RES 2008-05 QUAY BAINBRIDGE APARTMENTSRESOLUTION NO. 2008-05
A RESOLUTION by the City of Bainbridge Island City Council,
Bainbridge Island, Washington declaring the' City's intent to
contribute funding in the approximate amount of $3,850,000 of
councilmanic bonds toward the purchase and renovation of the
Quay Bainbridge Apartments to provide safe and sanitary
affordable housing for households earning less than 80 percent of
the area's median income.
WHEREAS, in accordance with RCW Chapter 36.70A, the Growth Management Act,
the City of Bainbridge Island (the "City") adopted a Comprehensive Plan on September 1, 1994,
subsequently amended, that establishes a long-range vision for the City and identifies the
important characteristics that the community desires to retain, promote and foster, including a
Housing Element; and
WHEREAS, on October 13, 1999, the City Council passed Ordinance No. 99-45
creating and establishing a fund and sub -fund designated as the Bainbridge Island Housing Trust
Fund to support the development and preservation of affordable housing in accordance with the
City's Comprehensive Plan (codified as BIMC Chapter. 3.38); and
WHEREAS, in accordance with RCW Chapter 36.70A, the Growth Management Act,
the City Council passed Ordinance No. 2004-09 on December 8, 2004 which updated the
Comprehensive Plan to include new wording in GOAL 7 of the Housing Element that
recommends utilizing "the City's bonding capacity and other resources to support the creation of
affordable housing;" and
WHEREAS, on November 19, 2007, the Housing Trust Fund Executive Committee
reviewed a request for funding by the Lutheran Alliance to Create Housing ("LATCH") and the
Housing Resources Board ("HRB") and unanimously recommended that the City authorize
disbursing $100,000 to LATCH and HRB from the Housing Trust Fund for predevelopment
financing and contribute approximately $3,850,000 in councilmanic bonds to the approximately
$12,600,000 cost of acquisition and renovation of the Quay Bainbridge Apartments (the
"Project"); and
WHEREAS, on November 28, 2007, the City Council discussed the Housing Trust Fund
recommendations; and on December 5, 2007, passed a motion 6-1 in favor of authorizing
disbursement of $100,000 from the Housing Trust Fund for due diligence and authorized using
councilmanic bonds to be issued in the future in one or more series for a total contribution of
$3,850,000 in councilmanic bonds toward the purchase and renovation of the Quay Bainbridge
Apartments, in exchange for which the City would secure affordable housing for low-income
families on Bainbridge Island, now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
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Section 1. It is the intent of the City Council to authorize the use of the City's bonding
capacity in the approximate amount of $3,850,000 to be issued in the future in one or more
series through appropriate legal procedures and in accordance with applicable law for the
express purpose of providing the City's contribution to the permanent financing for the
acquisition and renovation of the Quay Bainbridge Apartments as proposed by the Lutheran
Alliance to Create Housing and the Housing Resources Board (the "Partnership"). It is
expected that the City will contribute approximately $1.5 million in 2008 and the remaining
amount in 2009.
Section 2. The Mayor and other proper City officials are authorized and directed to
negotiate, with the assistance of legal counsel, and present for Council approval such
agreements, including but not limited to an affordable housing regulatory agreement, as may
be necessary or desirable to carry out the Project. Execution of such agreement(s) and related
documents shall be subject to the approval of the City Council. Any actions of the City or its
officers prior.to the date hereof and consistent with the terms of this resolution are ratified
and confirmed. In the event that the City is unable to reach agreement with the parties, or the
City Council does not approve the form of the negotiated agreement(s), the City shall be
under no legal obligation to provide any contribution to the Project.
Section 3. The City intends to make (and/or, not more than 60 days before the date of this
declaration, has made) expenditures, and reasonably expects to reimburse itself for those
expenditures from proceeds of bonds, for the City's contribution to the Project.
Section 4. The City expects that the maximum principal amount of councilmanic bonds that
will be issued by the City to finance its contribution to the Project will be $3,850,000. The
City Council has reviewed its existing and reasonably foreseeable budgetary and financial
circumstances and has determined that the City reasonably expects to reimburse itself for
expenditures for the Project from proceeds of bonds because the City has no funds available
that already are, or are reasonably expected to be, reserved, allocated on a long-term basis, or
otherwise set aside by the City for those expenditures on the Project.
Section 5. The City will not, within one year after the expected reimbursement, use amounts
corresponding to proceeds received from councilmanic bonds issued in the future to
reimburse the City for previously paid expenditures for the Project in any manner that results
in those amounts being treated as replacement proceeds of any tax exempt bonds, i.e., as a
result of being deposited in a reserve fund, pledged fund, sinking fund or similar fund (other
than a bona fide debt service fund) that is expected to be used to pay principal of or interest
on tax exempt bonds. Nor will the City use those amounts in any manner that employs an
abusive arbitrage device to avoid arbitrage restrictions.
Section 6. This resolution shall be in full force and effect from and after its adoption and
approval. This declaration of official intent shall be dated as of the date of adoption of this
resolution.
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PASSED by the City Council this 13th day of February, 2008.
APPROVED by the Mayor. this 16'day ofF ruary, 2008.
By:
Darlene Kordonowy, Mayor
ATTEST/AUTHENTICATE:
By:�oxxti,r,�_
Rosalind D. D. Lassoff, CMC
City Clerk
FILED WITH THE CITY CLERK: -i0-v\,U(xh4 it, , 2008
PASSED BY THE CITY COUNCIL: February 13, 2008
RESOLUTION NO: 2008-05
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