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HomeMy WebLinkAbout98-04 RDA ResolutionRESOLUTION NO. RDA 98-04 A RESOLIYI'ION OF ~ REDEVELOPMENT AGENCY OF Tme~ crrY OF ~ RELATING TO ~ ISSUANCE OF BONDS FOR ~ PURPOSE OF FINANCING THE ACQUISITION OF TWO MULTIFAMILY RESIDENTIAL RENTAL PROJECTS AND RELATED FACILITIES AND ~ POSSIBLE CONSTRUCTION OF ADDITIONAL UNITS WHE~AS, 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 "Law") for the purpose of providing financing for the acquisition of multifamily residential rental projects; and WHERE~kS, the Agency may, in the future, desire to issue and sell its revenue bonds (the "Bonds") pursuant to the procedures specified in the Law for the purpose of financing the acquisition, construction and/or rehabilitation by Temecula Gardens L.P. a California limited partnership (of which Affirmed Housing Group, a California corporation is the general parmer), or an assignee thereof (the "Developer'') of: (a) two multifamily residential rental projects and related and appurtenant facilities consisting of (I) a 28 unit apartment complex known as Sherwood Apartments, located at 28485-28497 Pujol Street in the City of Temecula, and (ii) a 14 unit apartment complex known as Pujol Street Apartments, located at 28559-28565 Pujo1 Street in the City of Temecula (collectively, the "Projects"); and (iii) four vacant properties totaling approximately 1 acre at 28534, 28535, 28545, and 28555 Pujol Street in the City of Temecula and other adjacent land and the construction thereon of 18 to 38 new units of multifamily residential rental housing (collectively, the Projects); and WlIEREAS, United States Income Tax Regulations section 1.103-18 provides generally that proceeds of 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 paymere of any such expenditure, the issuer must declare an internion to reimburse such expenditure; and W!~REAS, 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: Ro~o~tDA.98-04 1 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 $6,300,000 for the purposes of providing financing for the acquisition, construction and/or rehabilitation by the Developer of the Projects. Section 2. The issuance and sale of the Bonds shall be upon such terms and conditions as may be determined by the Agency, the Developer 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. Section 3. The Agency hereby declares that it reasonably expects that a portion of the proceeds of-the Bonds will he used for reimbursement of expenditures for the acquisition of the Projects 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 by the Developer for the acquisition, construction and/ or rehabilitation of the Projects that are paid before the date of initial execution and delivery of the Bonds is $6.3 million. Section 5. The foregoing declaration is consistent with the budgetary and financial circumstanc~ of the Agency in that there are no funds (other than proceeds of the Bonds) that are reason~ly expected to be (I) reserved, (ii) allocated, or (iii) otherwise set aside, on a long term basis, by or on behalf of the Agency, or Developer, or any public entity controlled by the Agency, or the Developer for the expenditures for the acquisition, construction and/or rehabilitation 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 inducemere to acquire the Projects. Section 7. The adoption of this Resolution shall not obligate (I) the Agency to issue bonds to provide financing to the Developer to acquire, construct and/or rehabilitate the Projects or to acquire, construct or rehabilit~_¢ the Projects from its own funds; 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 Projects. I~o~RDA.98-04 2 PASSED, APPROVED AND ADOPY!~, by the Governing Board of the Redevelopment Agency of the Cid. of Temecula at a regular meeting held on the 10 day of February, 1998. ATTEST: · Jones, ~MC I ~ gency SeOg~/...ity Clerk [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, Acting Secretary of the Temecula Redevelopment Agency, do hereby certify that the foregoing RDA Resolution No.98-04 was duly and regularly adopted by the Board of Directors of the Temecula Redevelopment Agency at a regular meeting thereof held on the 10 th day of February, 1998, by the following vote: AYES: 4 AGENCY MEMBERS: Comerchero, Ford, Roberts, Lindemans NOES: 0 AGENCY MEMBERS: None ABSTAIN: 1 AGENCY MEMBERS: Stone .Jones,Cl~C gency SechRal~City Clerk R¢~o~RDA.98-04 3