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Home My WebLink About2017-7 - Approving the Issuance by the California Statewide Communities Development Authority of Multifamily Housing Revenue Bonds for the Uptown Newport I Apartments and Uptown Newport II ApartmentsRESOLUTION NO. 2017-7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE UPTOWN NEWPORT I APARTMENTS AND UPTOWN NEWPORT II APARTMENTS WHEREAS, the California Statewide Communities Development Authority ("Authority") is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 ("Agreement"), among certain local agencies throughout the State of California, including the City of Newport Beach ("City"), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; WHEREAS, Uptown Newport Building Owner, LP or a partnership created by TPG/TSG Venture I Acquisition, LLC, has requested that the Authority adopt a plan of financing providing for the issuance of multifamily housing revenue bonds ("Bonds") in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, to finance the acquisition, construction and development of the following multifamily rental housing projects located within the City: WHEREAS, the facilities are respectively known as Uptown Newport I Apartments and Uptown Newport II Apartments ("Projects") and operated by Picerne Management Corporation; WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 ("Code"); WHEREAS, pursuant to Code Section 147(f), prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; Aggregate Number Maximum Bond Name Location of Units Amount Uptown Newport 1 4301 Jamboree Road, 233 $92,000,000 Apartments Newport Beach, California Uptown Newport II 4201 Jamboree Road, 222 $100,000,000 Apartments Newport Beach, California WHEREAS, the facilities are respectively known as Uptown Newport I Apartments and Uptown Newport II Apartments ("Projects") and operated by Picerne Management Corporation; WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 ("Code"); WHEREAS, pursuant to Code Section 147(f), prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; Resolution No. 2017-7 Page 2 of 3 WHEREAS, the City Council held a public hearing and previously approved the issuance of the Bonds on January 26, 2016, but the Code requires that the issuance of the Bonds happen within one (1) year of approval by the City, therefore the City is complying with the Code by conducting a new hearing and reapproving the Bonds; WHEREAS, the members of this City Council are the applicable elected representatives of the City; WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; WHEREAS, such public hearing was conducted on such date, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; WHEREAS, the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed the Project ('Refunding Bonds"), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH RESOLVES AS FOLLOWS: Section 1: The above recitals are true and correct and are incorporated into the substantive portion of this resolution. Section 2: The City Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitutes approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. Section 3: The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing approved hereby. Resolution No. 2017-7 Page 3 of 3 Section 4: The City Clerk shall forward a certified copy of this resolution to: Justin Cooper, Esq. Orrick, Herrington & Sutcliffe LLP 405 Howard Street San Francisco, California 94105 Section 5: All significant environmental effects associated with the Uptown Newport Apartments have been adequately addressed in the previously certified Environmental Impact Report No. ER2012-001 (SCH No. 2010051094) ("EIR"), which included a mitigation, monitoring and reporting program and statement of overriding considerations. Although the subject action will not result in a direct or reasonable foreseeable indirect physical change to the environment, the City of Newport Beach intends to use said document for the approval of the subject action. Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 7: This resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 24th day of January, 2017. ATTEST: j/�n Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY AT 1M S OFFICE Aaron C. arp City Attorney STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2017-7 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 24th day of January, 2017, and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Herdman, Council Member Avery, Council Member Dixon, Council Member Peotter, Council Member O'Neill, Mayor Pro Tem Duffield, Mayor Muldoon NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 25th day of January, 2017. Leilani I. Brown, MMC` City Clerk Newport Beach, California (Seal)