1984-27 RESOLUTION NUMBER 84-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA OF INTENTION TO PROVIDE FOR THE.
ISSUANCE OF MORTGAGE REVENUE BONDS TO PROVIDE FINANCING
FOR A MULTIFAMILY RENTAL HOUSING PROJECT DEVELOPMENT
WHEREAS, the,City Council of the City of Grand
Terrace, California, determines and finds that a serious'
shortage of adequate housing for persons and families of low
and. moderate income exists within the City of Grand Terrace,
California ( the "City" ) , and the City- desires to cause to be
provided decent, safe and sanitary housing for persons and
families of low and moderate income within the City; and
WHEREAS, the City is authorized by Chapter 7
(commencing with Section 52075) of Part 5 of Division 31 of the
California Health and Safety Code ( the "Act" ) to issue and sell
revenue bonds for the purpose- of providing financing for the
construction of multifamily rental housing and for the
provision of capital improvements in connection with and
determined necessary to such multifamily rental housing
development, and to make, or undertake commitments to make,
construction and permanent loans to housing sponsors to finance
the development of multifamily rental housing projects; and
WHEREAS, .McMillin Development Inc. , a California
corporation ( the "Developer" ) has requested the City to issue
and sell revenue bonds for the purpose of providing financing
for the acquisition and construction of a 280-unit multifamily
rental housing development and appurtenant facilities located
within the City on the west side of Mt . Vernon Avenue, south of
Grand Terrace Road and east of Gage Canal, on a parcel of
approximately 14 acres and to be known as "Mt. Vernon Villas"
(the "Project" ) ; and
WHEREAS, the City desires to induce the Developer to
~ construct the Project at said location within the City; and
WHEREAS, it is apparent that the develoEm ent of the
Project will increase the number - of residential units and
provide needed decent, safe and sanitary housing for persons
and families of low and moderate income in the City; and
WHEREAS, the financing of the Project through the
issuance of multifamily housing revenue bonds of the City will
provide for and promote the public health, safety, morals and
welfare and otherwise be in the public interest and for the
public benefit of the inhabitants of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF GRAND TERRACE, CALIFORNIA, AS FOLLOWS:
Section 1. Approval is hereby given to the
application of the Developer relating to the development,
construction and equipping of a 280-unit multifamily rental
housing Project for persons and families of low and moderate
income thereon. •
Section 2. The City intends to and will incur
indebtedness, by issuance of multifamily housing revenue bonds,
in an aggregate principal amount not to exceed $12, 000, 000 (the
"Bonds" ) for the purpose of providing construction and
permanent financing to the Developer for the Project.
2
Section 3. To induce the Developer to develop, con-
struct and equip the Project, the City Council shall proceed to
cooperate with and take such action as may be necessary in the
drafting of documents and the performance of such other acts as _
will facilitate the issuance of the Bonds by the City to
provide funds to be used toward the payment of the costs of
acquiring the property and the development, construction and
equipping of the Project.
Section 4. The Bonds will be payable solely from the
revenues to be received by the .-City pursuant to .a loan
agreement or other financing agreement mutually acceptable to
the City and the Developer.
Section 5. Any costs or expenses of the City
incurred in connection with the Bond issue shall be included in
the Project costs and 'reimbursed either from the proceeds of -
the Bonds to be issued with respect thereto or from payments by
other parties to the financing.
Section 6. The Bonds shall be issued upon such terms .
and conditions -as may be mutually agreed upon by -the City, the
Developer and the Purchaser of the Bonds, and shall be subject
to the completion of proceedings for issuance, sale and
delivery of the Bonds by the City.
Section 7 . The proceeds of the Bond shall include
such related and necessary issuance expenses, administrative
costs, debt service reserves and interests payments as are
legally authorized and required to successfully--accomplish the
financing.. - -
Section 8. The liability and obligation of the City
and its City Council shall be limited solely to the good faith
efforts to consummate such proceedings and issue the Bonds, and
neither the City nor its City Council, officers or agents, _
shall incur any liability whatsoever if for any reason the
proposed issuance of the Bonds is not consummated.
Section 9. It is intended that this Resolution shall
constitute "some other similar official action" toward the
issuance of indebtedness within the meaning of the Internal
Revenue Code of 1954, as amended.
Section 10'. The Developer shall be responsible for
all costs in. connection with the issuance of the Bonds,
including: printing of the Official Statement and the Bonds ;
costs of ratings on the Bonds; bond and financial counsel
selected by the City; and all other costs incidental to the
financing.
Section 11. This resolution shall become effective
and be in full force and effect from and after its date of
adoption.
PASSED, APPROVED AND ADOPTED by the City Council of
the City ,of Grand Terrace at a regular meeting thereof
this 28th day of June 1984.
`�--_=
HUGH, J. GRAPgf11\Ma y
of the City of an Terrac\
and of the City Council the of.
Attest:
Approved as to fo m :
+;Y.FIVA'-.' WAY;City Cl-erk
of the__c ity -o:f. Gs-an— Terrace City Attorneyf ` d
= 4 I
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF GRAND TERRACE )
I, MYRNA ERWAY, City Clerk of the City of Grand Terrace, DO HEREBY
CERTIFY that the foregoing Resolution was duly adopted by the City Council of
said City at a regular meeting of the City Council held on the 28th day. of
June, 1984, and that it was so adopted by the following vote:
AYES: Councilmembers Rigley, Petta, 'Pfennighausen;
Mayor Grant.
NOES: None.
ABSENT: Councilman Nix.
n )
City CI erk/pf the City of Gran-0 rrace
and of thd/Ci ty Council thereo:f".c -
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF GRAND TERRACE )
I, MYRNA ERWAY, City Clerk of the City of Grand Terrace, DO HEREBY
CERTIFY that the above and foregoing is a full , true, and correct copy of
Resolution No. 84-27 of said City, and that the same has not been amended or
repealed.
-DATED: June 28, 1984.
City Lien of the City of Gra err_ece
and of t nd City Council there , -