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HomeMy WebLinkAbout95-102 - ResolutionsTHIS RESOLUTION SHOULD BE A ORDINANCE RESOLUTION NOT USED RESOLUTION NO. 95-102 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA AUTHORIZING THE ISSUANCE OF A NOTE IN A PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000 TO PROVIDE FINANCING FOR CERTAIN MULTIFAMILY HOUSING PROJECTS, APPROVING A FORM OF LOAN AGREEMENT AND THE PLEDGE BY THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY OF CERTAIN TAX INCREMENT MONEYS AND OTHER MATTERS RELATING THERETO WHEREAS, the City of Rancho Cucamonga (the "City") is authorized pursuant to the provisions of Section 52101 and following of the Califomia Health and Safety Code (the "Law") to issue bonds, notes or other evidences of indebtedness for the purpose of making loans to certain nonprofit corporations which assist in providing low and moderate income housing for citizens of the City; and WHEREAS, the City desires to enter into a loan arrangement (the "Term Loan") and to issue a note in a principal amount not to exceed $25,000,000 (the "Note") pursuant to a Term Loan Agreement (the "Term Loan Agreement") by and between the City and SANWA Bank (the "Bank") for the purpose of providing funds which will be loaned (the "Developer Loan") to the Southern California Housing Development Corporation, a California nonprofit corporation (the "Developer"), under a Developer Loan Agreement among the City, the Rancho Cucamonga Redevelopment Agency (the "Agency") and the Developer (the "Developer Loan Agreement") to finance the acquisition and rehabilitation of three multifamily housing projects located in the City known as the Mountainside Apartments, the Sycamore Springs Apartments and the Monterey Village Apartments (collectively, the "Projects"); and WHEREAS, the Note will be secured by an assignment by the City to the Bank of the revenues pledged by the Developer to the City under the Developer Loan Agreement and will further be secured by a Deed of Trust relating to the Mountainside Apartments from the Developer to the City (the "Deed of Trust") and by a pledge by the Agency of a portion of the tax increment (the "Tax Increment") moneys it is required to set aside pursuant to Section 33334.3 of the Community Redevelopment Law being Part 1 of Division 24 of the California Health and Safety Code (the "Redevelopment Law") in the Agency's Low and Moderate Income Housing Fund for purposes of increasing, improving and preserving the supply of low and moderate housing in and around the Rancho Redevelopment Project (the "Redevelopment Project"); and Resolution No. 95-102 Page 2 WHEREAS, the Agency has determined that the Projects and the pledge of the Tax Increment as contemplated by the Developer Loan Agreement are of benefit to the Redevelopment Project; and WHEREAS, to ensure that the Projects will be operated in a manner which will make low and moderate income housing available to the residents of the City and to ensure that interest on the Note will remain tax-exempt for federal income tax purposes, the City, the Agency and the Developer will enter into one or more regulatory agreements (the "Regulatory Agreement") which will place certain rental restrictions on the Projects; and WHEREAS, there has been presented at this meeting a form of the Term Loan Agreement, the Developer Loan Agreement, the Deed of Trust and Regulatory Agreement; and WHEREAS, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, (the "Code") this City Council has heretofore conducted a duly noticed public hearing on June 27, 1995, with respect to the proposed issuance of the Note and the financing of the Projects, such notice being duly published in the Inland Valley Daily Bulletin. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF RANCHO CUCAMONGA, as follows: SECTION 1. Approval of Issuance of Note and Making of Loan. The issuance of the Note in an aggregate principal amount not to exceed $25,000,000 by the Agency pursuant to the Law, the making of the Developer Loan with the proceeds of the Note by the City to the Developer and the financing of the Projects are hereby approved. This approval is made in order to meet the public approval requirements of Section 147(1) of the Code. SECTION 2. Term Loan Agreement. The form of Term Loan Agreement (the "Loan Agreement") by and between the City and the Bank which establishes the terms and conditions of the Note and the Term Loan from the Bank to the City presented at this meeting is hereby approved and the Mayor or the City Manager and the City Clerk are hereby authorized and directed, for and in the name and on behalf of the City, to execute, acknowledge and deliver said Term Loan Agreement in substantially the form presented at this meeting with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 3. Form of Note. The form of the Note as set forth in the Term Loan Agreement is hereby approved and the Mayor or the City Manager and the City Clerk are hereby authorized and directed to execute by manual or facsimile signature, in the name and on behalf of the City and under its seal, such Note in the aggregate principal amount set forth in the Term Loan Agreement and all in accordance with the terms and provisions of the Term Loan Agreement. Resolution No. 95-102 Page 3 SECTION 4. City Manager Authorized to Establish Final Terms of Note. The City Manager, based on such advice of Staff and consultant's to the City as he may deem necessary, is hereby authorized and directed to act on behalf of the City to establish and determine (i) the final principal amount of the Note, which amount shall not exceed $25,000000, and (ii) the interest rate on the Note. SECTION 5. Developer Loan Agreement. The form of Developer Loan Agreement under which the City will loan to the Developer the proceeds of the Note and under which the Agency will pledge the Tax Increment to the repayment of the Developer Loan presented at this meeting is hereby approved and the Mayor, or the City Manager and the City Clerk are hereby authorized and directed, for and in the name of and on behalf of the City, to execute, acknowledge and deliver said Developer Loan Agreement in substantially the form presented at this meeting with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and deliver thereof. SECTION 6. Regulatory Agreement. The form or Regulatory Agreement under which each of the Projects will become subject to certain rental restrictions presented at this meeting is hereby approved and the Mayor, or the City Manager and the City Clerk are hereby authorized and directed, for and in the name of and on behalf of the City, to execute, acknowledge and deliver said Regulatory Agreement or Regulatory Agreements in substantially the form presented at this meeting with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and deliver thereof. SECTION 7. Deed of Trust and Assienment. The Deed of Trust relating to the Mountainside Project from the Developer to the City which secures the Developer's obligation to repay the Developer Loan presented at this meeting is hereby approved and the Mayor, or the City Manager and the City Clerk are hereby authorized and directed, for and in the name of and on behalf of the City, to execute, acknowledge and deliver said Deed of Trust, in substantially the form presented at this meeting with such changes therein as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and deliver thereof. The City Council also hereby approves the assignment of the Deed of Trust and of all revenues it will be entitled to recover under the Developer Loan Agreement to the Bank and the Mayor or the City Manager is authorized to sign any and all documents to effectuate such assignment. SECTION 8. Approval of Agency Pledge. The City Council hereby approves the pledge of the Tax Increment by the Agency to the repayment of the Developer Loan all as set forth in the Developer Loan Agreement. SECTION 9. Requisitions. The City Manager, or his designee, is hereby authorized and directed to pay the costs of issuing the Note from the proceeds of the Note and other moneys of the City available therefor. Resolution No. 95-102 Page 4 SECTION 10. Retaining of Bond Counsel. The law firm of Best, Best & Krieger is hereby retained by the City to act as Bond Counsel to the City on terms as shall be agreed upon between said firm and the City Manager. SECTION 11. Other Acts. The officers and staff of the City are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents, which in consultation with Staff and Note Counsel, they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Note, or otherwise effectuate the purposes of this Resolution, and any and all such actions previously taken by such officers or staff members are hereby ratified and confirmed. SECTION 12. Effective Date. This Resolution shall take effect upon adoption.