2011-22 RESOLUTION NO. 2011-22
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE APPROVING THE ISSUANCE BY CALIFORNIA
ENTERPRISE DEVELOPMENT AUTHORITY OF NOT TO EXCEED
$36,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE
AUTHORITY'S REVENUE OBLIGATIONS FOR THE PURPOSE OF
FINANCING AND REFINANCING THE COST OF CERTAIN
FACILITIES FOR THE BENEFIT OF NORTH WATERFORD
APARTMENTS,A CALIFORNIA LIMITED PARTNERSHIP, PROVIDING
THE TERMS AND CONDITIONS FOR SUCH OBLIGATIONS AND
OTHER MATTERS RELATING THERETO HEREIN SPECIFIED
WHEREAS, North Waterford Apartment, A California Limited Partnership (the
"Borrower"), has submitted and the California Enterprise Development Authority (the
"Authority") has accepted, an application requesting the Authority to issue, from time to time,
pursuant to a plan of finance, its tax-exempt and/or taxable revenue obligations in an aggregate
principal amount not to exceed $36,000,000 (the "Obligations") for the benefit of the Borrower
pursuant to Chapter 7 of Part 5 of Division 31 of the California Health & Safety Code, the
proceeds of which will be used to (a) currently refund the outstanding $24,500,000 Community
Redevelopment Agency of the City of Grand Terrace (California) Multifamily Housing Revenue
Bonds (Mi. Vernon Villas Project) 1985 Series A (the "Prior Bonds"), the proceeds of which
were used to finance the acquisition, construction, installation and equipping of a 556-unit
residential complex located at 11750 Mount Vernon Avenue, Grand Terrace, California and
commonly known as Highlands Apartments (the "Original Improvements"); (b) finance,
refinance or reimburse the Borrower for the costs of additional improvements to such property
(the "Additional Improvements" and, together with the Original Improvements, the "Facilities");
(c) refinance certain other obligations of the Borrower with respect to the Facilities; and (d) pay
certain financing costs in connection with the issuance of the Obligations;and
WHEREAS, the issuance of the Obligations must be approved by the governmental unit
on behalf of which the Obligations are issued and a governmental unit having jurisdiction over the
territorial limits in which the Facilities are located pursuant to the public approval requirement of
Section 147(f)of the Internal Revenue Code of 1986,as amended (the"Code"); and
WHEREAS, the Facilities are located within the territorial limits of City of Grand
Terrace (the "City") and the City Council of the City (the "City Council") is the elected
legislative body of the City; and
WHEREAS, the City has adopted a resolution approving the City joining the Authority
as an Associate Member and is authorized to participate in the Authority's conduit financing
programs; and
WHEREAS,the Authority and the Borrower have requested that the City Council approve
the issuance of the Obligations by the Authority and the financing of the Facilities with the
proceeds of the Obligations pursuant to Section 147(f)of the Code; and
4827-29 5737.1
WHEREAS, the Authority's issuance of the Obligations will result in a more economical
and efficient issuance process because of the Authority's expertise in the issuance of conduit
revenue bonds; and
WHEREAS, it is intended that this Resolution shall comply with the public approval
requirements of Section 147(f) of the Code; provided, however, that this Resolution is neither
intended to nor shall it constitute an approval by the City Council of the Facilities for any other
purpose;and
WHEREAS, a public hearing was held by the City Council on this August 9, 2011, at the
meeting which commenced at the hour of 6:00 p.m., at the City of Grand Terrace, City Council
Chambers, located at 22795 Barton Road, Grand Terrace, California, following duly published
notice thereof in a newspaper of general circulation in the City of Grand Terrace on July 26, 2011,
and all persons desiring to he heard have been heard.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the
City Council of the City as follows:
Section 1. The City Council hereby finds and determines that all of the recitals are true
and correct.
Section 2. The City Council hereby approves the issuance of the Obligations by the
Authority, which Obligations may be tax-exempt and/or taxable as approved by the Authority in
its resolution, in an amount not to exceed $36,000,000 to currently refund the Prior Bonds, to
finance, refinance or reimburse the Borrower for the cost of the Facilities and pay financing costs
in connection with the issuance of the Obligations. This resolution shall constitute "host"
approval of the issuance of the Obligations within the meaning of Section 147(f) of the Code and
shall constitute the approval of the issuance of the Obligations within the meaning of Articles 1
through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California
Government Code; provided, however, that this Resolution shall not constitute an approval by
the City Council of the Facilities for any other purpose. The City shall not bear any
responsibility for the tax-exempt status of the Obligations, the repayment of the Obligations or
any other matter related to the Obligations.
Section 3. All actions heretofore taken by the officers, employees and agents of the City
with respect to the approval of the Obligations are hereby approved, confirmed and ratified, and
the officers and employees of the City and their authorized deputies and agents are hereby
authorized and directed,jointly and severally, to do any and all things and to execute and deliver
any and all certificates and documents which they or bond counsel may deem necessary or
advisable in order to consummate the Obligations and otherwise to effectuate the purposes of this
Resolution.
t Section 4. This Resolution shall take effect from and after its adoption.
w
4827-29 5737.I 2
PASSED,APPROVED AND ADOPTED this August 9, 2011 by the following vote:
AYES: Coancilmembers NcNaboe, Sandoval and Hays; Mayor Pro Tem Garcia
and Mayor Stanckiewitz
NOES: None
ABSTAIN: None
ABSENT: None
By:
Walt Stanckiewitz, Mayor
Attest: pp
By:��11.f
�.B ends Mesa, Citenda Mesa, Cit lerkk
4921-29 5739.1 3
6 CERTIFICATE OF THE CITY CLERK
` Trcrec V He hnp2
1, Brendle City Clerk of the City of Grand Terrace, hereby certify that the foregoing
is a full, true and correct copy of a resolution duly adopted at the meeting of the City Council of
the City of Grand Terrace duly and regularly held in Grand Terrace, California, on August 9,
2011, of which meeting all of the members of said Board had due notice.
I further certify that I have carefully compared the foregoing copy with the original
minutes of said meeting on file and of record in my office; that said copy is a full, true and
correct copy of the original resolution adopted at said meeting and entered in said minutes; and
that said resolution has not been amended, modified, rescinded or revoked in any manner since
the date of its adoption, and the same is now in full force and effect.
IN WITNESS WHEREOF, I have executed this certificate this 22nd of August, 2011.
102" A,( e Y� t utc L
Brenda MesaLtity Cl k
4822-2900-5757,I 4