HomeMy WebLinkAboutMINUTES - 05151984 - 1.42 TO:f BOARD OF SUPERVISORS vim
FROM: Anthony A. Dehaesus Contra
Director of Planning Costa
DATE: May 7, 1984 County
SUBJECT: Financial Advisor for Multi-Family Revenue Bond Program
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION
1) Retain Caine, Gressel, Midgley, and Slater as Financial Advisor for the County's
Multi-Family Revenue Bond Program pursuant to a proposal submitted and dated April
27, 1984; and authorize the Chairman to execute said contract; and
2) Authorize the Director of Planning to develop a fee schedule for and collect deposits
from developers prior to Board of Supervisors action on an Inducement Resolution. Said
deposit would .be used to cover non-contingent costs in the event of nonissuance,
including those of the County, and would be refundable upon successful issuance.
BACKGROUND
By prior Board action this department has been instructed to develop a program of
multi-family housing development financing. The program seeks to provide tax exempt
revenue bond financing for developers of new rental housing projects. A portion of the units
would be reserved for occupancy by lower income households.
In order to proceed in developing the program it is advisable to retain a qualified consultant
to assist the County in assessing the feasibility of proposed rental projects, to identify
projects which appear to be appropriate for tax-exempt financing, to identify the appro-
priate terms of the financing, and the time frame involved. Further the financial advisor
would assist the County, the underwriter, and bond counsel in developing the financial
structure most apropriate to developer needs. In addition, and perhaps of equal importance,
the financial advisor would be responsible for working with prospective developers in
assessing whether tax-exempt revenue bond financing is appropriate for their needs. A
request for proposal was sent to'eleven firms (Attachments 1 and 2). One response was
received.
The firm of Caine, Gressel, Midgley, and Slater, which comes highly recommended by other
issuers, has provided the County with a proposal to serve as Financial Advisor. A copy of
the proposal is attached. The proposal calls for Caine, Gressel, Midgley, and Slater to
perform the following general services:
1) Assist in the development of financial structure and to test its feasibility with
'lenders and developers;
2) Analyze projects with respect to their conformance with County objectives;
3) Work with developers in identifying the most efficient mean of providing for their
needs consistent with County objectives;
4) Provide advise relative to the need for and propria manner of providing
supplementary financing for projects;
c
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RE EN ATI N OF BOA COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD, APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
XUNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISO ON THE DATE SHOWN.
'Planning
CC: Housing Authority ATTESTED
Caine, Gressel, Midgley, and Slater J.R. OLSS N, COUNTY CLERK
Auditor-Controller AND EX OFFICIO CLERK OF THD nPA01171
M3e2/7-e3 ld BY DEPUTY
,,ly
1 '
Board of Supervisors .
Page two
May 7, 1984
5) Assist in the lender recruitment process; and
6) Assist in marketing the program to developers;
In addition, the qualifications of the firm were reviewed and discussed in a meeting with
principals in the firm and a member of my staff as well as the Executive Director of the
Housing Authority.
Compensation for services rendered would be primarily on a contingent basis. The fee
schedule would be $35,000 ($15,000 in the case of note financings placed with a California
financial institution), plus 1/10 of 1% of the amount of the financing in excess of $5 million.
On a successful $10 million bond issue the compensation, which would be entirely
contingent, would be $40,000. On a non-contingent basis the firm would be reimbursed for
expenses on a monthly basis in a total amount not to exceed $2,500. These non-contingent
expenses would be paid out of developer deposits to be provided at the Inducement
Resolution stage, as recommended.
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