HomeMy WebLinkAbout2015 066 CC RESO RESOLUTION NO. 2015-066
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF BALDWIN PARK, CALIFORNIA, AUTHORIZING THE
CITY OF BALDWIN PARK TO PARTICIPATE IN THE HUD
PUBLIC OFFERING AS PART OF THE SECTION 108
LOAN GUARANTEE ASSISTANCE PROGRAM TO
REFINANCE THE EXISTING NOTE OR OTHER
OBLIGATION IN THE ORIGINAL PRINCIPAL AMOUNT OF
$6,000,000 FOR THE LEWIS RETAIL PROJECT
WHEREAS, the City of Baldwin Park, by Resolution No. 2000-100, adopted October
18, 2000, authorized an application seeking loan guarantee assistance under Section
108 of the Housing and Community Development Act of 1974, as amended, from the
United States Department of Housing and Urban Development ("HUD"), and did
authorize its Chief Executive Officer to execute the documents necessary to accomplish
the transaction, and did accept HUD's guarantee of Section 108 Note Number B-00-
MC-06-0554 for the Lewis Retail Project under a Section 108 Contract for Loan
Guarantee Assistance dated March 8, 2002; and
WHEREAS, the assistance provided by HUD was the guarantee of a note in the original
principal amount of$6,000,000 plus interest thereon; and
WHEREAS, HUD has notified the City of Baldwin Park that a public offering will occur in
May 2015, and to participate, the City of Baldwin Park must immediately notify HUD of
its intention to refinance all or a portion of its existing Section 108 commitment through
the public offering; and
WHEREAS, HUD may require, as a condition of participation in the public offering, that
the City of Baldwin Park execute documents related to the transaction; and
WHEREAS, the City of Baldwin Park has previously agreed to pay the City of Baldwin
Park's share, as determined by HUD, of the customary and usual issuance,
underwriting, and other costs related to the public offering and future administration of
the Note and the trust certificates; and
WHEREAS, it is economically sound and in the best interest of the City of Baldwin Park
to accept more favorable fixed rates of interest under the Section 108 Loan Guarantee
program offered by HUD under the public offering;
NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of Baldwin
Park:
SECTION 1. That the Mayor, Chief Executive Officer, or their duly authorized agent,
shall notify HUD of the City of Baldwin Park's desires to participate in the May 2015
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• public offering by HUD through the loan guarantee assistance program under Section
108 of the Housing and Community Development Act of 1974, as amended, for the
existing obligation Note Number B-00-MC-06-0554 in the original principal amount of
$6,000,000 and to refinance the remaining principal amount of$2,902,000 at such rates
of interest that will be determined by HUD at the time of the public offering.
SECTION 2. That the Chief Executive Officer is authorized to execute the necessary
documents as required by HUD to refinance the existing guaranteed Section 108 Note,
and to execute such other documents, contracts, amendments and agreements with
HUD, and to authorize payment of any required fees as may be necessary to effectuate
this refinancing transaction.
SECTION 3. That the City Clerk shall certify to the adoption of this Resolution and the
same shall be in full force and effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED by the City C• • •f the City of Baldwin
Park this 27th day of April, 2015.
�1""r� &ZANO
MAY gut
• ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES s.
CITY OF BALDWIN PARK JJ
I, ALEJANDRA AVILA, City Clerk of the City of Baldwin Park, do hereby certify
that the foregoing resolution was duly and regularly approved and adopted by the City
Council of the City of Baldwin Park at an adjourned regular meeting of the City Council
on the 27th day of April, 2015 by the following vote:
AYES: COUNCILMEMBERS: Baca, Garcia, Lozano, Pacheco, Rubio
NOES: COUNCILMEMBERS: None.
ABSENT: OUNCILMEMBERS None.
ABSTAIN: O.NCIL /': S' None.
ALEJAND• AVILA
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