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Home My WebLink AboutMINUTES - 07082008 - C.106 s� . L ST'4`COUti'f'{ . TO: BOARD OF SUPERVISORS FROM: Dennis M. Barry, AICP, Interim Director Department of Conservation and Development DATE: July 8, 2008 SUBJECT: Multi-Family Mortgage Revenue Bonds — Lakeshore Apartments, Antioch SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT Resolution authorizing issuance of Multi-Family Housing Revenue Bonds in an amount not to exceed $35 million to finance the acquisition and renovation of the Lakeshore Aparl:ments, Antioch FISCAL IMPACT No General Fund obligation is involved. In the event bonds are issued, the County is reimbursed for costs associated with issuance of. bonds. Annual expenses related to monitoring of the Regulatory Agreement are accommodated in the bond issue. The bonds to be issued will be solely secured by a pledge of revenues(rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secure the bonds. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF: BOARD ON- AOPROVEP AS REItOMMENDED O ER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT 'TRUE AND CORRECT COPY OF AN YES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT:_ ABSTAIN:_ MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Jim Kennedy 335-7225 orig: Conservation and Development Dept. cc: County Administrator ATTESTED d County Counsel JOHN CULLEN, CI'E,RK OF THE Housing Authority BOARD OF SUPERVISORS Redevelopment Agency AND THE OU TY ADMINISTRATOR via: Conservation and Development Dept. Developer BY , DEPUTY City of Antioch G:\CDBG-REDE:V\IVIF MRB\7.8.08 Lakeshore apartments rev bonds.doc7.8.08/ l r BACKGROUND/REASONS FOR RECOMMENDATIONS Lakeshore Apartments are a 268-unit project located at 600 Wilbur Ave., Antioch. The ownership entity is a California limited partnership or a limited liability company to be formed by Ezralow Company, Capital Valley Investments, and/or Gala Construction Company. The City of Antioch is supportive of the acquisition and renovation of the Lakeshore Apartments. The proposed financing would implement policy of the City and the County to preserve the supply of affordable housing. The site is near transportation, retail services, and educational facilities. The County originally financed the construction of the Lakeshore Apartments in 1985 with the issuance of multifamily bonds. The 1985 Bonds were refunded and remarketed in 1992. An application for Private Activity Bond Authority is to be submitted to the California Debt Limit Allocation Committee in the summer of 2008. The recommended action is the adoption of a Resolution by the Board,as the legislative body of the County, authorizing the.issuance of bonds. The Board's action acknowledges that a public hearing has been held by the Deputy Director—Redevelopment as required by Section 147(f)of the Internal Revenue Code. The recommended action of the Board is not the Bond Sale Resolution. Such actions would come back to the Board after receipt of an allocation from the State for Private Activity Bond Authority. Expected timing for a Bond Sale Resolution would be in the Fall, 2008. JK:dk: G:\CDBG-REDEV\MF MRB\7.'8.08 Lakeshore apartments rev bonds.doc7.8.08/ THE. BOARD OF SUPERVISORS OF CONTRA COSTA.COUNTY, CALIFORNIA Adopted this Resolution on July 8, 2008 by the following vote: sE L AYES: GIOIA, UILKEMA, PIEPHO, BONILLA&GLOVER •; �� Ar `= -._ NOES: NONE ;a;t'q' nR :x ABSENT: NONE „ CSU U�t-L4' ABSTAIN: NONE SUBJECT: Resolution No. 2008/l/93 RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED $35,000,000 FOR THE FINANCING OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS LAKESHORE APARTMENTS,ANTIOCH. It is hereby RESOLVED by the Board that: WHEREAS,the County of Contra Costa(the"County")is authorized to issue multifamily housing revenue bonds pursuant to Section 52075 and following of the California Health and Safety Code; WHEREAS, the County desires to participate in financing the development of a 268-unit multifamily residential rental development generally known as Lakeshore Apartments and located at 600 Wilbur Ave.,Antioch, California(the"Project"),which will be owned and operated by a California limited partnership, or a California limited liability company related to or to be formed by Ezralow Company, Capital Valley Investments, or Gala Construction Company an entity related thereto (collectively, the "Borrower"); WHEREAS,to assist in financing the Project,the County intends to sell and issue not to exceed $35,000,000 aggregate principal amount of its multifamily housing revenue bonds(the "Bonds")and to loan the proceeds thereof to the Borrower, thereby reducing the cost of the Project and assisting in providing housing for low income persons; WHEREAS, pursuant to Section 147(f)of the Internal Revenue Code of 1986 (the"Code"), the financing of the.Project and the issuance of the Bonds by the County must be approved by the "applicable representative of the County" (as defined in the Code); WHEREAS,the Board of Supervisors of the County of Contra Costa(the"Board"), is the elected legislative body of the County and is one of the applicable elected representatives required to approve the financing of the Project and the Bonds under Section 147(f)of the Code; WHEREAS, pursuant to Section 147(f)of the Code, the Deputy Director—Redevelopment has, following notice duly given, held a public hearing regarding the financing of the Project and the issuance of the Bonds at which no public comments were made; and WHEREAS, the Board desires to approve the financing and the issuance of the Bonds; MOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa, as follows: Section 1. The Board hereby specifically finds and declares that the statements,findings and determinations of the County set forth above are true and correct. Section 2. For purposes of Section 147(f) of the Code, the .Board hereby authorizes the issuance of Bonds by the County to finance the Project. Section 3. The adoption of this Resolution does not(1)relieve or exempt the Borrower from obtaining any other permits or approvals that are required by, or determined to be necessary from, the County in connection with the Project, nor (2) obligate the Country to incur any obligation or provide financial assistance with respect to the Bonds or the Project. G:\CDBG-REDEV\MF MRB\7.8.08 res multi family lakeshore rev bonds.doc Section 4. All actions heretofore taken by the officers and agents of the County with respect to the financing of the Project and the sale and issuance of Bonds are hereby approved, ratified and confirmed, and any authorized officer of the County is 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 and deliver any an all certificates, agreements and other documents,which any such officer may deem necessary or advisable in order to effectuate the purposes of this Resolution. Section 5. This Resolution shall take effect upon its adoption. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown ATTESTED: July 8, 2008 John Culle ,Ad/Clerk of the Board of Supervisors And Cou ministrat r By Deputy RESOLUTI 2008/ Y93 cc: Department of Conservation and Development Redevelopment Division G:\CDBG-REDEV\MF MRB\7.8.08 res multi family lakeshore rev bonds.doc