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Home My WebLink AboutR9- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: RONALD E.WINKLER SUBJECT: SILVERWOOD PARK Development Director APARTMENTS PROJECT- PUBLIC HEARING DATE: March 27, 1996 ------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): ------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): OPEN PUBLIC HEARING CLOSE PUBLIC HEARING (Community Development Commission) MOTION A: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF NOT TO EXCEED$7,000,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO VARIABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS(SILVERWOODS APARTMENTS PROJECT)SERIES 1996,APPROVING THE FORM OF LEGAL DOCUMENTS RELATED THERETO AND AUTHORIZING AND DIRECTING PREPARATION,EXECUTION AND DELIVERY OF THE FINAL FORMS THEREOF. (Motions Continued to Neat Page...) I � L Administrator RONALD E. INKLER Developme t Director ------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Ronald E. Winkler Phone: 5081 Project Area(s): N/A Ward(s): All Q-7) Supporting Data Attached: Staff Report;Resolutions FUNDING REQUIREMENTS: Amount: N/A Source: N/A Budget Authority: N/A ------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------ REW:lag:04-01-04.cdc COMMISSION MEETING AGENDA Re5 MEETING DATE: 04/01/1996 (O Agenda Item Number: REQUEST FOR COMMISSION/COUNCIL, ACTION Silverwood Park Apartments Project March 26, 1996 Page Number-2- ------------------------------------------------------------------------------------------------------------------ Recommended Motion(s) Continued: (Mayor and Common Council) MOTION B: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO REGARDING THE HOLDING OF A PUBLIC HEARING IN CONNECTION WITH THE ISSUANCE OF THE $7,000,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO VARIABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS (SILVERWOOD APARTMENTS PROJECT) SERIES 1996 ------------------------------------------------------------------------------------------------------------------ REW:lag:04-01-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 04/01/19966 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Silverwood Park Apartments Project BACKGROUND The Silverwood Park Apartments (the"Project")was acquired by Magellan Silverwood Partners, an Arizona general partnership ("Magellan")through conventional financing on September 14, 1995, for approximately $6,850,000. Magellan is owned by the Magellan Corporations, an equity real estate investment trust (REIT) designed specifically to acquire existing multifamily housing project. The REIT was started in 1989 and currently owns in excess of$350,000,000 of real properties. Magellan has begun substantial rehabilitation of the Project, which includes landscaping, lighting, fencing, painting, electrical work, roofing, utilities, resurfacing the pool and deck areas, new parking facilities and repairs to the interior of the individual units. Total cost of the rehabilitation is estimated at $1,300,000, thus, the total cost of the project to Magellan for acquisition and rehabilitation is $8,150,000. It is Magellan's intent to convert the conventional financing to tax-exempt bond financing and finance the costs of rehabilitation with the assistance of the Agency. The proposed structure of the tax-exempt bond financing would include a direct pay letter of credit ("Letter of Credit") provided by Bank One Arizona(the"Bank"), a subsidiary of Banc One Capital Corporation. Bank One Arizona maintains a AA/A-1+rating from Standard &Poor's. The Bonds would be paid from the rental proceeds and, if necessary, from the Letter of Credit in the event of a default. Neither the Agency nor City would be responsible for the repayment of the Bonds. On November 6, 1995, the Agency passed an inducement resolution which merely evidenced the intent of the Agency to proceed with the issuance of bonds. After approval of the inducement resolution, Magellan applied for and received an allocation from the State for the issuance by the Agency of bonds in the amount of$7,000,000. If the bonds are issued, the Agency will receive a fee of 1% ($70,000) from Magellan. Magellan will also be responsible for all costs of issuance including bond counsel fees. Equity of $1,150,000 from Magellan will remain in the project after bond financing. ------------------------------------------------------------------------------------------------------------------ REW:lag:04-01-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 04/01/1996 Agenda Item Number: 0 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Silverwood Park Apartments Project March 26, 1996 Page Number-2- ------------------------------------------------------------------------------------------------------------------ RECOMMENDATION The bond issue does not present any risk of Agency funds as the bonds are secured by Revenues of the Project and a direct pay letter of credit. Approval of the issuance will require approval of a resolution of issuance by the Agency and an approval by the City which constitutes an approval of the"legislative body" of the jurisdiction pursuant to the Internal Revenue Code. Based upon the foregoing, staff recommends adoption of the attached Resolutions. RONALD . WINKLER, Director Development Department ------------------------------------------------------------------------------------------------------------------ REW:lag:04-01-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 04/01/1996 Agenda Item Number: _ ARDEN AVE. J , 1100 * • y'a _ _, r'j \ .�w{ft� 1. �' �' `�'.,. - / / \� • Ci %OQNOCOtOa000 %Da' N0MO D NOCO Lh+ 0 � N v v 0 � � N N N N N N N N N N m M M M J < 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 r CT r� lfl M r Q1 � 1f1 M r %D-r- 0 0 v- N e' Q 0 �D t- 0 0 M O r N r r r r N N N N N N N N N N N N M M M � _ OrN �1e' �f1 �Of� COC� O •- Nr"1atf1 � rC0 N N N N N N N f'S r"1 P 1 rr1 r'1 M P1 M f'1 1 r N0 COtD47 N0 00 4w NNMQ' LA %D %D •• co NMQ' Q' %Or� WMr t l l l l l l l I W r I I I I I I I 1 1 I Lnfn Tr- Lnrnr N 01f� M "WIV r- W Cf�M N �"IQ >1110 N M Q' l0 � W r r r r r r r r I� w .. .. .. •. .. •.O r N r^1 Q t!1 �O r c0 m 0 r N M Q Ln %D Ih 0 M r r r r r r r r r r