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HomeMy WebLinkAboutResolution - 3741 STATE OF CALIFORNIA ) RESOLUTION NO. 3741 COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) RESOLUTION APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA PUBLIC FINANCE AUTHORITY AND APPROVING THE ISSUANCE OF REVENUE BONDS BY THE AUTHORITY FOR THE PURPOSE OF FINANCING OR REFINANCING THE CONSTRUCTION, ACQUISITION, EQUIPPING AND IMPROVING OF CERTAIN PUBLIC CHARTER SCHOOL FACILITIES FOR THE BENEFIT OF BAYPOINT ACADEMY PROPERTIES, LLC (OR AN AFFILIATE THEREOF) WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement Relating to the California Public Finance Authority, dated as of May 12, 2015 (the "Agreement") in order to form the California Public Finance Authority (the "Authority"), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the City of San Jacinto, California (the "City"), has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and WHEREAS, the City proposes to become an Additional Member of the Authority pursuant to Section 12 of the Agreement; and WHEREAS, there is now before this City Council (the "City Council") the form of the Agreement; and WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the construction of capital projects; and WHEREAS, Baypoint Academy Properties, LLC (the "Borrower"), the sole member of which is Baypoint Preparatory Academy, a California nonprofit public benefit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), has requested that the Authority participate in a plan of finance involving the issuance of one or more series of education facility revenue bonds issued from time to time, in an aggregate principal amount not to exceed $50,000,000 (the "Bonds") to (1) finance and/or refinance the costs of the acquisition, I construction, improvement and equipping of land and certain charter school educational facilities, including classroom and administrative spaces and related and appurtenant facilities, to be located at or adjacent to 1010 S. Lyon Avenue, San Jacinto, California 92582 (the "Facilities"); (2) pay costs of issuance of the Bonds, (3) fund all or a portion of a debt service reserve fund deposit, capitalized interest, and related working capital (collectively, the "Project").; and WHEREAS, the Facilities will be leased to and operated by Baypoint Preparatory Academy, a California nonprofit public benefit corporation and an organization described in Section 501(c)(3) of the Code, as a public charter school; and WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Code, requires that an "applicable elected representative" of the governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the Bonds following such hearing; and WHEREAS, the Authority has determined that the City Council is an "applicable elected representative"for purposes of holding such hearing; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and, the requirements of Section 4 of the Agreement; and WHEREAS, notice of such public hearing has been duly given as required by the Code, and this Board has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the financing or refinancing of the Project and the Authority's issuance of the Bonds therefor; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the issuance of the Bonds by the Authority for the aforesaid purposes; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, AS FOLLOWS; Section 1. The foregoing resolutions are true and correct. Section 2. The City Council hereby approves the plan of financing and the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental unit having jurisdiction over the area in which the Project is located in accordance with Section 147(f) of the Code and; (b) by the City Council in accordance with Section 4 of the Agreement. Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. I Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 5. The executing officers(s), the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. Section 6. The Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel: Kerrigan Bennett, Esq. Stradling Yocca Carlson & Rauth, a Professional Corporation 44 Montgomery Street, Suite 4200 San Francisco, CA 94104 Section 7. This resolution shall take effect immediately upon its passage. PASSED, APPROVED AND ADOPTED this 16th day of October, 2018 by the following vote: Ayes: Kotyuk, Miller, Utz, Ruiz Nays: None Absent: None Abstain: Ledezma CI OF SAN JACINTO: 7Z Crystal uiz, Mayor ZATTE : twwaltbn,'City Clerk APPROVED AS TO FORM: Best a/st Krieger, LLP Michael J. Maurer, City Attorney y 5 CERTIFICATION STATE OF CALIFORNIA COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) I, Angela Walton, City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 3741 was passed, approved, and adopted at the Regular Meeting of the San Jacinto City Council held on the 16th day of October 2018. Ayes: Kotyuk, Miller, Utz, Ruiz Nays: None Absent: None Abstain: Ledezma WITNESS MY HAND AND OFFICIAL SEAL this 16thday of October 2018. gel alton, City Clerk C f San Jacinto