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HomeMy WebLinkAboutCC Resolution 12227 (Multi Family House Revenue Note)RESOLUTION NO. 12227 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL SETTING A PUBLIC HEARING FOR MAY 7, 2007 ON THE REISSUANCE BY THE SAN RAFAEL REDEVELOPMENT AGENCY OF A MULTI FAMILY HOUSING REVENUE NOTE IN AN APPROXIMATE PRINCIPAL AMOUNT OF NOT TO EXCEED $5 MILLION DOLLARS ($5,000,000) RELATING TO LONE PALM COURT APARTMENTS (840 C STREET) WHEREAS, the San Rafael Redevelopment Agency (the "Agency") is authorized by Chapter 8 (commencing with Section 33750) of Part 1 of Division 24 of the Health and Safety Code of the State of California, as amended (the "Act"), to make loans for residential construction as specified in the Act; and WHEREAS, under the authority provided by the Act, on May 27, 1997, the Agency issued its San Rafael Redevelopment Agency 1997 Multifamily Housing Revenue Note (Lone Palm Court Apartments) in the initial principal amount of $5,350,000 (the "1997 Note"), and the Agency entered into a Loan Agreement, dated as of May 1, 1997 (the "Bank Loan Agreement") with Bank of America National Trust and Savings Association (the "Bank"); and WHEREAS, concurrent with the issuance of the 1997 Note, the Agency entered into a Construction and Term Loan Agreement, dated as of May 1, 1997 (the "Borrower Loan Agreement") with Continuum Housing Associates, a California general partnership (the "Partnership"), pursuant to which the Agency loaned amounts advanced by the Bank under the 1997 Note and the Bank Loan Agreement to the Partnership (the "Partnership Loan") to enable the Partnership to finance a multifamily housing rental development located at 840 "C" Street in the City of San Rafael known as Lone Palm Court Apartments (the "Project"); and WHEREAS, the 1997 Note matures, and the Partnership Loan is due and payable, on June 1, 2007, and the Partnership has requested that the term of the Partnership Loan and the maturity date of the 1997 Note be extended for ten (10) years, and that the documents related thereto be amended to provide additional financing for the Project, so that the aggregate principal amount of the loan by the Bank to the Agency, and of the loan by the Agency to the Partnership, will be in a principal amount of not to exceed $5,000,000 and will have a new maturity date of June 1, 2017; and WHEREAS, the1997 Note is considered to be a "qualified exempt facility bond" under Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section 147(f) of the Code requires that an "applicable elected representative" with respect to the Agency approve the transaction extending the term of the 1997 Note following the holding of a public hearing with respect thereto; and WHEREAS, the Agency has determined that the City Council of the City is the "applicable elected representative" to approve the transaction; and WHEREAS, the City Council now desires to set May 7, 2007 as the date for the public hearing and to direct publication of a notice of the public hearing. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael does hereby set May 7, 2007 as the date for the conduct of a public hearing on the extension of the term of the 1997 Note and the amendments to the documents related thereto, and hereby directs the City Clerk to give notice of the hearing at least 14 days in advance thereof, said notice to be in the form of Exhibit A to this Resolution. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 2nd day of April, 2007, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 19000.04:79353 3/28/07 -2- 44� ^JE M. LEONCINI, City Clerk EXHIBIT A NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of San Rafael, California, at its regular meeting on May 7, 2007, will hold a public hearing and consider approval of the reissuance by the San Rafael Redevelopment Agency of a multifamily housing revenue note in a principal amount not to exceed $5,000,000 for the purpose of extending the term of the financing for a multifamily rental housing development in the City of San Rafael. The project that is the subject of the financing consists of 60 units and is located at 840 "C" Street in the City of San Rafael, California. The owner of the project is Continuum Housing Associates, a California general partnership. All those interested in matters related to either the reissuance of the revenue note or the operation of the project are invited to attend and be heard at the public hearing, which will commence at 8:00 p.m., and will be held in the City Council Chambers located at 1400 Fifth Avenue, San Rafael, California. If you have any questions, please call Stephanie Smith Lovette, Economic Development Coordinator for the City, at (415) 485-3383. Dated: April 23, 2007 A-1 /s/ Jeanne M. Leoncini City Clerk City of San Rafael, California