HomeMy WebLinkAboutCity Council - 99-31 RESOLUTION NO. 99-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING THE ISSUANCE OF
MULTIFAMILY HOUSING REVENUE REFUNDING BONDS
BY THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY AND APPROVING THE
EXECUTION AND DELIVERY OF A SECOND SUPPLEMENTAL
INDENTURE OF TRUST AND A SECOND AMENDMENT TO LOAN
ORIGINATION AND SERVICING AGREEMENT
IN CONNECTION THEREWITH
WHEREAS, the California Statewide Communities Development Authority(the
"Authority"), of which the City of Huntington Beach is a member pursuant to the provisions of
that certain Amended and Restated Joint Exercise of Powers Agreement Relating to the
California Statewide Communities Development Authority dated as of June 1, 1988 (the
"Agreement'), intends to issue tax-exempt obligations (the "Obligations") for the purpose,
among other things, of making a loan to Archstone Communities Trust, a Maryland real estate
investment trust (the "Developer"), a portion of the proceeds of which($10,000,000) shall be
used by the Developer to refinance the acquisition, construction and development of a 152-unit
multifamily housing facility located at 8945 Riverbend Drive in the City of Huntington Beach,
California, commonly known as the Rivermeadows Apartments (the "Project"); and
A portion of the proceeds of the Obligations will be applied to the redemption in whole of
the City's Variable Rate Demand Multifamily Housing Revenue Bonds(Household Bank,
f.s.b./Rivermeadows Apartments Project), 1985 Series B (the "Prior Bonds") issued pursuant to
an Indenture of Trust, dated as of October 1, 1985,by and between the City and U.S. Bank Trust
National Association, as successor trustee (the "Trustee"), as amended (the"Indenture"), the
proceeds of which were loaned to finance the Project pursuant to the provisions of a Loan
Origination and Servicing Agreement, dated as of October 1, 1985, among the Issuer, the
Trustee, Commerzbank Aktiengesellschaft, as provider of the letter of credit securing the Prior
Bonds (the "Credit Bank"), and the Developer, as amended (the "Loan Agreement"); and
In connection with the redemption of the Prior Bonds, the Developer has requested that
certain amendments be made to the Indenture and the Loan Agreement to correct certain
ambiguities therein, which amendments shall be effected pursuant to the provisions of such
documents; and
The Authority is authorized by the Government Code of the State of California in
accordance with the Health and Safety Code of the State of California (the "Law") to issue and
sell revenue refunding bonds for the purpose of refinancing the acquisition, construction,
rehabilitation and development of multifamily rental housing facilities to be occupied in part by
low and very low income tenants; and
The Obligations will be considered to be "qualified exempt facility bonds" under Section
142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section 147(f) of the
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Code requires that the "applicable elected representative" with respect to the geographical area in
which the Project is to be located hold a public hearing on and approve the issuance of the
Obligations; and
This City Council is the elected legislative body of the City; and
A notice of public hearing in a newspaper of general circulation in the City has been
published, to the effect that a public hearing would be held by this City Council regarding the
issuance of the Obligations by the Authority and the nature and location of the Project; and
This City Council held said public hearing on such date, at which time an opportunity
was provided to present arguments both for and against the issuance of such Obligations and the
nature and location of the Project.
NOW, THEREFORE, be it resolved by the City Council of the City of Huntington
Beach, as follows:
Section 1. The City acknowledges that the Authority intends to issue the Obligations
for the purpose of paying the costs of refinancing the acquisition, construction and development
of the Project.
Section 2. The Second Supplemental Indenture of Trust (the "Supplemental
Indenture") between the City and U.S. Bank Trust National Association, as successor trustee (the
"Trustee"), in the form on file with the City Clerk, is hereby approved. The Mayor is hereby
authorized and directed, for and in the name and on behalf of the City, to execute and deliver the
Supplemental Indenture, and the City Clerk is hereby authorized to attest the signature of the
Mayor, in substantially said form, with such additions thereto or changes therein as are
recommended or approved by the City Administrator or the Director of Administrative Services
(the"Designated Officers") upon consultation with bond counsel to the City, including such
additions or changes as are necessary or advisable in accordance with this Resolution, the
approval of such additions or changes to be conclusively evidenced by the execution and
delivery by the City of the Supplemental Indenture.
Section 3. The Second Amendment to Loan Origination and Servicing Agreement
(the"Second Amendment")between the City, the Trustee, the Credit Bank and the Developer, in
the form on file with the City Clerk, is hereby approved. The Mayor is hereby authorized and
directed, for and in the name and on behalf of the City, to execute and deliver the Second
Amendment, and the City Clerk is hereby authorized to attest the signature of the Mayor, in
substantially said form, with such additions thereto or changes therein as are recommended or
approved by said Designated Officers upon consultation with bond counsel to the City, including
such additions or changes as are necessary or advisable in accordance with this Resolution, the
approval of such additions or changes to be conclusively evidenced by the execution and
delivery by the City of the Second Amendment.
Section 4. The Developer shall be responsible for the payment of all present and
future costs in connection with the issuance of the Obligations and the amendment of the Prior
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Bond documents, including,but not limited to, any fees and expenses incurred by the City in
anticipation of the issuance of the Obligations. The payment of the principal, redemption
premium, if any, and purchase price of and interest on the Obligations shall be solely the
responsibility of the Developer. The Obligations shall not constitute a debt or obligation of the
City.
Section 5. This City Council hereby further determines that it is appropriate for the
Authority to issue the Obligations to refinance the acquisition, construction and development of
the Project and hereby approves the issuance of the Obligations by the Authority subject to the
inclusion of the City as a third party beneficiary in the Regulatory Agreement and Declaration of
Restrictive Covenants with respect to the Project to be executed and delivered in connection with
the issuance and delivery of the Obligations. It is the purpose and intent of the City Council that
this resolution constitute approval of the issuance of the Obligations for the purposes of Section
' 9 of the Agreement.
Section 6. The Designated Officers of the City are hereby authorized and directed,
jointly and severally, to do any and all things and to execute and deliver any and all documents that
they deem necessary or advisable in order to carry out, give effect to and comply with the terms and
intent of this Resolution and the financing approved hereby.
Section 7. The adoption of this Resolution is solely for the purpose of meeting the
requirements of the Code and amending the Prior Bond documents and shall not be construed in
any other manner, the City nor its staff having fully reviewed or considered the financial
feasibility of the refinancing of the Project or the expected operation of the Project with regards
to any State of California statutory requirements, and such adoption shall not obligate, without
further formal action to be taken by this City Council, (i) the City to provide financing to the
Developer for the refinancing of the acquisition, construction and development of the Project or
to issue the Obligations for purposes of such refinancing; or(ii) the City, of or any department of
the City, to approve any application or request for, or take any other action in connection with
the ownership or operation of the Project.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof on the 17th day of May , 1999.
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Mayor
ATTEST: APPROVED AS TO FORM:
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City Clerk ��p/ Cit ttorncy
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REVIEWED AND APPROVED: INn TED AND APPR VED:
City Addifnistrator DivVctor of tconomic Develop ent
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Res. No. 99-31
STATE OF CALIFORNIA )
COUNTY OF ORANGE } ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, 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 at least a majority of all the members of said City Council at a
regular meeting thereof held on the 17th day of May, 1999 by the following vote:
AYES: Bauer, Garofalo, Green, Dettloff, Sullivan
NOES: None
ABSENT: Harman (Julien Out of Room)
ABSTAIN: None
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City Clerk and ex-o#I•icio.Clerk of the
City Council of the City of Huntington
Beach, California