ORDINANCE No. 176325
• Give Final Approval for the Issuance of Multifamily Housing Revenue Bonds, Bookmark Project, Series 2002 in an aggregate principal amount not to exceed $3,900,000 (Ordinance)
The City of Portland ordains:
Section 1. The Council finds:
1. The City of Portland, Oregon (the "City") has the authority under ORS 280.410 to 280.485 (the "Act") to issue revenue bonds to finance economic development projects, which includes multifamily housing projects.
2. The City has adopted in Chapter 5.72 of the Code of the City of Portland (the "Code") procedures and standards for the application for an issuance of revenue bonds to finance economic development projects.
3. The Portland Development Commission (the "Commission"), the agency authorized to administer the economic development revenue bond program of the City, by Resolution No. 5482 adopted on June 21, 2000 (the “Resolution”), recommended to the City Council preliminary approval of issuance of multifamily housing revenue bonds in an amount not to exceed $5,000,000 to finance the development and construction of approximately 47 rental housing units and 38 parking spaces to be located on Tillamook Street between 40th Avenue and 41st Avenue in Portland, Oregon (the “Project”). Proceeds of the revenue bonds are to be loaned to Sockeye Hollywood, LLC (the "Company") pursuant to a purchase agreement and loan agreement as defined herein.
4. By Resolution No. 35896 adopted by the City Council of the City (the “Council”) on June 28, 2000 and Ordinance No. 175431 enacted by the Council on March 21, 2001, the Council approved the Company's application for revenue bond financing in an amount not to exceed $5,000,000 and authorized the execution of the Letter of Intent among the City, the Commission and the Company.
5. The City has received a 2001 private activity bond carry forward allocation in the amount of $3,900,000 for the Project from the State Private Activity Bond Committee.
6. By a Resolution adopted on March 13, 2002, the Commission recommended that the Council adopt an emergency ordinance authorizing the issuance of tax-exempt multifamily housing revenue bonds in an amount not exceeding $3,900,000 and that the Council determine, based on the report of the Commission staff, that the housing credit allocated to the Project does not exceed the amount necessary to assure Project feasibility throughout the federal low-income housing tax credit period.
NOW, THEREFORE, the Council directs:
a. The City is hereby authorized to issue tax-exempt multifamily housing revenue bonds to be designated City of Portland, Oregon Multifamily Housing Revenue Bonds (Bookmark Project), Series 2002 (the “Bonds”) in an aggregate principal amount of not to exceed $3,900,000 for the purpose of providing funds to reimburse the costs of development and construction of the Project with such interest, repayment, redemption and other terms and conditions, and subject to such provisions, covenants and agreements, as are substantially set forth in the Loan Agreement (the “Loan Agreement”) between the City and the Company, for the Bonds, as has been heretofore presented to the City for its review and approval.
b. The principal of and redemption premium, if any, and interest on the Bonds shall be special obligations of the City payable solely from revenues, guarantees and other amounts as set forth in the Purchase Agreement for the Bonds, between the City, U.S. Bank National Association (the “Bank”) and the Company (the "Purchase Agreement") and the Loan Agreement.
c. The City shall issue the Bonds in substantially the form or forms as heretofore presented to the City for its review and approval, with such changes as shall be approved by the City's representative designated below.
d. The Mayor and the Auditor of the City are hereby authorized and directed to execute the Bonds on behalf of and as the act and deed of the City by manual or facsimile signatures. Such officers of the City are hereby further authorized and directed to cause the seal of the City to be affixed thereto or printed thereon and to attest said seal. Such officers are hereby further authorized and directed to deliver the Bonds on behalf of the City to the Bank.
e. The Loan Agreement, Purchase Agreement, Deed of Trust, form of Bond and the Regulatory Agreement are hereby approved in substantially the forms submitted to and reviewed by the City on the date hereof and as attached hereto, together with such changes therein as shall be approved by the representative executing said documents or acceptance or endorsement thereof on behalf of the City, such representative's execution thereof to be conclusive evidence of such representative's approval thereof.
f. Based on the report of the Commission staff, the Council hereby determines that the housing credit allocated to the Project does not exceed the amount necessary to assure Project feasibility throughout the federal low-income housing tax credit period.
g. The City shall, and the officers and agents of the City are hereby authorized and directed to, take such action, expend such funds and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to carry out, comply with and perform the duties of the City with respect to the Bonds and the documents approved by this Ordinance.
h. The Council authorizes and directs the Debt Manager, the Director of the Bureau of Financial Management of the City, the Chief Administrative Officer of the Office of Management and Finance, or the person designated by the Chief Administrative Officer of the Office of Management and Finance, to act on behalf of the City and determine the remaining terms of the Bonds and execute and deliver the documents approved by this Ordinance and any documents or certificates required hereunder or thereunder.
Section 2. The Council declares that an emergency exists in order that there be no delay in issuing the Bonds, ensuring the favorable marketing of the Bonds and the allocation of tax credits for the benefit of the Company. Therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.
Passed by the Council: MAR 20 2002
Mayor Vera Katz GARY BLACKMER
Office of Management and Finance Auditor of the City of Portland
TG:EJ: Bond Counsel By: /S/ Susan Parsons
March 11, 2002
Deputy
BACKING SHEET INFORMATION
AGENDA NO. 261-2002
ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 176325
COMMISSIONERS VOTED AS FOLLOWS: |
YEAS | NAYS | |
FRANCESCONI | X | |
HALES | X | |
SALTZMAN | X | |
STEN | X | |
KATZ | X |