HomeMy WebLinkAboutMINUTES - 06082004 - C.137 _ •,: Contra
',' _ �� �_» Costa
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TO: BOARD OF SUPERVISORS ,1317
FROM: Dennis M. Barry, AICP
Community Development Director
DATE: June 8, 2004
SUBJECT: Lakeside Apartment Financing, Concord
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
ADOPT Resolution authorizing the issuance of tax-exempt bonds in an amount not to exceed $11.8
million for the acquisition and rehabilitation of the Lakeside Apartments, Concord and actions related
thereto.
FISCAL IMPACT
None. The bonds are entirely secured by a revenue pledge and reserve accounts. The County is
compensated for its cost of issuance and annually for monitoring expenses.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
t--RECOMMENDATION OF COUNTY ADMINISTRATOR ECOM DATION OF ARD
COMMITTEEL.,--APPROVE OTHER
0
SIGNATURE(S).
ACTION OF BOr ON .nTn,Fa., 9" APPROVED AS RECOMMENDED-V OTHER_
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT NM ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Jim Kennedy
3-1255
orig: Community Development
cc: County Administrator ATTESTED
County Counsel JOHN SWEETEN, CLERK OF THE
Redevelopment Agency BOARD OF SUPERVISORS
via: Community Development AND TH COUNTY ADMINISTRATOR
* Resources for Community Development t '
* Jones Hall BY"' f: (-- -� fIMPUTY
* City of Concord
\\fs-cd\users$\lnoble\Personal\Board Orders and Greenies\BOARD.lakeside.6.04.doc
BACKGROUND/REASONS FOR RECOMMENDATIONS
On September 9, 2003 the Board of Supervisors approved an Inducement Resolution conditionally
stating its intent to issue multi-family mortgage revenue bonds for the acquisition and rehabilitation of
the Lakeside Apartments,Concord. Since that time the County has received the necessary authority
from the California Debt Limit Allocation Committee to issue private activity bonds for the project. The
property is to be owned by Lakeside Apartments, L.P.,a California limited partnership. The Lakeside
Apartments are a 124-unit project located at 1897 Oakmead Ave., Concord. The project is
acquisition/renovation affordable housing project with a plan of finance as set forth below:
Construction Period Financing:
Tax Exempt Bond Loan $1198009000
Concord Redevelopment Funds $ 31433,945
County HOME Loan $ 290009000
Federal Home Loan Bank $ 558,000
Capital Contributions $ 501,548
Deferred Costs $ 7689251
Income from Operations $ 327,081
Total $19,388,825
Permanent Financing:
Tax Exempt Bond Loan $7,370,700
Concord Redevelopment Funds $3,183,945
County HOME Loan $2,000,000
Federal Home Loan Bank $ 5589000
G.P. Equity $ 2889210
Tax Credit Equity Investor $ 5,660,889
Income from Operations $ 327,081
Total $197388,825
The proposed financing is consistent with County policies to increase the supply of affordable
housing. The resolution before you provides the necessary authority to sell such bonds. The bond
sale resolution authorizes a number of actions, a summary of which is provided as Attachment A.
The following is additional background on the project and the financing.
The Bond Regulatory Agreement as well as Regulatory Agreements for the other financing sources
will result in the following distribution of affordable units for fifty-five years:
Target Group No of Units
Extremely Low Income 10
@ 30%AMI
Very Low Income 27
@ 50%AMI
Low Income 85
@ 60%AMI
Manager's Units 2
The proposed financing and the credentials of Lakeside Apartments, L.P., a California limited
partnership have been thoroughly evaluated by staff. Resources for Community Development(RCD)
is the non-profit developer of the project. With the County and/or its Redevelopment Agency RCD
has completed Elaine Null Court, and Bella Monte Apartments, both in Bay Point; Aspen Court,
Pacheco; Pinecrest Apartments and Terrace Glen, Antioch; Camara Circle and Caldera Place,
Concord; and Alvarado Court, Pinole.
The bonds to be issued will finance the acquisition and renovation of the Lakeside Apartments. The
bonds will be secured by a pledge of rents and reserve accounts. The bonds will be sold on a private
placement basis. The bonds will be unrated. The proposed issuance of unrated bonds complies with
the County's adopted polices for the issuance such bonds, including independent financial review of
the real estate, large denomination bonds only, sophisticated investor requirements,and continuing
investor requirements. The bonds are to be issued in two series totaling $11,800,000.
No pledge of County revenues is involved in securing the bonds.
H:\Personal\Board Orders and Greenies\BOARD.lakeside.6.04.doc
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ATTACHMENT A
The Bond Sale Resolution authorizes a number of actions, a summary of which follows:
1. Authorizes the issuance of revenue bonds in an amount not to exceed$11,800,000;
2. Approves the form of Master Pledge and Assignment between the County,and U.S.
Bank National Association as Agent and Pledge Holder;
3. Approves the form of Master Agency between the County, and U.S. Bank National
Association;
4. Approves form of Regulatory Agreements between the County, Lakeside
Apartments, L.P. and the Borrower;
5. Designates Jones Hall,A Professional Law Corporation, as Bond Counsel;
6. Authorizes the Chair, Vice-Chair, County Administrator, Director of Community
Development, Deputy Director-Redevelopment to execute documents and to take
such other actions necessary to complete the sale of bonds, and actions related
thereto.
\\fs-cd\users$\lnoble\Personal\Board Orders and Greenies\BOARD.lakeside.6.04.doc
RESOLUTION Nom .414; z
A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF
CONTRA COSTA AUTHORIZING THE ISSUANCE OF COUNTY OF CONTRA
COSTA MULTIFAMILY HOUSING REVENUE BONDS (LAKESIDE APARTMENTS)
2004 SERIES A-1, 2004 SERIES A-2 AND 2004 SERIES A-3, APPROVING AND
AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS,
AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH
WHEREAS, the County of Contra Costa (the "County") is authorized pursuant to
Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the state of California (the
"Act") to issue revenue bonds to provide funds to finance multifamily rental housing facilities;
and
WHEREAS, Lakeside Apartments, L.P., a California limited partnership (the "Borrower")
has requested that the County issue and sell tax exempt revenue bonds to assist in the
financing of the acquisition and rehabilitation of a 124-unit rental housing facility located in the
City of Concord in the County to be known as Lakeside Apartments (the "Project"); and
WHEREAS, the County now desires to issue three series of bonds (the "Bonds"), to
provide financing for the Project; and
WHEREAS, the Deputy Director-Redevelopment of the Community Development
Department of the County (the "Deputy Director-Redevelopment") has held a public hearing on
the proposed issuance of the Bonds, as required under the provisions of the Internal Revenue
Code applicable to tax-exempt bonds, following published notice of such hearing and, following
such public hearing, this Board of Supervisors conditionally approved the issuance of tax-
exempt bonds for the Project; and
WHEREAS, there have been prepared various documents with respect to the issuance
of the Bonds, copies of which are on file with the Deputy Director-Redevelopment, and this
Board of Supervisors now desires to approve the issuance of the Bonds and the execution and
delivery of such documents by the County; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to
have been performed precedent to and in connection with the issuance of the Bonds as
contemplated by this Resolution and the documents referred to herein exist, have happened
and have been performed in due time, form and manner as required by the laws of the State of
California, including the Act;
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of
Contra Costa, as follows:
1. The County hereby finds and declares that the above recitals are true and
correct.
2. Pursuant to the Act and the Pledge and Assignment (hereinafter defined), three
series of revenue bonds of the County designated as "County of Contra Costa Multifamily
Housing Revenue Bonds (Lakeside Apartments) 2004 Series A-1", as "County of Contra Costa
2004/311
Multifamily Housing Revenue Bonds (Lakeside Apartments) 2004 Series A-2", and "County of
Contra Costa Multifamily Housing Revenue Bonds (Lakeside Apartments) 2004 Series A-3", in a
collective total aggregate principal amount of not to exceed $11,800,000 (collectively, the "
Bonds") are hereby authorized to be issued. The Bonds shall be executed by the manual or
facsimile signature of the Chair of the Board of Supervisors (the "Chair"), the Director of the
Community Development Department (the "Director") or the Deputy Director-Redevelopment
and attested by the manual or facsimile signature of the County Administrator and Clerk of the
Board of Supervisors (the "County Administrator"), in the form set forth in and otherwise in
accordance with the Pledge and Assignment.
3. The Master Pledge and Assignment relating to the Bonds (the "Pledge and
Assignment") by and among the County, U.S. Bank National Association, as agent, and U.S.
Bank National Association, as holder, in the form on file with the Deputy Director-
Redevelopment, is hereby approved. Any one of the Chair, the Director and the Deputy
Director-Redevelopment (collectively, the "Designated Officers") is hereby authorized and
directed, for and in the name and on behalf of the County, to execute and deliver the Pledge
and Assignment, and the County Administrator is hereby authorized and directed, for and in the
name and on behalf of the County, to attest the Pledge and Assignment in said form, together
with such additions thereto or changes therein as are recommended or approved by the
Designated Officer executing the Pledge and Assignment upon consultation with the Deputy
Director-Redevelopment and Bond Counsel to the County (including such additions or changes
as are necessary or advisable, provided that no additions or changes shall authorize a total
aggregate principal amount of Bonds in excess of the amount set forth in Section 2 above), the
approval of such additions or changes to be conclusively evidenced by the execution and
delivery of the Pledge and Assignment by the County. The date, maturity dates (which shall in
no event be later than July 1, 2039), interest rate modes, privileges, manner of execution, place
of payment, terms of redemption and other terms of the Bonds shall be as provided in the
Pledge and Assignment as finally executed.
4. The Master Agency Agreement relating to the Bonds (the "Agency Agreement")
between the County and U.S. Bank National Association, as agent, in the form on file with the
Deputy Director-Redevelopment, is hereby approved. Any one of the Designated Officers is
hereby authorized and directed to execute and deliver the Agency Agreement in said form,
together with such additions thereto or changes therein as are recommended or approved by
the Designated Officer executing the Agency Agreement upon consultation with the Deputy
Director-Redevelopment and Bond Counsel to the County (including such additions or changes
as are necessary or advisable), the approval of such changes to be conclusively evidenced by
the execution and delivery of the Agency Agreement by the County.
5. The Regulatory Agreement and Declaration of Restrictive Covenants relating to
the Bonds, between the County and the Borrower (the "Regulatory Agreement") in the form on
file with the Deputy Director-Redevelopment, is hereby approved. Any one of the Designated
Officers is hereby authorized and directed, for and in the name and on behalf of the County, to
execute and deliver the Regulatory Agreement in said form, together with such additions thereto
or changes therein as are recommended or approved by the Designated Officer executing the
Agreements upon consultation with the Deputy Director-Redevelopment and Bond Counsel to
the County (including such additions or changes as are necessary or advisable), the approval of
such additions or changes to be conclusively evidenced by the execution and delivery of the
Regulatory Agreement by the County.
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6. The Bonds, when executed, shall be delivered to U.S. Bank National Association,
as the initial holder thereof, upon the funding of the Loan (as defined in the Pledge and
Assignment) with the purchase price for the Bonds.
7. The law firm of Jones Hall, A Professional Law Corporation, is hereby designated
as Bond Counsel to the County for the Bonds. The fees and expenses of such firm for matters
related to the Bonds shall be payable solely from the proceeds of the Bonds or contributions by
the Borrower.
8. All actions heretofore taken by the officers and agents of the County with respect
to the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the
proper officers of the County, including the Designated Officers, 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 lawful
issuance and delivery of the Bonds in accordance with this Resolution, including but not limited
to any other certificates, agreements and other documents described in the Pledge and
Assignment, the Agency Agreement, the Regulatory Agreement, and the other documents
herein approved.
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9. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 8th day of June, 2004, by the following vote:
AYES: SUPERVISORS GIOIA,UII A,GREE0ERG,De-SA ff= AND GLOVER.
NOES: NONE
ABSTAINING., NONE
ABSENT:
NONE
Chair
ATTEST:
John Sweeten
County Administrator and Clerk
Of the Board of Supervisors
By.
Deputy Clerk
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