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HomeMy WebLinkAboutMINUTES - 10131992 - 1.55 (5) 55f A, .f 4 Contra Costa TO: BOARD OF SUPERVISORS :. FROM: Harvey E. Bragdon �o:.._, _..�� County , Director of Community Development DATE: October 13 , 1992 SUBJECT: Bond Sale Resolution — Park Regency Apartments SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Adopt Resolution authorizing the sale of Multi-Family Mortgage Revenue Bonds for the Park Regency Apartments, Pleasant Hill BART Station Area, and actions related thereto. FISCAL IMPACT No general fund monies are involved. The bonds are secured entirely by revenues pledged under the Indenture. No obligation, moral or otherwise, exists as a result of this action. Ongoing costs of the County in monitoring compliance with affordability requirements are to m� be paid by the developer. ' B`ACKGROUND/REASONS FOR RECOMMENDATIONS On July 28,, 1992 the Board of Supervisors authorized the submittal of an application to the State of California for. the necessary authority to issue multi-family tax exempt bonds for the Park Regency project. d CONTINUED ON ATTACHMENT: YES SIGNATURE: 7 RECOMMENDATION OF COUNTY ADMINISTRATOR REC NDATION OF BOARD C ITTEE APPROVE OTHER j SIGNATURE(S) : 4 a4- ACTION OF BOARD ON Z APPROVED AS RECOMMENDED J< OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A 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. Jim Kennedy, 646-4076 cc: Community Development CAO ATTESTED County Counsel PHIL BATCHELOR, CLERK OF Redevelopment Agency THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR SRA6/parkrcg.bos BY , DEPUTY i. f • z The State is scheduled to consider the County's application on October 21, 1992 . The project is located at 3110 Oak Road in the Pleasant Hill BART Station Area. The developer is Park Regency Partners (GBW Properties) . The Park Regency project is an essential component of the County's Pleasant Hill BART Station Area. The Redevelopment Agency and the developer have entered into a Disposition and Development Agreement. The Park Regency project is an 892 unit development. The initial 422 units of the project have already been financed with tax-exempt multi-family bonds in 1989 . This financing would refund these 1989 bonds and issue additional bonds so that a total of 672 units would be financed tax exempt. This financing will result in 135 of the units being reserved for very low income renters at affordable rents. The total amount of the financing is $60 million - $40 million in refunding bonds and $20 million in "new money" bonds. The tax exempt bonds to be issued will have security in the form of a letter of credit to be issued by Sumitomo Bank, backed up with a collateral pledge from Teachers Insurance and Annuity Association, an "AAA" rated insurance company, in which they would commit to purchase the $60 million loan in the event of a mortgage default. Pursuant to Section 147 (f) of the Internal Revenue Code, the County is required to hold a noticed public hearing on the proposed issuance of these bonds. This hearing was held before staff on August 13, 1992 . A summary of that hearing and a response to comments is provided as Attachment A. The bond sale resolution authorizes a number of actions, a summary of which is provided in Attachment B. ATTACHMENT A Summary of Public Hearing on Proposed Issuance of Multi-Family Mortgage Revenue Bonds (Park Regency Apartments, Pleasant Hill BART Station Area) . Pursuant to Federal Law the County is required to hold a public hearing on the proposed issuance of Multi-family- Mortgage Revenue Bonds. This noticed public hearing was held on August 13 , 1992 . The hearing officer was Jim Kennedy, Deputy Director-Redevelopment for Contra Costa County. A' summary of the hearing follows: No parties attended. No comments were received in writing. , ATTACHMENT B The attached resolution authorized a number of actions, a summary of which follows: 1. Authorizes the issuance of revenue bonds in an amount not to exceed $60 million; 2 . Approves the form of Indenture between the County and State Street Bank & Trust Company of California, as Trustee; 3 . Approves the form of Bond Purchase Agreement between the County, Developer and Goldman, Sachs & Co. as senior managing underwriter, and Artemis Capital and M. R. Beal as co-managing underwriters; 4. Approves form of. Loan Agreement between County and Developer; 5. Approves form of Regulatory Agreement between County, Trustee and Developer; 6. Approves form of Official Statement; 7. Authorizes the Chair, Vice-Chair, County Administrator, Director of Community Development, and Deputy Director- Redevelopment to take such other actions necessary to complete the sale of bonds and assistance related thereto.