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Resolution 2002-38 RESOLUTION NO. 2002-38 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING THE ISSUANCE OF REVENUE BONDS FOR THE PURPOSE OF FINANONG THE ACQUlSmON AND CONSTRUCTION OF THE VILLAGE GREEN SENIORS II APARTMENTS WHEREAS, the California Statewide Communities Development Authority (the "Authority") is authorized by the laws of the State of California (the "Law") to execute and deliver revenue obligations for the purpose of financing the acquisition and construction of assisted living facilities located within the area of operation of the Authority which are to be occupied, in part, by very low and low income tenants; and WHEREAS, the City of Gilroy has been informed by DMA Gilroy Partners, LP that DMA Gilroy Partners, LP, or another limited liability company or limited partnership to be formed by the principals of DMA Gilroy Partners, LP (the "Borrower") has requested the Authority to issue and deliver revenue obligations in the anticipated principal amount of $11,500,000 (the "Obligations"), the proceeds of which may only be used for the purpose of financing the acquisition and construction of a 101-unit commercial state-licensed assisted living facility meeting the requirements of the Code (as hereinafter defined) to be commonly known as the Village Green Seniors II Apartments which is to be located at the Southwest comer of the intersection of Santa Theresa and Hecker Pass Roads in the City of Gilroy (the "Project"); and WHEREAS, the City has been informed by the Authority that Obligations which are expected to be issued and delivered to finance the acquisition and construction of the Project would be considered "qualified exempt facility bonds" under Section 142 (a) of the Internal revenue Code of 1986, as amended (the "Code"), and Section 147(f) of the Code requires that the "applicable elected representative" with respect to the Project hold a public hearing on the issuance and delivery of the Obligations; and WHEREAS, the City Council of the City of Gilroy as the "applicable elected representatives" to hold said public hearing, has held said public hearing at which all those interest in speaking with respect to the proposed financing of the Project were heard. NOW, THEREFORE, BE IT RESOLVED as follows: 1. The City Council hereby finds and determines that the foregoing recitals are true and correct to the best of their current actual knowledge. 2. For purposes of the requirements of the Code only, the City Council hereby approves the proposed financing of the Project by the Authority with the proceeds of the Obligations. RESOLUTION NO. 2002-38 -1- 3. The issuance and delivery of the Obligations shall be subject to the approval of and execution by the Authority of all financing documents relating thereto to which the Authority is a party and subject to the sale of the Obligations by the Authority. 4. The adoption of this Resolution is solely for the purpose of meeting the requirements of the Code and shall not be construed in any other manner, the City nor its staff having fully reviewed or considered the financial feasibility of the Project or the expected financing or operation of the Project with regards to any State of California statutory requirements, and such adoption shall not obligate (i) the City to provide financing to the Borrower for the acquisition, construction and development of the Project or to issue the Obligations for purposes of such financing; or (ii) the City, of or any department of the City, to approve any application or request for, or take any other action in connection with, any environmental, General Plan, zoning or any other permit or other action necessary for the acquisition, construction, development or operation of the Project. 5. The City Oerk of the City shall forward a certified copy of this Resolution and a copy of the affidavit of publication of the public hearing notice to: Thomas A. Downey Jones Hall, A Professional Law Corporation 650 California Street, 18th Floor San Francisco, California 94108 6. This resolution shall take effect upon its adoption. PASSED AND ADOPTED this 28th day of May, 2002, by the following roll call vote: AYES: COUNCILMEMBERS: ARELLANO, DILLON, GARTMAN, MORALES, PINHEIRO, SPRINGER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: VELASCO APPROVED: ,ATf,/)( d ~/[~~~( ~-A ' Rhonda Pellin, City Clerk ~~~. Thomas W. S rin er, Mayor RESOLUTION NO. 2002-38 -2- I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2002-38 is an original resolution, duly adopted by the Council of the City of Gilroy at a special meeting of said Council held on the 28th day of May, 2002, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 4th day of June, 2002. ~Uk~~ City Clerk ofthe_City of Gilroy (Seal)