HomeMy WebLinkAboutStaff Report 09/19/2011 5.A r A Iteww #5 .A
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DATE: September 19, 2011
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Bonne Gaebler, Housing Administrator V --
SUBJECT: Resolution Of The City Of Petaluma City Council Approving The Issuance By
The California Municipal Finance Agency Of Multifamily Housing Revenue
Bonds For The Purpose Of Financing The Acquisition And Construction Of
Logan Place Apartments.
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Of The City Of Petaluma
City Council Approving The Issuance Of Multifamily Housing Revenue Bonds By The
California Municipal Finance. Agency For The Purpose Of Financing The Acquisition. And
Construction Of Logan Place Apartments
BACKGROUND
Logan' Place is an approved 66 -unit affordable work -force housing rental apartment community
including two non - restricted units. The, property address is 1200 Petaluma Blvd., N.; the
developer is Burbank Housing. The City allocated $3,450,000 in FY's 2006 -2010 and $1.7M in
the 2011-2012 fiscal year for site acquisition, pre - development, and development expenses. (All
allocations are from the Housing Fund and have no impact on the General Fund.) The
development and support of low-income work -force housing is one of the highest priorities of
the City's 2014 . Housing Element, 201' 5 Consolidated Plan, and 2012 PCDC Implementation
Plan.
DISCUSSION
The goal of the requested City Council action is to complete the financing plan to allow start of
construction of Logan Place in the spring of 2012. Burbank Housing Development Corporation
is recommending a financial strategy similar to that utilized in financing the recently approved,
Vintage Chateau II Senior Apartments: City housing funds ($5,150,000), tax exempt bond
proceeds ($1,039,506); tax credit equity ($7,931,324); Federal Home Loan Bank Affordable
Housing Program ($650,000), and developer equity ($1,018,0.00) for an approximate total project
cost of $25,870,872.
Agenda Review: 05
'�' ° City Attorney Finance Director City Manager:
r has requested lifornia :Muni nce A
The developer q that Ca cipal Finance Agency (CMFA) issue bonds
project; y y p Agreement since 2007. There
are h
ar se es of actions City to.�acc m et ofthat Joint Powe
lish this transaction:
(1) The Internal Revenue Code of 1986 . requires thatthe City publish notice of, and the City
Council conduct,. a public hearmgknown as. a TEFRA (Tax.:Egiiity Fiscal Reform Act) hearing to
authorize the issuance by another 'agency of tax exempt housing, revenue bonds. The TEFRA
hearing is simply an.opportur ity for all interested persons to.speak or to submit written
comments concerning the proposal to issue debt and °the nature or location of the proposed
project.
(2) A resolution by the City Couneil approving °the issuance' of.multi- family revenue bonds is
required :in the application for bond , allocation. The resolution does not commit; approve or
I, constitute any other action or'',funding for the project by the City.,
(3) Following the adoption of the resolution, CMFA will,proceed with the submission to the
California Debt Limit Allocation Committee (CDLAC) of an application for "private 'activity
bond :allocation for the project. ct, .The City's membership in CMFA: bears with it no cost or other
financing obligations, but serves as :a public acknowledgement, by City of the project
' , financing.
FINANCIAL IMPACTS:
The City ill not be a art to. the bond 'financing documents. T
"� y w - ' Patty g he debt Will not be secured by
a r form of taxation,
t tne or a by y obligation of either the City.or CMFA; neither would the debt
Pursuant to the
g and the JPA Agreement; a.member o FA. Pur
represent general obligation o f eith th C or C,
governing'; California statutes g f CMFA is not responsible, for
the repayment of obligations incurred b CMFA. The.debt w' payable solely amounts
ursuant to th'
received
t roy lions of'financm g agreements •to be executed b_ y
is
> be a .a e so e from .
Burbank.Housing.- In the financ ng documents the d'evel'oper will, also provide comprehensive
• indemnification to CMFA.and its members, including the City.
Total project cost: '$ "
City',s financial contribution: $5,150,000 (Low -Mod Housing fund)
ul ATTACHMENTS'
1. Resolution.
an lacetefr hearingstaff/ti"
Go gp a
2
- ,
ATTACHMENT # 1-
r
RESOLUTION NO. '
F . CITY ,OF PETALUMA
P FINANCE RESOLUTION. OF THE •CITY COUNCIL OF THE CITY OF PETALUMA
APPROVING
ROVING THE ISSUANCE BY THE CALIFORNIA MUNICIPAL FI
� . � AGENCY
OF MULTIFAMILY HOUSING ; REVENUE BONDS FOR THE PURPOSE OF
FINANCING HE ACQUISITION AND CONSTRUCTION OF
.THE
PLACE APARTMENTS
. i
�" r • WHEREAS, the Califorriia Muni i al Finance Agency (tlie "Authority ") is,authorized .
by the laws of the State of "Law ") to executeanddeliver multifamily housing,
for the purpose of financing the ac uisition, construction/rehabilitation operation of the
men of `mulhfarnil p " � g q ation acid
develo
revenue Obligations ,
p „ y e rental facilities' located within the area of
Authority which are to be occupied by very ° low _and: low income tenants; and
,n Place LP, a Cali
WHEREAS; Loa � h other limited �
liability company
j'�or limited partnership related thereto or °formed by Burbank Housing
`Y ( GG r`
1 amount of$,20,000,000 hver
° p e B p p dd e
multifami1 housing �� the Authont to issue an
i Development housnt Co g revenue ration th
obligations in)the anticipated ted prince a _ (the
".,Obligations"),, the proceeds ;of which may only be, used 'forlhe, purpose of financing the
nand�� construction"
acquisitio, of ed'at 12
a'68 -um y
t: multifamil , residential rental facility to be commonly ;
' ' ' �
known as Logan Place to be locat.
' 1200 Petaluma in City of Petaluma,
th
California
(the "Project"); and
WHEREAS; the Obl att ns whr � � to finance
g o which are expected to he issued and delivered t
the acquisition an d, c
q i construction of the Project would`be considered ";qualified exempt' facility
- '' :under 142 a) of they Internal Revenue Code of 197 ti (the " . i 1 ")
and Sect O Sectori ( 6 as �airiended the Code „
�� bo
W � n t1'47(f) of the Code °requires that the "` appl icable '�electedrrepreserifatives' -wthrespect',
to the jurisdiction in which the Project is located 'hold a public hearing on the issuance and
r
de'hvery of they Qbhgations ;+kand,,
WHEREAS', the City Council of 'the C ity of P
REAS;'� y City Petaluma (the `-`City ") as the "applicable
elected , representatives" i , pub g' published,, f . least 1.4; days prior to the
date he eof n a m'espaper of'gene al, circulation n within the City, notice of , a public hearing and
has .held, said public hearing at which all those ;interest in speaking or providing timely written
w� t '� '.. p p financing Project were heard.
comments with:res to the; ro osed financin of the Pr oj
3.
NOW, THEREFORE, BE IT RESOLVED as follows
1. The City Council hereby finds and determines that the foregoing recitals are true and
correct.
2. For purposes of the requirements of the Code drily, the City Council hereby approves the
financing o'ect he Authority with the proceeds of the Obligations.
proposed finanein ofthe P,r � I by t,
3. The issuance arid delivery of the Obligations shall he subject; to the approval of and
Authority is art, and subject the sang .documents relating thereto to which the
uthorit
y a y party orit of all,.financi
execution' t
he�Aut
J sale of the Obligations by'the Authority.
the Code and shall not be con trued in Y for the purpose of meeting the requirements of
4. The adoption .of the Resolution
any other manner, neither the City nor its staff
having fully reviewed er wed of considered
Pro' e`ct with n n feasibility of the Project or the expected
viewed or considered the financial
u�. financing or op jr g rds to.any State of California statutory
requirements, and such adoption shall not obligate (i`)'the. City 'to provide financing to the
. Borrower for the acquisition, construction and development of the Project or to issue the
Obligations for purposes of such financing; or (ii) ,th el,City, or any department of the City,
to approve any application or request for, or take any other action in connection with, any
environmental, General Plan, zoning or any other permit, or other action necessary for the
acquisition, construction, development or operation of the Project.
5. The
the affidavit Cl rk of of e . City shall forward a certified copy of this Resolution and a copy of
publication of the public hearing notice to : .
Thomas A. Downey
The Orrick Building
Orrick, Herrington& Sutcliffe, LLP'
405 Howard 'Street
San. Francisco, CA 94105
6. This resolution : shall ,take - effect upon its adoption.
PASSED AND ADOPTED this 19th 2011 bythe follbwin
day September y' g roll.call'vote:
1707951.1
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