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HomeMy WebLinkAboutResolution - 1541 1 RESOLUTION N0. 1541 2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, INDICATING ITS 3 INTENT TO PROVIDE FINANCING IN CONNECTION WITH THE SI`GL� F V1 iLY HOUSI r- PRnJECT P:.)- 4 `USED BY ^.LL 11E;T DrVELrMEr!T COPDQRATMM' , 5 WHEREAS, the City Council of the City of San Jacinto is 6 authorized pursuant to Chapter 1 (Commencing with Section 52000 of Part 5 7 of Division 31 of the Health and Safety Code (the "Act") , to provide finan- 8 cial assistance for single family residential developments within the City; 9 and 10 WHEREAS, All West Development Corporation, a California corpora- 11 tion, has requested financial assistance in connection with the construction 12 cf a sinnl^ family hcu,sinq project proposed to be locate' o;i the northeast 13 corner of Hewitt Street and Seaver Street in the Cite of Can Jacinto (herein- 14 after the "P:,oject") • and 15 WHEREAS, the City, as an inducement to All West Development 16 Corporation, is willing to authorize the issuance of obligations in an 17 amount sufficient to provide financing for the Project subject to the re- 18 strictions of the Act and all applicable State and Federal laws as they 19 presently exist, providing that the Project receives all necessary govern- 20 mental approvals. 21 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City 22 of San Jacinto as follows : 23 SECTION 1 . The City Council hereby determines that the under- 24 taking of the financing of the proposed Project by the City will be a 25 substantial factor in the accrual of public benefits to be received from 26 the Project, should the Project be approved and constructed, and that the 27 proposed financing is in accord with the purposes and requirements of the Act. 28 SECTION 2. Subject to the completion of the proceedings and 29 other matters relating thereto, to the full satisfaction of the City Council , 30 and subject to the proposed Project receiving all necessary governmental 31 approvals, the City Council hereby agrees to provide financial assistance 32 to the Company or such other person or entity approved by the City, through 1 the issuance of obligations in an amount of approximately $4,500,000.00 or 2 such higher amount as is necessary to finance the Project. 3 SECTION 3. The obligations to be issued shall be a special obli- 4 gation of the City payable solely from revenues to be received by the City 5 pursuant to a loan or other financing agreement in a form acceptable to 6 the City and All West Development Corporation and shall not be a general 7 obligation of the City, State, or any political subdivision of the State. 8 SECTION 4. The Mayor is hereby directed to indicate the willing- 9 ness on the part of the City to proceed with and effect such financing and 10 to advise the Corporation that subject to compliance with all requirements 11 of law and the obtaining of all necessary consents and approvals and to the 12 happening of all acts and conditions, the City will take all necessary action 13 to issue obligations in the amount hereinabove provided to pay the cost of 14 the Project. 15 SECTION 5. The City is hereby authorized to commence the Project 16 It is intended that this Resolution shall constitute "some other similiar 17 official action" toward the issuance of indebtedness within the meaning of 18 the Internal Revenue Code of 1954, as amended. 19 SECTION 6. The adoption of this Resolution shall not bind the 20 City to issue bonds until and unless all other necessary actions and annro- 21 vals are taken or received in accordance with all applicable laves . The 22 adoption of this Resolution does not and shall not limit in any manner what- 23 ever, the City' s full discretion to deny any further permit or aPoroval that 24 may be necessary for ultimate completion of the proposed project. 25 SECTION 7. Subject to any arbitrage restrictions in the Internal 26 Revenue Code of 1954, the City shall be paid 1/lOth of 1% of the principal 27 amound of the Bonds to reimburse it for its administrative costs incurred at 28 issuance and 1/10th of 1% of the outstanding principal amount of the bonds 29 each .year thereafter as reimbursement for its yearly administrative costs . 30 SECTION 8. This Resolution shall take effect immediately upon 31 adoption. 32 --------------------------------------------------------------------------- -2- 1 MOVED, PASSED AND ADOPTED the 9th day POG - aII1Iof une 1984 . 2 ATTEST: — , —� ? 3 rla.y D ity Cler 4 5 CE°iIFICATE 6 The foreaoinq is certified to be a true copy of Resolution Mo. 7 1541 duly adopted by the said City Council of the City of San Jacinto on 8 the date set forth therein. / eouty 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 -2-