HomeMy WebLinkAboutMINUTES - 12081998 - C64 rev �7
TO BOARD OF SUPERVISORS
FROM: Dennis M. Barry, AICP
Community Development Director
DATE: December 8, 1998
SUBJECT: Inducement Action for Multifamily Projects
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & 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: _x YES SIGNATURE:
RECO'MME'NDATION' OF COUNTY ADMINISTRATORR OMMENIA ION OF BOA
COMMITTEE APPROVE OTHER
,
SIGNATURE(S):
ACTION OF BOARD ON December 8, 1998 APPROVED AS RECOMMENDED x OTHER
Resolution 98/625 is ADOPTED
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
x UNANIMOUS {ABSENT 3 ) 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
orifi: Community Development ATTESTED December 8, 1998
cc: County Administrator PHIL BATCHELOR, CLERK OF
County Counsel THE BOARD OF SUPERVISORS
Redevelopment Agency AND COUNTY ADMINISTRATOR
Housing Authority
via Community Development
KDF Willow, L.P.
Diamond Terrace, L.P. BY_C, o , DEPUTY
J K:f h-sra28/towncntr.bos
The developer of the Bay Point project appeared before a joint meeting of the Bay Point
Municipal Advisory Council, and the Bay Point Redevelopment Project Area on
December 1. A majority supported proceeding with the financing. The City of Clayton
has requested that the County process the financing for the Diamond Terrace project,
which has city support.
THE BOARD of SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Resolution can December 8, 1998 by the fallowing vote:
AYES: Supervisors Uilkema, DeSaulnier, Canciamilla and Rogers
NOES: None
ABSENT: Supervisor Gerber
ABSTAIN: None
RESOLUTION NO. 98/625
SUBJECT:
Resolution of the County of Contra}
Costa Conditionally Providing for }
the Issuance of Revenue Bonds to )
Finance the Construction of )
Multi-Family Housing Developments }
}
WHEIREAS, 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 Rawer-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
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 thereto 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 1586, 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.
. 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 Sections 1 . 103--8 (a) (5) (i.ii) , and 1 .150-2 of the Regulations of
the United States Department of the Treasury, or any successor
regulation promulgated under the Code. The County hereby declares
its official intent to use proceeds of the Bonds to reimburse the
Owner for certain expenditures made prior to the issuance of the
Bonds.
4 . This Resolution shall take effect immediately upon its
passage and adoption.
! hereby certify that this is a true and correct
copy of an action taker/ and entered on the
minutes off
Board '# Supervisors on the
date showk.
ATTESTED.
Pali.BATCHELOR, Clerk of the Board
C?r g. Dept: Redevelopment Agency of ervis andC rtyAdministrator
Contact: By �... Deputy
cc. Director of Community Devel pment
County Counsel
County Administrator
JK:3h/c:bosres.ah1
RESOLUTIO14 NO. 98/625
EXHIBIT A
Name of Maximum Location Number of Name of
D4=m1 Amount of ,Uni % _ Developer/
of Bond Development Initial
l� Qwtl_ei:,,.
Willow Dass $12,444,444 1456 Weldon 124 ICDF Willow,
Apartments Lane,Bay Point L.P.,a .
California Limited
Partnership
Diamond $16,444,444 A 6,45i:acre parcel to be 86 Diamond Terrace,a
Terrace subdivided from a portion California Limited
Apartments of AP#1184564-448, Partnership with PAM
and 119.571.001.Subject Incorporated,a
parcel is bounded on the California Corporation,
south by the c;xisting and David Michael as
Center Stroct;right-of way, the General Partner,
on the north by Clayton
Road,and on the west by
Marsh Creep Road,Clayton.
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...................................................................................................................................................................................
..........................................................................................
EXHIBIT A
Name of Maximum Location Number of Name of
Develn met Amount Of Units Developer/
of Bond Development Initial
Issue -Ommer
Willow Pass $12,000,000 1056 Weldon 120 KDF Willow,
Apartments Lane,Bay Point L.P.,a
California Limited
Partnership
Diamond $16,000,000 A 6.45±acre parcel to be 86 Diamond Terrace,a
Terrace subdivided from a portion California Limited
Apartments of AP#118-560-008, Partnership with PAM
and 119-5 71-00 1.Subject Incorporated,a
parcel is bounded on the California Corporation,
South by tile existing and David Michael as
Centel*Strearight-of-way, the General Partner.
on the north by Clayton
Road,and on the west by
Marsh Creek Road,Clayton.
JK*1 11MM"
EXHIBIT B
James Kennedy,Deputy Director
Contra Costa County
Community Development Development
651 Pine Street, 4th Floor,N. Wing
Martinez, CA 94553
Dear Mr. Kennedy:
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 bands(the "Bands"),
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 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 band 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 Bands. In the event that
the Bonds are not issued for any reasons, the Owner agrees to pay all of such casts 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 determinations by the County under the California Environmental quality
Act.
The County agrees to proceed, and to direct band counsel to proceed, with the planning and
preparation of the necessary proceedings for the offering of the bands 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 lof the Bonds and of
the issuance thereof and that such issuance is in the best interest 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
199
(Owner)
By:
Date:
ACCEPTED:
COUNTY OF CONTRA COSTA
By:
James Kennedy
Deputy Director-Redevelopment
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