Loading...
HomeMy WebLinkAbout1985-089 1,020-30/0370S/dm 2/27/85 RESOLUT ION NO. 85-89 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN AMENDMENTS TO RESOLUTION NO, 85-41 OF THE MAYOR AND COMMON COUNCIL, SETTING A PUBLIC HEARING IN CONNECTION WITH THE ISSUANCE OF MULTIFAMILY MORTGAGE REVENUE BONDS; DIRECTING THE PREPARATION OF CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (MEYERS RANCH PROJECT) WHEREAS, the City of San Bernardino, California ("City"), is a "home rule city" duly organized and existing under and pursuant to a Charter adopted under the provisions of the Constitution of the State of California; and WHEREAS, pursuant to its home rule powers, the City duly and regularly enacted Ordinance No. 3815 (the "Ordinance") to finance various types of projects, as defined in the Ordinance, and to issue its special revenue bonds for the purpose of paying the cost of financing such projects, and has amended the same from time to time; and WHEREAS, said Ordinance No. 3815, as amended, is intended to provide a source of financing for the development of industry and commerce and to thereby broaden the employment opportunities and to increase the availability of moderately priced rental units for residents of the City and to broaden the tax and revenue base of the City; and - 1 - WHEREAS, the City has previously declared its intent to provide tax-exempt financing assistance to Fountain Place Associates, a California limited partnership, which includes Coast Investor Group, a Nevada corporation, as a general partner or its successors or assigns (the "Applicant") in connection with a certain multifamily rental housing development as more fully described in Resolution No. 85-41 of the Mayor and Common Council of the City of San Bernardino, California (the "Council"). dated January 21, 1985, entitled: "Resolution of the Mayor and Common Council of the City of San Bernardino, California, Declaring its Intention to Issue its Multifamily Mortgage Revenue Bonds; Directing the Preparation of Certain Documents; and Making Certain Findings and Determinations in Connection Therewith (Meyers Ranch Project)"; and WHEREAS, subsequent to the date of adoption of Resolution No, 85-41, the Applicant has indicated an interest in acquiring approximately one (1) acre of certain additional real property on the west side of Tippecanoe Avenue immediately to the north of the undercrossing of the Warm Springs Flood Control Channel at Tippecanoe Avenue which is adjacent to certain real property of the Applicant as described in Resolution No. 85-41; and WHEREAS, upon the acquisition of said additional one (1) acre parcel of real property, the Applicant shall own or control approximately eleven and four-tenths (11.4) acres of land on the west side of Tippecanoe Avenue, and the Applicant has also proposed - 2 - to construct an additional twenty-five (25) multifamily rental housing units on the west side of Tippecanoe Avenue as part of the overall development of the multifamily rental housing development as more fully described in Resolution No. 85-41; and WHEREAS, the Applicant has requested that the City authorize the tax-exempt financing of the acquisition of the land and development and construction of said additional twenty-five (25) units of multifamily rental housing as part of and in combination with the financing for the multifamily rental housing development as described in Resolution No. 85-41; and WHEREAS, the Applicant has also requested that the City authorize and approve certain conforming changes and revisions of its application for tax-exempt financing, as previously submitted to the City and attached as an exhibit to Resolution No. 85-41, in connection with the request of the Applicant for tax-exempt financing assistance for said additional twenty-five (25) units of multifamily rental housing; and WHEREAS, attached hereto as Exhibit "A" and incorporated herein by this reference is an appropriate revision of Section 2,1, Section 4,1 and Section 4.2 of said application for tax-exempt financing, as previously submitted to the City by the Applicant and attached as an exhibit to Resolution No, 85-41; and - 3 - WHEREAS, the certain amendments to Section 103 of the Internal Revenue Code of 1954, as amended (the "Code"), as enacted by Congress under the Tax Equity and Fiscal Responsibility Act of 1982 ("T,E.F.R.A. "), require that a public hearing be held in connection with the authorization and issuance of any industrial development bonds including such bonds issued to finance multifamily rental housing; and WHEREAS, the City has been requested to hold a public hearing pursuant to the Code as amended by T.E.F.R,A. for the issuance and sale of multifamily mortgage revenue bonds by the City to provide funds for the making of a permanent mortgage loan for the financing of the hereinafter described project of the Applicant to be located within the City of San Bernardino as hereinafter set forth; and WHEREAS, it is appropriate for the City to take certain action at this time regarding the requests of the Applicant. NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, DO HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the recitals set forth hereinabove are true and correct in all respects. - 4 - Section 2. The City of San Bernardino, California, is a municipal corporation duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Constitution and laws of the State of California, and the City Charter of the City, and the powers of the City include the power to issue bonds for any of its corporate purposes, Section 3. Pursuant to the Charter of the City and Ordinance No. 3815, as amended, of the City, the City is legally authorized to issue special revenue bonds for the construction and permanent financing of the Project as more fully described in the recitals hereof. Sect ion 4, The City hereby accepts and approves the revisions of Section 2.1, Section 4.1 and Section 4.2 of the application for tax-exempt financing as previously submitted by the Applicant and approved by the Council pursuant to its Resolution No, 85-41. The City hereby declares that said application of the Applicant is hereby revised and amended to include therein the description of the functional components and financing of the multifamily rental housing development of the Applicant as more fully stated in Exhibit "A" hereof. The multifamily rental housing development of the Applicant, as more fully described in Resolution 81-41, and as revised by Exhibit "A" of this Resolution, is hereinafter referred to as the "Project". - 5 - Section 5. The City hereby acknowledges and approves of the undertaking of the Project by the Applicant and the City hereby approves and accepts Gary Pierson and Associates, an entity in the process of formation, as a general partner of the Applicant, and Lester Hribar as a general partner of the Applicant subject to the submission to the City by Gary pierson and Associates and Lester Hribar, of satisfactory financial statements in support of the application for tax-exempt financing assistance of the Applicant in accordance with Ordinance No. 3815, as amended, Section 6, The City hereby authorizes the Applicant to make certain other technical and conforming changes to its application for tax-exempt financing for the Project, subject to the approval of the Staff of the Redevelopment Agency of the City of San Bernardino, which are not inconsistent with Section 4 and Section 5 of this Resolution. Section 7. The City hereby amends Resolution No. 85-41 to conform with the description of the Project as contained in this Resolution. The City does hereby declare its intention to issue multifamily mortgage revenue bonds of the City to provide funds to the Applicant for the acquisition of land and the construction equipping and permanent financing of the Project on behalf of the Applicant, Fountain Place Associates, a California limited partnership, in the principal amount not to exceed $11,500,000 for the purpose of financing the construction and development in one or more phases of a two hundred sixty-four (264) unit multifamily - 6 - rental housing development which shall be constructed on two (2) contiguous parcels of property which are located on either side of Tippecanoe Avenue to the north of the undercrossing of the Warm Spr ings Flood Control Channel at Tippecanoe Avenue. The parcel of property located on the east side of Tippecanoe Avenue upon which approximately one hundred four (104) rental units of the proj ect shall be constructed includes approximately six (6) acres of land, The parcel of property located on the west side of Tippecanoe Avenue upon which approximately one hundred sixty (160) rental units of the Project shall be constructed includes approximately eleven and four-tenths (11.4) acres of land. The Project shall also include appropriate on-site vehicle parking spaces, laundry and recreational rooms, appurtenant landscaping and other improvements. Section 8. The Council constitutes the governing body of the City and is legally authorized to provide for the issuance of such special revenue bonds by the City, Section 9. The Project that shall be the subject of the public hearing and the Project to be financed by the revenue bonds of the City (the "Meyers Ranch Project") as described in Section 7 of this Resolution may be authorized by resolution or resolutions of the City after the conclusion of the public hearing at a meeting or meetings to be held for such purpose, Section 10. Pursuant to the requirements of Code Section 103(k), the City hereby authorizes the public hearing in - 7 - connection with the Project as described in Section 7 of this Resolution to be held in accordance with said Code Section 103(k) on April 1. 1985, at the hour of 11:00 A.M., in the Council Chambers, San Bernardino City Hall, for the purpose of considering the public benefits and public purposes to be furthered by the financing or financings contemplated by the action of the City pursuant to this Resolution for the issuance of multifamily mortgage revenue bonds by the City for the Project pursuant to Ordinance No. 3815, as amended. A public hearing shall be held at the hour and on the date herein provided for the Project. The City hereby authorizes and directs the City Clerk of the City of San Bernardino to publish by at least two (2) insertions, one of which shall be not less than fourteen (14) days prior to said hearing, in The Sun a notice of public hearing substantially in the form of the notice attached hereto as Exhibit "B" and incorporated herein by reference and made a part hereof for the Project described in Section 7 of this Resolution. Section 11. The public hearing as authorized by Section 10 of this Resolution may also consider the adoption of an appropriate resolution of issuance or trust indenture for the mortgage revenue bonds which shall contain provisions so as to provide for the appropriate security for the payment of the mortgage revenue bonds to be made by the Applicant pursuant to the mortgage loan and secured by a deed of trust on said Project. - 8 - Section 12. This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the adopted by the Mayor and Common Bernardino at an adjourned re9"1 i'lr 7th day of MarC'..h , 1985, foregoing resolution was duly Council of the City of San meeting thereof, held on the by the following vote, to wit: AYES: Council Members CFlRTnnAnn RAilly HprnAnnp.7. Markc; Olljp-l FrFl7.iAr, ~t-rir.klAr NAYS: None ABSENT: None d!n///7t?/.a~ CitY Clerk The foregoing resolution is hereby approved this /3d day of March , 1985. Approved as to form: ~~f?1O~ Clty At orney - 9 - EXHIBIT "B" NOTICE OF HEARING BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ON A CERTAIN INDUSTRIAL DEVELOPMENT BOND FINANCING AND THE ISSUANCE OF MULTIFAMILY MORTGAGE REVENUE BONDS IN CONNECTION THEREWITH (MEYERS RANCH PROJECT) NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the Mayor and Common Council of the City of San Bernardino, California and shall be held on Monday, April 1, 1985, at the hour of 11:00 A.M., in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California 92418, for the purpose as hereinafter set forth. The purpose of said public hearing is to consider a proposal by Fountain Place, Associates, a California limited partnership which includes Coast Investor Group, a Nevada corporation, as a general partner, or its successors or assigns (the "Developer") in accordance with Section 103(k) of the Internal Revenue Code of 1954, as amended, for industrial development bond financing for the "Meyers Ranch Project" which shall consist of the construction and financing in two (2) phases of a two hundred sixty-four (264) unit multifamily rental housing development which shall be constructed on two (2) contiguous parcels of property which are located on either side of Tippecanoe Avenue to the north of the undercrossing of the Warm Springs Flood Control Channel at Tippecanoe Avenue. The parcel of property located on the east side of Tippecanoe Avenue upon which approximately one hundred and four (104) rental units of the Project shall be constructed includes - 1 - approximately six (6) acres of land. The parcel of property located on the west side of Tippecanoe Avenue upon which approximately one hundred sixty (160) rental units of the Project shall be constructed includes approximately eleven and four-tenths (11.4) acres of land. The Project shall also include appropriate on-site vehicle parking spaces, laundry and recreational rooms, appurtenant landscaping and other improvements at a presently estimated construction cost of $10,400,000. The City of San Bernardino intends to' issue its multifamily mortgage revenue bonds pursuant to Ordinance No. 3815, as amended (the "Ordinance"), for said project in an amount not to exceed $11,500,000 for the construction and permanent financing thereof. All persons interested in the subject matter and the public purposes and public benefits and the issuance of the multifamily mortgage revenue bonds in an estimated principal amount not to exceed eleven million five hundred thousand dollars ($11,500,000) in connection with said project may attend such hearing and/or file their written objections or comments thereto, or may otherwise communicate in favor of the project to be undertaken by the City of San Bernardino, California pursuant to the Ordinance. NOTICE GIVEN as of this ____ day of , 1985, City Clerk of the City of San Bernardino, California To be published in The Sun on / /85 and ____/____/85 - 2 - 1,020-31/0371S/cb 2/26/85 EXHIBIT "A" SECTION 2.1, SECTION 4.1 AND SECTION 4.2 OF THE REVISED APPLICATION FOR TAX-EXEMPT FINANCING ASSISTANCE OF FOUNTAIN PLACE ASSOCIATES, A CALIFORNIA LIMITED PARTNERSHIP 1. Section 2.1 of the application for tax-exempt financing assistance of Fountain Place Associates, a California limited partnership (the "Applicant") is hereby revised to provide as follows: "2.1 The es timated total amount of the financing package and the proposed use of bond proceeds is as follows: 2.1.1 Project cost - $7,500,000 2.1.2 Legal, printing and related fees - $165,000 2.1.3 Financing costs and fees - $500,000 2.1.4 Capitalized Interest - $750,000 2.1.5 Other miscellaneous costs - $485,000 2.1.6 Land acquisition - $1,000,000 Total: $10,400,000" 2. Section 4.1 of the application for tax-exempt financing assistance of the Applicant is hereby revised to provide as follows: "4.1 The Project as proposed by the Applicant shall include the acquisition land and the construction and operation of a two-hundred sixty-four (264) unit multifamily rental housing development on a seventeen and four-tenths (17,4) acre site located on Tippecanoe Avenue to the north of the undercrossing of the Warm Springs Flood Control Channel at Tippecanoe Avenue, in the City of San Bernardino. The Project shall be constructed on both sides of Tippecanoe Avenue and shall include ninety-seven (97) one_bedroom/one-bath units, ninety-seven (97) two-bedroom/two-bath units, seventy (70) three-bedroom/ two-bath units, on-site vehicle parking spaces for approximately six-hundred eight (608) spaces, laundry and recreational rooms, appurtenant landscaping and other improvements. The first phase of development of the Project shall be developed on the east side of Tippecanoe Avenue on an approximately six (6.0) acre parcel of land and shall consist of one hundred four (104) rental units which shall include thirty-nine (39) one-bedroom/one-bath units, thirty-eight (38) two-bedroom/ two-bath units and twenty-seven (27) three-bedroom/two-bath units. The second phase of development of the Project shall be developed on the west side of Tippecanoe Avenue on an - 1 - approximately eleven and four-tenths (11.4) acre parcel of land and shall include one hundred and sixty (160) rental units with a mix of one, two and three bedroom rental units in the same relative proportions as in the first phase of development of the Project. The Project shall be located on land more particularly described and included as Exhibit "B" hereto. 4.1.1 The two hundred sixty-four (264) unit multifamily rental housing de;elopment shall have the following proposed rent schedule with 20% of the rental units allocated and reserved as low cost rental units, Unit Description Proposed Rent/Month 1 bedroom - 1 bath 2 bedroom - 2 bath 3 bedroom - 2 bath $440 $540 $650" 3. Section ~.2 of the application for tax-exempt financing assistance of the Applicant is hereby revised to provide as follows: "4.2 The components and the estimated total cost of the functional parts of the Project are as follows: 4.2.A 4,2.Al 4.2.A2 4.2.A3 4.2.A4 4.2.A5 4.2.A6 4.2.B 4.2.Bl 4.2.B2 4.2.B3 Phase 1 of the Development of the Project: 104 Rental Units on the East Side of Tippecanoe Avenue Land - $400,000 Building construction - $2,600,000 Site preparation - $240,000 Engineering and technical services - $50,000 City fees - $170,000 Total: $3.460,000 Miscellaneous Items - a. b. c. d. 5% construction contingency - $103,000 Developer's overhead and profit - $137,000 Interest during construction - $258,000 Other miscellaneous costs - $172,000 Phase 1 Total: $4,130,000 Phase 2 of the Development of the Project: 160 Rental Units on the West Side of Tippecanoe Avenue Land - $600,000 Building construction - $3,710,000 Site preparation - $360,000 - 2 - 4.2.B4 Engineering and technical services - $90,000 4.2.B5 City fees - $280,000 Total: $5,040,000 4.2.B6 Miscellaneous Items a. 5% Construction contingency - $197,000 b. Developer's overhead and profit - $213,000 c. Interest during construction - $492,000 d. Other miscellaneous costs - $328,000 Phase 2 Total: $6,270,000 TOTAL DEVELOPMENT COST FOR THE PROJECT (Phase 1 and Phase 2) Total: $10,400,000" - 3 -