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HomeMy WebLinkAboutAGENDA REPORT 2002 0821 CC REG ITEM 11EMOORPARK CITY COUNCIL AGENDA REPORT ITEM -119E9 � • E_ my or MOORPARK, CALirnmA. City Council Meeting of ACTION' �arGL� po } i pn a 20 (C9_Ll is -O) Rv. I TO: Honorable City Council FROM: Nancy Burns, Senior Management Analyst DATE: August 8, 2002 (CC Meeting of August 21, 2002) SUBJECT: Consider Adoption of Resolution No. 2002- , Pursuant to Public Hearing Held July 17, 2002, for Tax Equity Fiscal Responsibility Act (TEFRA) Related to Vintage Crest Senior Apartments (GPA 2002 -01, ZC 2002- 01), RPD 2002 -02), on Application by USA Properties Fund, Inc. BACKGROUND Vintage Crest Senior Apartments is a proposed 190 -unit senior apartment project to be built at the intersection of Park Lane and Park Crest Lane. All units will be affordable to low and very low income households. Financing for the project is anticipated from the issuance of tax - exempt revenue bonds and tax credits. A public hearing was noticed and conducted on July 17, 2002, pursuant to Internal Revenue Code requirements that the general public be given the opportunity to express views regarding the project or the proposed issuance of bonds to finance the project. The action taken by Council on July 17, 2002, was to open the public hearing, accept testimony from the public, close the public hearing, and approve a motion that the TEFRA requirements of the Internal Revenue Code had been met and public comments recorded. No public comments were received on the item at that meeting. Council approval was unanimous (3 -0). Application has been made by USA Properties Fund, Inc.., on behalf of the City, to the California Debt Limit Allocation Committee (CDLAC) for an allocation of private activity bonds. IS Honorable City Council Meeting of July 17, 2002 Page 2 DISCUSSION A Resolution is required by CDLAC to memorialize the action taken by Council July 17, 2002, on this matter. STAFF RECOMMENDATION Approve Resolution No. 2002- RESOLUTION NO. 2002- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK EXPRESSING THE CITY'S INTENT TO ISSUE MULTIFAMILY HOUSING REVENUE BONDS FOR THE FINANCING OF THE PROPOSED VINTAGE CREST SENIOR APARTMENTS AND APPROVING RELATED ACTIONS WHEREAS, the City of Moorpark (the "City ") is authorized by Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act "), to issue and sell revenue bonds for the purpose of providing financing for the acquisition and construction of multifamily rental housing facilities located within the City to be occupied in part by low income tenants; and WHEREAS, USA Properties Fund, Inc. (the "Developer ") has requested the City to issue revenue bonds in one or more series (the "Bonds ") pursuant to the Act for the purpose of financing the acquisition and construction by a partnership in which the Developer and Riverside Charitable Corporation, or affiliates, will be partners expected to be known as Vintage Crest Senior Apartments LP, a California limited partnership, or a related entity or a transferee or assignee of the Developer or an entity in which the Developer has an interest (the "Owner ") of a multifamily rental housing project (the "Project ") to be known as Vintage Crest Senior Apartments, and located on a site that is south of the intersection of Park Lane and Park Crest Lane in the City; and WHEREAS, it is intended that the interest on the Bonds be excluded from gross income for federal tax purposes; and WHEREAS, the Bonds will be considered to be "qualified exempt facility bonds" under Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code "), and Section 147(f) of the Code requires that the applicable elected representative with respect to the City hold a public hearing on and approve the issuance of the Bonds following a public hearing on the Bonds, in order for the interest on the Bonds to be tax - exempt; and WHEREAS, this City Council is an applicable elected representative of the City for purposes of the Code; and WHEREAS, a notice of said public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all such interested persons were given an opportunity to be heard on all matters relative to the location, operation and financing of the Project and the City's issuance of the Bonds therefor; and WHEREAS, the City Council now desires to express its intent to issue the Bonds and to direct the City's Finance Director to take all actions necessary to apply for a private activity bond allocation for the Project from the California Debt Limit Allocation Committee ( "CDLAC "). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City intends to issue the Bonds in a principal amount not to exceed $20,000,000 for the purpose of making a loan to the Owner to finance costs of the acquisition and construction by the Owner of the Project. Said bonds shall be secured by the Owner. SECTION 2. The City Council directs the Finance Director to take all actions necessary or desirable to obtain an allocation for the issuance of private activity bonds for the Project from CDLAC in the aggregate amount of not to exceed $20,000,000 (the "Allocation ") The Finance Director shall take all actions required or desirable under the procedures of CDLAC and Chapter 11.8 of Division 1 of Title 2 (commencing with Section 8869.80) of the California Government Code to apply for the Allocation from CDLAC. In accordance with the procedures of CDLAC concerning a deposit, the City shall obtain the deposit required by CDLAC from moneys made available by the Owner. The City Manager or the Finance Director is authorized to negotiate a Deposit Agreement between the City and the Developer and /or any other entity involved with the Project to provide for safekeeping of any such deposit. SECTION 3. The adoption of this Resolution is solely for the purpose of satisfying the requirements of CDLAC related to the Allocation and the public hearing requirement of the Code, and shall not be construed as for any other purpose. The City has not fully reviewed or considered the financial feasibility of the Project or the expected operation of the Project, and the adoption of this Resolution shall not obligate the City in any manner with respect to the Bonds or the Project without further formal action to be taken by this City Council, including, but not limited to, the approval of the financing documents by this City Council by resolution. Specifically, this Resolution shall not obligate (i) the City to provide financing to the Developer or the Owner for the acquisition or construction of the Project or to issue the Bonds for purposes of such financing; or (ii) the City, or any department of the City, to approve any application or request for, or take any other action in connection with, any -2- environmental, zoning, building or any other permit or other action necessary for the acquisition, construction or operation of the Project. SECTION 4. 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 21st DAY OF AUGUST, 2002. ATTEST: Deborah S. Traffenstedt, City Clerk 13003.03:J6277 6/20/02 Patrick Hunter, Mayor