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MOORPARK CITY COUNCIL �^
AGENDA REPORT EY'
Honorable City Council
Nancy Burns, Senior Management
DATE: June 18, 2002 (CC Special
Analys
Mtg. of une 19, 2002)
SUBJECT: Approval of Resolution No. 2002 - for USA
Properties Fund, Inc. Development of Vintage Crest
Senior Apartments Project (GPA 2002 -01, ZC 2002 -01,
RPD 2002 -02) to Set Forth City's Intent to Issue
Multi- Family Housing Revenue Bonds and Authorize
Reimbursement of Certain Expenses Associated with this
Project
DISCUSSION
At the June 19, 2002, Regular Meeting of the City Council, the
Council will be asked to consider scheduling a Tax Equity and
Fiscal Responsibility Act (TEFRA) hearing to consider the
issuance of multifamily housing revenue bonds to finance the USA
Properties Fund, Inc., senior housing project, known as Vintage
Crest Senior Apartments. The attached Resolution authorizes the
City to apply to the California Debt Limit Allocation Committee
(CDLAC) for an allocation from the state ceiling of private
activity bonds. It does not bind the City to issue the bonds.
Certain expenses associated with the development of this project
may be reimbursed to the developer with the proceeds of the sale
of the bonds. The attached Resolution will authorize this
reimbursement, as provided for in U. S. Treasury Regulations,
cited in the Resolution.
STAFF RECOMMENDATION:
Adopt Resolution No. 2002 -
Attachment
RESOLUTION No. 2002 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF MOORPARK, CALIFORNIA, SETTING FORTH THE
CITY'S OFFICIAL INTENT TO ISSUE MULTIFAMILY
HOUSING REVENUE BONDS AND AUTHORIZING
RELATED ACTIONS TO FINANCE THE PROPOSED
VINTAGE CREST SENIOR APARTMENTS PROJECT (GPA
2002 -01, ZC 2002 -01, RPD 2002 -02) NEAR
INTERSECTION OF SOUTHERLY TERMINUS OF PARK
LANE AND PARK CREST LANE IN THE CITY OF
MOORPARK
WHEREAS, pursuant to Chapter 7 of Part 5 of Division 31 of
the Health and Safety Code of the State of California, as
amended (the "Act ") , the City Council of the City of Moorpark
(the "City ") is authorized to issue revenue bonds for the
purpose of financing the acquisition, construction,
rehabilitation, refinancing, or development of multifamily
rental housing and for the provision of capital improvements in
connection with and determined necessary to the multifamily
rental housing; and
WHEREAS, USA Properties Fund, Inc., or its successors or
assignees (the "Developer ") , has requested that the City issue
and sell multifamily housing revenue bonds (the "Bonds ")
pursuant to the Act for the purpose of financing the acquisition
and construction by the Developer, or Vintage Crest Senior
Apartments, L.P., a California limited partnership formed by the
Developer for the purpose of owning the proposed facility (the
"Borrower "), of a certain proposed multifamily rental housing
development identified in the attached Exhibit A (the
"Project ") ; and
WHEREAS, the City, in the course of assisting the Borrower
in financing the Project, expects that the Borrower has paid and
may pay certain expenditures (the "Reimbursement Expenditures ")
in connection with the Project within the period from the date
which is 60 days prior to the adoption of this Resolution to the
date of issuance of the Bonds; and
WHEREAS, Section 1.103- 8(a) (5) and Section 1.150 -2 of the
United States Treasury Regulations (the "Treasury Regulations ")
require the City to declare its reasonable official intent to
reimburse the Reimbursement Expenditures for the Project with
proceeds of a subsequent tax - exempt borrowing if the proceeds
Resolution No. 2002 -
Page 2
of the borrowing are to be used to finance the Reimbursement
Expenditures; and
WHEREAS, the City wishes to declare its intention to
authorize the issuance of the Bonds for the purpose of financing
costs of the Project (including reimbursement of the
Reimbursement Expenditures) upon such terms and conditions as
may then be agreed upon by the City, the Borrower and the
purchaser of the Bonds, in an aggregate principal amount not to
exceed the amount set forth in Exhibit A; and
WHEREAS, Section 146 of the Internal Revenue Code of 1986
limits the amount of multifamily housing mortgage revenue bonds
that may be issued in any calendar year by entities within a
state (the "state ceiling ") and authorizes the governor or the
legislature of a state to provide the method of allocation
within the state; and
WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the
California Government Code governs the allocation of the state
ceiling among governmental units in the State of California to
permit the City to issue private activity bonds; and
WHEREAS, Section 8869.85 of the California Government Code
requires a local agency desiring an allocation of the state
ceiling for a particular financing to file an application with
the California Debt Limit Allocation Committee ( "CDLAC ") for
such an allocation, and CDLAC has certain policies that are to
be satisfied in connection with any such allocation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Finding and Determination. The above recitals,
and each of them, are true and correct. The City determines that
it is necessary and desirable to provide financing for the
Project (including reimbursement of the Reimbursement
Expenditures) by the issuance and sale of the Bonds pursuant to
the Act in an aggregate principal amount not to exceed the
amount set forth in Exhibit A, subject to final authorization of
the issuance of the Bonds by resolution of the City adopted at a
meeting of the City Council.
SECTION 2. Declaration of Official Intent. This Resolution
is being adopted by the City solely for purposes of establishing
compliance with the requirements of Section 1.103- 8(a) (5) and
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Resolution No. 2002 -
Page 3
Section 1.150 -2 of the Treasury Regulations. In that regard, the
City declares its official intent to use proceeds of the Bonds
to reimburse the Reimbursement Expenditures. This action is
taken expressly for the purpose of inducing the Borrower to
undertake the Project, and nothing contained in this Resolution
shall be construed to signify that the Project complies with any
planning, zoning, subdivision and building laws and ordinances
applicable thereto or to suggest that the City or any officer or
agent of the City will grant any such approval, consent or
permit that may be required in connection with the acquisition
and construction of the Project, or that the City will make any
expenditure, incur any indebtedness, or proceed with the
financing of the Project.
SECTION 3. Application to CDLAC. The officers and /or the
program managers of the City are authorized and directed to
apply to CDLAC for an allocation from the state ceiling of
private activity bonds to be issued by the City for the Project
in an amount not to exceed the amount set forth in Exhibit A,
and to take any and all other actions as may be necessary or
appropriate in connection with such application, including but
not limited to the payment of fees, the posting of deposits and
the provision of certificates, and any such actions previously
taken by such officers and program managers are ratified by this
Resolution.
SECTION 4. Effectiveness of Resolution. This Resolution
shall take effect immediately upon its adoption.
SECTION 5. The City Clerk shall certify to the adoption of
this resolution and shall cause a certified resolution to be
filed in the book of original resolutions.
PASSED AND ADOPTED this 19th day of June, 2002.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Exhibit A
Resolution No. 2002 -
Page 4
EXHIBIT A
DESCRIPTION OF PROPOSED VINTAGE CREST SENIOR APARTMENTS
Project Location Number of Units Maximum Bond Amount
General Plan Amendment
No. 2002 -01, Zone
Change No. 2002 -01,
Residential Planned
Development No. 2002 -02
Near intersection of
southerly terminus of
Park Lane and Park
Crest Lane, south of
New Los Angeles Avenue
190±
$20,000,000
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