Resolution 2015-08RESOLUTION NO. 2015 —08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
APPROVING THE ISSUANCE OF TAX - EXEMPT BONDS BY THE
CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR MRW LP OR
ANOTHER LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY
TO BE ESTABLISHED BY EDEN HOUSING, INC. OR AN AFFILIATE
THEREOF, WITH RESPECT TO A SCATTERED SITE MULTIFAMILY
RENTAL PROJECT
WHEREAS, MRW LP or another limited partnership liability company to be established
by Eden Housing, Inc., a California non - profit corporation, or an affiliate thereof (the
"Borrower") intends to acquire, rehabilitate and construct (i) a multifamily apartment project
known as Wheeler Manor located at 651 West Sixth Street, Gilroy, California, the number of
units at which will be not less than 110 or greater than 119, (ii) a 34 unit multifamily apartment
project known as Monterra Manor located at 860 -950 Mantelli Drive, Gilroy, California and (iii)
a 24 unit multifamily apartment project known as The Redwoods Apartments located at 9005
Kern Avenue, Gilroy, California (collectively, the "Project "), and has requested the California
Municipal Finance Authority (the "Authority ") to issue tax- exempt bonds (the `Bonds ") in the
not -to- exceed amount of $23,000,000, the proceeds of which shall be used for the purpose of
financing the acquisition, rehabilitation, construction and equipping of the Project; and
WHEREAS, the Borrower expects an amount not greater than $10,800,000 of the
proceeds of the Bonds will be used with respect to Wheeler Manor, an amount not greater than
$3,500,000 of the proceeds of the Bonds will be used with respect to Monterra Manor, and an
amount not greater than $8,700,000 of the proceeds of the Bonds will be used with respect to
The Redwoods Apartments; and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986 (the "Code ") requires
that the "applicable elected representative" with respect to the Project to approve the issuance of
the Bonds with respect to the Project after a public hearing has been held concerning the issuance
and delivery of the Bonds with respect to the Project; and
RESOLUTION NO. 2015 —08
WHEREAS, the City Council of the City of Gilroy (the "City Council ") is the elected
legislative body of the City and is one of the applicable elected representatives required to
approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the City Council approve the issuance of the
Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of
the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement, dated as
of January 1, 2004 (the "Agreement "), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice
duly given, held a public hearing regarding the issuance of the Bonds at which all those
interested in speaking with respect to the financing of the Project were heard, and now desires to
approve the issuance of the Bonds by the Authority, as provided below;
NOW, THEREFORE, be it resolved by the City Council of the City of Gilroy, as follows:
Section 1. The City Council hereby finds and determines that the foregoing recitals are true
and correct.
Section 2. The City Council hereby approves the issuance of the Bonds with respect to the
Project by the Authority. It is the purpose and intent of the City Council that this resolution
constitute approval of the issuance of the Bonds by the Authority only for the purposes of (i)
Section 147(f) of the Code by the applicable elected representative of the governmental unit
having jurisdiction over the area in which the Project will be located, in accordance with said
Section 147(f), and (ii) Section 4 of the Agreement.
Section 3. The issuance and delivery of the Bonds 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 Bonds by the Authority.
Section 4. The payment of the principal, prepayment premium, if any, and purchase price of
and interest on the Bonds shall be solely the responsibility of Borrower. The Bonds shall not
constitute a debt or obligation of the City.
Section 5. 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 in order to carry out, give effect to and comply with the
terms and intent of this resolution and the financing transaction approved hereby.
2 RESOLUTION NO. 2015 —08
Section 6. This Resolution shall take effect from and after the date of its passage and
adoption.
PASSED AND ADOPTED this 6`h day of April, 2015 by the following roll call vote:
AYES: COUNCILMEMBERS: AULMAN, BRACCO, LEROE- MUNOZ,
TUCKER, VELASCO and GAGE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: WOODWARD
APPROVED:
I 01M i1i f a
Donald F. Gage, Mayor ql�
3 RESOLUTION NO. 2015 —08
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2015 -08 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 6`h day of April, 2015 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 , 2015.
J-
ShammdFreels, MMC
City Clerk of the City of Gilroy
(Seal)