HomeMy WebLinkAboutCC Resolution 12243 (Lone Palm Court Apartments)RESOLUTION NO. 12243
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING LOANS TO THE SAN RAFAEL REDEVELOPMENT AGENCY 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 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 "Project 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 Project Loan is due and payable, on June 1,
2007, and the Partnership has requested that the term of the Project 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, the 1997 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 and altering the interest rate thereon
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
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WHEREAS, notice of a public hearing by the City Council with respect to the reissuance
of the 1997 Note and the operation of the Project has been duly given as required by the Code,
and this City Council has heretofore held such public hearing at which all interested persons
were given an opportunity to be heard on all matters relative to the operation of the Project and
the Agency's reissuance (by extending the term thereof) of the 1997 Note in connection with the
financing 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 1997 Note by the Agency for the aforesaid purposes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael
that the reissuance of the 1997 Note by the Agency (by means of the execution and delivery by
the Agency of documents providing for the extension of the term of the 1997 Note and the
amendment to the interest rate provisions thereof), is hereby approved.
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 7th day of May, 2007, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Phillips
19000.04:J9394
4/24/07
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JEAWE M. LEONCINI, City Clerk