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HomeMy WebLinkAboutMINUTES - 07132004 - C.129 Contra Costa County TO: BOARD OF SUPERVISORS .gtl FROM: Dennis M. Barry, AICP, Director of Community Development DATE: July 13, 2004 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 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: f / -RECOMMENDATION OF COUNTY ADMINISTRATORRECO EN'DATION OF OARD COMMITTEE APPROVE OTHER SIONATURE(S 1 ACTION OF B A ON 2 APPR } V D AS RECO MENDED VOTE OF SU'P RVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT 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. Source: Jim Kennedy 335-1255 ATTESTED _- ^mssrr� 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 EPUTY * Steadfast Properties * City of Pittsburg \\fs-cd\users$\inoble\Personal\Board Orders and Greenies\BOARD.7.04.steadfast.doe EXHIBIT A Maximum Amount Name of Name of of Bond Location of Number of Developer/initial Development Issue Development Unita Owner Marina Heights $27,000,000 2 Marina Blvd. 200 Steadfast Marina Apartments (APN 085-064-015), Heights L.P., a Pittsburg California limited partnership \\fs-cd\users$\Inoble\Personal\Board Orders and Greenies\BOARD.marinaheights.7.04.doc THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY,CALIFORNIA Adopted this Resolution on july 13 2004 by the following vote: AYES: SUPERVISORS" GIOIA, UILKEMA, GREENBERG, DESA'ULNIER and GLOVER NOES: NONE ABSENT: NONE ABSTAIN: NONE RESOLUTION NO. 2004/391 SUBJECT: 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 \\€s-cd\users$\lnoble\Personal\Documents\Board.Resolution.inducement.7.04.doc 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. 3. It is the purpose and intent of the County that this Resolution constitute official action toward the issuance of obligations by the County to finance the Developments in accordance with Sections 1.103- 8(a)(5)(iii),and 1.150-2 of the Regulations of the United States Department of the Treasury,or any successor regulation promulgated under the Code. The County hereby declares its official intent to use proceeds of the Bonds to reimburse the Owner for certain expenditures made prior to the issuance of the Bonds. 4. This Resolution shall take effect immediately upon its passage and adoption. I hereby certify that this is a true and correct copy of an action taken and entered on the Orig.Dept: Redevelopment Agency minutes of the Board of Supervisors on the Contact: James Kennedy date shown. r cc: Director of Community Development AT'TEST'ED: County Counsel JOHN S, r Clerk of the Board County Administrator of Supe ors and Count Administrator By RESOLUTION NO. 20041391 cd\users$\lnoble\Personal\Documents\Board.Resolution.inducement.7.04.doc EXHIBIT A Maximum Amount Name of Name of of Bond Location of Number of Developer/initial Development Issue Development Units Domer Marina Heights $27,000,000 2 Marina Blvd. 200 Steadfast Marina Apartments (APN 085-064-015), Heights L.P., a Pittsburg California limited partnership \\fs-cd\users$\lnoble\Personal\Board orders and Greenies\Bt7ARD.marinaheights.7.04.doc .;7-/ 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 Ower 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 1110 of one percent of the amount of the proposed Bond issue or $2,000, as consideration of the County conditionally expressing its intent to issue Bonds for the Project.Any amount so paid is to be credited toward the County's cost of issuance. 2. The Owner agrees to pay the cost of preparation of any studies,reports or other documents necessary to be prepared by or for the County to comply with the California Environmental(duality Act. 3. The Owner agrees to pay any and all costs incurred by the County in connection with any legal action challenging the issuance or validity of the Bonds or use of the proceeds thereof, or challenging proceedings or determinations by the County under the California Environmental quality Act. The County agrees to proceed, and to direct bond counsel to proceed, with the planning and preparation of the necessary proceedings for the offering of the bonds for sale to finance the Project. The Owner understands that this Agreement does not exempt it from any requirements of the County or any department or agency thereof or other governmental body that would apply in the absence of the proposed Bond financing, and compliance with such requirements is an expressed precondition to the issuance of the Bonds by the County. The Owner further understands and agrees that the issuance of any Bonds by the County is contingent upon the County being satisfied with all of the terms and conditions of the Bonds and of the issuance thereof and that such issuance is in the best interest of the County, and that the County shall not be liable to the Owner or to any other person if the County shall determine for any reason not to issue the Bonds. \\fs-cd\users$Vn oble\Personal\Documents\prelim.agree.mort.rev.bond.6.©4.doe IN WITNESS WHEREOF,the parties have executed this Agreement on ,200 (Owner) By: Date: ACCEPTED: COUNTY OF CONTRA COSTA By: James Kennedy Deputy Director-Redevelopment \\fs-cd\users$\}noble\Personal\Documents\prelim.agree.mort.rev.bond.6.04.doc