HomeMy WebLinkAbout97-65 - Intention to Reimburse Expenditures from the Proceeds of Tax-Exempt ObligationsRESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, DECLARING INTENTION TO
REIMBURSE EXPENDITURES FROM THE PROCEEDS OF
TAX-EXEMPT OBLIGATIONS AND DIRECTING CERTAIN
ACTIONS.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, the City of Costa Mesa, or such other public entity created by
the City of Costa Mesa (collectively, the "City") intends to issue tax-exempt
obligations (the "Obligations") for the purpose, among other things, of making a
loan to Oasis Residential, a Nevada real estate investment trust, or such partnership
or other legal entity established by Oasis Residential, a Nevada real estate
investment trust (the "Developer") the proceeds of which shall be used by the
Developer to finance the acquisition, rehabilitation, and development of a
multifamily housing facility located at 19`h Street and Whittier Avenue in Costa
Mesa, California, and commonly known as the Sea Palms Apartments (the
"Project"); and
WHEREAS, 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 and for the public benefit that the City
declare its official intent to reimburse the expenditures referenced herein;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Costa Mesa declares and orders as follows:
1. The City intends to issue the Obligations for the purpose of paying the
costs of financing the acquisition, rehabilitation, and development of the Project.
2. The City hereby declares that it reasonably expects that a portion of the
proceeds of the Obligations will be used for reimbursement of expenditures for the
acquisition, rehabilitation, and development of the Project that are paid before the
date of initial execution and delivery of the Obligations.
3. The maximum amount of proceeds of the Obligations to be used for
reimbursement of expenditures for the acquisition, rehabilitation, and development
of the Project that are paid before the date of initial execution and delivery of the
Obligations is $13,500,000.00.
4. The foregoing declaration is consistent with the budgetary and financial
circumstances of the City in that there are no funds (other than proceeds of the
Obligations) 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 City, or any public
entity controlled by the City, for the expenditures for the acquisition and
rehabilitation of the Project that are expected to be reimbursed from the proceeds
of the Obligations.
5. The Developer shall be responsible for the payment of all present and
future costs in connection with the issuance of the Obligations, including, but not
limited to, any fees and expenses incurred by the City in anticipation of the
issuance of the Obligations, the cost of printing any official statement, rating
agency costs, bond counsel fees and expenses, underwriting discount and costs,
trustee fees and expense, and the costs of printing the Obligations. The payment
of the principal, redemption premium, if any, and purchase price of and interest on
the Obligations shall be solely the responsibility of the Developer. The Obligations
shall not constitute a debt or obligation of the City.
6. The law firm of Jones Hall Hill, A Professional Law Corporation, is hereby
named as bond counsel to the City in connection with the issuance of the
Obligations. The fees and expense of bond counsel and any financial advisor
employed by the City in connection with the issuance of the Obligation are to be
paid solely from the proceeds of the Obligations or directly by the Developer.
7. The appropriate officers or staff of the City are hereby authorized, for and
in the name of and on behalf of the City, to make an application to the California
Debt Limit Allocation Committee for an allocation of private activity Obligations for
the financing of the Project.
8. The adoption of this resolution shall not obligate (i) the City to provide
financing to the Developer for the acquisition, rehabilitation, and development of
the Project or to issue the Obligations for purposes of such financing; or (ii) the
City, or any department of the City, to approve any application or request for, or
take any other action in connection with, any environmental, General Plan, zoning,
or any other permit or other action necessary for the acquisition, rehabilitation,
development, or operation of the Project.
PASSED AND ADOPTED this 21" day of July, 1997.
ATTEST:
T
I 2)�A� �V Lt.��
Deputy City1 rk of the City of Costa Mesa
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA)
Mayor of the City of b&tlal Mesa
APPROVED AS TO FORM
IGJe -7-1-7-g7
rITY ATTORNEY
I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and foregoing
Resolution No. 7-6,S' was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on the 21 St day of July, 1997, by the
following roll call vote:
AYES: I UFF'gj MOMAfIAJ, ERIO-Ksan); c_.00A-A), 50MERS
NOES: NONE
ABSENT: / v 0N6-:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City of Costa Mesa this 22"d day of July, 1997.
Deputy City Ci6k and ex -officio Clerk of
the City Council of the City of Costa Mesa