Tax-Exempt Bonds for Civic Center Affordable Housing - City of Santa Monica

City Council Meeting 6-14-2011                                          Santa Monica, California

                               RESOLUTION NUMBER (CCS)

                                                    (City Council Series)

 

            A RESOLUTION OF THE CITY COUNCIL OF The City of Santa Monica APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE BELMAR APARTMENTS PROJECT

 

                        WHEREAS, the California Statewide Communities Development Authority (the “Authority”) is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the “Agreement”), among certain local agencies throughout the State of California, including the City of Santa Monica (the “City”), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and

                        WHEREAS, Santa Monica Housing Partners, L.P., a limited partnership or related entities, has requested that the Authority adopt a plan of financing providing for the issuance of multifamily housing revenue bonds (the “Bonds) in one or more series issued from time to time, including bonds issued to refund such revenue bonds (the “Bonds”) in one or more series from time to time, and at no time to exceed $50,000,000 in outstanding aggregate principal amount, to finance the acquisition, construction and development of a 160-unit multifamily rental housing project, located at 1725 Ocean Avenue, Santa Monica, California, generally known as Belmar Place (the “Apartment Project”) and operated by Related Management Company; and

                        WHEREAS, the Bonds or a portion thereof will be “private activity bonds” for purposes of the Internal Revenue Code of 1986 (the “Code”); and

                        WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the “applicable elected representative” of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and

                    WHEREAS, the members of this City Council (this “Council”) are the applicable elected representatives of the City; and

                    WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; and

                    WHEREAS, such public hearing was conducted on such date, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and

                    WHEREAS, the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds, which financed the project (the “refunding Bonds”) but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and

WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA  AS FOLLOWS:

                        Section 1.     The above recitals are true and correct.

 

            Section 2.     The Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority.  It is the purpose and intent of the Council that this resolution constitutes approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement.

            Section 3.     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 approved hereby.

            Section 4.       The City Clerk of the City shall forward a certified copy of this Resolution and a copy of the affidavit of publication of the hearing notice to:

                                                Justin Cooper, Esq.

                                                Orrick, Herrington & Sutcliffe LLP

                                                405 Howard Street

                                                San Francisco, California  94105

 

                        Section 5.     This resolution shall take effect immediately upon its passage.

 

APPROVED AS TO FORM:

 

 

_________________________

MARSHA JONES MOUTRIE

City Attorney