CC Resolution 8579
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RESOLUTION NO. 8579
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 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 multifamily rental
housing facilities located within the City; and
WHEREAS, the Greenbriar Development Company has requested the City to issue and
sell revenue bonds for the purpose of financing the acquisition of land and construction thereon of
an approximately 348-unit rental housing development to be located on 12.44 acres located at
500 Railway Avenue at the southeast corner of the intersection of Railway Avenue and Kennedy
Avenue in the City of Campbell (the "Project"); and
WHEREAS, the City wishes to induce the Developer (as defined below) to acquire and
construct 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 construction and development 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 Fifty Million Dollars ($50,000,000) for the purpose of providing financing for the
acquisition, construction and development of the Project to Greenbriar Development Company
(the "Company"), its successors and assigns or any partnership or other business entity
established for the purpose of constructing the Project in which the Company has an ownership
interest (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, construct 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.
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 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 Bonds for a multifamily rental housing
bond project to enable the City to issue bonds for the financing of the Project and to execute and
deliver the fee agreement for bond counsel services by and between the City and Jones Hall Hill
& White, A Professional Law Corporation, substantially in the form attached hereto as Exhibit A,
with such changes as such appropriate officer or staff of the City executing such fee agreement
deems necessary.
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 (ii) 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 environmental, 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 16 day of NOv. ,1993, by the following vote:
AYES:
NOES:
Counci1members:
Conant, Ashworth, Burr, Dougherty, Watson
Counci1members:
None
ABSENT:Counci1members: None
ATTEST:
C:a-..-~~--
/~ Mayor
~9anette Watson
/)J
-~~
Anne Bybee, City Clerk
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CLERK
STATE OF CALIFORNIA
COUNTY OF CAMPBELL
CITY OF SANTA CLARA
)
) SS.
)
I, linn B~be ' City Clerk, do hereby certify that the foregoing Resolution No. 8579 was
passed an~ adopted at a regular meeting of the City Council of the City of Campbell held on the
Nov~mber 16, 1993, by the following vote of the members thereof:
AYES:
Councilmembers: Conant, Ashworth, Burr, Dougherty, Watson
NOES:
Councilmembers: None
ABSENT:
Councilmembers: None
AND I FURTHER CERTIFY that the Mayor of the City of Campbell signed said Resolution No.
8579 on the 17th day of November ,1993.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 23rd day of Novembe:r
1993.
tL-~
CITY CLERK
Anne Bybee