f . s. b. ; and Pursuant to the terms of a proposed Regulatory Agreement 1 . and Declaration of Restrictive Covenants, dated as of October 1, 1985, among the city, Household Bank, f. s. b. , the trustee and the developer, 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 The proceeds of the bonds are to be loaned to the developer under a Loan Origination and Servicing Agreement, dated as of October 1, 1985, by and among the city, the trustee, the bank and the developer, pursuant to which the city has agreed to lend the proceeds of the bonds to the developer to enable the developer to finance the project; and The obligations of the developer under the loan agreement are to be secured in part by a letter of credit issued by the bank; and The City Council has heretofore called and conducted a pub- lic hearing on the issuance of the bonds as required by Title 26 of the United States Code Annotated section 103 (k) ; and Bancroft, O' Connor, Chilton & Lavell, Inc. , as underwriter, intends to submit an offer to purchase the bonds; and The city approves of said transactions in the public in- terests of the city, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. Findings and Declarations. The City Council hereby finds and declares that the financing of the project from the proceeds of the bonds, as herein described, serves the public purpose of assisting persons and families of low and moderate income within the city to afford the costs of decent, safe and sanitary housing, and that it is not feasible to re- serve any units in the project on a priority basis for persons or families whose income does not exceed 50 percent of the me- dian adjusted gross income. The City Council further finds and declares that this resolution is adopted pursuant to the powers granted by California Health and Safety Code sections 52075 et seq. 2. SECTION 2. Issuance and Sale of Bonds . The City Council hereby authorizes the issuance of the bonds pursuant to and in accordance with the terms and provisions of the indenture, all of which terms and provisions are incorporated herein by refer- ence. The bonds are hereby authorized to be sold to the under- writer pursuant to and in accordance with the terms of an agreement in substantially the form on file with the City Clerk, by and among the city, the bank and the underwriter. The City Administrator is hereby authorized and directed to approve the terms of and accept an offer to purchase the bonds which is acceptable to the City Administrator, and to execute the bond purchase agreement for and in the name of and on be- half of the city; provided that the bonds shall be sold to the underwriter for a price not less than 95 percent of the par amount thereof. SECTION 3. Indenture. The indenture, in substantially the form presented to the City Council, together with any additions thereto or changes therein deemed necessary or advisable by the City Administrator, upon the advice of bond counsel, is hereby approved. The City Administrator and the City Clerk are hereby authorized and directed to execute and deliver the indenture for and in the name and on behalf of the city. SECTION 4. Loan Agreement. The loan agreement, in sub- stantially the form presented to the City Council, together with any additions thereto or changes therein deemed necessary or advisable by the City Administrator, upon the advice of bond counsel, is hereby approved. The City Administrator and the City Clerk are hereby authorized and directed to execute and deliver the loan agreement for and in the name and on behalf of the city. SECTION 5. Regulatory Agreement. The regulatory agree- ment, in substantially the form presented to the City Council, together with any additions thereto or changes therein deemed necessary or advisable by the City Administrator, upon the 3. advice of bond counsel, is hereby approved. The City Administrator and the City Clerk are hereby authorized and di- rected to execute and deliver the regulatory agreement for and in the name and on behalf of the city. SECTION 6. Remarketing Agreement. The remarketing agree- ment, in substantially the form presented to the City Council, together with any additions thereto or changes therein deemed necessary or advisable by the City Administrator, upon the ad- vice of bond counsel, is hereby approved. The City Administrator and the City Clerk are hereby authorized and di- rected to execute and deliver the remarketing agreement for and in the name and on behalf of the city. SECTION 7 . Official Statement. The final official state- ment relating to the bonds, to be dated as of the date of the bond purchase agreement, in substantially the form presented to the City Council, is hereby approved and the City Administrator is hereby authorized and directed to execute said official statement for and in the name of and on behalf of the city, and to approve an additions to or changes in the form of said of- ficial statement as the City Administrator 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 underwriter is hereby authorized to distribute copies of said official statement (as so added to or changed) in connection with its reoffering and resale of the bonds. Distribution by the underwriter of the preliminary official statement relating to the bonds is hereby approved, confirmed and ratified. SECTION 8. Employment of Bond Counsel. That certain agreement for bond counsel services between the city and Jones, Hall, Hill & White, a professional law corporation, as bond counsel, is hereby approved and the City Administrator and the City Clerk are hereby authorized and directed to execute and deliver said agreement for and in the name and on behalf of the city. 4. SECTION 9. 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, the Finance Director, the City Administrator, the City Attorney, the Senior Community Development Specialist, the Chief of Administrative Services and any and all other officers of the city are hereby author- ized 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 certifi- cates, requisitions, agreements and other documents, including but not limited to, those described in the bond purchase agree- ment, which they, or any of them, may deem necessary or advis- able in order to consummate the lawful issuance and delivery of the bonds in accordance with the bond purchase agreement, the indenture and this resolution. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a1/pg�%ulrapdmeeting thereof held on the 14th day of October 1985. Mayor ATTEST: APPROVED AS TO FORM: r 't City Clerk City Attorney 5. REVIEWED AND APPROVED: INITIATED AND APPROVED: ity Administrator Lgeputy Director of Redevelopment ahb;9/27/85 0846L/3789 6. Res. No. 5582 STATE OF.CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ALICIA M. WENTWORTH, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted .by the affirmative vote of more than a majority of all the members of said City Council at a regular adjourned meeting thereof held on the 14th day of October , 19 85 by the following vote: AYES: Councilmen: Kelly, MacAllister, Bailey, Finley, Green NOES: Councilmen: None ABSENT: Councilmen: Mandic , (Thomas out of room) City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California