Res 05-081
RESOLUTION NO. 05-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY
RECOGNIZING AND APPROVING THE ACTIVITIES OF WAKELAND
HOUSING AND DEVELOPMENT CORPORATION ('WAKELAND") (OR
AN ENTITY FORMED BY WAKELAND) WITH RESPECT TO THE
POWAY ROYAL MOBILEHOME PARK
WHEREAS, the Poway Redevelopment Agency (the "Agency") has requested
that the City of Poway (the "City") issue its 2005 Series A Housing Revenue Refunding
Bonds (First Lien Bonds) Poway Royal Mobile Home Park (the "First Lien Bonds") and,
on a subordinate basis to the First Lien Bonds, its 2005 Series B Housing Refunding
Revenue Bonds (Second Lien Bonds) Poway Royal Mobile Home Park (the "Second
Lien Bonds" and, together with the First Lien Bonds, the "Bonds") for the purpose of
making a loan to the Agency, the proceeds of which loan will be applied by the Agency
to pay to the City the purchase price for the Poway Royal Mobilehome Park (the "Park"),
and which purchase price will be applied by the City to currently refund those certain
1995 Refunding Certificates of Participation (City of Poway Capital Improvement
Project-Poway Royal Mobilehome Park) initially issued in the aggregate principal
amount of $31,770,000 (the "Prior Certificates"), which Prior Certificates refunded the
$28,300,000 City of poway Certificates of Participation (City of poway 1991 Capital
Improvement Project-Poway Royal Mobilehome Park); and
WHEREAS, the City presently owns the Park for purpose of providing safe and
affordable housing within its jurisdiction consistent with its housing burden under
California Government Code 965580; and
WHEREAS, the Agency has entered into a Purchase and Sale Agreement with
the City pursuant to which the Agency has agreed to purchase the Park from the City;
and
WHEREAS, the Agency has entered into a Mobilehome Park Sale and Operating
Agreement (the "Operating Agreement") with Poway Royal Estates, LLC, a limited
liability company formed by Wakeland Housing and Development Corporation
('Wakeland"), pursuant to which the Agency has agreed to sell the Park to Poway Royal
Estates, LLC, provided that it will not sell the Park absent an opinion of nationally
recognized bond counsel that the exclusion from gross income of interest on the Bonds
will not be adversely affected for federal income tax purposes as a consequence of
such sale, and therefore the Bonds are being issued as qualified 501(c)(3) bonds
pursuant to the Internal Revenue Code of 1986, as amended (the "Code"); and
WHEREAS, Poway Royal Estates, LLC will, if it purchases the Park, operate the
Park to serve the housing needs of the City and Agency pursuant to the Operating
Agreement and a Regulatory Agreement between Poway Royal Estates, LLC and the
Agency (the "Regulatory Agreement") to be executed and recorded upon the sale of the
Park to Poway Royal Estates, LLC; and
Resolution No. 05-081
Page 2
WHEREAS, the City Council has determined that the Park constitutes housing
that contributes to the satisfaction of the City's housing burden pursuant to California
Government Code 965580; and
WHEREAS, Wakeland, through its control of Poway Royal Estates, LLC, intends
to operate the Park such that it assists the responsibility of the City to provide affordable
housing consistent with California Government Code 965580;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
as follows:
Section 1. The City Council hereby recognizes and approves of the activities
of Wakeland (or an entity created by Wakeland) and Poway Royal Estates, LLC with
respect to the Park, operated pursuant to the Operating Agreement and the Regulatory
Agreement, such that it provides safe and affordable housing for City residents
consistent with California Government Code 965580 and consequently relieves a
burden of government of the City.
Section 2. This Resolution shall take effect upon adoption. The City Clerk
shall certify as to the approval of this Resolution.
PASSED, ADOPTED and APPROVED by the City Council of the City of Poway
at a regular meeting this 30th day of August 2005.
ATTEST:
~~~
L. Diane Shea, City Clerk
Resolution No. 05-081
Page 3
STATE OF CALIFORNIA )
) ss.
CITY OF POWAY )
I, L. Diane Shea, City Clerk of the City of Poway, do hereby certify under penalty
of perjury that the foregoing Resolution No. 05-081 was duly adopted by the City
Council at a regular meeting of said City Council held on the 30th day of August 2005,
and that it was so adopted by the following vote:
AYES:
BOYACK, EMERY, HIGGINSON, REXFORD, CAFAGNA
NOES:
ABSENT:
NONE
NONE
DISQUALIFIED: NONE
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City of poway