HomeMy WebLinkAboutAGENDA REPORT 1985 1118 CC REG ITEM 07BALBERT PRIETO
Mayor
JAMES D. WEAK
Mayor Pro Tem
THOMAS C. FERGUSON
Councilmember
DANNY A. WOOLARD
Councilmember
LETA YANCY- SUTTON
Councilmember
DORIS D. BANKUS
City Clerk
JOHN C. GEDNEY
City Treasurer
TO =
FROM =
DATE =
, _J13 C T =
BACKGROUND:
40ORPARK
MEMORANDUM
The Honorable City Council
Steven Kueny, City Manager
November 14, 1985
Proposed Issuance of Multi - `Family Revenue Bonds
Moorpark LeClub, Limited (Palmer)
746'
STEVEN KUENY
City Manager
CHERYL J. KANE
City Attorney
NIALL FRITZ
Director of
Community
Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
On January 16, 1985, the City Council adopted an Inducement Resolution concerning
its intent to issue revenue bonds to finance a multi - family rental housing develop-
ment for Moorpark Le Club, Ltd. ( formerly G. H. Palmer Associates) , to be located
at the southeast corner of Moorpark and Los Angeles Avenues.
As part of that action, the City Council appointed Wertheim & Co., Inc., and
Stone and Youngberg as joint managers /underwriters for the Bonds.
The firm of Orrick, Herrington and Sutcliffe has been maintained by the under-
writers as Bond Counsel for the bond issue. Bond Counsel is responsible for
preparing the documents, issuing the required opinions in connection with the
program, ensuring that the proceedings are conducted in the appropriate manner
and to protect the interests of the Issuer. The County of Ventura has worked
closely and satisfactorily with Orrick on other major financing deals.
Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of
California ( the "Act ") authorizes cities to incur indebtedness for the purpose of
financing the construction or development of multi - family rental housing, including
units for low and moderate income persons, and for the provision of capital improve-
ments in connection with and determined necessary to such multi - family housing.
In order to assure the Issuer ( City) and the Bondholders that the interest on
the Bonds will be exempt from federal income taxes under Section 103(b) of the
Internal Revenue Code of 1954, as amended, and to satisfy the public purposes for
which the Bonds are authorized to be issued under the law, certain requirements
on the occupancy of units in the project need tp be met. Specifically, no less
than 20% of the total units shall be at all times rented to (or held vacant and
available for immediate occupancy by) low and moderate income tenants.
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
The Honorable City Council
November 14, 1985
Page 2
For the purposes of the program, low or moderate income shall mean persons or
families whose income does not exceed eighty percent (80%) of the median gross
income for the County. For a family of four this is currently $32,000.00.
The bonds will be issued in the aggregate principal amount of $22,600,000, for
the purpose of providing funds to finance the construction of a 370 -unit multi-
family rental housing development to be owned by the Developer, and to be
located within the City of Moorpark. The Issuer will record a Regulatory Agreement
which will apply to the operation and occupancy of the project, and which, among
other things, will require that at least 20% of the units in the project be occupied
by persons or families of low or moderate income, as defined.
Prior to the issuance of the bonds, the Issuer will enter into a Loan Agreement
(with respect to the Project) with the Developer. Pursuant to the Agreement,
the Issuer's loan to the Developer will be evidenced by a promissory note of the
Developer. Payments will be made directly to the Trustee under the Loan Agreement
and the Developer Note in such amounts as will pay, when due, the principal of
and interest on the bonds.
The Developer has arranged the delivery to the Trustee of an irrevocable letter of
credit, issued by Citibank, N.A. , New York, New York, for the Developer, in
favor of the Trustee, as beneficiary on behalf of the bondholders. The Developer
has authorized the Trustee to draw on the Letter of Credit to the extent necessary
to meet its obligations under the Developer Note to make payments of principal of
and interest on the bonds. Per a Reimbursement Agreement, between the Devel-
oper and Citibank, the Developer shall reimburse the credit bank for all amounts
drawn by the Trustee under the Letter of Credit.
The Bonds are limited obligations of the Issuer from payments provided under the
Loan Agreement ( rental income) and funds drawn under the irrevocable Letter of
Credit ussued by Citibank. There is also a Bond Reserve derived from a portion
of the Bond proceeds and investment earnings thereon.
Neither the faith and credit nor the taxing power of the Issuer, the State of
California, or any political subdivision thereof, is pledged to the payment of the
principal of or interest on the Bonds.
Program Term
The "Qualified Project Period" with respect to the project shall begin on the later
of the date of issuance of the Bonds or the first day on which at least 10% of the
units are first occupied, and shall terminate approximately ten (10) years from the
date on which at least 50% of the units are first occupied.
Program Costs
All costs associated with the program, including fees/services for the underwriters,
bond counsel, trustee and program administration, shall be paid from the Bond
proceeds and the Developer. The Issuer ( City) will not be required to commit its
general fund revenues or guarantee payment of the bonds.
The Honorable City Council
November 14, 1985
Page 3
Pro -aram Administration
Ongoing program administration ( during the "qualified project period ") will .consist
of monitoring compliance of the project with the requirements set forth in the
Regulatory Agreement, and specifically with respect to the income and occupancy
requirements of the tenants.
The role of program administrator may be assumed by either the Issuer ( City) or
the Area Housing Authority or a qualified private firm.
The Area Housing Authority possesses the necessary knowledge and expertise in
this area and has indicated an interest in administering the program.
Time Schedule
With the end of the calendar year rapidly approaching, it is necessary to move
very diligently in order to issue bonds prior to December 31. Staff is in the pro-
cess of reviewing (draft) bond documents which will be presented to the City Council
for action at subsequent meetings. The City Council will also be requested to take
final action on the issuance of bonds relative to the subject project.
The adoption of the Resolution does not commit the City to issue tax - exempt obliga-
tions to finance -the project. The issuance of bonds or other obligations of the City
for the project will be authorized only by subsequent action by the City.
RECOMMENDED ACTION:
It is recommended that the City Council conduct this public hearing as required
in connection with the proposed issuance of Multi - Family Housing Revenue Bonds
and adopt the attached Resolution No. 85-
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attachment
From
CHIEF(& ISTRATIVE OFFICE
Date //
To:
❑ r appropriate action
eFor your information and files
❑ As you requested
❑ Please refer to
❑ Please review and return your comments
County of Ventura
800 South Victoria Avenue
Ventura, CA 93009
(805) 654 -2680
CAO-24 (R*v. 10/79)
CHIEF ADMINISTRATIVE OFFICE
county of venture
PEGGY DANIELS
Senior Administrative Analyst
Mt V4
14
800 South Victoria Avenue, Ventura, California 93009 (805) 654 -2692
CHIEF ADMINISTRATIVE OFFICE
county of ventura
PEGGY DANIELS'-
Senior Administrative Analyst :.Y.
Q
800 South Victoria Avenue, Ventura, California 93009 (805) 654 -2692
i
l
From
CHIEF A MIN TRATIVE OFFICE
Date
L b
To: T -- -' s
aFor appropriate action
❑ For your information and files
❑ As you requested
❑ Please refer to
Please review and return your comments
AJQ
F
9
Coun N of Ventura
800 South Victoria Avenue
Ventura, CA 93009
(805) 654- 2680��'/
CAo --24 (Rov. 10 /7fl v2�h
AFFIDAVIT OF PUBL.`,ATION
In the Matter of the Publication
_Notice of Public Hearing
STATE OF CALIFORNIA
County of Ventura ss.
Mary Selznick IN • d 1 d
eing u y sworn, eposes.
I am a citizen of the United States, over twenty -one years of
age, and am in nowise Interested in ner a party to the above
entitled matter; I am and at all times stated herein have been
secretary to
the publisher of
THE ENTERPRISE
which is and at all times stated herein was, a newspaper of
general circulation as that term Is defined by Article 1, Chapter
1 of Division 7 of Title 1, of the Government Code of this State,
and published -weekly for the dissemination of local and tele-
graphic news and intelligence of a general character, having a
bona fide subscription list of paying subscribers, which paper
is not and has not been devoted to the Interests or published
for the entertainment or instruction of any particular class, pro-
fession, trade, calling, race or denomination, or for the enter-
tainment or instruction of any number of such classes, profes-
sions, trades, callings, races or denominations; at all said
times said newspaper has been established, printed and pub-
lished at regular intervals In the said county and state, for
more than one year next preceding the first publication of the
notice herein mentioned; and that said newspaper has been
established as a newspaper of general circulation as provided
by Article 2, Chapter 1, of Division 7, of Title 1 of the Govern-
ment Code of this State, by a judgment of the Superior Court
of said County and State, which said judgment has not been
vacated, modified or set aside prior to date hereof; said notice
was set in type not smaller than nonpareil, and was preceded
with words printer in blackface type not smaller than nonpareil,
describing and expressing in general terms the purport and
character of the notice intended to be given; the
said notice
of which the annexed is a full and true printed copy, was
printed and published in all the regular issues of said news-
paper for one consecutive publication
weeks, to -wit: on November 4, 1985
(24f t.c C A- o �/
L i _J
NOYKa OF ' PUALIC WWAb
Iwo
NOTICt IS HEREBY GIVEN
that the City C&NXII Of tM City
of MeorWk, at Ib re/War
weiing an Monday, November
114 19% vAh held a public hear
Ing, as required by Section .103
(k) (1) WIft Internal R.wrive
cow, Whitt aged to the propos-
ed Wousnew bylhe City of Moor-
park or jhs.., Area Moua1A0
AYtharlfyV "Ob County of von
tVr_— • 0 "roily housing
r*m�l'o. In an amount not
W ahtoaad U NA6, for the
prrpoNpf-atlNOfing In the fln*r
ci ig of a, 370-unit mulfl- famltX
rental housing development for
Moorpark Le Club, Ltd., a
CaRl"Ill Limited Partnership„
1sf f11si/. MR 9� M. Patlnar is
�ellMlyr
to w ofwm at
ttilf ' ari1M' at- Moor-
at 7wcleclL /.M. 8"WIN Mat"
in tfb Coueell Chambers at City
Hall, 70 MW W* Ilvom,
M6erpahk, Callfornls. In
forested pprsens wishing to an=
pinlin Oh views on the larjams
of sow reW ar an the natwe
and It cs"M of me fac"Ity ptb
poM/ t0 be* fblo4oad -. wfN bs
9lvwi an oppw%nwy to do so: at
't)fepubf c hearing or ma9, prier
to the 11ma of the hearhg, silb-
mit wrlflin. cgflgqanis it Steve
Kw", City MwwW. City of
Moorpark, 7" Moorpark
Avenue, Moorpark, Calitornla
1rl0l1.
Donis o. SAM us, Cityielerk
No.06 1471 MN. a, l!M
and further 1 sayeth not. "" RECEIVED ---
I declare under penalty of perjury that the foregoing is true
NOV ? 21985
and correct. City of Moorpark
November 14, ^_ 19 85
Date
RESOLUTION NO. 85- 252
A RESOLUTION OF THE CITY. COUNCIL OF' THE CITY OF
MOORPARK, CALIFORNIA, CONCERNING THE PROPOSED
ISSUANCE OF MULTI - FAMILY REVENUE BONDS IN AN
AMOUNT NOT TO EXCEED $25,000,000 FOR THE PURPOSE
OF MAKING A LOAN TO MOORPARK LE CLUB, LIMITED.
WHEREAS, Chapter 7 of Part 5 of Division 31 of the Health and
Safety Code of the State of California ( the "Act ") authorizes cities to incur
indebtedness for the purpose of financing the construction or development of
multi - family rental housing and for the provision of capital improvements in
connection with and determined necessary to such multi - family housing, and the
Act provides a complete., additional and alternative method for such financing; and
WHEREAS, on January 16, 1985, the City Council of the City of
Moorpark adopted an inducement resolution ( Resolution No. 85 -161) concerning its
intent to issue revenue bonds to finance a multi - family rental housing develop-
ment for Moorpark Le Club, Limited (G. H. Palmer Associates j , to be located
at the southeast corner of Moorpark Avenue and Los Angeles Avenue; and
WHEREAS, pursuant to Section 103 of the Internal Revenue Code
of 1954, as amended, prior to such issuance of bonds, a public hearing shall
be duly noticed and subsequently held and an opportunity provided for all
parties to present arguments for and against the issuance of such bonds;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the
City of Moorpark, California, has duly noticed and has held a public hearing in
compliance with the Federal statues, and has taken into consideration any and
all testimony presented at said hearing.
PASSED AND ADOPTED this 18th day of November, 1985.
ATTEST:
City Clerlc
(S EAL )
Mayor of the City of Moorpark,
California
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) SS .
CITY OF MOORPARK )
I, DORIS D. BANKUS , City Clerk of the City of Moorpark,
California, do hereby certify that the foregoing Resolution No. 85 -252
was adopted by the City Council of the City of Moorpark at a regular
meeting thereof held on the 18th day of November 19 85
and that the same was adopted by the following roll call vote:
AYES: Councilmembers Yancy- Sutton, Woolard, Ferguson,
Prieto and Mayor Weak;
NOES: None;
ABSENT: None.
WITNESS my hand and the official seal of said City this 18th day of
November , 19 85
City Clerk
(S
AL L3EHT PHIS T O
Majvor
JAh1E5 (: VVEAK
Mayo! Pro Tern
1 HOMASC. FERGUSON
Councilmember
DANNY A. 4"vOOLARD
Councilmen-ber
LETA YANCY - SUTTON
Councilmember
DORIS D. BANKUS
Ci!y Clerk
JOHN C. GEDNEY
City T easure�
TO =
FROM =
DATE
�ZJB..7ECT
BACKGROUND:
MOORPARK
MEMORANDUM
The Honorable City Council
Steven Kueny, City Manager
November 14, 1985
Proposed. Issuance of Multi - `Family Revenue Bonds
Moorpark LeClub, Limited (Palmer)
STEVEN KUENY
City Manager
CHERYL_ J KANE
City Attorney
NIALL FRITZ
Director of
Community
Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
On January 16, 1985, the City Council adopted an Inducement Resolution concerning;
its intent to issue revenue bonds to finance a multi - family rental housing develop-
ment for Moorpark Le Club, Ltd. (formerly G. H. Palmer Associates) , to be located
at the southeast corner of Moorpark and Los Angeles Avenues.
As part of that action, the City Council appointed Wertheim & Co., Inc . , and
Stone and Youngberg as joint managers /underwriters for the Bonds.
The firm of Orrick, Herrington and Sutcliffe has been maintained by the under -
writers as Bond Counsel for the bond issue. Bond Counsel is responsible for
preparing the documents, issuing the required opinions in connection with the
program, ensuring that the proceedings are conducted in the appropriate manner
and to protect the interests of the Issuer. The County of Ventura has worked
closely and satisfactorily with Orrick on other major financing deals.
Chanter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of
California ( the "Act ") authorizes cities to incur indebtedness for the purpose of
financing the construction or development of multi - family rental housing, including
units for !ow and moderate income persons, and for the provision of 'Capital improve -
merits ir_ connection with. and determined necessary to such multi- family housing.
In orde.- to assure the Issuer ( City) and the Bondholders that the interest on
the Bonds will be exempt from federal income taxes under Section 103(b) of the
Internal Revenue Code of 1954, as amended, and to satisfy the public purposes for
which. the Bonds are authorized to be issued under the law, certain requirements
oti the occupancy of units in the project need tQ be met. Specifically, no less
thin 20'_0 of the total units shall be at all times rented to (or held vacant and
:jv. ilabla- for immediate occupancy by) low and moderate income tens '-nt4.
Moorpark, Cahtornia 93021
The Honorable City Council
November 14, 1985
Page 2
For the purposes of the program, low or moderate income shall mean persons or
families whose income does not exceed eighty percent (80 %) of the median gross
income for the County. For a family of four this is currently $32,000.00.
The bonds will be issued in the aggregate principal amount of $22,600,000, for
the purpose of providing funds to finance the construction of a 370 -unit multi-
family rental housing development to be owned by the Developer, and to be
located within the City of Moorpark. The Issuer will record a Regulatory Agreement
which will apply to the operation and occupancy of the project, and which, among
other things, will require that at least 20% of the units in the project be occupied
by persons or families of low or moderate income, as defined.
Prior to the issuance of the bonds, the Issuer will enter into a Loan Agreement
( with respect to the Project) with the Developer. Pursuant to the Agreement,
the Issuer's loan to the Developer will be evidenced by a promissory note of the
Developer. Payments will be made directly to the Trustee under the Loan Agreement
and the Developer Note in such amounts as will pay, when due, the principal of
and interest on the bonds.
The Developer has arranged the delivery to the Trustee of an irrevocable letter of
credit, issued by Citibank, N.A. , New York, New York, for the Developer, in
favor of the Trustee, as beneficiary on behalf of the bondholders. The Developer
has authorized the Trustee to draw on the Letter of Credit to the extent necessary
to meet its obligations under the Developer Note to make payments of principal of
and interest on the bonds. Per a Reimbursement Agreement, between the Devel-
oper and Citibank, the Developer shall reimburse the credit bank for all amounts
drawn by the Trustee under the Letter of Credit.
The Bonds are limited obligations of the Issuer from payments provided under the
Loan Agreement ( rental income) and funds drawn under the irrevocable Letter of
Credit ussued by Citibank. There is also a Bond Reserve derived from a portion
of the Bond proceeds and investment earnings thereon.
Neither the faith and credit nor the taxing power of the Issuer, the State of
California, or any political subdivision thereof, is pledged to the payment of the
principal of or interest on the Bonds.
Program Term
The "Qualified Project Period" with respect to the project shall begin on the later
of the date of issuance of the Bonds or the first day on which at least 10% of the
units are first occupied, and shall terminate approximately ten (10) years from the
date on which at least 50% of the units are first occupied.
Program Costs
All costs associated with the program, including fees /services for the underwriters,
bond counsel, trustee and program administration, shall be paid from the Bond
proceeds and the Developer. The Issuer ( City; will not he required to commit ITS-
general fund revenues or guarantee payment of the bonds.
The Honorable City Council
November 14, 1985
Page 3
Program Administration
Ongoing program administration ( during the "qualified project period ") will consist
of monitoring compliance of the project with the requirements set forth in the
Regulatory Agreement, and specifically with respect to the income and occupancy
requirements of the tenants.
The role of program administrator may be assumed by either the Issuer ( City) or
the Area Housing Authority or a qualified private firm.
The Area Housing Authority possesses the necessary knowledge and expertise in
this area and has indicated an interest in administering the program.
Time Schedule
With the end of the calendar year rapidly approaching, it is necessary to move
very diligently in order to issue bonds prior to December 31. Staff is in the pro-
cess of reviewing (draft) bond documents which will be presented to the City Council
for action at subsequent meetings. The City Council will also be requested to take
final action on the issuance of bonds relative to the subject project.
The adoption of the Resolution does not commit the City to issue tax - exempt obliga-
tions to finance the project. The issuance of bonds or other obligations of the City
for the project will be authorized only by subsequent action by the City.
RECOMMENDED ACTION:
It is recommended that the City Council conduct this public hearing as required
in connection with the proposed issuance of Multi- Family Housing Revenue Bonds
and adopt the attached Resolution No. 85-
SK: ddb
attachment
OFFICE OF THE COUNTY
CLERK AND RECORDER:
Clark, Board of Supervisors
Clerk, Superior Court
Registrar of Voters
Recorder
(805) 654 -2251
TELEPHONE
ORDER OF PUBLICATION
RICHARD D. DEAN
COUNTY CLERK AND RECORDER
ROBI G. KLEIN
ASSISTANT COUNTY CLERK AND RECORDER
2nd Floor, Hall of Justice
TO: The Enterprise AI -7272
GENTLEMEN:
CLERK, BOARD OF
SUPERVISORS DIVISION
SHIRLEY WEEKS
Assistant Clerk
4th Floor, Administration Building
800 South Victoria Avenue
Ventura, CA 93009
Oct. 31, 1985
DATE
FILE #
Please publish the enclosed: Notice of public hearing for the
City of Moorpark re hearing on Multi- family housing revenue bonds
one(1)time in the issues of November 4, 1985
setting legal in solid block form without indentation of sub - paragraphs,
sub -item, signatures and titles. Indent major paragraphs no more than
one space.
Immediately upon completion of publication, forward the following
to the above office.
1. Affidavit of Publication, signed by printer, or his foreman,
or principal clerk.
2. Please identify publication by writing our number (AI or GI
number) on affidavit and column inches.
Please have the attached copy of this order signed and returned in
the enclosed envelope as evidence of your receipt of publication material
and instructions.
enc.
(rev. 1/83)
Very truly yours,
RICHARD D. DEAN, County Clerk
By Faye Willard
Deputy
"REGISTER TO VOTE — THEN VOTE"
OFFICE OF THE COUNTY
CLERK AND RECORDER:
Clerk, Board of Supervisors
0ork. Superior Court
Registrar of Voters
Recorder
(805) 654 -2251
TELEPHONE
ORDER OF PUBLICATION
TO: The Enterprise
GENTLEMEN:
RICHARD D. DEAN
COUNTY CLERK AND RECORDER
ROBI G. KLEIN
ASSISTANT COUNTY CLERK AND RECORDER
2nd Floor, Hall of Justice
AI -7272
CLERK, BOARD OF
SUPERVISORS DIVISION
SHIRLEY WEEKS
Assistant Clerk
4th Floor, Administration Building
800 South Victoria Avenue
Ventura, CA 93009
Oct. 31, 1985
DATE
FILE #
Please publish the enclosed: Notice of public hearing for the
City of Moorpark re hearing on Multi- family housing revenue bonds
one(1)time in the issues of November 4, 1985
setting legal in solid block form without indentation of sub- paragraphs,
sub -item, signatures and titles. Indent major paragraphs no more than
one space.
Immediately upon completion of publication, forward the following
to the above office.
1. Affidavit of Publication, signed by printer, or his foreman,
or principal clerk.
2. Please identify publication by writing our number .(AI or GI
number) on affidavit and column inches.
Please have the attached copy of this order signed and returned in
the enclosed envelope as evidence of your receipt of publication material
and instructions.
Very truly yours,
RICHARD D. DEAN, County Clerk
By Faye Willard
Deputy
enc.
"REGISTER TO VOTE — THEN VOTE"
(rev. 1/83)
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of
Moorpark, at its regular meeting on Monday, November 18, 1985,
will hold a public hearing, as required by Section 103(k)(2) of
the Internal Revenue Code, with respect to the proposed issuance
by the City of Moorpark or the Area Housing Authority of the
County of Ventura of multi- family housing revenue bonds in an
amount not to exceed $25,000,000, for the purpose of assisting in
the financing of a 370 -unit multi- family rental housing develop-
ment for Moorpark Le Club, Ltd., a California Limited Partner-
ship, formed by Geoff H. Palmer as general partner, to be located
at the southeast corner of Moorpark Avenue and Los Angeles Avenue
in the City of Moorpark.
The meeting will commence at 7 o'clock p.m. and will be
held in the Council Chambers at City Hall, 799 Moorpark Avenue,
Moorpark, California. Interested persons wishing to express
their views on the issuance of such bonds or on the nature and
location of the facility proposed to be financed will be given an
opportunity to do so at the public hearing or may, prior to the
time of the hearing, submit written comments to Steve Kueny, City
Manager, City of Moorpark, 799 Moorpark Avenue, Moorpark,
California 93021.
DORIS D. BANKUS
City Clerk
Publish: November 4, 1985