HomeMy WebLinkAboutMINUTES - 05141985 - 1.56 TO: BOARD OF SUPERVISORS Sig.
Contra
FROM: Anthony A. Dehaesus
Director of Community Development " .County CoSta
DATE: May 1, 1985
SUBJECT: Designation of Underwriter and Bond Counsel for "The Meadows" Multi-Family Tax
Exempt Bond Financing '
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION
Designate the Bank of America as Underwriter and the law firm of Orrick, Herrington, &
Sutcliffe as Bond Counsel for the proposed issuance of multi-family mortgage revenue bonds
for "The Meadows" Apartment development, Antioch.
FINANCIAL IMPACT '
None. The Underwriter shall be compensated on a contingent basis only out of a bond issue.
Bond Counsel will be paid on.a contingent basis as well, except for expenses, which will be
paid by the developer in the event of abandonment of a bond'issue.-
BACKGROUND
On January 15, 1985 the Board of Supervisors approved an Inducement Resolution
conditionally providing for. the issuahce of tax. exempt revenue bonds' for The Meadows
apartment project to be developed by Speer/T.E.C. Development Group, Inc. The project, a
136 development on Sycamore. Drive at the .northerly terminus of Spanos Street, has
received all planning approvals of the City_ of Antioch. Twenty percent of the units (28
units) would be affordable to lower income households pursuant to:County policy.
The bond issue, estimated at $4:9 million, contemplates using'the Federal National Mortgage
Association's ("Fannie Mae") Municipal Mortgage Enhancement Plan in order to provide for
AAA rated credit support: The underlying security for the bonds would be a Fannie Mae
mortgage backed security as well as.the mortgage.
The developer has suggested that the Bank of America Public Finance Department be
retained as the Underwriter. The Bank .of America has successfully structured and
underwritten Fannie Mae transactions in the recent past. My staff has a reasonable level of
confort with their. capabilities. Orrick, Herrington & Sutcliffe has consistently performed
extremely well in advising the.County.on its prior housing bond issue.
CONTINUED ON ATTACHMENT: YES SIGNAT E:
RECOMMENDATION OF COUNTY ADMINISTRATOR G MMENDA ON F ARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
UNANIMOUS (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 SUPERVISORS ON THE DATE SHOWN.
County Administrator TTESTED
q
CC: Community Development Department
Auditor-Controller PHIL BATCH OR, CLERK OF THE BOARD OF
Bank of America via Community Dev, SUPERVISORS AND COUNTY ADMINISTRATOR
m Orrick, Herrington & Sutcliffe ' via Comte Dev
M3e2/7-e3 X BY ' DEPUTY