Resolution 2017-40RESOLUTION NO. 2017-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY MULTIFAMILY HOUSING REVENUE BONDS
IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$25,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING
THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND
EQUIPPING OF MONTEREY GATEWAY APARTMENTS AND
CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Gilroy Monterey LP (the "Borrower ") or a partnership created by Danco
Builders Northwest (the "Developer "), consisting at least of the Developer or a related person to
the Developer and one or more limited partners, has requested that the California Municipal
Finance Authority (the "Authority ") adopt a plan of fmancing providing for the issuance of one
or more series of revenue bonds issued from time to time, including bonds issued to refund such
revenue bonds in one or more series from time to time, in an aggregate principal amount not to
exceed $25,000,000 (the "Bonds ") for the acquisition, construction, improvement and equipping
of a 75 -unit senior multifamily rental housing project to be located on the east side of Monterey
Road across from Ervin Court (APN 841 -14 -011), Gilroy, California, generally known as
Monterey Gateway Apartments (the "Project ") and operated by FPI Management; and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the
"Code "), the issuance of the Bonds by the Authority must be approved by the City of Gilroy (the
"City ") because the Project is to be located within the territorial limits of the City; and
WHEREAS, the City Council of the City (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, and now desires to
approve the issuance of the Bonds by the Authority;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Gilroy
as follows:
Section 1. The foregoing resolutions are true and correct.
Section 2. The City Council hereby approves the issuance of the Bonds 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, for the purposes of (a) 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) and (b) Section 4 of the
Agreement.
Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of
all financing documents relating thereto to which the Authority is a party. The City shall have no
responsibility or liability whatsoever with respect to the Bonds.
Section 4. The adoption of this Resolution shall not obligate the City or any department
thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the
Project; (ii) approve any application or request for or take any other action in connection with
any planning approval, permit or other action necessary for the acquisition, construction,
rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any
funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or
its membership therein.
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 which 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 immediately upon its adoption.
PASSED AND ADOPTED this 4"' day of December, 2017 by the following roll call
vote:
AYES: COUNCILMEMBERS: BRACCO, LEROE- MU&OZ, TOVAR,
TUCKER and VELASCO
NOES: COUNCILMEMBERS: HARNEY
ABSENT: COUNCILMEMBERS: KLOECKER
ATTEST,,
C. -� 4
Shawna Freels, City Clerk
9 �
I 1911
Roland Ve-lasco, Mayor
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RESOLUTION NO. 2017-40
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2017 -40 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 December, 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 6h day of December, 2017.
Shawna Freels, NMC
City Clerk of the City of Gilroy
(Seal)