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HomeMy WebLinkAboutRESOLUTIONS - 01012000 - 2000-124 THE BOARD OF SUPERVISORS,CONTRA COSTA COUNTY,CALIFORNIA Adopted this Resolution on March 21,2000 by the following vote: AYES: SUPERVISORS GIOIA, UILKEMA, DESAULNIER, CANCIAMILLA and GERBER NOES: NONE ABSENT NONE RESOLUTION NO. 2000/124 SUBJECT: Resolution Approving Execution and Delivery of Assignment of Purchase Options to Transocean Financing Corporation In Connection With Acquisition and Improvement of the Projects, Approving Forms of and Execution of two Facility Leases and an Escrow Agreement;Approving Forms and Authorizing the County Administrator,the Director of General Services,or their Designees,Taking Necessary Actions and Executing of Necessary Certificates. WHEREAS,the County of Contra Costa(the"County")is a political subdivision of the State of California; WHEREAS,this Board of Supervisors hereby determines that it would be in the best interest of the County and the residents of the County to enter into a Facility Lease with purchase option for the purpose of acquiring and improving 1034 Oak Grove Road("Oak Grove Lease")and a Facility Lease with purchase option for the purpose of acquiring and improving 2047 Arnold Industrial Way,Concord,CA("Arnold Lease"); WHEREAS,a public hearing was duly noticed,called and held pursuant to the requirements of the Internal Revenue Code of 1986,as amended,on the Project; WHEREAS the County intends to enter into an agreement with Seneca Center,a California nonprofit corporation,for use of 1034 Oak Grove Road,Concord,CA,as a locked adolescent mental health facility; WHEREAS the County has entered into an agreement with Center Point,Inc.,a California nonprofit corporation,to operate a portion of 2047 Arnold Industrial Way,Concord,CA,as a County Homeless Shelter; WHEREAS,Transocean Financing Corporation("Corporation")will finance the acquisition,construction and improvement of 1034 Oak Grove and 2047 Arnold Industrial Way(collectively,the"Projects")by and on behalf of the County; WHEREAS,it is proposed that the County assign its purchase option in connection with the Projects to the Corporation; WHEREAS,it is proposed that the Corporation will acquire the Projects and will lease the Projects to the County pursuant to the Oak Grove Lease and the Arnold Lease(collectively,the"Facility Leases"); WHEREAS,under the Facility Leases,the County would be obligated to make base rental payments to the Corporation for the lease of the Projects; WHEREAS,it is proposed that all rights to receive such base rental payments will be assigned without recourse by the Corporation to Transamerica Public Finance(the"TPF")pursuant to an Assignment to be dated as of March 1,2000(the"Assignment"); WHEREAS,approximately$2,000,000 of the proceeds from the facility lease financing for 1034 Oak Grove will be placed in an interest bearing escrow account at First National Bank of Central California,as RESOLUTION NO. 2000/124 Escrow Agent,pursuant to an Escrow Agreement dated as of March 1,2000(the"Escrow Agreement"), among the Corporation,County and Escrow Agent,to be applied to fund improvements to 1034 Oak Grove and to be disbursed pursuant to instructions of the County as the improvements are completed; WHEREAS,the Board has been presented with the form of each document,hereinafter referred to,and the Board has examined and approved each document and desires to authorize and direct the execution of such documents and the consummation of such financing; WHEREAS,the County has the full legal right,power and authority to enter into the transaction hereinafter authorized;and NOW,THEREFORE,BE IT-RESOLVED by the Board of Supervisors of the County of Contra Costa,as follow: Section 1. The County hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to public affairs of the County and that the statements,findings and determinations of the County set forth above are true and correct. Section 2. A public hearing was duly noticed,called and held pursuant to the requirements of the Internal Revenue Code of 1986,as amended,on a proposal that Contra Costa County enter into a lease with purchase option agreement with Transocean Financing Corporation for the purpose of acquiring a health care facility which is located at 1034 Oak Grove Road,Concord,CA.Contra Costa County intends to enter into an agreement with Seneca Center,a California nonprofit corporation,or a similar provider,for use of 1034 Oak Grove Road,Concord,CA for a locked adolescent mental health facility following completion of improvements to the site. Section 3. At the public hearing all interested persons were given an opportunity to appear and be heard and based on such hearing and such other facts and circumstances as this Board deems relevant,this Board hereby approves the entering into a facility lease agreement by Contra Costa County with Transocean Financing Corporation with respect to the acquisition of 1034 Oak Grove Road,Concord,CA.The rental payments due pursuant to such facility lease with option to purchase agreement shall have a maximum total principal component of approximately$4,000,000. Section 4. A public hearing was duly noticed,called and held pursuant to the requirements of the Internal Revenue Code of 1986,as amended,on a proposal that Contra Costa County enter into a facility lease with purchase option agreement with Transocean Financing Corporation for the purpose of acquiring a facility which is located at 2047 Arnold Industrial Way,Concord,CA,being used as a County homeless shelter and as commercial office space. Contra Costa County has entered into an agreement with Center Point,Inc.,a California nonprofit corporation,to operate the County homeless shelter at the site. Section 5. At the public hearing all interested persons were given an opportunity to appear and be heard and based on such hearing and such other facts and circumstances as this Board deems relevant,this Board hereby approves the entering into the facility lease agreement by Contra Costa County with Transocean Financing Corporation with respect to the acquisition of 2047 Arnold Industrial Way,Concord,CA.The rental payments due pursuant to such facility lease with option to purchase agreement shall have a maximum total principal component of approximately$700,000. Section 6. The assignment of the County's purchase option in connection with the Projects to the Corporation is hereby approved and the Chairman of the Board of Supervisors,the Clerk of the Board of Supervisors,the County Administrator,the Director of General Services and their designees are hereby authorized and directed to execute and deliver said assignment of purchase option to the Corporation, together with such amendments,modifications and changes to such purchase option as such officers may require or approve. RESOLUTION NO. 2000/124 pg 2 of 3 Section 7. The form of the Oak Grove Lease between the Corporation and the County,dated as of March 1, 2000,on file with the Clerk of the Board of Supervisors,is hereby approved and the Chairman of the Board of Supervisors,the Clerk of the Board of Supervisors,the County Administrator,the Director of General Services and their designees are hereby authorized and directed to execute and deliver said Facility Lease in substantially said form,with such changes therein as such officers or their designees may require or approve,such approval to be conclusively evidenced by the execution and delivery thereof;provided, however,that the aggregate base rental payments payable under the Oak Grove Lease shall not exceed $8,000,000,the maximum annual base rental payments payable under the Oak Grove Lease shall not exceed $400,000,and the term of the Oak Grove Lease shall not exceed twenty-five(25)years. Section 8. The form of the Arnold Lease between the Corporation and the County,dated as of March 1, 2000,on file with the Clerk of the Board of Supervisors,is hereby approved and the Chairman of the Board of Supervisors,the Clerk of the Board of Supervisors,the County Administrator,the Director of General Services and their designees are hereby authorized and directed to execute and deliver said Facility Lease in substantially said form,with such changes therein as such officers or their designees may require or approve,such approval to be conclusively evidenced by the execution and delivery thereof;provided, however,that the aggregate base rental payments payable under the Arnold Lease shall not exceed $2,000,000, the maximum annual base rental payments payable under the Arnold Lease shall not exceed $100,000,and the term of the Arnold Lease shall not exceed twenty(20)years. Section 9. The form of the Escrow Agreement among the Corporation,the County,and First National Bank of Central California,dated as of March 1,2000,on file with the Clerk of the Board of Supervisors,is hereby approved and the Chairman of the Board of Supervisors,the Clerk of the Board of Supervisors,the County Administrator,the Director of General Services and their designees are hereby authorized and directed to execute and deliver said Escrow Agreement and related arbitrage certificate in substantially said form,with such changes therein as such officers or their designees may require or approve,such approval to be conclusively evidenced by the execution and delivery thereof Section 10. The officers of the County are hereby authorized and directed,jointly and severally,to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out,give effect to and comply with the terms and intent of this Resolution. The Chairman of the Board of Supervisors,the Clerk of the Board of Supervisors and the officers of the County are hereby authorized and directed to execute and deliver any and all certificates,tax and rebate certificates,letters and confirmations,necessary and desirable to accomplish the transactions set forth above. Section 11. All actions heretofore taken by the agents of the County with respect to the acquisition of the Project through the Facility Leases are hereby approved and confirmed. Section 12.The County hereby declares its official intent,solely for purposes of establishing compliance with the requirements of Section 1.150.2 of the United States Treasury Regulations,to use proceeds of the financing to reimburse itself for any County expenditures in connection with the Project incurred prior to the execution and delivery of the Facility Leases. RESOLUTION NO. 2000/124 1 HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS T E DATE N. ATTESTED f Od�� PHIL BATCHELOR,CLERK F THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY RESOLUTION NO. 2000/124 pg 3 of 3 G 'ERAL SERVICES DEPARTME LEASE MANAGEMENT DIVISION 1220 Morello Avenue, Suite 100 Martinez, California 94553-4711 Extension 3-7250 FAX 3-7299 DATE: March 8, 2000 TO: Phil Batchelor, County Administrator FROM: Barton J. Gilbert, Director of General Services SUBJECT: Agenda: Facility Lease Authorizations-2047 Arnold Industrial Way, 1034 Oak Grove Road, Concord (March 14, 2000 Board Agenda) Options to purchase for both of the existing leases for the above subject facilities will be assigned to and exercised by Transocean Financing Corporation. Transocean will then lease both facilities back to the County. The facility lease with Transocean for 2047 Arnold Industrial Way does not extend the term of the current lease and provides for a reduction of rental costs. The facility lease for 1034 Oak Grove Road provides a mechanism for financing improvements to upgrade the facility and construct a 2,500 sq.ft. addition for a locked community mental health facility for adolescents. OCCUPANT: HEALTH SERVICES DEPARTMENT CONTRACT PROVIDERS RENT: 2047 Arnold Drive- Current Rent: $ 66,540 annually Projected New Rent: $65,000 annually 1034 Oak Grove Road-Current Rent: $ 116,782 annually Projected New Rent: $330,000 annually SPACE TYPE: 2047 Arnold Industrial Way: Central County Homeless Center 1034 Oak Grove Road-Children's Locked Residential Facility COUNTY RESPONSIBILITY: All interior and exterior maintenance. ADDRESS: 1034 Oak Grove Road, Concord; 2047 Arnold Industrial Way, Concord AGENDA ITEM: APPROVAL OF ASSIGNMENTS OF PURCHASE OPTIONS AND APPROVAL OF LEASES WITH PURCHASE OPTIONS FOR 2047 ARNOLD INDUSTRIAL WAY AND 1034 OAK GROVE ROAD,CONCORD,CA WITH TRANSOCEAN FINANCING CORPORATION cc: Kathy Brown Alan Pfeiffer Terry Mann C. Beardsley C:\WINDOWS\TEMP\arnoldoakgroveagendaitem.doc TO: BOARD OF SUPER 30RS FROM: Barton J. Gilbert, Director of General Services Contra Costa DATE: March 21, 2000 County SUBJECT: LIEN-LEASEHOLD INTEREST IN 2047 ARNOLD INDUSTRIAL WAY, CONCORD SPECIFIC REQUESTS OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I. _RECOMMENDATION APPROVE a Notice of Community Development Block Grant Funding, to be recorded on the County's interest in 2047 Arnold Industrial Way, Concord, leased from Transocean Financing Corporation, as requested by the Community Development Department, under the terms and conditions more particularly set forth in said Notice. AUTHORIZE the Director of General Services to EXECUTE said Notice, and have it recorded on behalf of the County. II. FINANCIAL IMPACT If the Property is not used in a manner consistent with the requirements of the Community Development Block Grant (CDBG) until July 1, 2016, then the funds used for acquisition and rehabilitation must be repaid to the CDBG program. III. REASONS FOR RECOMMENDATION / BACKGROUND The County has used CDBG funds in the total amount of $1,104,000.00 for fiscal years 1992/93, 1995/96, 1996/97, 1997/98 and 1999/00 for facility lease payments and rehabilitation of 2047 Arnold Industrial Way for use as the Central County Homeless Shelter. The terms for use of the CDBG funds required that until July 1, 2016: The Property must be used as an emergency homeless shelter, or it must be used in an alternative manner consistent with CDBG requirements under the Housing and Community Development Act of 1974 and accompanying regulations, otherwise the funds must be repaid to the County's CDBG program, and; If the County sells or transfers its interest in the Property, any net proceeds up to $1,104,000.00 must be returned to the County's CDBG Program. On August 11, 1998, your Board approved recording of a Notice in the amount of $841,000.00 on the County's leasehold interest for the above facility. Said Notice was recorded on October 15, 1998. On your Board's agenda today is the matter of assigning the County's purchase option under its current lease with the Moran Family Trust to Transocean Financing Corp. Upon exercise of the purchase option, Transocean will lease the facility back to the County. Board approval of the CDBG Notice is required to replace and supercede the previous Notice and in order to allow the acquisition and lease back by Transocean. CONTINUED ON ATTACHMENT:_YES SIGNATURE: aubj&A& RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED_:_/d: I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisorsa date shown. ATTESTED: 0�25�7 � d VOTE OF SUPERVISORS PHIL BATCHELOR,Clerl of the Board of Supervisors and County Administrator ly UNANIMOUS(ABSENT AYES: NOES: ABSENTS: ABSTAIN: ByIle, Deputy MEDIA CONTACT: BARTON J.GILBERT(313-7100) G:\LeaseMgt\CAROL\CDBGLienBoardOrder.doc Resolution No. 2000/124