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HomeMy WebLinkAbout12-Redevelopment Agency -- ~. -- -- - ..... - - . ...) REDEVELOPMENT AGENCY.~ST FOR c6_ISSION/COUNCIL ACTION p.<om: Glenda Saul, Executive Director 'lr.;pt: Redevelopment Agency Subject: RATIFYING PUBLICATION OF NOTICE OF PUBLIC HEARING - WARM CREEK PROJECT - REINDUCING BOND FOR AGENCY ISSUE Date: October 15, 1985 Synopsis of Previous Commission/Council ection: 10-15-84 Adopted Resolution 84-415 -- Inducement Resolution for Multifamily Mortgage Revenue Bond Recommended motion: MAYOR AND COMMON COUNCIL ,,"->''-, 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, "- RATIFYING THE PUBLICATION OF A NOTICE SETTING A PUBLIC HEARING (GREAT AMERICAN FIRST SAVINGS BANK/THE OLYMPUS GROUP PROJECT) COMMUNITY DEVELOPMENT COMMISSION b) RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DECLARING ITS INTENT TO ISSUE MULTIFAMILY MORTGAGE REVENUE BONDS (GREAT AMERICAN FIRST SAVINGS BANK/THE OLYMPUS GROUP PROJECT) /54f~ k / Signature Contact person: GLENDA SAUL FUNDING REOUIREMENTS: Amount: $ N/A Phone: 383-5081 Ward: 1 Project: N/A Date: October 21, 1985 Supporting data attached: YES No adverse Impact on City: -- "- Icil Notes: An':mrl~ Itpm Nn /,<.. '-'.'- -- - - - - ~ CIT-,,/ OF SAN BERNARDIU - REQUU FOR COUNCIL AC-hbN STAFF REPORT '- Pursuant to Resolution 84-123 adopted on April 9, 1984, Bond Counsel requested the publication of a Notice of the Public Hearing (TEFRA) for the Warm Creek Project. The notice was published on October 17 and 24, announcing the Public Hearing which is set for October 31, 1985, at 11:00 a.m. The project is already under construction and the developer is ready to close the financing and the bond. Bond Counsel has also requested that this project be reinduced as an Agency Bond issue. The state cap is reaching its volume limit. The Agency could issue the bond exempt from this cap as the project is located adjacent to the project area. Below is a recap of the project. APPLICANT: Warm Creek Associates PRINCIPALS : Olympus Group -- California Corporation Miles Anderson, Olympus Group Corporate Officer FINANCING: $12,000,000 PURPOSE: Construction and operation of a 304 unit multi-family rental housing development on a 14 acre site. '- LOCATION: Southeast intersection of Waterman and Third Street. TARGET DATE OF FINANCING: December, 1985 CONSTRUCTION SCHEDULE: Currently under construction JOBS: During construction only. PROJECT COST: $11,400,000 1% x 12,000,000 - $120,000 RESERVE AND DEVELOPMENT FEE: RENTAL SCHEDULE: Number Units Rents - 112 112 80 1 bedroom/l bath 2 bedroom/l bath 2 bedroom/l bath $395 $465 $485 Bond Counsel will be present to answer any questions you may have. 0012G/EB 10-21-85 r-- '- 75-0264 -- - -~---f - """,e' '''-... - 2,146-l/0085Smf 10/9/64 ,if_'_ APPLICATION OF WARM CREEK ASSOCIATES ~. FOR MULTIFAMILY MORTGAGE REVENUE BOND FINANCING CITY OF SAN BERNARDINO, CALIFORNIA PART I GENERAL AND BUSINESS INFORMATION 1.1 The legal name of the Applicant is "Warm Creek As'sociates." 1. 2 The Applicant is a California general partnership in the process of formation which shall be engaged in the development, construction, leasing and ownership of a three hundred and four (304) unit multifamily rental housing development located near the southeast corner of the intersection of Waterman Avenue and Third Street in the City of San Bernardino, California (the "Project"). The Applicant has opened an escrow to acquire the property necessary for the proposed multifamily rental housing development (the "Project") from its current owner, and shall develop said property and construct the Project thereon. 1.3 The mailing address and the address of the Applicant is as follows: - Warm Creek Associates clo The 01ympus Group 1720 East Garry Avenue Sui te 203 Santa Ana, California 92705 1.4 Employer Tax I.D. No. has been applied for. 1.5 Mr. Miles Anderson is the principal contact for the Applicant. 1.6 Telephone Number (714) 261-0475. 1. 7 The Applicant is a California general partnership which is in the process of formation. 1.7.1 The Applicant shall own property and conduct business in the County of San Bernardino, State of California. 1.7.2 The general partnership organizational documents of the Applicant shall be executed prior to the time when the Applicant acquires legal title to said property which shall be developed in connection with the Project. 1.8 The ownership interest of each of the general partners associated with the Applicant shall be as follows: Olympus Group, a California corporation - 501 Affordable Properties, a California corporation - 501 '-" - 1 - - , '.,-#" '"<>-"'-', '-.' -./ 1.9 Mr. Miles Anderson, one of the principals and corporate officers of the Olympus Group, will have primary responsibility for conducting the business of the Applicant. ~ 1.10 Business ventures of the general partners of the Applicant. 1.l0 .l 1.10.2 1.11 Employees 1.11.1 1.ll.2 The Olympus Group commenced operations in early 1984 and has interests in several other business ventures, including real estate development projects in the City of Vista, Canyon Country (Los Angeles County) and Phoeni~, Arizona. Affordable Properties is engaged in general real estate development. The Applicant currently has seven (7) employees. Although the principal objective of the Project is to provide affordable rental housing to the citizens of the City of San Bernardino, the construction and operation of the Project will create certain employment opportunities within the City. The business offices of Applicant shall be located at 1720 East Garry Avenue, Suite 203, Santa Ana, California 92705. 1.12 Professional services will be provided by the following: - 1.12.1 1.l2.2 1.l2.3 1.l2.4 1.12.5 ,- "- Ernst & Whinney, CPA shall serve as the accountant for the Applicant and the contact person with said firm is John Coyne, 4000 MacArthur Boulevard, Suite 800, Newport Beach, California 92660. Jerry Bazar of the Law Firm of King & Bradey, Suite 900, 2 Century Plaza, 2049 Century Park East, Los Angeles, California 90067, is the attorney for the Applicant. , The Law Offices of Timothy J. Sabo, Corporation, shall serve as Bond Counsel regard to the tax-exempt financing for the a Professional to the City wi th Project. Principal Civil Engineer Keith Engineering, 2900 B Bristol, Costa Mesa, California 92626, (714) 250-0300. Principal Architect - Paul Westberg, 15641 Chemical Lane, Huntington Beach, California 92649, (714).898-5333. - 2 - """'-' ,'-'" '-- - '- ,-.... \...... .... '-'" --"' 1.l3 The principal banking accounts of the Applicant shall be held by City National Bank, corporate office in Newport Beach. 1.14 The source of funding for the Project is anticipated to be derived from a variety of sources including the private placement of a tax-exempt bond or other Obligation with a lender to be obtained hereafter. PART II BOND ISSUE '2.1 The estimated total amount of the financing package and the proposed use of bond proceeds is as follows: 2.1.1 Project cost - $8,396,000 2.1.2 Legal, printing and related fees - $114,000 2.1.3 Financing costs and fees - $415,000 2.1.4 Capitalized interest - $750,000 2.1.5 Other miscellaneous costs - $75,000 2.1.6 Land acquisition - $1,650,000 Total: $ll,400 ,000 2.2 The estimated target date for the financing is presently anticipated in the fourth quarter of 1984, with construction to commence as soon as possible after the financing package is completed and to be completed in one (1) construction phase which shall take between twelve (12) and eighteen (18) months to complete. 2.3 It is proposed that the financing be in the form of a construction loan during the construction period which would have the traditional construction loan provisions in that drawdowns would be permitted as construction proceeds upon submission of requisition vouchers. Upon the completion of construction of the Project and the certification that all improvements have been completed, the lender will then permit an interest rate adjustment and a principal amount increase, as warranted, and convert the construction loan to a permanent financing. 2.4 The present proposal for the financing of the Project anticipates that the tax-exempt bonds or other obligations will be sold to a commercial bank or other such lender through a private placement or that there be a public offering of such securities. - 3 - c .,....~~- o "- PART III FINANCIAL INFORMATION 3.1 '-' The financial statements of the general partners of the Applicant are included as Exhibit "A" hereto. 3.2 Upon its formation, the Applicant shall be a small business doing business as a general partnership pursuant to the laws of the State of California and the Applicant would be considered a small business with regard to its relative size in comparison with other such businesses undertaking projects of this type. Although-the Applicant is a small business, no federal small business loan guarantees are proposed in connection with the proposed financing as contemplated by this Application. PART IV PROJECT INFORMATION 4.1 .- \",... The Project as proposed by the Applicant shall include the acquisition of land and the construction and operation of a three hundred four (304) unit multifamily rental housing development on a fourteen (14) acre site located approximately six hundred (600) feet east of the intersection of Waterman Avenue and Third Street, on the south side of Third Street in the City of San Bernardino. The Project shall include one hundred twelve (ll2) one-bedroom/one-bath units, one hundred twelve (ll2) two-bedroom/one-bath units, eighty (80) two-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 Project shall be located on land more particularly described and included as Exhibit "B" hereto. 4.1.1 The three hundred and four (304) unit multifamily rental housing development shall have the following proposed rent scheaule: Unit Description Proposed Rent/month 1 bedroom - 1 bath 2 bedroom - 1 bath 2 bedroom - 2 bath $395 $465 $485 4.2 The components and the estimated total cost of the functional parts of the Project are as follows: - "- 4.2.1 Land - $1,650,000 4.2.2 Building construction - $6,048,000 4.2.3 Site preparation - $608,000 4.2.4 Engineering and technical services - $80,000 4.2.5 City fees - $760,000 Total: $9,146,000 - 4 - I"~'''-> I.- 4.2.6 r' '- Miscellaneous items - ".'" I - a. b. - c. d. e. 51 construction contingency - $375,000 Developer's overhead and profit - $263,000 Interest during construction - $750,000 Real estate brokerage commission - $50,000 Other miscellaneous costs - $212,000 Total: $10,796,000 4.3 The estimated construction period for the Project is as follows: 4.3.1 Construction of the Project would commence as soon as possible after issuance of the tax-exempt obligations. 4.3.2 The planned construction shall occur in one (1) phase and be completed within twelve (12) to eighteen (18) months from the date of commencement. 4.4 The supervising civil engineer responsible for the design of the Project on behalf of the Applicant shall be Mr. Mike Browning of Keith Engineering. 4.5 The Project shall be known as "Warm Creek Apartments". 4.6 The Project is the development of a multifamily rental housing development and is not an expansion or an al teration of an existing facility. The necessary infrastructure items and other public improvements must be installed on the Project site and the Applicant desires to obtain a below market rate tax-exempt construction and permanent financing of the improvements to be placed thereon from a combination of sources. ,","- .--. 4.7 The property on which the Project is proposed to be located is currently owned by H.M.S., Ltd., a California limited partnership, and the Applicant has entered into an escrow to acquire said property for a total consideration not to exceed $1,650,000. 4.8 The Project will provide three hundred four (304) units of affordable rental housing to the citizens of the City of San Bernardino. 4.8.1 Attached as Exhibit "B" is an 8-1/2 x 11 inch map showing the site location of the proposed Project. 4.8.2 A description of the plant process - not applicable. 4.9 A negative declaration pursuant to the provisions of the California Environmental Quality Act of 1970, as amended, would in all probability be satisfactory for the Project as proposed by the Applicant. However, the Project shall comply with all applicable provisions of said Act. ,-- --. - 5 - c 4.10 ,-,. ""--' " -' /'''''' ...) There are no permits, water quality enforcement orders, air pollution permits or variances or other evidence of actions necessary in connection with this Project. A sewer permit for the construction of the Project has previously been obtained. 4.11 There are no local, state or federal pollution control agencies which impose regulations, standards or requirements with regard to the operations of the proposed Project to be undertaken by the Applicant. 4.12 The proposed Project shall comply with all applicable City of San Bernardino, County of San Bernardino, and other regional, county or basin plans to which this Project shall conform and the appropriate waste water and air quality requirements which shall be in conformity with all of the above jurisdictions. 4.13 It is presently anticipated that the proposed Project will not produce any by-products or residues which would involve the ultimate disposal or the need for a plan to accomplish same. Recycling or salvage will not be a function of the proposed Project nor will there be any market opportunities generated with regard to same. PART V PUBLIC BENEFITS 5.1 ~ ".~- '- The City of San Bernardino will receive significant benefits by the initiation of this Project as proposed by the Applicant and particularly through the utilization of the financing method as is available under Ordinance No. 3815, as amended, of the City of San Bernardino. Due to the fact that conventional interest rates for construction and permanent financing for the type of multifamily rental housing construction contemplated by the Applicant are at such an extremely high level on conventionally borrowed funds, if available at all, neither the Applicant nor any other persons or legal entities are able to provide the type of modern and attractive affordable rental housing that is needed within the City of San Bernardino. 5.1.1 The Project will provide long term affordable rental housing opportunities for the inhabitants of the City of San Bernardino. 5.1.2 Construction of the Project is anticipated approximately $9,000,000 to $10,000,000 of valuation to the tax rolls of the City. to add assessed 5.1.3 The useful method of financing provided for in Ordinance No. 3815 of the City vis-a-vis the use of the conventional method will permi t the Applicant to complete the financing and construction of the Project within an accelerated time frame. The method of financing provided in Ordinance No. 3815 will provide new sources of financing to the Applicant and such financing will be made available at lower tax-exempt interest rates. - 6 - c 5.2 -- /. ..,", ~I '-' '-" The City will benefit, as can be demonstrated pursuant to Section 1 of Ordinance No. 3815, as amended, of the City of San Bernardino, in that affordable rental housing opportunities will be generated by the proposed Project. The Applicant is not attempting to construct said proposed Project merely for the financial inducement that is offered pursuant to the Ordinance, but rather due to the long-term business reasons that are significant due to the location of the proposed Project and the real economic benefits available to the cOllllllunity. There are no detriments that can be incurred by the Ci~y with regard to this type of financing for this Project, and the City of San Bernardino will receive substantial benefits through increases in assessed valuation of property, plus the increased long-term affordable housing opportunities that will be available to the local residents of the City. PART VI COMMITMENTS 6.1 The Applicant by the submission of this Application agrees to comply andlor 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, 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 andlor 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 and copies of such additional information shall be forwarded to the City by the Applicant and shall be deemed to be supplements or amendments to this Application. d_ "- - 7 - c - "...... V :.J /" PART VII SIGNATURE '--" 7.1 '-' The undersigned as authorized principals of the Applicant as noted below, hold the prime responsibility for the financing to be taken for the proposed Project, and certify that the undersigned have 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 data, and this Application, including exhibits and attachments hereto, is truly descriptive of the proposed Project. The undersigned a'1so represent 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. 8.2 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 (11) 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" WARM CREEK ASSOCIATES, a California general p By: , its general partner By: ~~ ; 7%~;P , its general partner - 8 - -, o I , ~ ~ Q.. ~ I'i .!~ ~ I;~ ~n~ ~ '11 Q.;c ~, ~ :i,r ~ ~II~ ~ 'I~ ~ .I~ ~ \:11 ~ " ;~h1l ! \ L-Ji ~ I. ,'. J ~ r- '.! , ' 1 It ,LrJI~ , -7"--_.1--~~--_h_t-__.- - u_ -<< . ~'~J I it 'I' I!~ '., I I ,I . ! . ! f . ~ . i I __ ~-,.- / ' I I i i /+- .;..----- --..... l')l. I i I i . ___ ~ I 1/" ,,----,- ~ Q: r- / ,.. ',~ " ,- t~ I, t OIl: , i I '-I " i ______1"" __~ - - ~- 0 :;) ffll~ ~ I~i! i~lf IlIilli 'J' I . 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(.... , ' ~' "', ....... '...,"'......' -_...' 1--. 2,205-5/1036S/cmb 10/11/85 EXHIBIT -A- NOTIC! OF PUBLIC HEARING BY THE MAYOR AND COMMdN COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, FOR' A CERTAIN MULTIFAliIIILY MORTGAGE REVENUE BOND FINANCING AND THE ISSUANCE BY THE REDEVELOPMENT AGENCY OP THE CITY OF SAN BERNARDINO OF MULTIFAMILY MORTGAGE REVENUE REVENUE BONDS IN CONNECTION THEREWITH (GREAT AMERICAN FIRST SAVINGS BANK/THE OLYMPUS GROUP 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 (the "Mayor and Common Council.) on Thunday, October 31, 1985, at the hour of 11:00 A,M., in the Council C Chambers, City Ha 11 , 300 North "D" Street, San Bernardino, California 92418, for the purpose a. hereinafter set forth. . The purpose of .aid public hearing is to consider a proposal by Warm Creek AssocIates, a California general partnership, or its successors or assigns (the "Company.), in accordance with Section 103(k) of the Internal Revenue Code of 1954, as amended, for the Redevelopment Agency of the CIty of San Bernardino (the "Agency.) to provide certain industria 1 development revenue bond financing by the Issuance of multifamily mortgage revenue bonds for the "Warm Creek Apartments Project" whiCh shall consist of the aCQuhition of land and the construction and financing of a three ....,. hundred four (304) unit multifamily ren!:al housing development on a 'I...,.. fourteen (14) acre site located approximately lix hundred (600) feet east of the intersection of Waterman Avenue and Third Street, on the -----. ..- "-' -"",'; '\ ,../ ~ ,.r".... '- southside ot Third Street in the City of Ssn Bernardino, California (the .City.) Said Project is also located in the redevelopment project area of the Agency known as the .Central City aedevelopment Project.. The Agency intends to issue its multitamily mortgage revenue revenue bonda pursuant to the Community aedevelopment Law (Health and Satety Code Section 33000, et seq.) (the .Law.) for said Project. The total cost ot the Project is currently estimated to be approximately' $11,400,000 and the financing tor this Project shall be derived from the issuance of taz-ezempt bonds in a mazimum principal smount presently estimated not to exceed Twelve Million Dollars ($12,000,000). c:; Project are estimated Land acquisition costs associated with the to be approximately $1,650,000, site improvement and building construction costs are estimated to be . approximately $8,396,000, architectural, engineering, tunded interest during construction, tinancing, legal and miscellaneous expenses and contingencies are estimated to be approximately $1,354,000. The Agency intends to hsue its bonds pursuant to the Law in an amOunt presently estimated not to ezceed $12,000,000 for the financing thereof without any liability to the City or the Agency whatsoever, All persons interested in the subject matter and the public purpo.e. and public benefits and the issuance, by the Agency, of its ~ multifamily mortgage revenue revenue bonds in an estimated principal '- - 2 - l.. ,........ '-' ,,1''''''', :) >....-I 2,205-7/1043S/krl 10/ll/85 ......., RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, RATIFYING THE PUBLICATION OF A NOTICE SETTING A PUBLIC HEARING (GREAT AMERICAN FIRST SAVINGS BANK/THE OLYMPUS GROUP PROJECT) WHEREAS, the Community Development Commission of the City of San Bernardino (the "Commission"), as the Redevelopment Agency of the City of San Bernardino (the "Agency"), is authorized by the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the California Health and Safety Code (the "Community Redevelopment Law"), to issue and sell its multifamily mortgage revenue bonds for the purpose of enabling various ,..-.. l.... developers to finance the cost of the development of mUltifamily rental housing located adjacent to or within survey areas and redevelopment project areas of the Agency; and WHEREAS. Warm Creek Associates. a California general partnership, or its successors or assigns (the "Developer"). has previously submitted a certain appl ication (the "Application") to the Mayor and Common Council of the City of San Bernardino (the "Mayor and Common Counci 1"). for tax-exempt financing for a certain multifamily rental housing development pursuant to Ordinance No. 3815, as amended, and the Developer has requested the Agency to issue and sell its multifamily mortgage revenue bonds for the .~- ........ - 1 - I~A \.""...... /,e-.., '-' ./-"" V ~) '- construction by the Developer of a multifamily rental housing development as more fully described in said Application (the .project"). pursuant to the Community Redevelopment Law, without any liability to the City or Authority whatsoever; and WHEREAS, the Project is located adjacent to the redevelopment project area of the Agency known as the Central City - East Redevelopment Project; and WHEREAS, the Agency desires to induce the Developer to construct and develop the Proj ect adj acent to said redevelopment project area; and ,"'-- WHEREAS. pursuant to Resolution No. 84-415 of the Mayor and "- Common Council. adopted on October 18, 1984, said Mayor and Common Council has previously declared its intent to issue multifamily mortgage revenue bonds in an aggregate principal amount not to exceed $12,000.000 for the purpose of financing the Project; and WHEREAS, it is the intent of the Commission that the above-referenced Resolution No. 84-415 of the Council shall remain effective as of the date of adoption thereof and that this Resolution of the Commission shall not be deemed to alter, amend or modify the effective date of said Resolution No. 84-415 in any manner whatsoever; and """''''. - - 2 - c I""" '-' o :) WHEREAS, the Project consists of the construction and financing of a three hundred four (304) unit multifamily rental '-' housing development on a fourteen (14) acre site located approximately six hundred (600) feet east of the intersection of Waterman Avenue and Third Street. on the southside of Third Street in the City as more fully described in the Application and shall consist of one hundred twelve (112) one-bedroom. one-bath rental units, one hundred twelve (112) two-bedroom, one-bath rental units and eighty (80) two-bedroom, two-bath rental units, on-site vehicle parking for approximately six hundred eight (60B) spaces. laundry and recreational rooms, appurtenant landscaping and other improvements; and 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 19B2 ("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 for the purpose of enabling various developers to finance the cost of multifamily rental housing; and WHEREAS, the City has been requested by the Commission and the Developer 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 Agency as permitted by the Community ./-.. Redevelopment Law and if not so permitted. by the City, to provide '- funds for the making of a permanent mortgage loan for the financing of the Project to be located within the City; and - 3 - ","".... - r,\ :J '- '-' ...,.,; WHEREAS, it is appropriate for the City to take certain '- action at this time regarding the requests of the Commission and the Developer. NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That the recitals set forth hereinabove are true and correct in all respects. Section 2. Pursuant to the requirements of Code ,- '- Section 103(k), the Mayor and Common Council hereby ratifies the publication of notice of the public hearing by the City Clerk in connection with the Project referred to in the recitals hereof to be held in accordance with said Code Section 103(k) on October 31, 1985, at the hour of 11:00 A.M., in the Council Chambers, San Bernardino City Hall, for the purpose of considering the public benefi ts 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 Agency or City for the Project pursuant to the Community Redevelopment Law or Ordinance No. 3815, as amended, as applicable. A public hearing shall be held at the hour and on the date herein provided for the Project. The Mayor and Common Council hereby (,.",,, '- ratifies the action of the City Clerk. which City Clerk - 4 - - , \..... '-' '-./ :J caused to be published by at least two (2) insertions, one of which r" was 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 MAM and incorporated herein by reference and made a part hereof for the Project referred to in the recitals hereof. Section 3. The Developer shall provide appropriate covenants in the tax-exempt financing documents as may hereinafter be submitted to the Agency or the City for consideration and approval in a form acceptable to the City Attorney, Counsel to the Commission 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 4. Prior to issuance of any bonds for the Project as may hereafter be approved pursuant to the appropriate resolution or resolutions of the Agency or the City, the Developer shall provide for the recordation of a covenant running with the land in a form approved by the Counsel to the Commission and the City Attorney of the City whereunder the Developer 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. .----" '......... - 5 - - c ,...., o .:) '-" Section 5. 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 Mayor 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 Counci 1 reserves its right to evaluate any future administrative procedures and appeals based solely on the information available at the time of consideration, 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 Developer is hereby notified that normal planning processing shall be required, in accordance with the standard procedures of the City and that the Developer will be /~,....., required to comply with all applicable laws and ordinances of the '- City, State and federal government. Section 6. This Resolution shall take effect upon adoption. -- :1 "- - 6 - c ..- '- "",,\, -....I ....''''"', J 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, held on the day of , 1985, by the following vote, to wit: AYES: Council Members NAYS: ABSENT: City Clerk The foregoing resolution is hereby approved this day - '- of , 1985. Mayor of the City of San Bernardino Approved as to form: City Attorney ,- '- - 7 - ~._, '-" '-...."" , ) STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) 55. CITY OF SAN BERNARDINO ) ......... I, SHAUNA CLARK, Ci ty Clerk in and for the City of San Bernardino, DO HEREBY CERTIFY that the foregoing and attached .copy of San Bernardino City Resolution No. is a full, true and correct copy of that now on file in this office. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Bernardino this day of , 1985. City Clerk '-' ."'''''''' ........ - 8 - ~ o ,r -... ,) v -- 2,205-5/1043S/krl 10/ll/85 EXHIBIT "A" NOTICE OF PUBLIC HEARING BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, FOR A CERTAIN MULTIFAMILY MORTGAOE REVENUE BOND FINANCING AND THE ISSUANCE BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OR THE CITY OF SAN BERNARDINO, CALIFORNIA, OF MULTIFAMILY MORTGAGE REVENUE REVENUE BONDS IN CONNECTION THEREWITH (GREAT AMERICAN FIRST SAVINGS BANK/THE OLYMPUS GROUP 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 (the "Mayor and Common Council") on Thursday, October 31, 1985, at the hour of 11:00 A.M., in the Council t'~_."'" , Chambers, City Hall, 300 North "0" Street, San Bernardino, "- California 92418. for the purpose as hereinafter set forth. The purpose of said pUblic hearing is to consider a proposal by Warm Creek Associates, a California general partnership, or its successors or assigns (the "Company"), in accordance with Section 103(k) of the Internal Revenue Code of 1954. as amended. for the Redevelopment Agency of the City of San Bernardino (the "Agency") or the City of San Bernardino. California (the "City"), to provide certain industrial development revenue bond financing by the issuance of multi f ami ly mortgage revenue bonds for the "Warm Creek Apartments Project" which shall consist of the acquisition of land and the construction and financing of a three hundred four (304) "-' unit multifamily rental housing development on a fourteen (14) acre site located approximately six hundred (600) feet east of the intersection of Waterman Avenue and Third - 1 - Street, on the ./~- I.... ,....., '- ....', J '-" ....~ southside of Third Street in the City of San Bernardino, California "- (the "City"). Said Project is also located adjacent to the redevelopment project area of the Agency known as the "Central City- East Redevelopment Project". The Agency intends to issue its multifamily mortgage revenue revenue bonds pursuant to the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) (the "Law") for said Project. If the Agency does not issue such bonds, the City intends to issue its multifamily mortgage revenue bonds pursuant to Ordinance No. 3815, as amended. The total cost of the Proj ect is currently estimated to be approximately $11,400,000 and the financing for this Project shall be derived from the issuance of '-' tax-exempt bonds in a maximum principal amount presently estimated not to exceed Twelve Million Dollars ($12.000,000). Land acquisition costs associated with the Project are estimated to be approximately $1,650,000, site improvement and building construction costs are estimated to be approximately $8.396,000, architectural. engineering, funded interest during construction, financing, legal and miscellaneous expenses and contingencies are estimated to be approximately $1,354,000. The Agency, or the City, respectively. intends to issue its respective bonds pursuant to the Law or Ordinance No. 3815, as amended. as applicable, in an amount presently estimated not to exceed $12,000,000 for the financing thereof without any liability to the City or the Agency whatsoever. '- - 2 - , ' ~ r"..... '- ,-';'-- "- ~ o -, '...." :) All persons interested in the sUbject matter and the public purposes and public benefits and the issuance, by the Agency or the City, of their respective multifamily mortgage revenue revenue bonds in an estimated principal amount not to exceed $12.000,000 in connection with the Project may attend such hearing and/or file their written comments thereto. NOTICE GIVEN as of this day of 1985. City Clerk of the City of San Bernardino, California To be published in The Sun on 10/16/85 and 10/23/85 - 3 -