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HomeMy WebLinkAboutMINUTES - 01111994 - 1.58 1. 5 Contra Costa TO: BOARD OF SUPERVISORS w�nu C it J FROM: Harvey E. Bragdon \ Director of Community Development DATE: January 11, 1994 SUBJECT: Inducement Action for Multifamily Projects SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT resolution conditionally providing for the issuance of revenue bonds to finance multifamily rental housing developments to be owned by the parties listed as the ownership entity of Exhibit A attached. FISCAL IMPACT None. In the event that the bonds are issued, the County is reimbursed . for costs incurred in the issuance process. Annual expenses for monitoring of Regulatory Agreement provisions are accommodated in the bond issue. In the event that no bond issue occurs, the County has already been paid an "Inducement Fee" to offset expenses. BACKGROUND/REASONS FOR RECOMMENDATIONS The owners of prospective multifamily rental housing developments desire to be included in a future multifamily revenue bond financing . program. In order to provide financing eligibility for costs incurred, the development must be induced, i.e. , . a conditional statement of intent by the Board of Supervisors must be adopted. The inducement action does not obligate the County or the owner without future discretionary actions. CONTINUED ON ATTACHMENT: XX YES SIGNATURE: dcm1 J ? ,,,4e, RECOMMENDATION OF COUNTY ADMINISTRATOR RECO ATION O BOARD CO ITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON January 11, 1994 APPROVED AS RECOMMENDED X OTHER The Board adopted Resolution No. 94/62. VOTE OF 'SUPERVISORS XX _ 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 orig: Community Development cc: Housing Authority January 11, 1994 County Administrator ATTESTED County Counsel PHIL BATCHELOR, CLERK OF via Community Development THE BOARD OF SUPERVISORS City of Antioch AND COUNTY ADMINISTRATOR JK:1h Jay Wilton sra12hnduce.bos BY /i C , DEPUTY V EXHIBIT A Name of Maximum Location Number of Name of Development Amount of Units Developer/ of Bond Development Initial Issue Owner Oakwood $20,000,000 2201 Sycamore 300 Ownership entity is Village Dr. , Antioch a California limited Apartments (Parcel One: Partnership named Lot 128, as Antioch Sycamore shown on the Partners. The map of General Partners of Subdivision 4910, Antioch Sycamore filed March 31, Partners will be 1977 in Book 195 Heatherstone of Maps, Page 15, Investors, a Contra Costa California Limited County Records; Partnership whose and Parcel Two: General Partner is AP #074-380-001) Heatherstone Capital Incorporated, whose shareholders are Dale Frost and Bob Chaffey; and the other General Partner will be a California Limited Partnership named Wilray Investors, whose General Partner is Wilray Capital Incorporated, whose shareholders are Jay Wilton and Bill Raymond. i THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on January 11, 1994 by the following vote: AYES: Supervisor Powers, Bishop, McPeak, Torlakson NOES: None ABSENT: Supervisor Smith ABSTAIN: SUBJECT: Resolution of the County of Contra ) RESOLUTION NO. 94/62 Costa Conditionally Providing for ) the Issuance of Revenue Bonds to ) Finance the Construction of a ) Multi-Family Housing Developments ) WHEREAS, the County of Contra Costa (the "County" ) is a legal subdivision and body corporate and politic of the State of California, duly organized and existing under the Constitution and laws of the State of California; and WHEREAS, the Board of Supervisors of the County, after careful study and consideration, has determined that there is a shortage of safe and sanitary housing within the County, and that it is in the best interest of the residents of the County and in furtherance of the health, safety and welfare of the public for the County to assist in the financing of housing developments; and WHEREAS, pursuant to Division 31 of the Health and Safety Code of the State of California, and particularly Chapter 7 of Part 5 thereof (the "Act" ) , the County is empowered to issue and sell bonds for the purpose of making mortgage loans or otherwise providing funds to finance the development of multi-family rental housing including units for lower income households and very low income households; and WHEREAS, the Board of Supervisors has now determined to provide financing for the multi-family developments identified in Exhibit A hereto (the "Developments" ) , and in order to finance the Developments the County intends to issue, at one time or from time to time, revenue bonds pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa as follows: 1. The Board of Supervisors hereby determines that it is necessary and desirable to provide construction and permanent financing for the Developments pursuant to the Act or other appropriate authority, by the issuance of mortgage revenue bonds (the "Bonds" ) , in an aggregate principal amount not to exceed the amounts set forth in Exhibit A, subject to the conditions that with respect to any Development to be financed, (i) the County by resolution shall have first agreed to acceptable terms and conditions for the bonds (and for the sale and delivery thereof) , and for an indenture and all other agreements with respect to any of the foregoing; ( ii) all requisite governmental approvals shall have first been obtained; (iii) the bonds shall be payable solely RESOLUTION NO. 94/62 Page 2 from revenues received with respect to loans or other investments made with the proceeds of such bonds, and neither the full faith nor the credit of the County shall be pledged to the payment of the principal of, or interest on any such bond; (iv) the County and the respective developer/initial owner thereof identified on Exhibit A hereto, or any partnership, corporation or other entity to be formed by such developer/initial owner or by any principal thereof, or any successor to the interests thereof approved by the County (in any such case, the "Owner" ) , shall have entered into a preliminary agreement concerning the financing, in substantially the form attached hereto as Exhibit B, with such additions or deletions as are considered necessary or appropriate by the County Director of Community Development or the County Administrator, and the Owner, and the Chair of the Board, the County Administrator, and the Director of Community Development are hereby authorized to execute said preliminary agreement for in the name and on behalf of the County; (v) any occupancy and other requirements of the Internal Revenue Code of 1986 , as amended (the "Code" ) are satisfied with respect to bonds, the interest on which is intended to be excluded from gross income for federal tax purposes; (vi) any occupancy and other requirements of the Act are satisfied; and (vii) any occupancy and other requirements of the County applicable to such financing are satisfied. 2. The Chair of the Board of Supervisors, the County Administrator and ex-officio Clerk of the Board, the County Director of Community Development; County Counsel and their deputies and other officers of the County are hereby authorized and directed to take whatever further action consistent with this resolution may be deemed reasonable and desirable, including participating in the preparation of any resolution, indenture, bond purchase agreement, official statement and/or other documents or agreements necessary or appropriate to effect such financing, and any actions necessary to obtain an allocation of the volume cap for the State of California to the extent required by the Code for the issuance of bonds, the interest on which is intended to be excluded from gross income for federal tax purposes. 3 . It is the purpose and intent of the County that this Resolution constitute official action toward the issuance of obligations by the County to finance the Developments in accordance with Section 1.103-8(a) (5) (iii) of the Regulations of the United States Department of the Treasury, or any successor regulation promulgated under the Code. 4. This Resolution shall take effect immediately upon its passage and adoption. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Boar+of Supervisors on the date shown. cc: Director of Community Development ATTESTED: January 11 1994 �. County Counsel PHIL BATCHELOR,Cierk of the Board County Administrator Of supervisors and County Administrator By Z�� ,Deputy JK/jb j k5:mf dev.res EXHIBIT A Name of Maximum Location Number of Name of Development .Amount of Units Developer/ of Bond Development Initial Issue Owner Oakwood $20,000,000 2201 Sycamore 300 Ownership entity is Village Dr. , Antioch a California limited Apartments (Parcel One: Partnership named Lot 128, as Antioch Sycamore shown on the Partners. The map of General Partners of Subdivision 4910, Antioch Sycamore filed March 31, Partners will be 1977 in Book 195 Heatherstone of Maps, Page 15, Investors, a Contra Costa California Limited County Records; Partnership whose and Parcel Two: General Partner is AP #074-380-001) Heatherstone Capital Incorporated, whose shareholders are Dale Frost and Bob Chaffey; and the other General Partner will be a California Limited Partnership named Wilray Investors, whose General Partner is Wilray Capital Incorporated, whose shareholders are Jay Wilton and Bill Raymond. EXHIBIT B Harvey E. Bragdon Director of Community Development 651 Pine Street 4th Floor, North Wing Martinez, CA 94553 Dear Mr. Bragdon: Re: Preliminary Agreements - Multi-Family Mortgage Revenue Bond Financing The purpose of this Agreement is to set forth certain terms and conditions under which the County of Contra Costa, a legal subdivision and body corporate and politic of the State of California (the "County"), will agree to assist in the financing of a housing project for persons of low income (the "Project") for (the "Owner") or for" a related entity, or for a successor to the interests thereof approved by the County, by issuing bonds (the "Bonds"), subject to the conditions set forth herein and in Resolution No. of the County. In consideration of the County's expression of willingness to provide such financing, the Owner hereby agrees as follows: 1. The Owner agrees to pay, or to make arrangements for persons other than the County to pay, all costs involved in the issuance of the Bonds, including by way of example and not limitation, fees and disbursements of bond counsel , the County, underwriters, or financing advisors and any other experts engaged by the Owner or by the County in connection with the issuance of the Bonds, bond printing and other printing costs, publication costs and costs incurred in order to obtain a rating for the Bonds. Such costs may be paid from proceeds of sale of the Bonds. In the event that the Bonds are not issued for any reasons, the Owner agrees to pay all of such costs and assume the County's obligations, if any, for payment of such costs. Pursuant thereto, the Owner agrees to pay a fee upon demand of the County in an amount equal to the lesser of 1/10 of one percent of the amount of the proposed Bond issue or $2,000, as consideration of the County conditionally expressing its intent to issue Bonds for the Project. Any amount so paid is to be credited toward the County's cost of issuance. 2. The Owner agrees to pay the cost of preparation of any studies, reports or other documents necessary to be prepared by or for the County to comply with the California Environmental Quality Act. 3. The Owner agrees to pay any and all costs incurred by the County in connection with any legal action challenging the issuance or validity of the Bonds or use of the proceeds thereof, or challenging proceedings or deter- minations by the County under the California Environmental Quality Act. Page 2 The County agrees to proceed, and to direct bond counsel to proceed, with the planning and preparation of the necessary proceedings for the offering of the Bonds for sale to finance the Project. The Owner understands that this Agreement does not exempt it from any requirements of the County or any department or agency thereof or other governmental body that would apply in the absence of the proposed Bond financing, and compliance with such requirements is an expressed precondition to the issuance of the Bonds by the County. The Owner further understands and agrees that the issuance of any Bonds by the County is contingent upon the County being satisfied with all of the terms and conditions of the Bonds and of the issuance thereof and that such issuance is in the best interests of the County, and that the County shall not be liable to the Owner or to any other person if the County shall determine for any reason not to issue the Bonds. IN WITNESS WHEREOF, the parties have executed this Agreement on 198 (Owner) By: Date: ACCEPTED: COUNTY OF CONTRA COSTA By: Harvey E. Bragdon Director of Community Development JK/mb 1perm/exhibitb.ltr