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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-