Resolution 2014-41RESOLUTION NO. 2014 —41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GILROY, CALIFORNIA, APPROVING ISSUANCE BY THE
CALIFONRIA MUNICIPAL FINANCE AUTHORITY OF
MULTIFAMILY HOUSING REVENUE BONDS (THE "BONDS")
IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$18,000,000 FOR THE GILROY APARTMENTS PROJECT AND
APPROVING, AUTHORIZING AND DIRECTING EXECUTION
OF A JOINT EXERCISE OF POWERS AGREEMENT
WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the "Act "), certain public agencies (the "Members ") have entered into a Joint
Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as
of January 1, 2004 (the "Agreement ") in order to form the California Municipal Finance
Authority (the "Authority"), for the purpose of promoting economic, cultural and community
development, and in order to exercise any powers common to the Members, including the
issuance of bonds, notes or other evidences of indebtedness; and to assist in obtaining financing
for projects and purposes serving the public interest;
WHEREAS, The City of Gilroy (the "City"), has determined that it is in the public
interest and for the public benefit that the City become a Member of the Authority in order to
facilitate the promotion of economic, cultural and community development activities in the City,
including the financing of projects therefor by the Authority; and
WHEREAS, there is now before this City Council (the "City Council ") the form of the
Agreement; and
WHEREAS, the Agreement has been filed with the City, and the members of the City
Council, with the assistance of its staff, have reviewed said document; and
WHEREAS, the Authority proposes to issue multifamily housing revenue bonds (the
"Bonds ") in an amount not to exceed $18,000,000 and to lend the proceeds thereof to Santa
Clara County Housing, L.P., a California limited partnership (the "Borrower "), to assist in the
financing of the acquisition, rehabilitation and development of a multifamily rental housing
RESOLUTION NO. 2014 41
development commonly known as Gilroy Apartments located at 500 I.O.O.F. Avenue, in the
City of Gilroy, California (the "Project "), to be owned and operated by the Borrower; and
WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes
of the Internal Revenue Code of 1986 (the "Code "); and
WHEREAS, Section 147(f) of the Code, requires the City Council of the City of Gilroy,
California, as the elected representative of the City, the political subdivision in which the Project
is located, to approve the issuance of the Bonds after a public hearing has been held following
reasonable notice; and
WHEREAS, notice of the public hearing was published in a newspaper of general
circulation within the City at least 14 days before the date of such hearing; and
WHEREAS, the City Council has held a public hearing regarding the issuance of the
Bonds in which interested persons were provided an opportunity to present arguments both for
and against the issuance of the Bonds; and
WHEREAS, the interest on the Bonds may qualify for a federal tax exemption under
Section 142(a)(7) of the Internal Revenue Code of 1986 (the "Code "), only if the Bonds are
approved in accordance with Section 147(f) of the Code; and
WHEREAS, this City Council of the City is the elected legislative body of the City and
is the applicable elected representative required to approve the issuance of the Bonds within the
meaning of Section 147(f) of the Code; and
WHEREAS, the City Council now desires to approve the issuance of the Bonds by the
Authority and the approval is intended to constitute the approval required by Section 147(f) of
the Code and Section 9 of the Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GILROY, CALIFORNIA, as follows:
1. The City Council hereby finds and determines that the foregoing recitals are true
and correct.
2 RESOLUTION NO. 2014 —41
2. The City Council hereby approves application by the City for membership in the
Authority and the execution of the Agreement and such other ancillary documents to effect such
application and the assumption by the City of all rights and duties of a Member within the
Authority as set forth in the Agreement.
3. The City Council hereby approves the financing of the Project by the Authority
with the proceeds of the Bonds. It is the purpose and intent of the City Council that this
resolution constitute approval of the issuance of the bonds by the Authority for the purposes of
Section 147(f) of the Code by the applicable elected representative of the governmental unit
having jurisdiction over the area in which the Project is to be located, in accordance with said
Section 147(f) of the Code and Section 4 of the Agreement.
4. The officers of the City are hereby authorized and directed, jointly and severally,
to do any and all things and to execute and deliver any and all documents that they deem
necessary or advisable to carry out, give effect to and comply with the terms and intent of this
resolution including application for membership in the Authority and the financing approved
hereby.
5. Neither the City nor its staff have reviewed or considered the financial feasibility
of the Project or the expected operation of the Project with regarding to any State of California
statutory requirements and the adoption of this resolution shall not obligate without further
formal action on the part of the City Council: (a) the City to provide financing to the Borrower
for the acquisition, rehabilitation and equipping of the Project or to issue any obligations for the
purposes of financing the same; or (b) the City, or any department of the City, to approve any
applications 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,
rehabilitation, equipping or operation of the Project.
6. The Bonds will not constitute an indebtedness, obligation or a pledge of the faith
and credit of the City. The Bonds will be limited obligations of the Authority payable solely
from the revenues of the Project.
7. Notwithstanding any other provision of this resolution, neither the City Council
nor the City or any of its officials or employees represents, warrants or guarantees that the Bonds
qualify as "private activity bonds" pursuant to Section 141 or 147(f) of the Code.
8. The City Clerk is hereby authorized to forward a certified copy of this resolution
and a copy of the affidavit of publication of the public hearing notice to:
Toger Swanson
Kutak Rock LLP
1650 Farnam Street
Omaha, NE 68102
9. This resolution shall take effect upon the date of its final passage.
RESOLUTION NO. 2014 -41
PASSED AND ADOPTED this 40' day of August, 2014 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, AULMAN, BRACCO,
LEROE- MUNOZ, TUCKER, and GAGE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: WOODWARD
APPROVED:
�)j- J. (j��
Donald Gage, Mayor
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4 RESOLUTION NO. 2014 —41
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2014 -41 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 4`h day of August, 2014, 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 6t' day of August, 2014.
ma Freels, MMC
Clerk of the City of Gilroy
(Seal)