2012/09/11 City Council Resolution 2012-103RESOLUTION NO. 2012-103
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROHNERT PARK APPROVING, AUTHORIZING, AND
DIRECTING EXECUTION OF A RELEASE OF
SUPPLEMENTAL REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
RELATING TO THE RANCHO FELIZ MOBILE HOME
PARK LOCATED IN THE CITY OF ROHNERT PARK
WHEREAS, the Rohnert Park Financing Authority (the "Authority ") previously issued
its Mobile Home Park Revenue Bonds (Rancho Feliz Mobilehome Park) Series 2003A and its
Mobile Home Park Subordinate Revenue Bonds (Rancho Feliz Mobilehome Park) Series 2003B
(together, the "Prior Rancho Feliz Bonds ") and loaned the proceeds thereof to Millennium
Housing Corporation, a California nonprofit public benefit corporation ( "Millennium Housing "),
in order to provide financing with respect to the acquisition and improvement of the Rancho
Feliz Mobile Home Park (the "Rancho Feliz Project ") located in the City; and
WHEREAS, in connection with the issuance of the Prior Rancho Feliz Bonds by the
Authority, the Community Development Commission of the City of Rohnert Park (the
"Commission ") provided additional funds to assist Millennium Housing with the acquisition and
renovation of the Rancho Feliz Project; and
WHEREAS, as a condition to receiving the Commission assistance, Millennium Housing
entered into a Supplemental Regulatory Agreement and Declaration of Restrictive Covenants
(the "Supplemental Regulatory Agreement ") with the Commission whereby Millennium
Housing agreed to restrict the use of the Rancho Feliz Project; and
WHEREAS, on June 28, 2011 the Governor of the State of California signed into law
Assembly Bill No. 26 (the "Dissolution Act "), the constitutionality of which was subsequently
challenged and upheld by the California Supreme Court in the matter of California
Redevelopment Association et.al. v Ana Matosantos, et.al; and
WHEREAS, the Supreme Court's decision in the Matosantos matter required the
dissolution of all redevelopment agencies in California as of February 1, 2012; and
WHEREAS, Health and Safety Code Section 34176(a) allowed a city that authorized
creation of a redevelopment agency to elect to retain the housing assets and functions previously
performed by the redevelopment agency; and
WHEREAS, on January 10, 2012, the City Council of the City of Rohnert Park adopted
Resolution No. 2012 -10 to affirmatively elect, among other things, to retain the housing assets
and functions previously performed by the Commission, including those related to the
Supplemental Regulatory Agreement;
WHEREAS, the Independent Cities Finance Authority, a joint powers authority
organized and existing under the laws of the State of California (the "ICFA "), proposes to issue
its Mobile Home Park Revenue Refunding Bonds (Rancho Feliz .and Las Casitas de Sonoma)
DMWEST #9240566 v3
Series 2012A (the "Series A Bonds ") and its Mobile Home Park Subordinate Revenue
Refunding Bonds (Rancho Feliz and Las Casitas de Sonoma) Series 2012B (Federally Taxable)
(the "Series B Bonds" and, together with the Series A Bonds, the "Bonds ") and loan the proceeds
thereof to Millennium Housing, LLC, a California limited liability company (the "Owner ") to (i)
refund the Prior Rancho Feliz Bonds, (ii) finance certain additional renovations and
improvements to the Rancho Feliz Project, (iii) fund certain reserves and (iv) finance the costs of
issuing the Bonds; and
WHEREAS, in connection with the refinancing of the Prior Rancho Feliz Bonds,
ownership in the Rancho Feliz Project will be transferred to the Owner; and
WHEREAS, in connection with issuance of the Bonds, the Authority and the Owner will
enter into a Regulatory Agreement and Declaration of Restrictive Covenants with respect to the
Rancho Feliz Project setting forth certain covenants and agreements to restrict the use of the
Rancho Feliz Project, including certain covenants necessary to maintain the tax - exempt status of
the Series A Bonds; and
WHEREAS, in connection with the refunding of the Prior Rancho Feliz Bonds with the
proceeds of the Bonds, the Owner has requested that the City of Rohnert Park, as the successor
to the Commission, agree to release the Supplemental Regulatory Agreement recorded on the
Rancho Feliz Project pursuant to a Release of Supplemental Regulatory Agreement and
Declaration of Restrictive Covenants (the "Release of Supplemental Regulatory Agreement "), a
form of which is now before the City Council; and
WHEREAS, following the pricing of the Bonds, a final version of the Release of
Supplemental Regulatory Agreement, in substantially the form presented to the City Council on
the date hereof, with such changes as are not inconsistent with the purposes of this Resolution,
will be delivered to the Mayor or other proper officer for execution; and
WHEREAS, the City Council has previously determined that the issuance of the Bonds to
refinance the Prior Rancho Feliz Bonds and to finance additional renovations to the Rancho Feliz
Project will benefit the tenants residing therein and will benefit the City by improving the
affordable housing available within the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ROHNERT PARK AS FOLLOWS:
Section 1. The City Council hereby approves the execution of the Release of
Supplemental Regulatory Agreement in substantially the form presented to the City Council,
with such changes as are not inconsistent with the purposes of this Resolution. The Mayor, City
Manager, City Clerk, and any other proper officers and officials of the City, are hereby
authorized and directed to take all actions and do all things necessary or desirable hereunder with
respect to the Release of Supplemental Regulatory Agreement including, but not limited to, the
execution and delivery of any agreements, certificates, instruments and other documents which
they, or any of them, may deem necessary or desirable and not inconsistent with the purposes of
this Resolution.
DMWEST #9240566 v3 2
Section 2. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any additional financing with respect to the Rancho Feliz
Project or (ii) approve any application or request for or take any other action in connection with
any planning approval, pen-nit or other action necessary for the operation of the Rancho Feliz
Project.
Section 3. This Resolution shall take effect immediately upon its adoption.
I HEREBY CERTIFY that the above and foregoing resolution was passed and adopted
by the City Council of the City of Rohnert Park at its meeting held on the I Ith day of September,
2012, by the following vote:
AHANOTU: N 5 BELFORTE: A13SIA114 CALLINAN: A65AW STAFFORD: MACKENZIE: AJE
AYES: (3 ) NOES: ( 0 ) ABSENT: ( 0 ) ABSTAIN: ( 2 )
DMWEST #9240566 v3 3