SR 05:119 - Laserfiche WebLink

would be affordable to households with incomes at 80% or less of the area median income. The term of affordability was 15 years. In 1994, with cooperation and approval from the City, the bonds were refunded with the proceeds of refunding bonds issued by the City, and the borrower agreed to extend the terms of affordability from 2001 to 2018. The City did not incur any unreimbursed costs associated with the refunding. The borrower is now requesting that the City adopt a resolution which approves an amendment to the refunding bond indenture to defer a scheduled remarketing of the bonds from December 1, 2004 to December 1, 2009. City involvement is necessary at this time because the borrower and Wells Fargo Bank, the owner of all of the refunding bonds, did not take action on this matter prior to December 1, 2004. If the City does not take action, there will be a technical default of the bonds that can affect their tax-exempt status. Staff consulted with Paul Thimmig, bond counsel who informed the City that this action does not impact the City's relationship to the refunding bonds. Mr. Thimmig drafted the recommended resolution. Any costs related to this transaction will be borne by the borrower, not the City. As indicated, the project borrower has requested the City take this action which assures that the bonds are not impacted. The resolution authorizes the City Manager and City Clerk to execute the First Supplemental Indenture of Trust which is the document implementing the noted amendment and a related Modification of Deed of Trust, Promissory Note and Loan Documents. All of these documents are attached to this report. FISCAL IMPACT There is no financial impact to the City in taking this action. Any cost associated with drafting and recording documents will be borne by the project owner. Respectfully~a)/~z'~' ~ ~Submitted' ~~ Steven Bocian Nelson Fialho Deputy City Manager City Manager SR 05:119 Page 2