Resolution 2017-03RESOLUTION NO. 2017-03
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, L.P. OR ANOTHER LIMITED
PARTNERSHIP OR ENTITY TO BE ESTABLISHED BY EDEN
HOUSING, INC. OR AN AFFILIATE THEREOF, WITH
RESPECT TO AN AFFORDABLE MULTIFAMILY RENTAL
HOUSING PROJECT
WHEREAS, MRW, L.P., or another limited partnership liability company or entity (the
"Borrower ") to be established by Eden Housing, Inc., a California non -profit corporation, or an
affiliate thereof, intends to acquire, rehabilitate, improve and equip a 34 -unit multifamily rental
housing facility known as Monterra Village, located at 860 -950 Mantelli Drive, Gilroy, California
(the "Project "), and has requested the California Municipal Finance Authority (the "Authority ")
to issue tax- exempt bonds (the "Bonds ") in the maximum principal amount of $8,000,000, the
proceeds of which shall be used for the purpose of financing the acquisition, rehabilitation,
improvement and equipping of the Project; 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 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
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
Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the
"Agreement "), among certain local agencies, including the City; and
RESOLUTION NO. 2017-03
2
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.
Section 6. This Resolution shall take effect from and after the date of its passage and
adoption.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF GILROY this
6th day of February, 2017 by the following roll call vote:
AYES: COUNCILMEMBERS: BRACCO, HARNEY, KLOECKER,
LEROE- MUNOZ, TOVAR, TUCKER and VELASCO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
RESOLUTION NO. 2017-03
Wm
Velasco, Mayor
RESOLUTION NO. 2017-03
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2017 -03 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 6th day of February, 2017, 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 10th of February, 2017.
Sha reels,
Gitf Clerk of the City of Gilroy
(Seal)