Loading...
HomeMy WebLinkAboutCity Council - 5700 RESOLUTION NO. 5700 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING SALE OF NOT TO EXCEED $7, 700, 000 PRINCIPAL AMOUNT OF VARIABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS (MERCURY SAVINGS AND LOAN ASSOCIATION/VILLAGE PARTNERSHIP PROJECT) , 1986 SERIES A, APPROVING RELATED DOCUMENTS AND OFFICIAL STATEMENT APPROVING BOND COUNSEL AGREEMENT AND AUTHORIZING OFFICIAL ACTION WHEREAS, the City of Huntington Beach (the "City" ) proposes to issue its City of Huntington Beach Variable Rate Demand multifamilyHousing Revenue Bonds (Mercury Savings and Loan g Y 9 Association/Village Partnership Project) , 1986 Series A (the "Bonds" ) , in the aggregate principal amount of $7, 700, 000, under and pursuant to Chapter 7, Part 5 of Division 31 of the California Health and Safety Code, as amended, in order to provide financing to Village Partnership, a California general partnership (the "Developer" ) for the acquisition and construction of an approximately 113-unit multifamily residential rental project to be located at 16171 Springdale (the "Project" ) in the City; and The Developer is an affiliate of The Villages West, Inc. , the entity named in the City' s inducement resolution no. 5661, passed and adopted on May 19, 1986; and The Bonds are to be issued under and pursuant to an Indenture of Trust (the " Indenture" ) , dated as of August 1, 1986, between the City and Seattle-First National Bank, as trustee (the "Trustee" ) , and prior to their conversion to a fixed interest rate, the Bonds are to be remarketed pursuant to a TENR Service and Remarketing Agreement, dated as of August 1, 1986, among the City, the Developer, Bankers Trust company and Mercury Savings and Loan 1 . Association (the "Association" ) ; and Pursuant to the terms of a proposed Regulatory Agreement and Declaration of Restrictive Covenants dated as of August 1, 1986, among the City, the Association, the Trustee and the Developer ( the "Regulatory Agreement" ) , at least 25% of the dwelling units in the Project are required to be leased or rented to persons or families of low or moderate income (of which at least 10% are to be leased or rented to persons or families of very low income) ; and The proceeds of the Bonds are to be loaned to the Developer under a Loan Origination and Servicing Agreement dated as of August 1, 1986, by and among the City, the Trustee, the Association and the Developer (the "Loan Agreement" ) 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 Association; and The City Council has heretofore called and conducted a public hearing on the issuance of the Bonds as required by Section 103 (k ) of the Internal Revenue code of 1954, as amended; and Bancroft, Garcia & Lavell, Inc. and Bankers Trust Company, as underwriters (the "Underwriters" ) intend to submit an offer to pruchase the Bonds; and The City approves of said transactions in the public interest of the City; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: 2 . 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 purposes of assisting persons and families of low and moderate income and very low income within the City to afford the costs of decent, safe and sanitary housing. The City Council further hereby finds and declares that this resolution is adopted pursuant to the powers granted by Part 5 of Division 31 of the California Health and Safety Code, as amended, and, in particular, Chapter 7 thereof . 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 reference. The Bonds are hereby authorized to be sold to the Underwriters, pursuant to and in accordance with the terms of an agreement ( the "Bond Purchase Agreement" ) in substantially the form on file with the City Clerk, by and among the City, the Developer 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 and on behalf of the City; provided that the Bonds shall be sold to the Underwriters for a price not less than ninety-five percent ( 95% ) of the part amount thereof. SECTION 3. Indenture. The indenture, in substantially the form presented to the City Council at this meeting, together with any additions thereto or changes therein deemed necessary or advisable by the City Administrator upon the advice of bond 3. 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 substantially the form presented to the City Council at this meeting, 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 an in the name and on behalf of the City. SECTION 5. Regulatory Agreement. The Regulatory Agreement, in substantially the form presented to the City Council at this meeting, 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 to the Regulatory Agreement for and in the name and on behalf of the City. SECTION6. Remarketing Agreement. The Remarketing Agreement, in substantially the form presented to the City Council at this meeting, 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 herby authorized and directed 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 4. 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 City Administrator of the City is hereby authorized and directed to execute said official statement for an 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 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, 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 to execute and deliver said agreement for and in the name and on behalf of the City. 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 Principal Redevelopment Specialist, the Director of Administrative Services and any and all other 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 5. 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 accordance with the Bond Purchase Agreement, the Indenture and this resolution. Section 10. Effective Date. This resolution shall take effect from and after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on this 18th day of August , 1986. Mayor ATTEST: APPROVED AS TO FORM: City Clerk .__ City Attorney REVIEWED APPROVED: INIT E ND APP D- City Administrator De y Cit inistrator 6. Res. No. 5700 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 meeting thereof held on the 18th day of August 19 86 by the following vote: AYES: Councilmen: MacAllister, Finley, Mandic, Bailey, Green NOES: Councilmen: Thomas ABSENT: Councilmen: Kelly City Clerk and ex-offieio Clerk of the City Council of the City of Huntington Beach, California