Res85 10047 - Laserfiche WebLink

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WHEREAS, as an inducement to Redwood Shores Apartment Associates, Ltd., a California limited partnership (the "Developer"), designee of Paragon Group, Inc., to undertake the acquisition of land, improvements, buildings and equipment (the "Project") for multifamily rental housing use in the City, the City in furtherance of the purposes of the Act and to assist in financing the cost of the Project proposes to issue its Multifamily Housing Revenue Bonds (Redwood Shores Apartments Project), Series 1985B, in a principal amount of not to exceed $28,000,000 (the "Bonds") and to secure the Bonds pursuant to an Indenture of Trust (the "Indenture") to be entered into with Security Pacific National Bank, a national banking association (the "Trustee"); WHEREAS, the City proposes to apply the proceeds of the Bonds to the financing of the acquisition, construction and equipping of the Project pursuant to a Loan Agreement between the City and the Developer (the "Loan Agreement") providing, in part, for payments by the Developer sufficient to meet installments of interest and principal on the Bonds, and the Developer proposes to restrict the use of the Project pursuant to a Regulatory Agreement and Declaration of Restrictions among the City, the Trustee and the Developer (the "Regulatory Agreement") providing, in part, that units be reserved for occupancy for certain persons, families or households, that such units remain available on a priority basis for such occupancy for a certain period of time, and that the restrictions be binding upon successors in interest of the Developer, and for recordation in the Office of the County Recorder of San Mateo County, California, the county in which the Project is located, and incorporating guidelines (the "Program Guidelines") and forms for use in the administration of certain provisions of the Loan Agreement and the Regulatory Agreement; WHEREAS, to fund the Loan Agreement the City proposes to enter into a Bond Purchase Agreement (the "Bond Purchase Agreement") with Boettcher & Company, Inc. (the "Underwriter"), pursuant to which the Underwriter proposes to purchase and pay for the Bonds, and to provide for the performance of the duties of Remarketing Agent under the Indenture, the Underwriter proposes to accept the duties and obligations imposed upon the Remarketing Agent by the Indenture by means of a written instrument of acceptance with the City and the Trustee, the fees of the Underwriter as Remarketing Agent pursuant to which are to be paid exclusively from the Administration Account established under the Indenture or by the Developer as provided by the Indenture; WHEREAS, the Underwriter has caused a preliminary Official Statement relating to the Bonds to be submitted to the City for approval for distribution to prospective purchasers of the Bonds; MFH0072.RWC/7 -2- 10/23/85