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HomeMy WebLinkAboutR34-Economic Development Agency CITY OF SAN BERNARDINO ORIGINAL ECONOMIC DEVELOPMENT AGENCY FROM: Maggie Pacheco SUBJECT: Tax and Equity Fiscal Responsibility Act Executive Director (TEFRA) Public Hearing for the California Housing Foundation Development (Inland Regional Center) — IVDA Redevelopment DATE: October 29,2007 Project Area ---------------------------------------------------------------------------------------------------------------------------------- SvnODSiS of Previous Commission/Council/Committee Action(s): On October 18, 2007, the item was scheduled on the Redevelopment Committee Agenda; however, due to a lack of quorum, the meeting was cancelled. ----------------------------- ------------------------------------------------ Recommended Motion(s): (Mayor and Common Council) Resolution of the Mayor and Common Council of the City of San Bernardino approving the issuance of Revenue Bonds by the California Statewide Communities Development Authority for the benefit of California Housing Foundation on behalf of the Inland Regional Center ---------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Maggie Pacheco Phone: (909)663-1044 Project Area(s): IVDA Redevelopment Project Area Ward(s): 1 Supporting Data Attached: Z Staff Report 0 Resolution(s) ❑Agreement(s)/Contract(s)❑Map(s)❑Letter(s) FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A Budget Authority: N/A � r Signature' Fiscal ReviewC Maggie ac co,Executive Director Barbara Lindseth,Administrative Services Director -------------------- ------------------------------ - - ;` - Commission/Council Notes: ��'d Z®d 7-� ----------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------- P:\Agendas\Comm Dev Cotmnission\CDC 2007\11-05-07 TEFRA Hearing-Inland Regional Center SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/05/2007 Agenda Item Number: �3q ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------ TAX AND EQUITY FISCAL RESPONSIBILITY ACT (TEFRA) PUBLIC HEARING FOR THE CALIFORNIA HOUSING FOUNDATION DEVELOPMENT (INLAND REGIONAL CENTER) —IVDA REDEVELOPMENT PROJECT AREA BACKGROUND: The California Housing Foundation (the "CHF") is a California non-profit, public benefit corporation founded in 1998 to support the Inland Regional Center's ("IRC") mission to normalize the lives of people with disabilities. CHF facilitates and augments the delivery of services and programs of the IRC. IRC is one of 21 regional centers in the State of California (the "State") that provides services to people with developmental disabilities. The regional centers, under contract with the California Department of Developmental Services, coordinate a full range of services for people with disabilities, including mental retardation, cerebral palsy, epilepsy and autism. The regional centers comply with the legislation known as the Lanterman Act passed in 1969 that created a program for individuals with developmental disabilities. IRC's service area consists of the Counties of San Bernardino and Riverside, making it the largest regional center in the State based upon the size of the service area which exceeds 28,000 square miles. IRC, San Bernardino, currently employs approximately 500 staff and is located in leased premises on Carnegie Drive in the Hospitality Lane area. The IRC budget for 2006 exceeded $200 million and the facility currently serves over 21,000 people. The California Statewide Communities Development Authority (the "Authority") is a joint powers authority consisting of numerous California cities, counties and special districts, including the City of San Bernardino ("City"), authorized to assist in the financing of facilities for non-profit organizations. CHF has submitted an application to the Authority for $90 million of 501(c)(3) non-profit revenue bond financing to finance the acquisition of property in order to build a new 200,000 square foot office facility located in one or more buildings at 1335 Waterman Avenue north of the Hospitality Lane area which is known as Waterman Business Park being developed by Voit Development Company (the "Project"). The new buildings will consolidate the facilities and operations of IRC and will be owned by CHF and long-term leased to IRC, thereby providing a permanent office location for this important and critical community service in the City. CURRENT ISSUE: The Authority has requested that the Mayor and Common Council conduct a Tax and Equity Fiscal Responsibility Act ("TEFRA") public hearing, as required by federal law and the Joint Powers Agreement between the City and the Authority regarding CHF's proposed $90 million public financing for the Project. The proposed structure of the bond financing and all terms and conditions have been determined solely by IRC's Finance and Project Development Team. Neither the City nor Agency Staff and consultants have advised CHF or IRC as to the structure of the proposed bond issue and the economic viability of proceeding as contemplated by CHF and IRC. The City conducts the public -- -- -------- - -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:W gendas\CommDevCommission\CDC2007\ll-05-07TEFRA Hearing-Inland Regional Center SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/05/2007 Agenda Item Number: 13 q Economic Development Agency Staff Report TEFRA —Inland Regional Center Page 2 hearing solely for compliance under federal law and to facilitate the retention of IRC's approximate 500 jobs and expansion of IRC's regional headquarters operations in the City. ENVIRONMENTAL IMPACT: Not applicable. FISCAL IMPACT: The proposed revenue bonds do not constitute a debt of the City, or pledge of the faith and credit of the City and/or the Agency. The repayment of the bond will be the sole obligation of CHF under their Lease Agreement with IRC. RECOMMENDATION: That the Mayor and Common Council adopt the attached Resolution. , 12 Maggie Pacheco, Executive Director - ------------ - ------- -- -------- --------------------------------------------------------------------------------------------------------------------------------------------------- PAAgendas\Comm Dev Commission\CDC 2007\11-05-07 TEFRA Hearing-Inland Regional Center SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/05/2007 Agenda Item Number: -R34- _ CITY OF SAN BERNARDINO nr) M0 ECONOMIC DEVELOPMENT AGENCY f.. FROM: Maggie Pacheco SUBJECT: Tax and Equity Fiscal Responsibility Act Executive Director (TEFRA) Public Hearing for the California Housing Foundation Development (Inland Regional Center) — IVDA Redevelopment DATE: October 29, 2007 Project Area ------------------------------------------------------------------------------------------------------------------------ Synopsis of Previous Commission/Council/Committee Action(s): On October 18, 2007, the item was scheduled on the Redevelopment Committee Agenda; however, due to a lack of quorum, the meeting was cancelled. -------------------------------------------------------------------------------- - Recommended Motion(s): (Mayor and Common Council) Resolution of the Mayor and Common Council of the City of San Bernardino approving the issuance of Revenue Bonds by the California Statewide Communities Development Authority for the benefit of California Housing Foundation on behalf of the Inland Regional Center ,-mow Contact Person(s): Maggie Pacheco Phone: (909)663-1044 Project Area(s): IVDA Redevelopment Project Area Ward(s): 1 Supporting Data Attached: 2 Staff Report 0 Resolution(s)❑Agreement(s)/Contract(s) ❑Map(s) ❑ Letter(s) FUNDING REQUIREMENTS: Amount: $ -0- Source: NSA Budget Authority: N/A Signature: Fiscal Review: Maggie acheco. Executive Director Barbara Lindseth,Administrative Services Director --------------------------------------------- -------- -------------------------------------—--------— Commission/Council'\otes: - ----------------------------------------------------------------------------------------------------- ----------------- -P�IIGGPrrI- T- -teem I'Agendas\Comm Dev CornmissionTDC 2007\11-05-07 TEFRA Hearing-Inland Regional Center SR.doc COMMISSION MEETING AGENDA Meeting Date: 11/05/2007 Agenda Item Number: 3� ECONOMIC DEVELOPMENT AGENCY STAFF REPORT TAX AND EQUITY FISCAL RESPONSIBILITY ACT (TEFRA) PUBLIC HEARING FOR THE CALIFORNIA HOUSING FOUNDATION DEVELOPMENT (INLAND REGIONAL CENTER) —IVDA REDEVELOPMENT PROJECT AREA BACKGROUND: The California Housing Foundation (the "CHF") is a California non-profit, public benefit corporation founded in 1998 to support the Inland Regional Center's ("IRC") mission to normalize the lives of people with disabilities. CHF facilitates and augments the delivery of services and programs of the IRC. IRC is one of 21 regional centers in the State of California (the "State") that provides services to people with developmental disabilities. The regional centers, under contract with the California Department of Developmental Services, coordinate a full range of services for people with disabilities, including mental retardation, cerebral palsy, epilepsy and autism. The regional centers comply with the legislation known as the Lanterman Act passed in 1969 that created a program for individuals with developmental disabilities. . IRC's service area consists of the Counties of San Bernardino and Riverside, making it the largest regional center in the State based upon the size of the service area which exceeds 28,000 square miles. IRC, San Bernardino, currently employs approximately 500 staff and is located in leased premises on Carnegie Drive in the Hospitality Lane area. The IRC budget for 2006 exceeded $200 million and the facility currently serves over 21,000 people. The California Statewide Communities Development Authority (the "Authority") is a joint powers authority consisting of numerous California cities, counties and special districts, including the City of San Bernardino ("City"), authorized to assist in the financing of facilities for non-profit organizations. CHF has submitted an application to the Authority for $90 million of 501(c)(3) non-profit revenue bond financing to finance the acquisition of property in order to build a new 200,000 square foot office facility located in one or more buildings at 1335 Waterman Avenue north of the Hospitality Lane area which is known as Waterman Business Park being developed by Volt Development Company (the "Project"). The new buildings will consolidate the facilities and operations of IRC and will be owned by CHF and long-term leased to IRC, thereby providing a permanent office location for this important and critical community service in the City. CURRENT ISSUE: The Authority has requested that the Mayor and Common Council conduct a Tax and Equity Fiscal Responsibility Act ("TEFRA") public hearing, as required by federal law and the Joint Powers Agreement between the City and the Authority regarding CHF's proposed $90 million public financing for the Project. The proposed structure of the bond financing and all terms and conditions have been determined solely by IRC's Finance and Project Development Team. Neither the City nor Agency Staff and consultants have advised CHF or IRC as to the structure of the proposed bond issue and the economic viability of proceeding as contemplated by CHF and IRC. The City conducts the public ------------------------ -------- ------------------ -------------------------------------------------------------------------------------------- ---COMMISSION MEETING AGENDA P.\Agendas\Comm Dcv Commission\CDC 2007\11-05-07 TEFRA Hearing-Inland Regional Center SR.doc Meeting Date: 11/05/2007 Agenda Item Number: Economic Development Agency Staff Report TEFRA —Inland Regional Center Page 2 hearing solely for compliance under federal law and to facilitate the retention of IRC's approximate 500 jobs and expansion of IRC's regional headquarters operations in the City. ENVIRONMENTAL IMPACT: Not applicable. FISCAL IMPACT: The proposed revenue bonds do not constitute a debt of the City, or pledge of the faith and credit of the City and/or the Agency. The repayment of the bond will be the sole obligation of CHF under their Lease Agreement with IRC. RECOMMENDATION: That the Mayor and Common Council adopt the attached Resolution. Maggie Pacheco, Executive Director --------------------------------- -- - _ PAAgendas\Comm Dev Commission\CDC 2007\11-05-07 TEFRA Hearing-Inland Regional Center --- - --- -- ---------------------------------------- COMMISSION MEETING AGENDA Meeting Date: 11/05/2007 Agenda Item Number: 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE 3 CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA STATEWIDE 4 COMMUNITIES DEVELOPMENT AUTHORITY FOR THE BENEFIT OF CALIFORNIA HOUSING FOUNDATION ON BEHALF OF THE 5 INLAND REGIONAL CENTER 6 7 WHEREAS, the California Housing Foundation ("CHF"), a non-profit public benefit 8 corporation (the "Corporation") founded in 1998, has requested that the California Statewide 9 Communities Development Authority (the "Authority") participate in the issuance of revenue 10 bonds in an aggregate principal amount not to exceed $90,000,000 (the "Bonds") for the purpose 11 of, among other things, financing the acquisition of property, the construction of, and equipping of 12 a new office facility (the "Facility") on Waterman Avenue to be leased to the Inland Regional 13 Center ("IRC"); and pursuant to Section 147 14 WHEREAS, p (f) of the Internal Revenue Code of 1986 (the 15 "Code"), the issuance of the Bonds by the Authority must be approved by the City of San 16 Bernardino ("City") because the Facilities are located within the territorial limits of the City; and 17 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the 18 "Council") is the elected legislative body of the City and is an applicable elected representative 19 required to approve the issuance of the Bonds under Section 147(f) of the Code; and 20 WHEREAS, the Authority has requested that the Council approve the issuance of the 21 Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the 22 Code and the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers 23 Agreement, dated as of June 1, 1988 (the "Agreement"), among certain local agencies, including 24 the City; and ZS WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following notice, 26 duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve 27 the issuance of the Bonds by the Authority solely for the purpose of satisfying the requirement of 28 said Section 147(f) of the Code. 1 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY 2 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 3 FOLLOWS: 4 Section 1. The Council hereby approves the issuance of the Bonds by the Authority for 5 the purposes of financing the acquisition, construction, improvement and equipping of the 6 Facility. It is the purpose and intent of the Council that this Resolution constitute approval of the 7 issuance of the Bonds by the Authority solely for the purposes of(a) Section 147(f) of the Code 8 by the applicable elected representative of the governmental unit having jurisdiction over the area 9 in which the Facilities are located, in accordance with said Section 147(f), and (b) Section 9 of the 10 Agreement. The Council recognizes that both CHF and IRC have been advised by other parties 11 independent of the City as to the structure, terms and provisions of the Bonds and the economic 12 viability of proceeding with the issuance of the Bonds. The City assumes no liability or 13 responsibility of any nature whatsoever with respect to the Bonds and any aspects thereof as to 14 compliance with all applicable federal tax and securities laws when the Bonds are issued. 15 Section 2. The Mayor of the City, and/or his designees are hereby authorized and 16 directed, jointly and severally, to do any and all things and to execute and deliver any and all 17 documents that they deem necessary or advisable in order to carry out, give effect to and comply 18 with the terms and intent of this Resolution and the financing transaction approved hereby. 19 Section 3. This Resolution shall take effect upon its adoption and execution in the manner 20 as required by the City Charter. 21 22 23 24 25 26 27 28 P Wgendas\ResolutionslResolutions'Q007`I1-05-07 TEFRA Hearine Inland Revinnal('en,P,nn�V.— a,.,. I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF 2 REVENUE BONDS BY THE CALIFORNIA STATEWIDE 3 COMMUNITIES DEVELOPMENT AUTHORITY FOR THE BENEFIT OF CALIFORNIA HOUSING FOUNDATION ON BEHALF OF THE 4 INLAND REGIONAL CENTER 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, 7 held on the day of , 2007, by the following vote to wit: 8 Council Members: Ayes Nays Abstain Absent 9 ESTRADA 10 BAXTER 11 BRINKER 12 DERRY 13 KELLEY 14 JOHNSON 15 MC CAMMACK 16 17 18 Rachel G. Clark, City Clerk 19 20 The foregoing Resolution is hereby approved this day of , 2007. 21 22 Patrick J. Morris, Mayor 23 City of San Bernardino 24 25 Approved as to Form: 26 By: Ili 27 �:/James F. Penman, City Attorney V 28 3