HomeMy WebLinkAboutCity Council - 5584 RESOLUTION NO. 5584
A RESOLUTION OF THE CITY OF HUNTINGTON BEACH
AUTHORIZING SALE OF NOT TO EXCEED $9,000,000
PRINCIPAL AMOUNT OF MULTIFAMILY HOUSING REVENUE
BONDS (WARNER AVENUE APARTMENTS PROJECT) 1985
SERIES C, APPROVING RELATED DOCUMENTS AND OF-
FICIAL STATEMENT, AND AUTHORIZING OFFICIAL
ACTION
WHEREAS, the City of Huntington Beach proposes to issue its
City of Huntington Beach Multifamily Housing Revenue Bonds
(Warner Avenue Apartments Project) , 1985 Series C, in the ag-
gregate principal amount of $9,000, 000 pursuant to the
California Health and Safety Code sections 52075 et seq. , in
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order to provide financing to Warner Partnership I , a
California limited partnership, for the acquisition and con-
struction of an approximately 102-unit multifamily residential
rental project to be located on the north side of Warner Avenue
between Sims and Lynn Streets; and
The developer is the successor in interest to Warner
Partnership I, a California general partnership, which was the
subject of previous Resolution No. 5522 of the City Council,
adopted May 21, 1985, to induce the development of the project;
and
The bonds are to be issued pursuant to an Indenture of
Trust, dated as of October 1, 1985, between the city and First
Interstate Bank, as trustee; and
Pursuant to the terms of a proposed Regulatory Agreement
and Declaration of Restrictive Covenants, dated October 1,
1985 , among the city, 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
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The proceeds of the bonds are to be loaned to the developer
under a Loan Agreement, dated October 1, 1985, by and between
the city 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
Mercantile Capital Finance Corporation No. 19 ; 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
Newman and Associates and Stone and Youngberg, as under-
writers, intend 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.
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-
2.
writers 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 underwriters.
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
underwriters 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 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 regulatory agreement for and
in the name and on behalf of the city.
SECTION 6. Official Statement. The final official state
3 .
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 any 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 underwriters are 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 underwriters of the preliminary official
statement relating to the bonds is hereby approved, confirmed
and ratified.
SECTION 7 . 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 as it relates to the bonds.
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, 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
4.
indenture and this resolution.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular /mej%uin6'thereof held on the 14th
day of October 1985 .
a
O
Mayor
ATTEST: APPROVED AS TO FORM:
/ OJI IL
City Clerk City torney
REVIEWED AND APPROVED: IN IATED AND APPROVED:
City dministrato puty Direct r of
Redevelopment
ahb; 10/1/85
0860L/3789
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I ,
Res. No. 5584
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, Thomas
NOES: Councilmen:
None
ABSENT: Councilmen:
Mandic
• • JI.A _
City Clerk and ex-officio Clerk
of the City. Council of the City
of Huntington Beach, California