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HomeMy WebLinkAbout96-20 RDA Resolution RESOLUTION NO. RDA 96-20 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CULA RELATING TO THE ISSUANCE OF BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION OF TWO MULTIFAMILY RES]IDENTIAL RENTAL PROJECTS AND RELATED FACILITIES WHEREAS, The Redevelopment Agency of the City of Temecula (the "Agency") is autho@ 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 multifamily residential rental projects; and S, 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 by the Agency or an assignee thereof of 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 Pujol 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. AS, 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 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 $4,000,000 for the purposes of providing financing for the acquisition of the Projects. Section 2. The issuance and sale of the Bonds shall be upon such terms and conditions Resos\96-20 as may be determined by the Agency 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 Bondswill be used for reimbursement of expenditures for the acquisition of the Projects that are paidbefore 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 $4 million. 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) otherwise 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 acquirethe Projects. Section 7.The adoption of this Resolution shall not obligate (i) the Agency to issue bonds to provide financing to acquire the Projects or to acquire 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. PASSED, APPROVED AND ADOPTED, by the Governing Board of the Redevelopment Agency of the City of Temecula at a regular meeting held on the 12th day of November, 1996. Patricia H. Birdsall, Chairperson ATTEST: (--V J@e S-.Greek, CMC, C-it-y Clerk Agency Secre@ Resos\96-20 2 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ss CITY OF TEMECULA 1, June S. Greek, City Clerk of the City of Temecula, HEREBY DO CERTIFY that the foregoing Resolution No. RDA 96-20 was duly adopted at a regular meeting of the Governing Board of the Redevelopment Agency of the City of Temecula on the 12th day of November, 1996, by the following roll call vote: AYES: 4 AGENCY MEMBERS: Birdsall, Ford, Lindemans, Roberts NOES: 0 AGENCY MEMBERS: None ABSENT: 0 AGENCY MEMBERS: None ABSTAINED: 1 AGENCY MEMBERS: Stone S.Greek, CMC,-City Clerk/ Agency Secretary Resos\96-20 3