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Home My WebLink AboutMINUTES - 03132007 - C.99 TO: BOARD OF SUPERVISORS ``�-sL _ Contra FROM: Dennis M. Barry, AICP, Community Development Director; •s Costa DATE: March 13, 2007 ' County �a.- - -� SrA cools SUBJECT: Inducement Action for Multifamily Projects SPECIFIC REQUEST(S) OR RECOMMENDATION(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. 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: ® YES ❑ NO SIGNATURE RECOMMENDATION OF COUNTY ADMINISTRATOR RECOE ATION OF OARD COMMI EE ,,-6PROVE OTHER r SIGNATURE(S):2LZa,4i,, , ,� ACTION OF BO ONItWh /3, APPROVED AS RECOMMENDED O ER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND UNANIMOUS(ABSENT CORRECT COPY OF AN ACTION TAKEN AND AYES: NOES: ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON � N�THE DATE SHOWN. Contact: Jim Kennedy(925/335-7225) ATTESTED 7K�A l 130 07 Orig:CDD-Redevelopment Agency JOHN CULLEN,CLERK OF THE cc: County Administrator's Office BOARD OF SUPERVISORS AND County Counsel COUNTY ADMINISTRATOR Redevelopment Agency(RDA) Housing Authority r City of Antioch (via RDA) BY , DEPUTY USA Properties (via RDA) GACDBG-REDEVVedev\Alicia(formally LNoble)TersonanBoard Orders and Greenies\BOARD.3.13.07.Riverstonelnducement.doc EXHIBIT A Maximum Amount Name of Name of of Bond Location of Number of Developer/Initlal Development Issue Development Units Owner Riverstone $28,000,000 2200 Sycamore Dr. , 136 Riverstone Apartments, L.P. Apartments Antioch, CA The general partners of the (APN 074-390-005) limited partnership are expected to be USA Riverstone, Inc. as Administrative General Partner and Riverside Charitable Corpor- ation as Managing General Partner. G:\CDBG-REDEV\redev\Alicia(formally LNoble)\Personal\Board Orders and Greenies\BOARD.3.13.07.Riverstonelnducement.doc THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY,CALIFORNIA Adopted this Resolution on 3 �'3 �� by the following vote: e AYES: NOES: NO06 ABSENT: &L over ABSTAIN: No"6 RESOLUTION NO.2007/157 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, (I)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 on file with the Deputy Director-Redevelopment,with such additions or deletions as are considered necessary or appropriate by the Deputy Director-Redevelopment,and the Owner, and the Chair of the Board, the County Administrator, the Director of Community Development, and the Deputy Director-Redevelopment 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, G:\CDBG-REDEV\redev\Alicia (formally LNoble)\Personal\Documents\Inducement.Resolution.Master.3.07.doc as amended(the"Code")are satisfied with respect to bonds,the interest on which is intended to be excluded from 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, the Deputy Director-Redevelopment, 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. Orig.Dept: Community Development-Redevelopment&Housing Division Contact: James Kennedy cc: Community Development County Counsel County Administrator G:\CDEG-REDEV\redev\Alicia (formally LNoble)\Personal\Documents\Inducement.Resolution.Master.3.07.doc