HomeMy WebLinkAboutMINUTES - 10042005 - C48 Contra
Costa
County
TO: BOARD OF SUPERVISORS
FROM: Dennis M. Barry, AICP, Director of Community Development
DATE: October 4, 2005
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 in "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.
The Casablanca Apartment which is to be developed by Braddock and Logan, is an element of the
Intervening Properties/Remaining Intervening Properties Project approved by the Board of Supervisors
in July, 2002 (SD 8331, DP 993032). The prospective financing will implement an element of the
Camino Tassajara Affordable Housing Program also approved by the Board of Supervisors in July,
2002.
CONTINUED ON ATTACHMENT: _X_ SIGNATURE: �4�&w �
✓ A
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RECOMMENDATION OF COUNTY ADMINISTRATOR ECOMM N ATION OF BOAD COMMITTEE
�liP OVE _OTHER
SIGNATURE(
ACTION
oe
OF BOARD O APPROVED A R COMMENDED
VOTE OF SU ERVISORS
V1 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.
Source: Jim Kennedy -000
335-7225 ATTESTED
orig: Community Development
JOHN SWEETEN, CLERK OF THE
Cc: County Administrator's Office BOARD OF SUPERVISORS AND
County Counsel COUNTY ADMINISTRATOR
Community Development
Redevelopment Agency
Housing Authority Z.
Via: Community Development BY �'� , DEPUTY
Braddock& Logan
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EXHIBIT A
Name of Maximum Location of Development Number of Name of
Development Amount of Bond Units Developer/initial
issue Owner
Casablanca $25,000,000 SE corner of Camino 95 Contra Costa RE
Apartments Tassajara & Monterosso, Investors, LLC
bounded on the south by
Casablanca Street(a
portion of APN 206-020-
089)
G:\CDBG-REDEV\redevV.Noble\Personal\Board Orders and Greenies\BOARD.l0.O5.BART Inducement Action.doc
RESOLUTION NO.2005/618
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY,CALIFORNIA
Adopted this Resolution on 0(.'POBM 4, 2005 by the following vote:
AYES: Gioia,Piepho,DeSaulnier and Uilkema
NOES: None
ABSENT: Glover
ABSTAIN: None
RESOLUTION NO.2005/618
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)
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 TT 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 peri anent 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 1986,as amended(the"Code")are satisfied with respect to bonds,the interest
Personal\documents\boardresolution.9.02
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 Sections 1.103-
8(a)(5)(iii),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.
Orig.Dept: Redevelopment Agency
Contact: James Kennedy
cc: Director of Community Development
County Counsel
County Administrator
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REDEV\redev\LNoble\Personal\Documents\Board.Resolution.inducement.12.03.doc
EXHIBIT A
Name of Maximum Location of Development Number of Name of
Development Amount of Bond Units Developer/initial
__ Issue Owner
Casablanca $25,0009000 SE corner of Camino 95 Contra Costa RE
Apartments Tassajara& Monterosso, Investors, LLC
bounded on the south by
Casablanca Street (a
portion of APN 206-020-
089)
G:\CDBG-REDEV\redev\LNoble\Personal\Board Orders and Greenies\BOARD.10-05.BART Inducement Action-doc
YM IT B
James Kennedy,Deputy Director
Contra Costa County
Community Development Development
G51 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 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 agrees as follows:
1. The*Owner agrees to pray, 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 1/1Q 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 Owneragrees 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 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 tile 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 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 MqM-4REOF,, the parties have executed this Agreement on
r(O*ner)
By:
Date:
ACCEPTED:
COUNTY of CONTRA COSTA
By:
James Kennedy
Deputy Director-Redevelopment
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