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HomeMy WebLinkAboutCity Council Resolution 17-024 - Approving Issuance of Bonds - Saratoga Fellowship ApartmentsRESOLUTION NO. 17-024 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $63,000,000 TO FINANCE THE ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF A 150 -UNIT AFFORDABLE RENTAL HOUSING FACILITY FOR THE BENEFIT OF A TO - BE -FORMED LIMITED PARTNERSHIP AND/OR CALIFORNIA ODD FELLOWS FOUNDATION, INC. AND EAH INC. (OR AN AFFILIATE OF EITHER), AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, the California Odd Fellows Foundation, Inc. and EAH Inc., on behalf of a to -be - formed limited partnership, or another entity to be established by California Odd Fellows Foundation, Inc. and/or EAH Inc. or an affiliate thereof (the "Borrower"), have requested that the California Municipal Finance Authority (the "Authority") issue one or more series of revenue bonds in an aggregate principal amount not to exceed $63,000,000 (the "Bonds") for the acquisition, rehabilitation, improvement and equipping of a 150 -unit affordable rental housing facility (the "Project") to be owned and operated by the Borrower and located at 14520 Fruitvale Avenue within the City of Saratoga (the City); and WHEREAS, pursuant to Section 147(0 of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by the City because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(0 of the Code; and WHEREAS, the-City--Council-approve-the-issuance-of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(0 of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(0 of the Code, the City Council has, following notice duly given by the Authority, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Saratoga as follows: Section 1. The foregoing recitals are true and correct. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(0 of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. The City shall have no financial, legal, or other responsibility or liability whatsoever with respect to the Bonds. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or State of California, but are to be paid for solely from funds provided by the Borrower. Section 3. The 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 which 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 transaction approved hereby. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project; (ii) approve any application or request for, or take any other action in connection with, any planning approval, permit or other action necessary for the acquisition, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 5. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: Ronald E. Lee, Esq. Jones Hall, APLC 475 Sansome Street, Suite 1700 San Francisco, CA 94111 Section 6. This resolution shall take effect immediately upon its adoption. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 3111 day of May 2017 by the following vote: AYES: Mayor Emily Lo, Vice Mayor Mary -Lynne Bernald, Council Members E. Manny Cappello, Howard A. Miller, Rishi Kumar NOES: ABSENT: ABSTAIN: AT EST: Cry 1 Bothelio, City Clerk Emily Lo, Mayor DATE: 0/10/7