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HomeMy WebLinkAboutRedevelopment Agency - 254 RESOLUTION NO. 254 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH RELATING TO THE ISSUANCE OF BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT AND RELATED FACILITIES WHEREAS, the City of Huntington Beach(the "Agency") is authorized to issue Bonds pursuant to the provisions of the California Health and Safety Code (the "Law")for the purpose of providing financing for the acquisition and rehabilitation of multifamily residential rental projects; and Bertram Partners 1, a California limited partnership ("Bertram"), has requested that the Agency issue and sell its revenue Bonds (the 'Bonds")pursuant to the procedures specified in the Law for the purpose of financing the acquisition and rehabilitation by Bertram or an entity of which it is a general partner or to which it is otherwise related, or any successor thereto (the "Owner"), of an existing 42-unit multifamily residential rental project and related and appurtenant facilities known as the Mora Kai Apartments located at 8177 Mora Kai Lane in the City of Huntington Beach(the "Project"), and the Agency wishes to induce the Owner to acquire and rehabilitate the Project at such location; and It is in the public interest, for the public benefit and in furtherance of the public purposes of the Agency that the Agency authorize the Bonds for the aforesaid purpose, NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: 1. The Agency hereby authorizes the issuance and sale of the Bonds pursuant to the procedures specified in the Law in an aggregate principal amount not to exceed $4,700,000 for the purposes of providing financing to the Owner for the acquisition and rehabilitation of the Project. 1 4\s\MoraKai\03/01/94 2. The Agency hereby agrees to provide Credit Enhancement for the Bonds under such terms as may be mutually agreed upon by the Agency, the Owner and the Purchaser of the said Bonds sufficient to provide said Bonds with a Standard and Poor or Moody's Investment Grade Bond Rating of a minimum of BBB, in the form of a Debt Service Shortfall Guarantee. 3. The issuance and sale of the Bonds shall be upon such terms and conditions as may be mutually agreed upon by the Agency, the Owner and the purchaser of said Bonds, and shall be authorized by resolution of.the Agency at a meeting duly held and conducted for such purpose. 4. The proceeds of the Bonds shall include such related and necessary issuance expenses, administrative costs, debt service reserves and working capital as may be required to successfully accomplish the financing. 5. The Agency hereby finds that the issuance of the Bonds and.Credit Enhancement of said Bonds is a substantial inducement to the Owner to acquire and operate the Project. 6. The Owner shall be responsible for the payment of all present and future costs in connection with the issuance of the Bonds, including but not limited to, principal and interest on the Bonds, any fees and expenses incurred by the Agency in anticipation of the issuance of the Bonds, the costs of printing an official statement, bond counsel fees and expenses,underwriting discount and costs, trustee fees and expenses, and the cost of printing the Bonds. 7. The Agency hereby designates the firm of Jones, Hall, Hill & White, a Professional Law Corporation, to act as Bond counsel and E. J. DeLaRosa& Company, Inc., as Bond Underwriters to the Agency for the Bonds. Payment of the fees and expenses of Bond counsel and underwriters shall be contingent upon the issuance by the Agency of the Bonds,and shall be payable solely from the proceeds of the Bonds or contributions by the Owner. 2 4\s\MoraKai\03/01/94 8. This resolution shall take effect upon'adoption. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the 21st day of March ,.1994. Chairman ATTEST: APPROVED AS TO FORM: - Agency Clerk Ae A ency Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: xecutive Direct Dire&M Special Projects 3 4\s\MoraKai\03/01/94 Res. No. 254 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF HUNTINGTON BEACH) I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at a meeting of said Redevelopment Agency-held on the 21st day of March , 1994 , and that it was so adopted by the following vote: AYES: Members: Bauer, Robitaille, Moulton-Patterson, Winchell, Leipzig, Sullivan NOES: Members: None ABSENT: Members: Silva . (out of room) Clerk of the Redevelopment Kgency of the .City of Huntington Beach, Ca.