1985-02 RESOLUTION NO. CRA -85-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY- OF GRAND TERRACE, CALIFORNIA OF
INTENTION TO PROVIDE FOR THE ISSUANCE OF
HOUSING REVENUE BONDS TO PROVIDE FINANCING
FOR A MULTIFAMILY RENTAL HOUSING PROJECT
WHEREAS-, .the Board of Directors of the Community
Redevelopment Agency of the City of Grand. Terrace, California
(the "Agency") , desires to encourage investment and upgrade
redevelopment project areas within the City of Grand Terrace,
California (the "City") and to increase the supply of housing
by providing assistance in financing multifamily rental housing
within a redevelopment project area of the City; and
WHEREAS, the Agency is 'authorized by Chapter 8
(commencing with Section 33750) of Part l of Division 24 of the.
California Health and Safety Code (the "Act") to issue and sell
revenue bonds for the purpose of providing financing for the
Acquisition and 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 finance the development of
multifamily rental housing projects; and
WHEREAS, Forest City Dillon, Inc. , an Ohio corporation.
and/or its assignee or nominee (the "Developer"),' has requested
the Agency to -issue and 'sell revenue bonds for the purpose of
providing financing for the acquisition. and construction of a
266-unit multifamily rental housing development and appurtenant
facilities located within the. City on the west side of Mt.
Vernon Avenue, south of Grand Terrace Avenue and east of Gage
Canal, within a redevelopment project area, on a 15+ acre site
and to be known as "Mt. Vernon Villas" (.the "Project") ; . and
WHEREAS, the Agency, in order to encourage and foster
the construction of multifamily' rental housing development
within redevelopment project areas of the City and as an aid
and inducement to the Developer, is willing to authorize the
issuance of obligations in an amount sufficient to provide
financing for the Project subject to the restrictions of the
Act and all applicable California and federal laws as they
presently exist, provided that the Project receives all
necessary local governmental approvals;
NOW, .THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
GRAND TERRACE, CALIFORNIA, AS FOLLOWS:
Section 1. Findings. The Agency hereby determines
that ,the. undertaking of the financing -of the proposed Project
by the Agency will .be a substantial factor in the accrua,l . of
public benefits to be received from the Project, should.. the
Project' be approved and constructed, and that the proposed
financing is in accord with the purposes and requirements of
the Act.
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Section 2 . Issuance of Obligations. Subject to the
completing of .the proceedings and other matters relating
thereto to the full satisfaction of the Agency and the City of
Grand Terrace, and subject to the proposed Project receiving
all necessary local governmental approvals, the Agency hereby
agrees -to provide financial assistance to the Developer, its
successors or assigns, or such other person or entity approved
by the Agency, through the issuance of obligations as described
in Section 3 of this resolution in an amount .not to exceed
$15, 000, 000.
Section 3 . Nature of Obliaations. The obligations to
be issued shall be special obligations of the Agency payable
solely froim revenues to' be received by the Agency pursuant to
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all agreements in connection with the financing of the Project,
all in a form acceptable to the Agency and the Developer, and
shall not be a general obligation of the Agency, the City of
Grand Terrace, ' the State .of California or any political
subdivision thereof.
Section 4. Official Action. It is intended that this
Resolution shall constitute "some other similar official -
action" toward the issuance of indebtedness within the meaning
of Section 103 .of the Internal Revenue Code of 1954, as
amended, and the regulations thereunder..
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Section 5. Other ADDrovals. The adoption of. this
Resolution shall not bind the Agency to issue bonds or other
obligations until and unless all other necessary actions and
approvals are taken or :received in accordance with all
applicable laws. The adoption of this Resolution does not and
shall not limit in' any -manner whatever the full discretion of
-the Agency and the . City of Grand Terrace to deny any further
permit or .approval that may be necessary. for ultimate
completion of the proposed -Project. In this connection:
(a) All contracts. relating to the acquisition,
construction, installation and equipping of the Project shall
be solicited, . negotiated, awarded and executed by the
Developer, for its own account, subject 'to applicable federal,
state and local . laws.
(b) The Agency shall have no pecuniary liability
to the Developer for any fees in connection with the Project.
(c) The Agency and/or the City shall recover any
and all costs which are incurred in furtherance of or
attributable to the issuance of its bonds. If no bonds are
issued,- all such costs shall be paid by the Developer.
Section 6. Bond Counsel. The law firm of Nazarek,
Harper, Hopkins and McFarlin is hereby designated as bond
counsel to the Agency with respect to the issuance of the
Agency's bonds for the financing of the Project, and the
Executive Director or .other designated officer is hereby
authorized to enter into an agreement with said firm for such
bond counsel services.
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Section 7. Effective Date. This resolution shall
become effective and be in full force and effect from and after
its date of adoption.
ADOPTED this 7th day of November , 1985.
HUGH J. , CR Arman of the
Communit' a opment Agency
of the Ci'�, 'of Grand Terra ,e
ATTEST:
Rene Dughman� Secretary of the
Community Redevelopment Agency
of the City of Grand Terrace
Approved as to form
City Attorney
I, ILENE DUGHMAN, Secretary of the Community Redevelopment Agency of the
City of Grand Terrace, do hereby certify that the foregoing Resolution was
adopted at a regular meeting of the Community Redevelopment Agency of the City
of Grand Terrace held on the 7th day of November, 1985, by the following vote:
AYES: Agency members Matteson, Petta, Pfennighausen, Evans ;
Chairman Grant
NOES: None
ABSENT: None
ABSTAIN: None
Secretary '
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