Resolution 2020-25RESOLUTION NO. 2020-25
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
APPROVING THE ISSUANCE BY THE CALIFORNIA PUBLIC
FINANCE AUTHORITY OF MULTIFAMILY HOUSING REVENUE
BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$40,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING
THE ACQUISITION AND CONSTRUCTION OF 1ST AND KERN
APARTMENTS AND CERTAIN OTHER MATTERS RELATING
THERETO
WHEREAS, 1st and Kem Apartments, LP or a partnership of which JEMCOR Development
Partners, LLC (the "Developer") or a related person to the Developer is the general pattner, has
requested that the California Public Finance Authority (the "Authority") adopt a plan of financing
providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to
Section 142(a)(7) of the Internal Revenue Code of 1986 (the "Code") in one or more series issued from
time to tin1e, including bonds issued to refund such exempt facility bonds in one or more series from
time to time, and at no time to exceed $40,000 ,000 in outstanding aggregate principal amount (the
"Bonds "), to finance or refinance the acquisition, construction, improvement and equipping of a
multifamily rental housing project located at 1st Street and Kem Avenue (APN 790-21-041), Gilroy,
California (the "Project"); and
WHEREAS , the Project is located within the City of Gilroy (the "City"); and
WHEREAS, the City proposes to become an Additional Member of the Authority pursuant to
Section 12 of the Joint Exercise of Powers Agreement (the "Agreement") relating to the California
Public Finance Authority ; and
WHEREAS , pursuant to Section 147(f) of the Code, the issuance of the Bonds by the
Authority must be approved by the City because the Project is located within the tenitorial 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 the applicable elected representative under Section 147(f) of the Code; 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; and
WHEREAS , the City Council understands that its actions in holding this public hearing and
in approving this Resolution do not obligate the City in any manner for payment of the principal,
interest, fees or any other costs associated with the issuance of the Bonds , and said City Council
expressly conditions its approval of this Resolution on that understanding.
RESOLUTION NO. 2020-25
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Gilroy as
follows:
Section 1. The City hereby requests to become an Additional Member of the Authority
pursuant to Section 12 of the Agreement. The Agreement is hereby approved and the Mayor of the
City and all other proper officers and officials of the City, or a designee thereof, are hereby
authorized and directed to execute the Agreement.
The City Council hereby approves the issuance of the Bonds by the Auth01ity for the
purposes of financing the Project. 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 purpose of Section 14 7(f) of
the Code by the applicable elected representative of the governmental unit having jurisdiction over
the area in which the Project is located.
Section 2. The officers of the City Council are hereby authorized and directed, jointly
and severally, to do any and all things and execute and deliver any and all documents, certificates and
other instrnments which they deem necessary or advisable in order to can-y out, give effect to and
comply with the terms and intent of this Resolution and the financing transaction approved hereby.
Any actions heretofore taken by such officers are hereby ratified and approved.
Section 3 . The City Council expressly conditions its approval of this Resolution on its
understanding that the City shall have no obligation whatsoever to pay any principal, interest, fees or
any other costs associated with the Autho1ity's issuance of the Loan for the financing of the Project.
Section 4. This Resolution shall take effect from and after its passage and approval.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Gilroy held on this 4th day of May, 2020, by the following vote :
A YES : COUNCILMEMBERS: BLANKLEY, BRACCO, LEROE-MUNOZ,
MARQUES, TOY AR, TUCKER and VELASCO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Roland Velasco, Mayor
RESOLUTION NO. 2020-25
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2020-25 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 held on
Council held on the 4 th day of May, 2020, 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 thisA1 th day of May, 2020. ---I /~
' City Clerk of the City of Gilroy
(Seal)