CC Resolution 2012-007RESOLUTION NO. CC 2012 - 007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, APPROVING THE ISSUANCE
OF TAX - EXEMPT OBLIGATIONS IN AN AMOUNT NOT
TO EXCEED TWENTY -SIX MILLION DOLLARS BY THE
CALIFORNIA MUNICIPAL FINANCE AUTHORITY TO
FINANCE THE ACQUISITION OF A LEASEHOLD
INTEREST IN REAL PROPERTY AND THE DEVELOPMENT
THEREON OF ONE HUNDRED SEVENTY SIX
AFFORDABLE APARTMENT UNITS WITHIN THE CITY OF
LA QUINTA
WHEREAS, the California Municipal Finance Authority (the "Issuer "), a public
entity of the State of California, intends to issue tax - exempt obligations in a
principal amount not expected to exceed $26,000,000 (the "Obligations ") for the
purpose, among other things, of making a loan to Coral Mountain Apartments, L.P.,
a California limited partnership or limited liability company established by Coral
Mountain AGP, LLC (the "Developer"), the proceeds of which shall be used by the
Developer to finance the acquisition of a leasehold interest in real property and the
development thereon of a multi - family rental facility to be located at the
intersection of Dune Palms Road and Highway 1 1 1, in the City of La Quinta, and to
be known as Coral Mountain Apartments (the "Development "); and
WHEREAS, the Issuer is authorized by Chapter 7 of Part 5 of Division 31 of
the Health and Safety Code of the State of California (the "Law ") to issue and sell
revenue bonds for the purpose of financing the acquisition of a leasehold interest in
real property and the development thereon of a multi - family rental facility to be
occupied in part by low- and very low- income tenants; and
WHEREAS, the Obligations will be considered to be "qualified exempt facility
bonds" under Section 142(a) of the Internal Revenue Code of 1986, as amended
(the "Code "), and Section 147(f) of the Code requires that the "applicable elected
representative ", which is the City Council of the City of La Quinta, shall hold a
public hearing on and approve the issuance of the Obligations; and
WHEREAS, the City Council is the elected legislative body of the City; and
WHEREAS, a notice of public hearing was published in a newspaper of
general circulation in the City of La Quinta, to the effect that a public hearing
would be held by the City Council on the date hereof regarding the issuance of the
Obligations by the Issuer and the nature and location of the Development; and
Resolution No. CC 2012 -007
Approving the Issuance of Tax - Exempt Obligations
Adopted: April 3, 2012
Page 2 of 3
WHEREAS, this City Council held said public hearing, at which time and
opportunity was provided to present arguments both for and against the issuance
of such Bonds and the nature and location of the Development; and
WHEREAS, it is in the public interest and for the public benefit that the City
approve the issuance and delivery of the Obligations by the Issuer for the purpose
of financing the acquisition, construction and development of the Development;
and
WHEREAS, the City shall not have any liability for the repayment of the
Obligations or any responsibility for the Development.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta, California, as follows:
SECTION 1. The City hereby finds and determines that the foregoing recitals are
true and correct.
SECTION 2. The City hereby approves the issuance and delivery of the Obligation
by the Issuer for the purpose of paying the costs of financing the acquisition of a
leasehold interest in real property and development of said Development.
SECTION 3. The adoption of this Resolution shall not bind the City or the Issuer to
issue the Obligations. Additionally, the adoption of this Resolution does not and
shall not limit in any manner whatever the full discretion of the City to deny and
further permit or approval that may be necessary for ultimate completion of the
proposed Development.
SECTION 4. This Resolution shall take effect upon its adoption.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
Council, held on this 3r day of April, 2012, by the following vote, to wit:
AYES: Council Members Evans, Franklin, Henderson, Osborne, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
Resolution No. CC 2012 -007
Approving the Issuance of Tax - Exempt Obligations
Adopted: April 3, 2012
Page 3 of 3
DON AD LPH, ayor
City of La Quinta, California
ATTEST:
SUSAN MAYSELS, In rim City Clerk
City of La Quinta, California
(City Seal)
APPROVED AS TO FORT:
A„ / A
M
M: KATHERINE JEAN, City Attorney
City of La Quinta, Uvalifornia