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HomeMy WebLinkAboutCC Reso 2013-30 - Housing Revenue Notes for McCarty Manor I RESOLUTION NO. 2013-3� ' A RESOWTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE REISSUANCE OF HOUSING REVENUE NOTES BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR MCCARTY MANOR WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "AcY'), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement, effective on January 1, 2004 (the "Agreement") in order to form the California Municipal Finance Authority (the "Authority°), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the Authority is authorized to issue and sell revenue notes for the purpose, among others, of financing or refinancing the acquisition and rehabilitation of multifamily rental housing projects; and WHEREAS, on October 17. 2012, the Authority issued its $1,850,000 Califomia Municipal Finance Authority Housing Revenue Note, 2012 Note A-1 (Term Loan) and its $1,550,000 California Municipal Finance Authority Housing Revenue Note, 2012 Note A-2 (Construction Loan) (collectively, the "Notes"), evidencing two loans made to the Authority by j Savings Bank of Mendocino County (the "Bank") under a Loan Agreement, dated as of October �, 1, 2012 (the "Bank Loan AgreemenY') by and between the Authority and the Bank; and WHEREAS, the Authority used the proceeds of the Notes to make two loans (collectively, the "Loans") to McCarty Manor Associates LP, a California limited partnership (the i °Borrower"), pursuant to a Loan Agreement, dated as of October 1, 2012 (the "Authority Loan Agreement"). between the Authority and the Borrower, and WHEREAS, the Borrower used the proceeds of the Loans to finance a portion of the costs of the acquisition and rehabilitation by the Borrower of a 40 unit residential rental housing facility located at 741 Waugh Lane in the City of Ukiah, California (the "City"), known as McCarty Manor (the "ProjecY'); and WHEREAS, the Notes are considered to be "qualified exempt facility bonds" under I Section 142(a) of the Intemal Revenue Code of 1986, as amended (the "Code"), and Section I 147(f) of the Code requires that, for the interest on the Notes to be tax-exempt, the "applicable i elected representative" with respect to the Authority must approve the issuance of the Notes by the Authority following the holding of a public hearing with respect thereto; and WHEREAS, the Authority determined that the City Council of the City was the "applicable elected representative" to approve the issuance of the Notes by the Authority and on November 2, 2011, the City Council held a public hearing regarding issuance of the Notes and adopted Resolution No. 2011-47 approving the issuance of the Notes by the Authority for the purpose of providing financing to the Borrower for the Project; and WHEREAS. the City is not a party to any of the agreements or other documents relating to the Notes or the financing of the Project. and neither the financing of the Project nor the � Notes impose any legal, financial or moral obligation upon the City with respect to the financing I, of the Project; and _� i I WHEREAS, the Bank has agreed to allow modifications to be made to the Bank Loan Agreement and the Authority Loan Agreement, as well as to the Notes and the terms of the Loans, and such modifications will result in a "reissuance" of the Notes under the Code; and WHEREAS, in order to maintain the tax-exempt status of the interest on the Notes paid by the Authority to the Bank, prior to the modification of the Bank Loan Agreement, the Authority Loan Agreement and the Notes, the Authority needs the City Council to approve the reissuance of the Notes following a public hearing on the matter; and WHEREAS, notice of the required public hearing has been duly given, and the City Council has heretofore held the public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the reissuance of the Notes and the ownership and operation of the Project; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the reissuance of the Notes for the aforesaid purposes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as follows: Section 1. The City Council hereby approves the reissuance of the Notes by the Authority for purposes of the Code. Section 2. The City Clerk is hereby directed to forward a certified copy of this Resolution to the bond counsel for the Notes, addressed as follows: Paul J. Thimmig, Esq. Quint & Thimmig LLP 900 Larkspur Landing Circle, Suite 270 Larkspur, CA 94939-1726 Section 3. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND APPROVED this 4'" day of December, 2013, by the following roll call vote: AYES: Landis, Thomas, Ba].dwin, and Crane NOES: None ABSTAIN: �ane ABSENT: �one J ATTEST j � �- . � i .�'-'rLL�:,�;diJ ,_'.c-���,� �, � � �- :�� l -( � �! L ��. � ( . Douglas F. Crane, Mayor Kristine Lawler I -2- -