Resolution 2017-04RESOLUTION NO. 2017-04
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
APPROVING THE ISSUANCE OF TAX - EXEMPT BONDS BY THE
CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR
REDWOODS WHEELER, 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
ON TWO SCATTERED SITES
WHEREAS, Redwoods Wheeler, 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 (i) acquire, rehabilitate, improve and equip an
existing 110 -unit multifamily rental housing facility known as Wheeler Manor, and to acquire,
construct, improve and equip seven new rental housing units on the same site, all located at 651
West Sixth Street, Gilroy, California, and (ii) acquire, rehabilitate, improve and equip an existing
24 -unit multifamily rental housing facility known as The Redwoods 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 maximum principal
amount of $40,000,000, the proceeds of which shall be used for the purpose of financing the
acquisition, rehabilitation, construction, improvement and equipping of the Project; and
WHEREAS, the Borrower expects an amount not greater than $30,000,000 of the proceeds of
the Bonds will be used with respect to Wheeler Manor, and an amount not greater than
$10,000,000 of the proceeds of the Bonds will be used with respect to The Redwoods; 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
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;
RESOLUTION NO. 2017-04
2
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 passage and adoption.
The City Council of the City of Gilroy hereby approves TM 16 -01, subject to the
conditions of approval set forth in Exhibit "A" attached hereto.
PASSED AND ADOPTED this 6`h day of February, 2017 by the following roll call vote:
AYES: COUNCILMEMBERS: BRACCO, HARVEY, KLOECKER,
LEROE- MUNOZ, TOVAR, TUCKER and VELASCO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
E
Velasco, Mayor
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2017 -04 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 6h 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 l Ot" daylo� February, 2017.
City Clerk of the City of Gilroy
(Seal)