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Home My WebLink AboutMINUTES - 03142006 - C.58 Contra Costa V 4x.% County srA�oUK TO: REDEVELOPMENT AGENCY/BOARD OF SUPERVISORS FROM: John Cullen, Executive Director CHSIER WITH C ' Sa Dennis M. Barry, AICP, Community Development Director DATE: March 14, 2006 SUBJECT: Pleasant Hill BART Transit Village, Contra Costa Centre Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS As the Board of Supervisors, ADOPT Resolution authorizing the issuance of tax exempt bonds in an amount not to exceed$125 million for financing the construction the Pleasant Hill BART Transit Village Apartments and action related to thereto. As the Redevelopment Agency,APPROVE and AUTHORIZE execution of a Regulatory Agreement and Declaration of Restrictive Covenants in connection with the Pleasant Hill BART Transit Village Apartments. FISCAL IMPACT None. The bonds are entirely secured by a revenue pledge and reserve accounts. In the event of any default on the part of the borrower the County is not morally or legally obligated to cure. Furthermore, the County's credit rating is not effected by the performance of the borrower. The County is compensated for its cost of issuance and annually for monitoring ex enses. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOM16 NDATION OF OARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOAR N APPROVED AS RECOMMENDED V' O ER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT �'�'1'� ) 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 5-7225 orig: Community Development '" " " J cc: County Administrator ATTESTED�aAr, ( 1 County Counsel JOHN CULLEN, CLERK &F THE BOARD OF SUPERVISORS Via Redevelopment AND E OUNTY ADMINISTRATOR BYE , DEPUTY • Orrick Herrington & Sutcliff • Newman & Associates • Millennium Partners • Avalon Bay Communities • BART • Goldfarb & Lipman G:\CDBG-REDEV\redev\LNoble\Personal\Board Orders and Greenies\BOARD.PHB Transit village Apartments.2.28.06.doc 1 BACKGROUND/REASONS FOR RECOMMENDATIONS On August 3, 2004 the Board of Supervisors approved an Inducement Resolution conditionally stating its intent to issue multi-family mortgage revenue bonds for the construction of the Pleasant Hill BART Transit Village Apartments, Contra Costa Centre area. 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 Pleasant Hill Transit Village Partners I, a Delaware limited partnership,which is comprised of Millennium Partners and Avalon Bay Communities ("the Developer"). The Pleasant Hill BART Transit Village Apartments are a 449-unit project located on the BART property adjacent to the Pleasant Hill BART Station. The project is a new construction mixed income affordable housing project with a mixed use element. The plan of finance is set forth below: Tax Exempt Bond Loan $125,000,000 Contra Costa County Redevelopment $2,500,000 Developer Equity $12,500,000 Total $140,000,000 The proposed financing is consistent with County and Redevelopment Agency 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 developer, and the financing. The Bond/Agency Regulatory Agreement will result in 90 affordable units for very low income households (50% of area median income) for fifty-five years. The proposed financing and the credentials of the Developer have been thoroughly evaluated by staff. Almost ten years in the making, the Transit Village project on the BART property in the Contra Costa Centre Station area is about to get underway in a visible way. This complex public/private partnership,which is being undertaken by a partnership of Avalon Bay Communities and Millennium Partners, is a residential mixed-use project that will include 549 residential units (including 100 for-sale condominiums) 35,590 square feet of local serving restaurants (including restaurants, business services, can convenience retail),ten live-work units,a 290,000 square foot office building and a 20,000 square foot business conference center. All of these activities would occur a few steps for the BART fare gates. Contra Costa Centre will have its heart. Initial construction activity began February 21, 2006 when the construction of a BART patron replacement parking garage began. When the garage is completed the Transit Village project will be constructed. Initial construction of the Transit Village will occur in the spring of 2008. The land use approvals were the culmination of a community-driven planning program called a"charrette", which conducted in 2001. Since that time countless hours have been spent fine-tuning the architecture and site plan, coordinating and reconciling the wide variety of circulation issues related to the property—transit, bus,taxi, kiss-and-ride,bicycles,and pedestrians–with the mixed-use land use program. Balancing all of these interests was the challenge provided to the world-renowned architecture and urban design firm of McLarand Vasquez Emsiek (MVE). The entire project will be built on land owned by BART and leased to the Developer. In order to achieve all the project goals–including replacing almost 1500 parking spaces for BART patrons–a financial partnership was set up between BART, the County of Contra, and it's Redevelopment Agency. This partnership,which is called the Pleasant Hill BART Leasing Authority(the"JPA"),as well as the County Redevelopment Agency will be directly involved in the business transaction. The JPA will be leasing the property to the developer, with the Redevelopment Agency financing aspects of the project(BART replacement parking,streets and drainage, as well as parks,plazas, open-space, and civic uses), and affordable housing. All aspects of this business partnership were approved by the JPA, the County, and/or the Redevelopment Agency in 2005. The bonds to be issued will finance the development of the Pleasant Hill BART Transit Village Apartments. The bonds will be secured by a pledge of rents and reserve accounts. The bonds will also initially be secured by a Guaranteed Investment Contract(GIC), and ultimately by a bank letter of creditor FNMA or GNMA guaranty. The proposed issuance of bonds complies with the County's adopted polices for the issuance of bonds. No pledge of County revenues is involved in securing the bonds. G:\CDBG-REDEV\redev\Noble\Personal\Board Orders and Greenies\BOARD.PHB Transit Village Apartments.2.28.06.doc 2 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$125 million; 2. Approves the form of Indenture between the County, and a Trustee bank to be determined; 3. Approves the form of Financing Agreement between the County,the Trustee, and Pleasant Hill Transit Village Partners I, LP, and Delaware limited partnership (the "Borrower"); 4. Approves form of Regulatory Agreement and Declaration of Restrictive Covenants between the County, the County Redevelopment Agency, the Trustee, and the Borrower; 5. Approves the form of Purchase Agreement between Newman and Associates,the Borrower, and the County; 6. Approves the form of Official Statement; 7. Designates Orrick Herrington and Sutcliffe, LLP as Bond Counsel; 8. Designates Public Financial Management as the financial advisor; 9. 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. G:\CDBG-REDEV\redev\LNoble\Personal\Board Orders and Greenies\BOARD.PHB Transit Village Apartments.2.28.06.doc 3