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
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^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