HomeMy WebLinkAbout96-01 RDA Resolution RESOLUTION NO. RDA 96-01
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF TEMECULA RELATING TO THE ISSUANCE OF BONDS FOR THE
PURPOSE OF FINANCING THE ACQUISITION BY THE COACHELLA
VALLEY HOUSING COALITION OF A MULTI-FAMILY RESIDENTIAL
RENTAL PROJECT AND RELATED FACILITIES
WHEREAS, the Redevelopment Agency of the City of Temecula (the "Agency") is
authorized to issue bonds pursuant to the provisions of the California Health and Safety Code
(the "Uw") for the purpose of providing financing for the acquisition of multi-family residential
rental projects; and
WHEREAS, the Coachella Valley Housing Coalition, a California non-profit corporation
("CVHC") has requested that the Agency issue and sell its revenue bonds (the "Bonds") pursuant
to the procedures specified in the Law for the purpose of making a loan to CVHC to finance the
acquisition of a 150-unit multi-family residential rental project and related and appurtenant
facilities (the "Project"), located at 42200 Main Street (APN No. 922-061-021) in the City of
Temecula, and the Agency wishes to induce CVHC to acquire the Project; and
WHEREAS, United States Income Tax Regulations section 1. 103-18 provides generally
that proceeds for tax-exempt debt are not deemed to be expended when such proceeds are used
for reimbursement of expenditures made prior to the date of issuance of such debt unless certain
procedures are followed, among which is a requirement that (with certain exceptions), prior to
the payment of any such expenditure, the issuer must declare an intention to reimburse such
expenditure; and
WHEREAS, it is in the public interest, for the public benefit and in furtherance of the
public purposes of the Agency that the Agency declare its official intent to reimburse the
expenditures referenced herein from the proceeds of the Bonds.
NOW, THEREFORE, BE IT RESOLVED, by the Governing Board of the
Redevelopment Agency of the City of Temecula as follows:
Section 1. The Agency declares its intent to issue and sell the Bonds pursuant to the
procedures specified in the Law in an aggregate principal amount not to exceed $2,500,000 for
the purposes of providing financing for the acquisition of the Project.
Section 2. The issuance and sale of the Bonds shall be upon such terms and conditions
as may be mutually agreed upon by the Agency, CVHC and the purchaser of said Bonds, and
shall be authorized by resolution of the Agency at a meeting duly held and conducted for such
purpose.
Resos.RDA\96-01
Section 3. The Agency hereby declares that it reasonably expects that a portion of the
proceeds of the Bonds will be used for reimbursement of expenditures for the acquisition of the
Project that are paid before the date of initial execution and delivery of the Bonds.
Section 4. The maximum amount of proceeds of the Bonds to be used for reimbursement
of expenditures for the construction and development of the Project that are paid before the date
of initial execution and delivery of the Bonds is $2,500,000.
Section 5. The foregoing declaration is consistent with the budgetary and financial
circumstances of the Agency in that there are no funds (other than proceeds of the Bonds) that
are reasonably expected to be (i) reserved, (ii) allocated or (iii) other-wise set aside, on a long-
term basis, by or on behalf of the Agency, or any public entity controlled by the Agency, for
the expenditures for the acquisition of the Project that are expected to be reimbursed from the
proceeds of the Bonds.
Section 6. The Agency hereby finds that the issuance of the Bonds is a substantial
inducement to CVHC to acquire the Project.
Section 7. CVHC shall be responsible for the payment of all present and future costs
in connection with the issuance of the Bonds, including, but not limited to, any fees and
expenses incurred by the Agency in anticipation of the issuance of the Bonds, the costs of
printing any necessary disclosure materials relating to the Bonds, bond counsel fees and
expenses, financial advisor fees and costs, trustee fees and expenses, and any costs of printing
the Bonds.
Section 8. The adoption of this Resolution shall not obligate (i) the Agency to provide
financing to CVHC for the acquisition of the project or to issue the Bonds for purposes of such
financing; or (ii) the Agency, the City of Temecula (the "City"), the Planning Department of
the City or any other department of the City to approve any application or request for, or take
any other action in connection with, any permit or other action necessary for the acquisition,
repair, rehabilitation or operation of the Project.
APPROVED AND ADOPTED, by the Governing Board of the Redevelopment Agency
of the City of Temecula at a regular meeting held on the February, 1996.
Patricia H. Birdsall, Chairperson
ATTEST:
Ju"@reek, CMC, City Clerk/
Agency Secretary
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE SS
CITY OF TEMECULA
I, June S. Greek, City Clerk of the City of Temecula, DO HEREBY CERTIFY that the
foregoing Resolution No. RDA 96-01 was duly adopted at a regular meeting of the Governing
Board of the Redevelopment Agency of the City of Temecula on the 13th day of February,
1996, by the following roll call vote:
AYES: 4 AGENCY MEMBERS: Birdsall, Ford, Roberts,
Lindemans
NOES: 0 AGENCY MEMBERS: None
ABSENT: 0 AGENCY MEMBERS: None
ABSTAINED: 1 AGENCY MEMBERS: Stone
June S. Greek, CMC, City Clerk/
Agency Secretary
Resoa.RDA\96-01 3