HomeMy WebLinkAboutMINUTES - 06222004 - C.132 TO: BOARD OF SUPERVISORS
FROM: Dennis M. Barry, AICD
Community Development Director
DATE: June 22, 2004
SUBJECT: Cypress Meadows Residential Care Facility, Antioch
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) +& BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
ADOPT Resolution approving and authorizing the Deputy Director-Redevelopment to execute
a First Amendment to the Amended and Restated Regulatory Agreement for the Cypress
Meadows Senior Residential Care Project, Antioch (No General Funds).
FISCAL IMPACT
None, no general funds involved. The County is compensated for its administrative costs by
the Owner.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: , ,
,-- RECOMMENDATION OF COUNTY ADMINISTRATOR RECOM DATION OFt)ARD
COMMITTEE 'APPROVE OTHER
SIGNATURE(S) -
ACTION OF BO ON June 22, 2004 APPROV AS RECOMMENDED x OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT v } 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.
Contact: Jim Kennedy
3-1255
orig: Community Development J, 22, 2004
cc: County Administrator ATTESTED
County Counsel JOHN SWEETEN, CLERK OF THE
via: Community Development BOARD OF SUPERVISORS
'Quint & Thimmig AND THE COUNTY ADMINISTRATOR
BY , DEPUTY
\\fs-cd\users$\moble\Personal\Board orders and Greenies\BOARI).cypressmeadows.6.04.doc
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1998 the County issued $12,775,000 in Bonds to finance the Cypress Meadows development, a 110 unit
assisted living facility for seniors. The project has been built,and has been occupied since late 2001. Twenty
percent(20%)of the units—22 units—are subject to occupancy restrictive for very low income seniors.
With the recent decline in interest rates, the Owner has determined that it would be to his advantage to
refinance the County Bond financing with conventional financing. The owner has the right to pursue such a
refinancing, however the housing affordability restrictions continue to exist through at least 2016. As part of
the refinancing the owner desires the County to make changes to the subordination provisions of the
Regulatory Agreement. In exchange for additional affordability, the County has indicated a willingness to
make said changes. The recommended action accomplishes these changes.
JK:ln
RESOLUTION NO.2004/349
A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA
COSTA APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
FIRST AMENDMENT TO AMENDED AND RESTATED REGULATORY AGREEMENT
AND DECLARATION OF RESTRICTIVE COVENANTS RELATING TO CYPRESS
MEADOWS
WHEREAS, the County of Contra Costa issued its $11,840,000 County of Contra Costa
Residential Rental Facility Revenue Bonds (Cypress Meadows Project) 1998 Series E and
$1,485,000 County of Contra Costa Taxable Residential Rental Facility Revenue Bonds (Cypress
Meadows Project) 1998 Series F (collectively, the 'Bonds") pursuant to the Act and a Trust
Indenture, dated as of September 1, 1998 (the "Indenture"), between the County and BNY
Western Trust Company, as successor trustee (the"Trustee");and
WHEREAS, the proceeds of the Bonds were used to make a loan(the "Loan") to Skyline
Crest Enterprises, LLC, a California limited liability company (the "Borrower") of which
Vincent Malfitano, D.M.D. is the member manager, to provide for the financing of Cypress
Meadows, a 110 unit assisted living facility located in Antioch,California (the"Project"); and
WHEREAS, in connection with the issuance of the Bonds and the making of the Loan,
the Borrower, the Trustee and the County entered into an Amended and Restated Regulatory
Agreement and Declaration of Restrictive Covenants, dated as of September 1, 2998 (the
"Regulatory Agreement") restricting the operation of the Project and requiring that a portion of
the units in the Project be rented to Lower Income Tenants (as defined in the Regulatory
Agreement), and
WHEREAS, the Borrower has defaulted in the performance of certain of its obligations
related to the Loan,and now desires to refinance the Project and thereby repay the Loan and the
Bonds;and
WHEREAS,the entity providing the funds to refinance the Project(the"New Loan")has
requested that certain changes be made to the Regulatory Agreement in order to fully
subordinate the Regulatory Agreement to the New Loan;and
WHEREAS, there has been prepared a First Amendment to Amended and Restated
Regulatory Agreement (the "Amendment") which sets forth the changes requested by the new
lender,but which also extends the period during which the Borrower is required to rent units in
the Project to Lower Income Tenants the form of which is on file with the Deputy Director-
Redevelopment;and
WHEREAS, the Board of Supervisors now desires to approve and authorize the
execution and delivery by the County of the Amendment.
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of
Contra Costa,as follows:
Section 1. The Amendment, in the form on file with the Deputy Director-
Redevelopment, is hereby approved. The Deputy Director-Redevelopment is hereby
Resolution 2004/349
authorized and directed to execute and deliver the Amendment in said form, with such
additions thereto or changes therein as are recommended or approved by the Deputy Director-
Redevelopment upon consultation with Bond Counsel, the approval of such changes to be
conclusively evidenced by the execution and delivery of the Amendment by the Deputy
Director-Redevelopment.
Section 2. The transfer of the ownership of the Project from the Borrower to Cypress
Meadows Antioch, LLC, a California limited liability company of which Vincent M. Malfitano,
D.M.D. is the member manager, is hereby approved, subject to compliance with the
requirements of clause(4) of Section 13 of the Regulatory Agreement.
Section 3. The firm.of Quint&Thirnn-dg LLP is hereby approved as Bond Counsel to the
County for the transactions referenced in this Resolution,provided that the fees and expenses of
Bond Counsel shall be paid by the Borrower or the Trustee.
Section 4. All actions heretofore taken by the officers and agents of the County with
respect to the Indenture, the Regulatory Agreement,the Amendment and the Project are hereby
approved, confirmed and ratified, and the proper officers of the County are hereby authorized
and directed,for and in the name and on behalf of the County,to do any and all things and take
any and all actions and execute any and all certificates,agreements and other documents which
they,or any of them,may deem necessary or advisable in order to consummate the transactions
contemplated by the Amendment.
Section 5. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 22nd day of June,2004 by the following vote.
AYES: WPE MM uIrIMMA, DeSAUU M, GEiffiM2G
NOES: Nave
ABSTAINING: Nome
ABSENT: stTEMSORS GSOTA, GL.
Vice— Chair
ATTEST: June 22, 2004
County Administrator and Clerk
of the Board of Supervisors
By- ,
Deputy Clerk
03007.15.J7624
6/15/04
-2-