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HomeMy WebLinkAboutResolution - 3786STATE OF CALIFORNIA ) RESOLUTION NO. 3786 COUNTY OF RIVERSIDE) ss. CITY OF SAN JACINTO ) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO APPROVING THE ISSUANCE BY CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY OF NOT TO EXCEED $16,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE AUTHORITY'S REVENUE OBLIGATIONS FOR THE BENEFIT OF SAN JACINTO VALLEY ACADEMY, INC. FOR THE PURPOSE OF FINANCING THE COST OF ACQUISITION, CONSTRUCTION, DEVELOPMENT, INSTALLATION, EQUIPPING AND FURNISHING OF EDUCATIONAL FACILITIES AND RELATED AND ANCILLARY FACILITIES WHEREAS, San Jacinto Valley Academy, Inc., a nonprofit public benefit corporation duly organized and existing under the laws of the State of California, and/or a related or successor entity (the "Borrower") has requested that the California Enterprise Development Authority (the "Authority") issue tax-exempt and/or taxable revenue obligations in an amount not to exceed $15,000,000 (the "Obligations"), for and on behalf of the Borrower, pursuant to the provisions of Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the "Act"), to (a) finance and refinance the costs of the acquisition, construction, development, installation, equipping and furnishing of approximately 90,000 square feet of educational facilities and related and ancillary facilities for up to 1,800 students in kindergarten through 12th grade, located at 480 N San Jacinto Ave, San Jacinto, California 92583 and at an approximately 6.73 acre parcel located adjacent to the south thereof (collectively, the "Facilities"), (b) funding a reserve fund, a repair and replacement fund, and capitalized interest with respect to the Obligations, if necessary; and (c) paying certain expenses incurred in connection with the issuance of the Obligations, including any applicable credit enhancement costs for the Obligations; and WHEREAS, the Borrower owns and operates the Facilities as an educational institution for students in kindergarten through 12th grade; and WHEREAS, the City of San Jacinto (the "City") is an Associate Member of the Authority and is eligible to participate in the Authority's financing programs; and WHEREAS, the issuance of the Obligations shall be subject to the approval of and execution by the Authority of all financing documents relating thereto to which the Authority is a party; and WHEREAS, the Facilities are located within the territorial limits of City; and WHEREAS, the interest on the Obligations may qualify for tax exemption under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code") only if the Obligations are approved in accordance with Section 147(f) of the Code; and WHEREAS, the City Council of the City (the "City Councii") is the elected legislative body of the City and is the applicable elected representative required to approve the issue within the meaning of Section 147(f) of the Code; and WHEREAS, the Borrower and the Authority have requested the City Council to approve the issuance of the Obligations in order to satisfy the public approval requirements of Section 147(f) of the Code; and WHEREAS, it is intended that this Resolution shall comply with the public approval requirements of Section 147(f) of the Code; provided, however, that this Resolution is neither intended to nor shall it constitute an approval by the City Council of the Facilities for any other purpose; and WHEREAS, a public hearing was held by the City Council on this 3rd day of December, 2019, at the meeting which commenced at the hour of 6:30 p.m., at the San Jacinto Community Center, 625 S. Pico Ave, San Jacinto, Califomia 92583, following a duly published notice thereof in a newspaper of general circulation in the City of San Jacinto, on November 26, 2019, and all persons desiring to be heard have been heard; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Jacinto, as follows: Section 1, The City Council hereby finds and determines that all of the recitals are true and correct. Section 2. The City Council hereby approves the issuance of the Obligations by the Authority, from time to time, pursuant to a plan of finance, which Obligations may be tax-exempt and/or taxable as approved by the Authority in its resolution, in an amount not to exceed $15,000,000 to finance and refinance the costs of the Facilities. This resolution shall constitute "host" approval of the issuance of the Obligations within the meaning of Section 147(f) of the Code and shall constitute the approval of the issuance of the Obligations within the meaning of the Act; provided, however, that this Resolution shall not constitute an approval by the City Council of the Facilities for any other purpose. The City shall not bear any responsibility for the tax-exempt status of the interest on the Obligations, the payment of the principal of or interest on the Obligations or any other matter related to the Obligations. The City does not have any responsibility for the debt and is not pledging any assets as security for the debt. Section 3. All actions heretofore taken by the officers, employees and agents of the City with respect to the approval of the Obligations are hereby approved, confirmed and ratified, and the officers and employees of the City and their authorized deputies and agents are hereby authorized and directed, jointly and severally, to execute and deliver any and all certificates and documents which they or bond counsel may deem necessary or advisable in order to consummate the Obligations and otherwise to effectuate the purposes of this Resolution. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing for the Facilities; (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, construction, rehabilitation or operation of the Facilities; or (iii) make any contribution or advance any funds whatsoever to the Authority. Section 5. This Resolution shall take effect from and after its adoption. Section 6. The City Clerk of the City of San Jacinto shall certify the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council meeting on the 31d day of December 2019 by the following vote: AYES: Kotyuk, Ledezma, Lopez, Ruiz, Utz NAYS: None ABSENT: None ABSTAIN: None CITY OF SAN JACINTO: Andrew Kotyuk, Mayor ATTEST: An i a' &F, t ity Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER, LLP c0 Michael J. Maurer, City Attorney 0 STATE OF CALIFORNIA) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO) CERTIFICATION I, Angela Walton, duly appointed City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 3786 was duly passed, approved and adopted at a regular meeting of the City Council of the City of San Jacinto on the 3rd day of December 2019, by the following vote: AYES: Kotyuk, Ledezma, Lopez, Ruiz, Utz NAYS: None ABSENT: None ABSTAIN: None WITNESS MY HAND AND OFFICIAL SEAL of the City of San Jacinto this 3rd day of December 2019. 14"_ a Walton, City Clerk C of San Jacinto