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Home My WebLink AboutMINUTES - 09231997 - C68 Contra ' Costa TO: BOARD OF SUPERVISORS -T s County FROM: Dennis M. Barry, AICP Interim Community Development Director DATE: September 23, 1997 SUBJECT: Multi-Family Housing Revenue Refunding Bonds, 1994 Series A (Del Norte Place Apartments, EI Cerrito) SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT resolution authorizing the execution and delivery of a Supplemental Indenture in connection with the Contra Costa County Variable Rate Demand Multi-Family Housing Revenue Refunding Bonds, 1994 Series A (Del Norte Place Apartments, EI Cerrito); and actions related thereto. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS In 1994, the County issued $11,110,000 principal amount of multi-family housing revenue refunding bonds to refinance the mortgage of Del Norte Place Apartments, EI Cerrito. The project is built and is fully occupied. All principal and interest payments due on the bonds have been made. CONTINUED ON ATTACHMENT: XX YES SIGNATURE: Gni '�JTit�c-e RECOMMENDATION OF COUNTY ADMINISTRATOREC MMEND ON OF BOA COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON September 23, 1997 APPROVED AS RECOMMENDED X OTHER IT IS BY THE BOARD ORDERED that Resolution No. 97/497 is ADOPTED. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Source: Jim Kennedy 335-1255 cc: Community Development ATTESTED September 23, 1997 County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS via Community Development AND COUNTY ADMINISTRATOR John Stewart Co. Jones Hall Hill & White First Trust of California BY ��EPUTY Michaud & Hoshiyama JKAh sra27/hsgbond.bos _J The Trust Indenture for the bonds, among other things, currently requires that the calculation of excess earnings subject to rebate to the federal government on five year intervals be conducted each year. This is unnecessary, and this calculation may be conducted once each five years. This is the substantive change being approved in this Supplemental Indenture. J RESOLUTION NO. 97/497 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE EXECUTION AND DELIVERY OF A SUPPLEMENTAL INDENTURE, IN CONNECTION WITH ITS VARIABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE REFUNDING BONDS, 1994 SERIES A (GNMA COLLATERALIZED - DEL NORTE PLACE APARTMENTS), AND AUTHORIZING THE EXECUTION AND DELIVERY OF AND APPROVING OTHER RELATED DOCUMENTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH WHEREAS, the County of Contra Costa (the "County") is authorized pursuant to Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") to issue revenue bonds to provide funds to finance multifamily rental housing facilities; and WHEREAS, the County has heretofore issued its $11,110,000 principal amount of County of Contra Costa Variable Rate Demand Multifamily Housing Revenue Refunding Bonds, 1994 Series A (GNMA Collateralized - Del Norte Place Apartments) (the 'Bonds"), and loaned the proceeds thereof to Del Norte Place, A California Limited Partnership (the "Developer") for the purpose of refinancing the construction and development of a 135 residential unit mixed use multifamily housing and commercial rental project (the "Project") located at 1170 San Pablo Avenue in El Cerrito,California;and, WHEREAS, the Developer has requested that the County make amendments to the Trust Indenture dated April 1, 1994,between the County and First Trust of California,National Association, as successor to Bank of America National Trust and Savings Association, as Trustee (the "Trustee"), pursuant to which the Bonds were issued, executed and delivered in connection with the issuance and delivery of the Bonds, for the purpose of allowing the calculation of excess earnings subject to rebate to the Federal Government on five year intervals as required by the Internal Revenue Code of 1986 (the "Code"), rather than on annual intervals as now required in the Indenture, releasing a portion of the amounts held in the Reserve Fund established pursuant to the Indenture and reducing the Debt Service Reserve Requirement (as defined in the Indenture);and WHEREAS, pursuant to Section 801(k) of the Indenture, the terms thereof may be amended, without the consent of the Bondholders (as defined in the Indenture) but with the consent of the Credit Enhancement Provider (as defined in the Indenture), prior to the Conversion Date (as defined in the Indenture), to modify, alter, amend or supplement the Indenture in any respect, including amendments which would otherwise be required to be consented to by the Bondholders, if notice of the proposed supplemental indenture is given to the Bondholders at least 30 days before the effective date thereof, and; on or before such effective date, the Bondholders have the right to demand purchase of their Bonds pursuant thereto; and WHEREAS, the Conversion Date has not occurred, the Credit Enhancement Provider has consented to the execution and delivery of a supplemental indenture containing provisions which met the above-referenced requests of the Developer and the Bondholders have the right to demand purchase of their Bonds. NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, as follows: 1. The County hereby finds and declares that the above recitals are true and correct. 2. Supplemental Indenture No. 1 relating to the Bonds (the "Supplement") by and between the County and the Trustee, in the form on file with the Clerk of the Board, is hereby approved. Any one of the Chair, the Vice-Chair of the Board of Supervisors, the County Administrator, the Interim Director of the Community Development and the Deputy Director- Redevelopment of the Community Development Department of the County (collectively, the "Designated Officers") is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Supplement, and the County Administrator is hereby authorized and directed, for and in the name and on behalf ofthe County, to attest the Supplement in said form, together with such additions thereto or changes therein as are recommended or approved by. the Designated Officer executing the Supplement upon consultation with the Deputy Director-Redevelopment of the Community Development Department of the County and Bond Counsel to the County. 3. All actions heretofore taken by the officers and agents of the County with respect to the amendment of the Indenture pursuant to the provisions of the Supplement are hereby approved, confirmed and ratified, and the proper officers of the County, including the Designated Officers, are hereby authorized and directed, for and in the name and on behalf of the County, to do any and all things and take any and all actions and execute any and all certificates,agreements and other documents,which they, or any of them, may deem necessary or advisable in order to amend the Indenture pursuant to the provisions of the Supplement in accordance with this Resolution,including but not limited to those certificates, agreements and other document described in the Indenture and the other documents approved in connection with the execution and delivery thereof and any certificates, agreements or documents as may be necessary to evidence the amendment of the Indenture pursuant to the provisions of the Supplement. 4. This Resolution shall take effect immediately upon its adoption. ' PASSED AD ADOPTED this 23rd day of September, 1997 by the following vote: AYES: Supervisors Rogers, Uilkema, Gerber, Canciamilla, and DeSaulnier NOES: None ABSTAINING: None ABSENT: None Chair ATTEST: September 23, 1997 Phil Batchelor County Administrator and Clerk of the Board of Supervisors By:_ ------ Deputy Clerk