CC Resolution 7976
RESOLUTION N0. 7976
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 MULTI-FAMILY 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 multi-family rental housing facilities located
within the City; and
WHEREAS, Campbell Creekside Partnership LP has applied to the City to
issue and sell revenue bonds for the purpose of financing the acquisition of
land and construction thereon of an approximately 435-unit rental housing
development to be located on 12.44 acres located southeast 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 in the public interest, for the public benefit and in
furtherance of the public purposes of the City to finance the construction and
development of multi-family 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
multi-family 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 to Campbell Creekside Partnership LP, or
its successors and assigns (the "Developer"), for the acquisition, construction
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 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,
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 Redevelopment Director of the City is hereby authorized, for and in
the name of and 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 insured by bond insurance
provided by an insurance company acceptable to the City or secured by an
irrevocable direct pay letter of credit issued by a financial institution
acceptable to the City. The Bonds shall not constitute a debt or 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 same 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 multi-family 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 7th day of August, 1990, by the following roll call
vote:
AYES: COUNCILMEMBERS: Watson, Conant, Burr, Ashworth
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: xotowski
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Bar ara Olsasky, City Cler
APPROVED:
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RN J. ASHWORTH, MAYOR