R 3724
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RESOLUTION NO. 3724
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING THE ISSUANCE OF MUL TIFAMIL Y HOUSING
REVENUE BONDS FOR THE PURPOSE OF FINANCING THE
ACQUISITION AND CONSTRUCTION OF THE COURTLAND SENIOR
APARTMENTS
WHEREAS, the California . Statewide Communities Development Authority (the "Authority")
is authorized by the laws of the State of California (the "Law") to execute and deliver
multifamily housing revenue obligations for the purpose of financing the acquisition,
construction and development of multifamily residential rental facilities located within the
area of operation of the Authority which are to be occupied, in part, by very low and low
income tenants; and
WHEREAS, Courtland-Arroyo Grande, L.P., a California limited partnership (the "Borrower")
has requested the Authority to issue and deliver multifamily housing revenue obligations in
the anticipated principal amount not to exceed $10,000,000 (the "Obligations"), the
proceeds of which shall be used for the purpose of financing the acquisition and
construction of a 108 unit multifamily senior residential rental facility to be commonly known
as the Courtland Senior Apartments which is to be located at 1524 E. Grand Avenue in the
City of Arroyo Grande, California (the "Project"); and
WHEREAS, the Obligations to be issued and delivered to finance the acquisition and
construction of the Project will be considered "qualified exempt facility bonds" under
Section 142(a) of the Internal Revenue Code of 1986, as amended, (the "Code"), and
Section 147(f) of the Code requires that the "applicable elected representative" with respect
to the Project hold a public hearing on the issuance and delivery of the Obligations; and
WHEREAS, the City Council (the "City Council") of the City of Arroyo Grande (the "City") as
the "applicable elected representatives" to hold said public hearing, has held said public
hearing at which all those interested in speaking with respect to the financing of the Project
were heard.
NOW, THEREFORE, BE IT RESOLVED as follows:
1. ..The City Council hereby finds and determines that the foregoing recitals are true and
correct.
2. The City Council hereby approves the financing of the Project by the Authority with
the proceeds of the Obligations. Such approval is subject to the following conditions
and limitations: a) the approval of this Resolution does not itself constitute approval
for any provision of funding for the Project by the City or the Arroyo Grande
Redevelopment Agency (the "Agency") nor does it obligate the City or the Agency to
further consider the commitment of any moneys for the Project; b) approval of this
Resolution and its effectiveness is subject to the Agency obtaining, a reasonable
time prior to closing, covenants effective for at least 55 years, enforceable by the
Agency, assuring that units will be available at affordable rent to households eligible
for participation under Health and Safety Code Section 33334.2 and providing for
reporting of ongoing conforming occupancy at affordable rents as provided under the
Health and Safety Code, all in form and substance acceptable to Agency's Special
RESOLUTION NO. 3724
PAGE 2
Counsel; c) approval of this Resolution shall not affect the existing arrangement
under which certain Agency and/or City costs are borne by the Borrower; and d) this
Resolution shall remain in effect so long as the Obligations are issued not later than
February 28, 2004, but shall cease to be effective if the Obligations are not issued
on or before February 28,2004.
3. The issuance and delivery of the Obligations shall be subject to the approval of and
execution by the Authority of all financing documents relating thereto to which the
Authority is a party and subject to the sale of the Obligations by the Authority.
4. The adoption of this Resolution is solely for the purpose of meeting the requirements
of the provisions of the Internal Revenue Code of 1986, as amended, and shall not
be construed in any other manner, with neither the City nor its staff having fully
reviewed or considered the financial feasibility of the Project or the expected
operation of the Project with regards to any State of California statutory
requirements, and such adoption shall not obligate, without further formal action to
be taken by this City Council, including, but not limited to, the approval of the
financing documents by the City Council by resolution, (i) the City to provide
financing to the Developer for the acquisition, construction 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, construction, development
or operation of the Project.
5. The Director of Administrative Services/Deputy City Clerk of the City shall forward a
certified copy of this Resolution and a copy of the affidavit of publication of the public
hearing notice to:
Thomas A. Downey
Jones Hall, A Professional Law Corporation
650 California Street, 18th Floor
San Francisco, California 94108
6. This Resolution shall take effect immediately upon its adoption.
On motion by Council Member Costello, seconded by Council Member Dickens, and on the
following roll-call vote, to wit:
AYES: Council Members Costello, Dickens, Lubin, Runels and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 25th day of November, 2003.
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RESOLUTION NO. 3724
PAGE 3
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ATTEST:
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KELL YJ'ET ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
~~ITYMANAGER
APPROVED AS TO FORM:
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RESOLUTION NO. 3724
OFFICIAL CERTIFICATION
,,;.i:
I, KELL Y WETMORE, Director of Administrative Services/Deputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of perjury, that Resolution No. 3724 is a true, full,
and correct copy of said Resolution passed and adopted at a regular meeting of
the City Council of the City of Arroyo Grande on the 25th day of November, 2003.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 3rd day
of December, 2003.
RE, DIRECTOR OF ADMINISTRATIVE SERVICES/
DEPUTY CITY CLERK
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