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HomeMy WebLinkAboutRES CC 2007 2640 2007 1003RESOLUTION NO. 2007 -2640 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX - EXEMPT OBLIGATIONS AND DIRECTING CERTAIN ACTIONS (ESSEX PORTFOLIO, L.P.) WHEREAS, the City of Moorpark (the "City ") intends to issue tax - exempt obligations (the "Obligations ") for the purpose, among other things, of making a loan to Essex Portfolio, L.P., a California limited partnership, or a California limited partnership or limited liability company formed by or related to Essex Portfolio, L.P. (the "Owner "), the proceeds of which shall be used by the Owner to finance the acquisition and construction of a 200 -unit multifamily housing facility to be located at 150 Casey Road in the City of Moorpark, California and to be commonly known as Essex Moorpark Apartments, L.P. (the "Project "); and WHEREAS, the City is authorized by Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Law ") to issue and sell revenue bonds for the purpose of financing the acquisition and construction of multifamily rental housing facilities to be occupied in part by low and very low income tenants; and WHEREAS, United States Income Tax Regulations Section 1.150 -2 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 (the "Tax Law Reimbursement Provisions "); 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, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City intends to issue the Obligations for the purpose of paying the costs of financing the acquisition and construction of the Project. SECTION 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 and construction of the Project that are paid before the date of initial execution and delivery of the Obligations. Resolution No. 2007 -2640 Page 2 SECTION 3. The maximum amount of proceeds of the Obligations to be used for reimbursement of expenditures for the acquisition and construction of the Project that are paid before the date of initial execution and delivery of the Obligations is $50,000,000. SECTION 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 construction of the Project that are expected to be reimbursed from the proceeds of the Obligations. SECTION 5. The Owner 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 City's financing fee with respect to the issuance of the Obligations, the City's annual administration fee with respect to administering the provisions of a regulatory agreement with respect to the Project, the cost of printing any official statement, rating agency costs, bond counsel fees and expenses, financial advisor 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 Owner. The Obligations shall not constitute a debt or obligation of the City. SECTION 6. This City Council hereby further determines that it is appropriate for the City to issue the Obligations to finance the acquisition and construction of the Project. SECTION 7. In the event it is determined that the Bonds will be issued to finance the acquisition, construction and development of the Project, the City Manager is 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 bonds for the financing of the Project or to request the transfer of an existing application, and to execute contracts with bond counsel and the financial advisor in substantially the forms on file with the City Clerk with such changes or deletions as shall be deemed necessary by such officials or staff. SECTION 8. The adoption of this Resolution is solely for the purpose of meeting the requirements of the Code and shall not obligate the City, without further formal action to be taken by this City Council, to (i) provide financing to the Owner for the acquisition and construction of the Project or to issue the Obligations for purposes of such financing; or (ii) 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 or operation of the Project. Resolution No. 2007 -2640 Page 3 SECTION 9. The City Clerk shall cause a certified resolution to t PASSED AND ADOPTED thi: ATTEST: Maureen Benson, Assistant City Cle Resolution No. 2007 -2640 Page 4 STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss. CITY OF MOORPARK ) I, Maureen Benson, Assistant City Clerk of the City of Moorpark, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 2007 -2640 was adopted by the City Council of the City of Moorpark at a regular meeting held on the 3rd day of October, 2007, and that the same was adopted by the following vote: 2007. AYES: Councilmembers Mikos, Millhouse, Parvin, Van Dam, and Mayor Hunter NOES: None ABSENT: None ABSTAIN: None WITNESS my hand and the official seal of said City this 3rd day of October, Maureen Benson, Assistant City Clerk (seal)