1994 SPEC MIN SEPT 29 - Laserfiche WebLink

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SPECIAL CITY COUNCIL MEETING SEPTEMBER 29, 1994 In accordance with notice duly and legally given, a Special Meeting of the City Council of the City of Colton was held on the above given date at 6:00 p.m., in the Council Chambers of City Hall, Mayor Gonzales presiding. ROLL CALL• Councilmembers present were Bennett, Sandoval, Cook, Beltran, and Mayor Gonzales. Also present were City Manager Martinez, City Attorney Biggs, and City Clerk Ramos. Absent was Councilmember Rios. Colton Variable Rate Multifamily Mortgage Revenue Bonds Mayor Gonzales announced the purpose of the Special Meeting is to consider and take action on the following two resolutions. Mayor Gonzales read the resolutions by title. 1. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON, CALIFORNIA, AUTHORIZING AND APPROVING EXECUTION OF AMENDMENT TO INDENTURE OF TRUST FOR THE $7,500,00 CITY OF COLTON VARIABLE RATE MULTIFAMILY MORTGAGE REVENUE BONDS (FIRST NATIONWIDE SAVINGS PROGRAM) 1985 ISSUE A. 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON, CALIFORNIA, APPROVING TRANSFER OF PROJECT SECURING THE $7,500,000 VARIABLE RATE MULTIFAMILY MORTGAGE REVENUE BONDS (FIRST NATIONWIDE SAVINGS PROGRAM) 1985 ISSUE A, ASSIGNMENT AND ASSUMPTION AGREEMENT RELATED THERETO AND THE EXECUTION AND DELIVERY OF SAID DOCUMENTS AND RELATED DOCUMENTS IN CONNECTION WITH THE TRANSFER AND REFINANCING OF THE PROJECT. City Treasurer Williams said he was filling in for Alexis Crump of Sabo and Green, who is stuck in freeway traffic. Treasurer Williams reported in 1985, the City of Colton issued Variable Rate Multifamily Mortgage Revenue Bonds in the principal amount of $7,500,000. The proceeds of the Bonds were used to fund a loan to provide financing for a multifamily rental housing development within the City. The mortgage note was secured by a letter of credit on the Bonds which was provided by First Nationwide Bank. The bank foreclosed upon the Note securing the Letter of Credit and became the owner of the Project through its subsidiary First Prudential Corporation. The Credit Bank is being sold and is therefore winding down its 1