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Home My WebLink AboutMINUTES - 11161999 - C147 IA17 Contra Cosh TO: BOARD OF SUPERVISORS ' _... County r}; � FROM: Dennis M. Barry, AiCP Community Development Director DATE: November 16, 1999 SUBJECT: Delta View Apartments, Antioch - Multi-Family Bonds SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT resolution approving and authorizing execution of a First and Second supplemental Trust Indenture related to the County's prior issuance of Multi-Family Mortgage Revenue Bonds for the acquisition and rehabilitation of the Delta View Apartments, Antioch, and actions related thereto. FISCAL IMPACT None. County is compensated for costs incurred in issuance process and for costs of monitoring compliance with Regulatory Agreement. CONTINUED ON ATTACHMENT XX YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR R COMMEND TION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON November 16, 1999 APPROVED AS RECOMMENDED. OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (ABSENT III ) 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. Contact: Jim Kennedy 335-1255 cc: Community Development ATTESTED November 16, 1999 County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Via Community Development AND COUNTY ADMINISTRATOR Delta View Associates, L.P., a California Limited Partnership McDonald Investments Jones Hall Litten Financial Consulting City of Antioch BY4M 1A.,0 � , DEPUTY DELTA VIEW APARTMENTS, ANTIOCH page 2 MULTI-FAMILY BONDS BACKGROUND/REASONS FOR RECOMMENDATIONS On May 18, 1999 the Board of Supervisors approved the issuance of multi-family mortgage revenue bonds for the acquisition and rehabilitation of the Delta View Apartments in Antioch by Delta View Associates, L.P., a California Limited Partnership. The bonds were subsequently issued in two series, $7,850,000 series C tax exempt; and $900,000 Series C-T taxable. The Delta View Apartments is a 205-unit rental housing facility in Antioch. The bonds were sold on an unrated basis and therefore were subject to the County requirements for unrated bonds, which include sophisticated investor requirements, and large-denomination bonds. The Series C-T Bonds were ultimately purchased by the principals of Delta View Associates, L.P. They intended to hold the C-T Bonds for a limited time period and then sell to a sophisticated investor. The C-T Bonds were sold as one Bond at $900,000. Potential purchasers have balked at purchasing the C-T Bonds as one $900,000 denomination, therefore, Delta View Associates has requested a reduction to $100,000 denomination. The existing requirement is minimum $500,000 denominations. The interest rate of the initial offering will also be adjusted with this approval. Such a request would be consistent with the County's unrated bond requirements with a continuing sophisticated investor requirement (a "travelling investor Letter" executed by subsequent buyer certifying to their status as sophisticated investors). H:\Bdordrs\11164DttaWApts.doc RESOLUTION NO. 99/581 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST SUPPLEMENTAL TRUST INDENTURE, A SECOND SUPPLEMENTAL TRUST INDENTURE AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN OTHER DOCUMENTS AND CERTIFICATES AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH. Whereas, the County of Contra Costa (ft "County") has heretofore issued Its $7,850,000 aggregate principal amount of Multifamily Housing Revenue Bonds (Delta View Apartments), Series 19990 (the 'Series C Bonds') and $900,000 Taxable Multifamily Housing Revenue Bonds(Delta View Apartments), Series 1999C-T (the "Series CT Bonds*and,collectively with the Series C Bonds,the"Bondsl pursuant to a Trust Indenture,dated as of June 1, 1999 (the 'Original Indenture"), by and between the County and U.S. Bank Trust National Association, as trustee thereunder(the'Trustee"); Whereas, the County lent the proceeds of the Bonds to Delta View Associates, L.P. (the *Borrower") pursuant to a Loan Agreement,dated as of June 1, 1999(the"Original Loan Agreement"),by and among the County, the Borrower and the Trustee; Whereas, the Borrower used the proceeds of the Bonds to acquire the Project (as defined in the Original Indenture); Whereas, the Borrower has requested that the County and the Trustee modify, amend and supplement the Original Indenture in accordance with the provisions thereof in order to provide for new interest rate provisions and certain other provisions;and Whereas, the County has determined that it is in the public interest that such modifications, amendments and supplements be made to the Original Indenture,and that certain other actions be taken in connection therewith. NOW THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, as follows: I The County hereby finds and declares that the above recitals are true and correct. 2. The First Supplemental Trust Indenture by and between the County and the Trustee,in the form on file with the Clerk of the Board of Supervisors, is hereby approved. The Chair of the Board of Supervisors, the Vice Chair of the Board of Supervisors,the County Administrator,the Director of Community Development and the Deputy Director-Redevelopment(each a*Designated Officer*)are hereby authorize and directed,for and in the name and on behalf of the County,to execute and deliver the First Supplemental Trust Indenture,and the County Administrator and Clerk of the Board of Supervisors is hereby authorized and directed,for and in the name and on behalf of the County, to attest the First Supplemental Trust Indenture in said form, together with such additions thereto or changes therein as are recommended or approved by the Designated Officer executing the First Supplemental Trust Indenture upon consultation with Bond Counsel to the County, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the First Supplemental Trust Indenture by the County. 3. The Second Supplemental Trust Indenture by and between the County and the Trustee,in the form on file with the Clerk of the Board of Supervisors, Is hereby approved. The Designated Officqrs, each acting alone, are hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Second Supplemental Trust Indenture, and the Clerk of the Board of Supervisors is hereby authorized and directed, for and in the nacre and on behalf of the County, to attest the Second Supplemental Trust Indenture, in said form, together with such additions thereto or changes therein as are recommended or approved by the Designated Officer executing the Second Supplemental Trust Indenture upon consultation with Bond Counsel to the County,the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Second Supplemental Trust Indenture by the County. 4. All actions heretofore taken by the officers and agents of the County with respect to the execution and delivery of the First Supplemental Trust Indenture and the Second Supplemental Trust Indenture are hereby approved,confirmed and ratified,and the proper officers of the County,including the Designated Officers,are hereby authorized and directed,upon consultation with Bond Counsel,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 consummate the transactions contemplated thereby Bonds in accordance with this Resolution, including but not limited to those certificates, agreements and other documents described in the First Supplemental Trust Indenture and the Second Supplemental Trust Indenture. 5, This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 16th day of November, 1999 by the following vote: AYES: Supervisors Gioia, Uilkema, DeSaulnier and Canciamilla NOES: None ABSTAINING: None ABSENT: Supervisor Gerber ` r Chair r ATTEST: November 16, 1999 Phil Batchelor County Administrator and Clerk of the Board of Supervisors By:4'/1dAU01- Deputy Clerk 2