RESOLUTION NO. _______________
RESOLUTION APPROVING, AUTHORIZING AND DIRECTING
EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT
RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY
AND APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE
OF REVENUE BONDS BY THE AUTHORITY TO FINANCE AND
REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF MP 965 WEEKS STREET ASSOCIATES, L.P., A
CALIFORNIA LIMITED PARTNERSHIP, AND CERTAIN OTHER
MATTERS RELATING THERETO
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 Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”) in order to form the California Municipal 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, City of East Palo Alto (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, there is now before the City Council of the City of East Palo Alto (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 the construction or rehabilitation of capital projects; and
WHEREAS, MP CANDO Weeks Street, LLC, a California limited liability company (the “General Partner”), an affiliate of MidPen Housing Corporation, a California nonprofit benefit corporation, and East Palo Alto Community Alliance and Neighborhood Development Organization (collectively, the “Sponsor”), on behalf of MP 965 Weeks Street Associates, L.P., a California limited partnership, or another ownership entity to be formed by the General Partner or another affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”), has requested that the Authority undertake a plan of finance, including the issuance of revenue bonds in the maximum principal amount of $75,000,000 (together with a like amount of refunding obligations) (the “Bonds”), to finance and refinance (1) the costs of the acquisition, development, construction and equipping of a 136-unit qualified residential rental project (the “Project”) to be located at 965 Weeks Street, on a site generally situated east of Clarke Avenue, south of Bay Road and west of Pulgas Avenue, within the City of East Palo Alto, California (the “City”), and to be owned and operated by the Borrower; and (2) pay certain expenses in connection with the issuance of the Bonds; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), requires that an “applicable elected representative” of a 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 plan of finance for the Project, including the issuance of the Bonds, and approve such plan of finance 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 plan of finance for the Project, including 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 City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the plan of finance for the Project and the Authority’s issuance of the Bonds; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the plan of finance for the Project, including 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 recitals are true and correct, incorporated by reference into this action.
Section 2. The Agreement is hereby approved and the Mayor, City Manager or the designee thereof is hereby authorized and directed to execute said document, and the City Clerk or such Clerk’s designee is hereby authorized and directed to attest thereto.
Section 3. The City Council hereby approves the plan of finance for the Project, including the issuance of the Bonds by the Authority, to finance and refinance the Project.
It is the purpose and intent of the City Council that this resolution constitute approval of the plan of finance for the Project, including the issuance of the Bonds, (a) by the “applicable elected representative” of a governmental unit having jurisdiction over the area in which the Project is to be 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 4. 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.
Section 5. 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, construction, 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 6. The Mayor, the City Manager, the 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 7. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel:
Ronald E. Lee, Esq.
Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111
Section 8. This resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED by the City Council of the City of East Palo Alto at a regular meeting of the City Council held on the 5th day of September 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Gauthier, Mayor
ATTEST: APPROVED AS TO FORM:
James Colin, City Clerk John D. Lê, City Attorney