CC Resolution 8581
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11/11/93
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RESOLUTION NO. 8581
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CAMPBELL AUTHORIZING THE ISSUANCE OF REVENUE BONDS
FOR THE PURPOSE OF PROVIDING FINANCING FOR A
MULTIFAMILY RENTAL HOUSING DEVELOPMENT
WHEREAS, the City of Campbell (the "City") is authorized by Chapter 8 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, rehabilitation and development of
multifamily rental housing facilities located within the City; and
WHEREAS, the San Tomas/Charities Housing Corporation has requested the City to
issue and sell revenue bonds for the purpose of financing the acquisition of land and the
rehabilitation thereon of an approximately 100-unit rental housing development located at 825 S.
San Tomas Aquino Road in the City of Campbell (the "Project"); and
WHEREAS, the City wishes to induce the Developer (as defined below) to acquire the
Project and, in particular, to do so at such location; and
WHEREAS, it is the public interest, for the public benefit and in furtherance of the public
purposes of the City. to finance the acquisition of multifamily rental housing facilities located within
the City which facilities will include affordable housing and that the City authorize revenue bonds
for the aforesaid purposes;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Campbell as
follows:
Section 1. The City Council hereby authorizes the issuance and sale of the multifamily
housing revenue bonds (the "Bonds") of the City pursuant to the Act in a principal amount of not
to exceed Ten Million Five Hundred Thousand Dollars ($10,500,000) for the purpose of providing
financing for the acquisition and rehabilitation of the Project to San Tomas/Charities Housing
Corporation, or such other 501 (c)(3) corporation formed by the San Tomas/Charities Housing
Corporation organized for the purpose of acquiring the Project, and its successors and assigns
(the "Developer"). The City hereby declares that it reasonably expects to use a portion of the
proceeds of the Bonds for reimbursement of expenditures for the Project that are paid prior to the
date of issuance of the Bonds.
Section 2. The issuance and sale of the Bonds shall be upon such terms and conditions
as may be mutually agreed upon 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 of the City.
Section 3. The proceeds of the Bonds shall include such related and necessary issuance
expenses, administrative costs, debt service reserves and interest payments as may be
required successfully to 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, rehabilitation 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, which costs shall be paid out of the proceeds
of the issuance of the Bonds and amounts contributed by the Developer, if necessary, 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 City Manager or his designee is hereby authorized, for and in the name of and
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on behalf of the City, to enter into an agreement with the Developer pursuant to which the
Developer will agree to reimburse the City for all non-contingent costs incurred in connection with
the issuance of the Bonds. The payment of the principal, redemption premium, if any, and
purchase price of and interest on the Bonds shall be solely the responsibility of the Developer
and the payment of such amounts shall be credit enhanced by bond insurance provided by an
insurance company acceptable to the City, a guaranteed pass-through certificate issued by the
Federal National Mortgage Association or secured by an irrevocable direct pay letter of credit
issued by a financial institution acceptable to the City. The Bonds shall not constitute an
obligation of the City or the Campbell Redevelopment Agency (the "Agency").
Section 6. The law firm of Jones Hall Hill & White, A Professional Law Corporation, is
hereby named as bond counsel to the City in connection with the issuance of the Bonds. The
fees and expense of bond counsel and the financial advisor in connection with the issuance of
the Bonds are to be paid solely from the proceeds of the Bonds or directly by the Developer.
Section 7. The adoption of this Resolution shall not obligate (i) the City or the Agency to
provide financing to the Developer for the acquisition and rehabilitation of the Project or to issue
the Bonds for purposes of such financing; or (ii) the City, the Planning Commission of the City or
any other department of the City or the Agency 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, rehabilitation or operation of the Project.
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PASSED AND ADOPTED this.J...ltll. day of December ,1993, by the following vote:
AYES:
NOES:
ABSENT:
Councilmembers: Conant, Ashworth, Burr, Dougherty, Watson
Councilmembers: None
Councilmembers: None
ATTEST:
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l City Clerk
Anne Bybee
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/~ Jeanette Watson
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CLERK
STATE OF CALIFORNIA )
COUNTY OF SANTA CLARA ) 55.
CITY OF CAMPBELL )
I, Anne Bybee. City Clerk, do hereby certify that the foregoing Resolution No. 8581 was
passed and adorPcted at a regular meeting of the City Council of the City of Campbell held on the
1 it-hday of ecember. 1993, by the following vote of the members thereof:
AYES:
Counci1members: Conant, Ashworth, Burr, Dougherty, Watson
NOES:
Counci1members: None
ABSENT:
Counci1members: None
AND I FURTHER CERTIFY that the Mayor of the City of Campbell signed said Resolution No.
8581 on the 15th day of December. 1993.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 16th day of Decelt1be~
1993.
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CITY CL RK
Anne Bybee
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