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HomeMy WebLinkAbout1985-291 1, 020-51/08535/rg 07/25/85 RESOLUTION NO. 85-291 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 OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH (SANDALWOOD PARK APARTMENTS 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 enabling various developers to finance the cost of such projects, and has amended the same from time to time; and WHEREAS, said Ordinance No . 3815 , as amended, is intended to finance 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 without any liability to the City; and - 1 - WHEREAS, there has been presented to the Mayor and Common Council an Application, attached hereto as Exhibit "A" and incorporated herein by reference by Debkar Investment Company, a California corporation (the "Applicant" ) , and its successors or assigns, requesting the issuance of multifamily mortgage revenue bonds in the principal amount not to exceed $9 , 300 , 000 for the purpose of financing, on behalf of the Applicant , a certain Project , to wit : the acquisition of land and the construction thereon in one or more phases of a two hundred sixteen (216) unit multifamily rental housing development which shall be constructed on two adjacent parcels of land totalling approximately ten and one half (10 . 5) acres located near the northwest corner of the intersection of Baseline Street and Victoria Avenue in the City and as more fully described in the Application. The Project shall consist of an appropriate mix of two bedroom-two bath units , two bedroom-one bath units and one bedroom-one bath units, on-site vehicle parking spaces, laundry and recreational rooms , appurtenant landscaping and other improvements, all as described in the Application. NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: Section 1 . That the recitals set forth hereinabove are true and correct in all respects . 2 - 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 . Section 4 . This body 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 5 . The Project referred to in the recitals hereof constitutes a project which may be financed by the issuance of such special revenue bonds by the City and located within the jurisdiction of the City. Section 6 . The Mayor and Common Council does hereby declare its intention to issue multifamily mortgage revenue bonds of the City for the acquisition of land and the construction, equipping and permanent financing of the Project under and in accordance with the Ordinance, in amounts sufficient to pay the costs of financing - 3 - the Project in one or more series of financings and of paying the costs of issuance for the multifamily mortgage revenue bonds and for the establishment of the necessary reserve funds to provide for the financing of said Project . Said Project is presently identified as the Sandalwood Park Apartments Project . Any agreement for such financing shall specify that the multifamily mortgage revenue bonds which may hereafter be issued in connection with the Project are a special obligation of the City and that they shall not constitute a debt of the City and that the City' s general funds shall not be liable for repayment of such multifamily mortgage revenue bonds . Section 7 . The City hereby declares its intention to exercise the authority referred to in Section 3 hereof by issuing multifamily mortgage revenue bonds of the City in such amounts as will be adequate to implement the City financing of the Project . Section 8 . The bonds shall be payable from the revenues described in said Ordinance No . 3815 , as amended. Section 9 . The bonds shall be and are special obligations of the City, and, subject to the right of the City to apply moneys as provided in the applicable laws , are secured by such revenues as are specified in the proceedings for the issuance of such bonds and funds and accounts to be held by the trustee or fiscal agent, and are payable as to principal , redemption price, if any, and interest from the revenues of the City as therein - 4 - described. The bonds are not a debt of the City, the State of California or any of its political subdivisions, and neither the City, the State, nor any of its political subdivisions is liable thereon, nor in any event shall the bonds be payable out of the funds or properties other than all or any part of the revenues, mortgage loans , and funds and accounts as in this Resolution set forth. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither the persons serving as the Mayor and Common Council nor any persons executing the bonds shall be liable personally on the bonds or subject to any personal liability or accountability by reason of the issuance thereof . Section 10 . The details of such bonds , including the establishing of the aggregate face amount of such obligations, shall be authorized by indenture, resolution or resolutions of the City at a meeting or meetings to be held for such purpose. The City Staff , Sabo & Gondek, a Professional Corporation, as Bond Counsel to the City, Underwriters, the Applicant and the agents and representatives of same are hereby authorized and directed to prepare or cause to be prepared the necessary legal documents , including the Project Agreement, Resolution of Issuance, and such other documents as may be necessary to effect said Project and the issuance of industrial development revenue bonds therefor and to present same to said Mayor and Common Council . The Mayor of the City is hereby authorized and directed to coordinate the efforts of all concerned relating to the - 5 - issuance and sale of the bonds , and the City Staff , consultants , legal counsel to the City and Bond Counsel as referenced above are hereby directed to take such steps as shall be appropriate to implement such sale and delivery of the bonds including working with persons who may acquire vested rights as the result of such actions . Section 11 . The issuance of multifamily mortgage revenue bonds may be authorized by appropriate resolution or resolutions of the City at a meeting or meetings to be held for such purpose, subject to the execution of appropriate agreements by the Applicant and the City as required by the Ordinance and the industrial development bond financing program of the City. Section 12 . It is intended that this Resolution shall constitute such "official action" toward the issuance of the bonds within the meaning of the United States Treasury Regulations, the United States Tax Laws, and any legislation now or hereafter pending in the Congress of the United States which may require official action in order for the bonds to be exempt from Federal income taxation (the "Code" ) . Section 13 . At the closing of the financing there shall be paid to the City the fee set forth in Resolution No . 81-108 of the Mayor and Common Council, adopted March 13 , 1981, as amended by Resolution No . 81-410 , of the Mayor and Common Council , adopted September 24 , 1981 . 6 - Section 14 . The Applicant shall provide appropriate covenants in the tax-exempt financing documents as may hereinafter be submitted to the City for consideration and approval in a form acceptable to the City Attorney and Bond Counsel and to assure that not less than twenty percent (20%) of the multifamily rental housing units included in the Project are to be occupied or reserved for occupancy by the individuals of low and moderate income as provided in the Code. Section 15 . Prior to issuance of any bonds for the Project as may hereafter be approved pursuant to the appropriate resolution or resolutions of the City, the Applicant shall provide for the recordation of a covenant running with the land in a form approved by the City Attorney of the City whereunder the Applicant waives any claim under state law to a density bonus , as defined by Government Code Sections 65915 and 65915 . 5 , for the property on which the Project is to be constructed. section 16 . Adoption of this Resolution shall not be construed as approval of the plans or concept of the proposed development, nor as an indication that the May and Common Council will hereafter take any particular action toward granting any planning, zoning, or other approval relating to a plan of development . The Mayor and Common Council reserve their right to evaluate any future adminstrative procedures and appeals based solely on the information available at the time of consideration, - 7 - including any actions or recommendations by or appeals from the Development Review Committee and the Planning Commission. Nothing herein shall be construed as advance commitment or approval as to any such matter, and the Applicant is hereby notified that normal planning processing shall be required, in accordance with the standard procedures of the City and that Applicant will be required to comply with all applicable laws and ordinances of the City, State and federal government . Section 17 . This Resolution shall take effect upon adoption. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a regular meeting thereof, held on the 5th day of August 1985 , by the following vote, to wit : AYES: Council Members Estrada , Reilly, Hernandez Marks , Quiel, Frazier, Strickler NAYS: None ABSENT: None Ci y Clerk 8 - The foregoing resolution is hereby approved this day of August 1985 . ayor o the Ci\y of San Bernardino Approved as to form: City A orn y - 9 - CITY/SAN BERNARDINO 1,020-50/0833S/jm *216 Units* 07/24/85 APPLICATION OF DEBKAR INVESTMENT COMPANY FOR MULTIFAMILY MORTGAGE REVENUE BOND FINANCING CITY OF SAN BERNARDINO, CALIFORNIA 1.1 Debkar Investment Company c/o Joe Levesque, President 1.2 Builder/Developer 1.3 2152 Dupont Drive, Suite 200 . Irvine, CA 92715 1.4 ID No. 95-3685600 (Debkar Investment) 1.5 Joe Levesque, President 1.6 (714) 752-2950 1.7 Builders/Developers/Real Estate Investments 1.7.1 Corporate Headquarters: Irvine, California 1.7.2 June 12, 1981 1.7.3 Private (closely held) Corporation 1.8 Articles of Incorporation provided; Joe Levesque, 100% Owner 1.9 Names and address of: 1.9.1 Joe Levesque, President; Peggy Levesque, Secretary/Treasurer 1.9.2 Directors: Joe and Peggy Levesque 1.9.3 100,000 shares owned 100% by Joe Levesque 1.10 N/A 1.11.1 6 employees 1.11.2 2152 Dupont Drive, Suite 200 Irvine, CA 92715 1.12 Expert Services 1.12.1 George Rundle, Public A:countant 13141 .Algonquin Road Apple Valley, CA 92307 1.12.2 Robert Sanregret, Attorney at Law 1800 North Broadway, Suite 200 Santa Ana, CA 92706 `l �7 1 .020-50/0633S/jm 07/24/S5 1.12.3 Parkland Engineering, Architect/Engineering c/o Mike Bailey 577 North 'D' Street, Suite 106 San Bernardino, CA 92401 1.12.4 Academy Soils Engineering 18040 Grand Avenue (714) 678-4330 Lake Elsinore, CA 92330 1.13 Security Pacific Bank, Irvine, CA Daniel W. Yohannes,_ VP/Manager 2. 1 Total Amount of Financing: $8,095,281 2.1.1 Total Project Cost - $9,096,3331 2.1.2 Legal Fees included in total 2.1.3 Financing Costs included in total 2.1.4 Interest included in total 2.1.5 Miscellaneous cost included in total 2.2 Target Date of Financing - 9/1/85 2.3 90-120 days from target date 2.4 Type of Bond Sale: Industrial Development Bond 3.1 Financial Statements: Provided 3.1.1 To Be Provided 3.1.2 To Be Provided 3.1.3 3.2 Applicant is Debkar Investment Company, a private corporation; medium in size 4.1 Summary: To build and supply 216 affordable units in the low to moderate income mhrket of which there is a great demand. 4.2 Total Estimated Construction Cost $4,026,256 4.2.1 Land 1,816,560 4.2.2 Buildings (included in construction cost) 4.2.3 Equipment: Amentities Recreation Center/Pool 150,000 Carports/Parking 86,400 Landscape $ Irrigation 162,000 � ' 1,020-50/0833S/jm 07/24/85 4.2.4 Engineering & Architectural 75,000 4.2.5 Permits & Fees 540,000 Real Estate Taxes 27,248 Builder's Overhead 180,000 Negative Cash Flow 412,314 4.3 "Estimated" Construction Period 4.3.1 Starting Date - 10/10/85 4.3.2 Completion Date - 4/86 4.4 Parkland Engineering 577 North 'D' Street, Suite 106 San Bernardino, CA 92401 4.5 San Bernardino, north of Baseline Street, between Victoria and Sterling Street 4.6 Presently Vacant Land - 216 Affordable Units to be built and developed 4.7 In Escrow 4.7.1 In Escrow 4.7.2 No Relationship 4.8 Site Plan - 811" x 11" Map 4.8.1 Site & Plat Provided 4.8.2. 216 Affordable Apartment Units to be built 4.9 All Environmental Requirements to Satisfy Local $ State Regulations 4.10 Availability Letters Provided 4.11 N/A 4.12 City of San Bernardino General Plan 4.13 N/A Public Benefits 5.1 Providing for the City of San Bernardino: A 216 unit, long term rental, affordable housing development 5.2 Applicant is presently negotiating for construction of an additional 300 affordable, residential units and also commercial property in the local area, and is contemplating opening a new construction branch office in San Bernardino, which in turn will create many new jobs as well as to provide millions of dollars into the local economy. 1,020-50/0833S/jm 07/24/85 PART VI COMMITMENTS 6.1 The Applicant by the submission of this Application agrees to comply and/or to assist the City in complying with all state and federal laws in the issuance of the bonds or other such tax-exempt obligations to finance the Project, including, without limitation, the making of any required application to a governmental department for authorization, qualification or registration of the offer, issuance or sale of the bonds or other tax-exempt obligations, -and any amendments thereto, and any permit or other authorization of such governmental department, prior to the delivery by the City of such bonds or other tax-exempt obligations. 6.2 The Applicant further commits to cause and/or to assist the City in causing to be printed any prospectus or other written or printed communication proposed to be published in connection with the issuance, offer or sale of bonds or other tax-exempt obligations, prior to the delivery by the City of such bonds or other tax-exempt obligations, and, to the extent deemed necessary by the City, following delivery of such bonds or other tax-exempt obligations. 6.3 The Applicant also commits to pay all expenses in connection with the issuance, offer or sale of the bonds or other tax-exempt obligations, whether or not such bonds or other tax-exempt obligations are finally issued, and to hold the City harmless from any and all expenses related thereto, to pay items on an ongoing basis so that neither the City, nor its advisors, attorneys, employees and the like will accumulate any claims against the City. 6.4 The Applicant will supply any additional information,. agreements and undertakings as the City may require as a result of conferences and negotiations will be reproduced and supplied to the City and shall be deemed as supplements or amendments to this Application. 6.5 The Applicant agrees that it will not request a density bonus from the City and not less than twenty percent (20%) of the multifamily rental housing units included in the Project are to be occupied or reserved for occupancy by individuals of low and moderate income as provided in the Internal Revenue Code of 1954, as amended, and the regulations promulgated thereunder (the "Code"). PART VII SIGNATURE 7.1 The undersigned as the authorized principal of the Applicant as noted below, holds the prime responsibility for the financing '-to be taken for the proposed Project, and certifies that the undersigned has the authority to bind the Applicant to contract terms; that this Application to the best knowledge or belief of the undersigned, contains no false or incorrect information or 1,020-50/0833S/jm 07/24/85 data, and this Application, including exhibits and attachments hereto, is truly descriptive of the proposed Project. The undersigned also represents by the execution of this Application familiarity with Ordinance No. 3815, as amended, of the City of San Bernardino. PART VIII FEE SCHEDULE 8.1 The Applicant acknowledges that the City requires . a non-refundable application fee of $50 for each Project to be considered for eligibility, to be paid when the basic documents are requested. With the submittal of this Application, $500 is payable to the City. If this Application is accepted, an additional fee of $10,000 is payable for administrative costs. The Applicant acknowledges that the commitments in Part VI above are in addition to these fixed amounts. Thus, in the event that no closing occurs, the City shall be reimbursed for its processing costs. 6.2 All fees of the City may be capitalized and included in the bond issue as acceptable to the bond purchaser. 8.3 The Applicant acknowledges that the City derives its entire support from the fees for its services. The total function of the City is conducted on a self-supporting basis, and involves no state general revenues or expenditures from taxes from the state or any of its political subdivisions. No indebtedness or taxing power of the City is involved. Project revenues are the sole security for bonds of the City. The federal guarantees, if any, enhance these revenues and income and the security of the bonds. 8.4 Pursuant to Resolution No. 81-108 of the City, As amended by Resolution No. 81-410 of the City, one percent (%) of the principal amount of the bond issue shall be deposited in the City Treasury' in the Industrial Revenue Bond Reserve and Development Fund, which shall be used in such manner as the Mayor and Common Council may direct from time to time. "APPLICANT" DEBKAR INVESTMENT COMPANY, a California corporation By: _ oe Levesque, v' sole shareholder 1,020-50/0833S/jm 07/24/85 AMENDMENT TO APPLICATION OF DEBKAR INVESTMENT COMPANY FOR MULTIFAMILY MORTGAGE REVENUE BOND FINANCING CITY OF SAN BERNARDINO, CALIFORNIA 1.14 AMENDMENT - 216 Units Our Investment Bonding Team is in the process of searching for a Lender at this time. We will advise you when a selection has been made. Our Bond Con- sultants will be: Orrick, Herrington & Sutcliffe "APPLICANT" DEBKAR INVESTMENT COMPANY, a Cal ' ornia Corporati BY j oe Levesque, Sole sPOeholder and President 1,020-50/0833S/jm 07/24/85 AMENDMENT TO APPLICATION OF DEBKAR INVESTMENT COMPANY FOR MULTIFAMILY MORTGAGE REVENUE BOND FINANCING CITY OF SAN BERNARDINO, CALIFORNIA 4.1 AMMENDMENT, 216 UNITS PROJECT MIX: MARKET RATE UNITS 20% LOW INCOME RESERVE NO OF SQ. FT MONTHLY NO.OF SQ.FT. , MONTHLY TOTAL NO. TYPE: UNITS PER UNIT RENT UNITS PER UNIT RENT OF UNITS 1/Br/lBa 28 650 410. 8 650 410 36 2/Br/l/Ba 60 840 475 16 840 475 76 2/Br/2/Ba 83 810 50.0 21 810 500 104 TOTAL . 171 45 216 APARTMENTS : (36) 1-1 1BED/1BATH @ 650 s.f. = 23,400 (76) 2-1 2BED/1BATH @ 840 s.f. = 63,840 (104) 2-2 2BED/2BATH @ 810 s.f. = 84 ,240 171,480 Sq.Feet BUILDING COVERAGE: UNITS: 171,480 x 50% = 85,740 Sq.Feet RECREATION BUILDING: 20' x 40' = 800 LAUNDRY ROOMS : (3) 20' x 12 ' = 720 CARPORTS: 216 x 9 ' x 20 ' = 38,880 126,140 Sq.Feet LANDSCAPED AREAS : 142,394 Square Feet = 31.712 % PROP. NET AREA STORAGE: Each Unit to have a minimum 100 Cubic Feef of Storage PARKING: REQUIRED: 36 x 1.5 = 54 72 x 2.0 = 152 104 x 2. 0 = 208 414 Spaces ROPOSED COVERED: 216 OPEN: 236 ", LICANT" 452 Spaces DEBKAR INVESTMENT COMPANY, a California Corporatian BY Levesque, Sol areholder and President 1,020-50/0833S/jm 07/24/85 AMENDMENT TO APPLICATION OF DEBKAR INVESTMENT COMPANY FOR MULTIFAMILY MORTGAGE REVENUE BOND FINANCING CITY OF SAN BERNARDINO, CALIFORNIA 4.1 AMMENDMENT, 216 UNITS INCOME PROJECTIONS - (216 Units) Mix Monthly Income Annual Income 36 x(1Br/1Ba) x 410 = $ 14 ,760. 00 x 12 months = $ 177,120. 00 76 x(2Br/1Ba) x 475 = 36,100. 00 x 12 months = 433,200. 00 104 x(2Br/2Ba) x 500 = 52 ,000. 00 x 12 months = 624 ,000.00 216 Units - Total $102 ,860. 00 x 12 months = $1 ,234 , 320. 00 Miscellaneous Income 2,160. 00 x 12 months = 25 ,920. 00 TOTALS $105 ,020.00 $1,260,240. 00 Page 2 "APPLICANT" DEBKAR INVESTMENT COMPANY, a California Corporation BY i e Levesque, Sol shareholder and President Par. 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