HomeMy WebLinkAboutResolution - - JPFA-42 - 5/25/2017 OF
FRESNO JOINT POWERS FINANCING AUTHORITY o�rta Oct lYti
RESOLUTION NO. JPFA-42
A RESOLUTION OF THE FRESNO JOINT POWERS
FINANCING AUTHORITY AUTHORIZING THE
ASSIGNMENT OF THE PROMISSORY NOTES FROM THE
CITY OF FRESNO CULTURAL ARTS PROPERTIES
CORPORATION TO THE CITY OF FRESNO AS
REPAYMENT FOR CITY OF FRESNO'S LOAN IN THE
AMOUNT OF $12,690,500 AND DIRECTING THE
EXECUTION OF ALL NECESSARY DOCUMENTS AND
TAKING ALL ACTIONS NECESSARY TO ACCOMPLISH
ASSIGNMENT
WHEREAS, the City of Fresno (City) and the Fresno Joint Powers Financing
Authority (JPFA) participated in a New Market Tax Credit (NMTC) transaction in which
the City provided the JPFA with Twelve Million Six Hundred Ninety Thousand Five
Hundred Dollars ($12,690,500) to enable the JPFA to make a loan to FBB Investment
Fund, LLC (the Investment Fund) and investment fund created for the NMTC
transaction; and
WHEREAS, the Investment Fund used the JPFA loan proceeds, along with
equity raised by an investor to make an equity contribution in the Clearinghouse NMTC
(Sub 18), LLC, a community development entity created to facilitate the investment in
low-income communities through the use of New Market Tax Credits (the CDE); and
WHEREAS, the CDE utilized the Investment Fund investment in the CDE to
make a loan to the City of Fresno Cultural Arts Properties Corporation, a California
nonprofit public benefit corporation (the COFCAP) in the approximate amount of Sixteen
Million Six Hundred Sixty Thousand Dollars ($16,660,000) (the CDE Loan); and
Date Adopted: 05/25/2017
Date Approved: 05/25/2017
Effective Date: 05/25/2017 Page 1 of 3 Resolution No. JPFA-42
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WHEREAS, the CDE Loan is evidenced by two promissory notes executed9'4"'
COFCAP in favor of the CDE, which are secured by a deed of trust recorded against
COFCAP's Property, commonly referred to as the Fresno Bee Building; and
WHEREAS after the NMTC compliance period terminated, the CDE Loan was
assigned to the Investment Fund to redeem its interest in the CDE; and the CDE in turn,
assigned the CDE Loan to the JPFA as repayment of the loan made to the Investment
Fund by the JPFA; and
WHEREAS, the JPFA now wishes to fully repay the loan made by the City to the
JPFA assigning the CDE Loan to the City in lieu of paying the City loan in cash; and
WHEREAS, the JPFA desires to assign its rights, interests, duties and
obligations under the COFCAP promissory notes and deed of trust to the City and the
City desires to accept and assume such rights, interests, duties and obligations as more
fully set forth herein; and
NOW, THEREFORE, BE IT RESOLVED by the Fresno Joint Powers Financing
Authority that:
1. The Fresno Joint Powers Financing Authority authorizes the assignment
of the COFCAP promissory notes and the COFCAP deed of trust as repayment of the
City of Fresno's loan to the JPFA; and
2. The Fresno Joint Powers Financing Authority authorizes the execution of
any and all documents and assignments necessary for the consummation of any and all
other activities contemplated in this Resolution.
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SECRETARY'S CERTIFICATION 4D Oct.NV
STATE OF CALIFORNIA )
COUNTY OF FRESNO ) ss.
CITY OF FRESNO )
I, Yvonne Spence Secretary of the Fresno Joint Powers Financing
Authority (the "Authority") certify that the foregoing resolution was adopted by the Board
of the Authority at a special meeting held on the 25th day of MaV 2017.
AYES: Baines, Olivier
NOES None
ABSENT: Brand
ABSTAIN: None
Secretary
By q-lel�
(D�'uty
APPROVED AS TO FORM:
DOUGLAS T. SLOAN
City Attorney
By. x-1 (, • (3 -17
Raj Singh Badhesha Date
Deputy
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