HomeMy WebLinkAboutAGENDA REPORT 1999 1020 CC REG ITEM 11IITEM I.
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MOORPARK CITY COUNCIL
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TO: The Honorable City Council
FROM: John E. Nowak, Assistant City Manager 4��
Urban Futures, Inc., Financial Advisor to the
City /Agency
DATE: October 11, 1999 (CC Meeting of October 20, 1999)
SUBJECT: Engagement of Financing Team and Setting of
TEFRA Hearing re: Issuance of Financing for
Villa Del Arroyo Mobile Home Park
BACKGROUND
The Westridge Group, a commercial brokerage, has approached the
City of Moorpark on behalf of the Caritas Corporation
( "Caritas "), a 501(c)3 nonprofit corporation, relative to the
issuance of revenue bonds to finance the acquisition and
operation of the Villa Del Arroyo Mobile Home Park. Caritas is
proposing that the City and /or the Redevelopment Agency issue
non - credit- enhanced, non - recourse revenue bonds to finance the
acquisition of this 241 -space mobile home park located at 15750
East Los Angeles Street.
The proposed financing would be structured so that the nonprofit
corporation, not the City nor the Agency, would be responsible
for the payback of the bonds. Bond payback would come from
revenues generated from space rentals at the park; as such, the
City /Agency would only be serving as a conduit issuer, similar to
the multifamily housing bonds issued in the past by the City.
Under the proposed financing scenario, Caritas would own and
operate the park. Being a nonprofit operator, Caritas would
guarantee the residents a voice in the management of their park
and it would enter into a 30 -year Regulatory Agreement with the
City /Agency guaranteeing that a minimum of 20 percent of the
units in the park would always be available to low- and moderate -
income persons or families. In addition, future rent increases
would be based upon a formula tied to a recognized index.
00®x.23
Financing Team and TEFRA Hearing
October 20, 1999
Page 2
STAFF RECOMMENDATION:
It is requested that the City Council take the following actions:
1. Appoint the staff - recommended financing team, to wit:
A. Bond Counsel ... . . . . . . . . . .Quint & Thimmig LLP
B. Disclosure Counsel Richards, Watson & Gershon
C. Co- Underwriters . . . . . Miller & Schroeder Financial,
Inc. and Kinsell, Newcomb & DeDios
D. Trustee . . . . . . . . . . . . . . . . . . . U.S. Bank
Written proposals for each of the above listed firms are on
file in the office of the Assistant City Manager. Urban
Futures, Inc., the City's financial advisor, is already
under contract with the City /Agency.
2. Set November 3, 1999 as the time to hold a public hearing
( TEFRA) on this matter and direct staff to take those
actions necessary to initiate said public hearing.
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