HomeMy WebLinkAbout91-83 - Rental Housing Development at 2450 Newport Blvdzy;
RESOLUTION NO. 91-83
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, AUTHORIZING THE ISSUANCE
OF REVENUE BONDS FOR THE PURPOSE OF PROVIDING
FINANCING FOR A SINGLE-ROCM OCCUPANCY (SIO) MULTI-
FAMILY RENTAL HOUSING DEVELOPMENT AT 2450 NEWPORT
BOULEVARD.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS
FOLLOWS:
WHEREAS, the City of Costa Mesa (the "City") is authorized by Chapter
7 of Part 5 of Division 31 of the California Health and Safety Code, as
amended (the "Act"), to issue and sell its revenue bonds for the purpose
of financing the construction and development of multi -family rental
housing facilities within the City; and
WHEREAS, Butler-O'Bryon & Associates has applied to the City to issue
and sell revenue bonds for the purpose of financing the acquisition of
property located at 2450 Newport Boulevard in the City of Costa Mesa, and
development thereon of an approximate 96 -unit single -room occupancy ("SRO")
rental housing development (the "Project"); and
WHEREAS, the City wishes to induce Butler-O'Bryon & Associates and
its successor or assignee, to acquire and develop the Project and, in
particular, to do so at such location; and
WHEREAS, it is in the public interest, for the public benefit and in
furtherance of public purposes of the City to finance the development of
SIO multi -family rental housing facilities which will provide affordable
housing within the City and to authorize revenue bonds for the aforesaid
purposes;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Costa Mesa as follows:
SECTION 1. The City Council hereby authorizes the issuance and sale
of multi -family housing revenue bonds (the "Bonds") of the City pursuant
to the Act in a principal amount of not -to -exceed six and one-half million
dollars ($6,500,000.00) for the purpose of providing financing to Butler-
O'Bryon & Associates, or its successors and assignees (the "Developer"),
for the acquisition and development of the Project.
SECTION 2. The issuance and sale of the bonds shall be upon such
terms and conditions as may be mutually agreed upon by the City, the
Developer and the purchaser of the Bonds and subject to completion of
proceedings for the issuance, sale and delivery of the Bonds by and to
the satisfaction of the City.
SECTION 3. The proceeds of the Bonds shall include such related and
necessary issuance expenses, administration costs, debt service reserves
and interest payments as may be required to successfully accomplish the
financing of the Project.
SECTION 4. The City Council hereby finds that the issuance of the
Bonds is a substantial inducement to the Developer to acquire, convert and
develop the Project.
SECTION 5. The Developer shall be responsible for the payment of all
present and future costs in connection with the issuance of the Bonds,
including but not limited to, any fees and expenses incurred by the City
in anticipation of the issuance of the Bonds, the cost of printing any
official statement, rating agency costs, bond counsel fees and expenses,
underwriting discount and costs, trustee fees and expenses, and the cost
of printing the Bonds. The Bonds shall not constitute a debt or obligation
of the City.
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SECTION 6. It is intended that this Resolution also shall constitute
"some other similar official action" toward the issuance of indebtedness
within the meaning of Section 103 of the Internal Revenue Code of 1986, as
amended, and regulations thereunder.
SECTION 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
application to the California Debt Limit Allocation Committee for an
allocation of Private Activity Bonds for a multi -family rental housing
bond project to enable the City to issue bonds for the financing of the
Project and to execute and deliver a fee agreement for bond counsel
services, so long as such agreement has been approved by the City Attorney.
SECTION 8. The adoption of this Resolution shall not obligate (i)
the City or the Redevelopment Agency of the City to provide financing to
the Developer for the acquisition, construction, and development of the
Project, or to issue the Bonds for purposes of such financing; or (if)
the City, the Redevelopment Agency of the City, the Planning Commission 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 environ-
mental, General Plan, zoning or any other permit or other action necessary
for the acquisition, construction, development, or operation of the Project.
PASSED AND ADOPTED this 4th day of November 1991.
Mayor the City of Costa Mesa
ATTEST:
Ci y Clerk of the City of Costa Me J
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and fore-
going Resolution No. 91-83 was duly and regularly passed and adopted by
the said City Council at a regular meeting thereof held on the 4th day of
November 1991.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal
of the City of Costa Mesa this 5th day of September 1991.
Cilty Clerk and fficio Cler of the
City Council of the City of CcUa Mesa
J