HomeMy WebLinkAboutMINUTES - 04152003 - C80 f
TO: BOARD OF SUPERVISORS
FROM: Dennis M. Barry, AICP, Director of Community Development •` --- ` � -
rn ..
DATE: April 15, 2003
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 eli ibilit 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.
CONTINUED ON ATTACHMENT: X SIGNATURE:
_,,� tECOMMENDATION OF COUNTY ADMINISTRATOR REC ENDATION OF BOARD
COMMITTEE PPROVE OTHER
SIGNATURES1)
ACTION OF BO ON April 15, 2003 APPR V D AS R COMMENDED x
VOTE OF SUPERVISORS
x UNANIMOUS I HEREBY CERTIFY THAT THIS IS A
(ABSENT
AYES: NOES: TRUE AND CORRECT COPY OF AN
ABSENT: ABSTAIN: ACTION TAKEN AND ENTERED ON THE
DISTRICT III SEAT VACANT
MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Source: Jim Kennedy
835-1255 ATTESTED --)ril 15 2003
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
via Community Development BY DEPUTY
Pacific American Properties
W:\Personal\BOARDORDERS\BRD.4.15.03.lnduecementaction
EXHIBIT A
Maximum Amount Name of
Name of of Bond Location of Number of Developer/initial
Development Issue Development Units Owner
Gentrytown $12 m 2800 Gentrytown Dr. 85 Pacific American Properties,
Apartments Antioch a California corporation, or a
limited partnership comprised
of Pacific American Properties
as administrative General Partner,
a non-profit corporation as a
managing General Partner, and a
tax-credit equity investor to be
determined.
W:\Personal\BOARDORDERS\BRD.4.15.03.lnduecementaction
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Resolution on April 15, 2003-by the following vote:
AYES: Supervisors Gioia, Uilkema, Glover and DeSaulnier
r ,
• None
NOES: . r
Nome = �"
ABSENT.
sr •
A cou
ABSTAIN: None
DISTRICT III SEAT VACANT
Resolution No. 2003/266
In the Matter of 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 IT 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 permanent 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, (1)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 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.
Personal\documents\resoIution.rev.bonds.const.housing
EXHIBIT A
Maximum Amount Name of
Name of of Bond Location of Number of Developer/initial
Development Issue Development Units Owner
Gentrytown $12 m 2800 Gentrytown Dr. 85 Pacific American Properties,
Apartments Antioch a California corporation, or a
limited partnership comprised
of Pacific American Properties
as administrative General Partner,
a non-profit corporation as a
managing General Partner, and a
tax-credit equity investor to be
determined.
I hereby certify that this is a true and correct
copy of an action taken and entered on the
minutes of the Board of Supervisors on the
date shown.
AT17 E
JOHN SWEETE N, Clerk of theBoard
of ' County Administrator
SupervoI or end
a puty
W:\Personal\BOARDORDERS\BRD.4.15-03-Induecementaction
EXHIBIT B
James Kennedy,Deputy Director
Contra Costa County
Community Development Development.
651 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 pay, 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 1/10 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 Owner agrees 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.
Personal\documents\prelim.agree.mort.rev.bond.4.03
The Owner further understands and agrees that the issuance of any Bonds by the 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 WHEREOF,the parties have executed this Agreement on
5200
(Owner)
By:
Date:
ACCEPTED:
COUNTY OF CONTRA COSTA
By:
James Kennedy
Deputy Director-Redevelopment
Personal\documents\prelim.agree.mort.rev.bond.4.03