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HomeMy WebLinkAboutR02-Redevelopment Agency RE~VELOPMENT AGENCY.~EST FOR WMMISSION/COUNCIL A~ . From: Glenda Saul, Executive Director ~t: Redevelopment Agency Subject: TEFRA PUBLIC HEARING - WARM CREEK ASSOCIATES. Date: October 28, 1985 Synopsis Df PrBvious Commission/Council action: 10-15-85 Adopted Resolution 84-415 - Inducement Resolution for Multifamily Mortgage Revenue Bond. 10-21-85 Adopted Resolution 85-416 - Ratifying publication of Notice of Public Hearing. 10-21-85 Adopted Resolution 4812 - Reinducing the project for Agency issue. RecommendBd motion: (KAYOR AND COMMON COUNCIL) f'"" ....... RESOLUTION OF THE KAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON THE ISSUANCE BY THE CITY OF SAN BERNARDINO, CALIFORNIA, OR THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF A PRINCIPAL AMOUNT NOT TO EXCEED $12,000,000 OF MULTIFAMILY MORTGAGE REVENUE BONDS (GREAT AMERICAN FIRST SAVINGS BANK/THE OLYMPUS GROUP PROJECT) ~~~pf Signature GLENDA SAUL Contact person: FUNDING REQUIREMENTS: Amount: $ N/A Phone: 383-5081 Ward: 1 Project: N/A Date: November 1, 1985 Supporting data attached: YES No adverse Impact on City: r...cil Notes: ~ 0037G/EB Agenda Item No. 2.. Clk OF SAN BERNARD~O - REQU~ FOR COUNCIL AC'NbN 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 was set for October 31, 1985, at 11:00 a.m. and has been continued to November 1, 1985. 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. If the state cap is still available at bond closing, it will remain a City issue. 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 RESERVE AND DEVELOPMENT FEE: 1% x 12,000,000 E $120,000 RENTAL SCHEDULE: Number Units Rents - 112 112 80 1 bedroom/l bath 2 bedroom/l bath 2 bedroom/l bath $395 $465 $485 The project is almost completed. The project was approved by the Design Review Committee and did not need to be reviewed by the Planning Commission as it was permitted by right of the zone, which means the project is in compliance with zoning laws and the General Plan. ,- '- 0037G/EB 11-1-85 75.0264 , ,., r" "'--' ~ -....I ~."j 2,205-811037S/jm 10/18/85 -.. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION WITH A PUBLIC HEARING ON THE ISSUANCE BY THE CITY OF SAN BERNARDINO, CALIFORNIA OR THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OF A PRINCIPAL AMOUNT NOT TO EXCEED $12,000,000 OF MULTIFAMILY MORTGAGE REVENUE BONDS (GREAT AMERICAN FIRST SAVINGS BANK/THE OLYMPUS GROUP PROJECT) WHEREAS, the City of San Bernardino, California (the "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 "'- r- 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 whatsoever; and - , '- - 1 - ( ......... I' ....,"" ""-""'" -...) 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 developers to finance the development of multifamily rental housing located adjacent to and within survey areas and redevelopment project areas of the Agency without any liability to the Agency or City whatsoever; and WHEREAS, Warm Creek Associates, a California general - partnership, or its successors or assigns (the "Applicant"), has '- previously submitted a certain application (the "Application"), to the Mayor and Common Council of the City of San Bernardino, California (the "Mayor and Common Council"), for tax-exempt financing for a certain multifamily rental housing development pursuant to the Ordinance No. 3815, as amended, as more fully described in said Application (the "Project"); and WHEREAS, the Project consists of the construction and financing of 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 Thi rd Street, on the souths ide of Thi rd St reet ,- i___ - 2 - ( \....< ,.-"" ........ .....) ......... 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 (608) spaces, laundry and recreational rooms, appurtenant landscaping and other improvements; 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, pursuant to Resolution No. 84-415 of the Mayor and ,.i_ 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, pursuant to an appropriate Resolution of the Commission, adopted on October 21, 1985, said Commission has declared its intent: (i) that the above-referenced Resolution No. 84-415 of the Council shall remain effective as of the date of adoption thereof and that the Commission's action on October 21, 1985 shall not be deemed to alter, amend or modify the effective date of said Resolution No. 84-415 in any manner whatsoever, (ii) to adopt and incorporate by reference therein Resolution No. 84-415 ~-. '....... - 3 - L .' , --- .....,; with such conforming changes as may be appropriate for said - Resolution No. 84-415 of the Mayor and Common Council to conform to the standard forms of resolution of the Commission, and (iii) to authorize the financing by the Agency pursuant to the Community Redevelopment Law in a principal amount not to exceed twelve million dollars ($12,000.000) for the purpose of providing financing to the Applicant for the Project; and WHEREAS. the Mayor and Common Council, on behalf of the Agency and the City. pursuant to Section 103(k) of the Internal Revenue Code of 1954. as amended. (the "Code"). has set a public hearing on the issuance of the multifamily mortgage revenue bonds and has authorized and ratified the publication of notice thereof - '- which has been duly published in The Sun; and WHEREAS. the Mayor and Common Council must now approve the findings and determinations to be made in connection with said public hearing and the request of the Applicant. NOW. THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA. DO HEREBY FIND. RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Sect ion 1. The recitals set forth hereinabove are true and correct in all respects. ,- '- - 4 - '-- -- "- ",- \-- L ,.. /"'" 1.....-...) -' Section 2. The Mayor and Common Council, after having conducted a pUblic hearing, notice of which was duly published in a newspaper of general circulation within the City as said public hearing is required pursuant to the requirements of Code Section 103(k), does hereby find and determine that the purposes and intent of Ordinance No. 3815, as amended, and the Law will be furthered by the issuance of multifamily mortgage revenue bonds by the Agency, and if the Agency does not issue such bonds, by the City, for the express purpose of providing financing to assist the Applicant to develop the Proj ect. The total principal amount of the multifamily mortgage revenue bonds which shall be issued to assist the Applicant to develop Project exceed $12,000,000. The shall the not multifamily mortgage revenue bonds shall be issued upon such terms and conditions as shall be set forth in one or more Project Agreements by and among the Agency or the City, as applicable, and the Applicant or such other documents prepared in connection with the issuance and delivery of the multifamily mortgage revenue bonds, and shall be issued solely for the Project but in any event said Agreements shall clearly state that the funds of the Agency or the City are not liable, nor shall be pledged, for repayment of the multifamily mortgage revenue bonds. Section 3. The Mayor and Common Council hereby finds and determines that the public purposes and public benefits as set forth in Ordinance 3815, as amended, and the Law will be furthered - 5 - c rOO, '-' ....-"""\ .-, ...1 by the issuance of the multifamily mortgage revenue bonds; ~ specifically, that the multifamily mortgage revenue bonds will provide for financing to assist the Applicant to develop an approximately three hundred four (304) unit apartment development on the property as described in the recitals hereof, that such financing will thus make the Project a financially viable and producti ve proj ect and thereby increase the availability of moderately priced rental units for residents of the City and provide employment opportunities within the City. Section 4. The Mayor of the City is hereby appointed as the elected official to approve the issuance by the Agency and if the Agency does not issue such bonds, by the City, of the .~~ multifamily mortgage revenue bonds pursuant to Internal Revenue Code "- Section l03(k) at such time as the Commission or the Mayor and Common Council, as applicable, shall have approved the other appropriate multifamily mortgage revenue bond financing documents as referenced in Section 2 of this Resolution. Section 5. The bonds shall be and are special obligations of the Agency or the City, and, subject to the right of the Agency and 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 r- ~ revenues of the Agency or the City as therein described. The bonds - 6 - l, "'--' /".' , -.I , ,j are not a debt of the Agency, the City, the State of California or -......- any of its political subdivisions, and neither the Agency, 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 wi thin the meaning of any constitutional or statutory debt limitation or restriction. Neither the persons serving as the Commission or 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. I,....,"'~ '- Section 6. The Applicant 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 by the Commission or the Mayor and Common Council in a form acceptable to the Counsel to the Commission, 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 7. Prior to issuance of any bonds pursuant to this Resolution, the Applicant shall provide to the Agency or the City, for recording, a covenant running with the land in form ,r~ '- - 7 - /. ,. /^' \ ".) '- ....... '-" approved by the Counsel to the Commission or the City Attorney -- whereunder the Applicant waives any entitlement under State law to a density bonus for the property on which the proposed Project is to be constructed. Section B. 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 Council reserves its right to evaluate any future administrative procedures and appeals based solely on the information available at the time of consideration, ir- 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 Agency and the City and that Applicant will be required to comply with all applicable laws and ordinances of the City, State and federal government. ,..... "- - B - l, /".... \....; /",....., I HEREBY CERTIFY adopted by the Mayor San Bernardino at a held on the day of the following vote, to wit: '-" that and /,., , -- the foregoing Common Counc i 1 resolution of the meeting AYES: Council Members NAYS: ABSENT: --' was duly City of thereof, 1985, by City Clerk day of The foregoing resolution is hereby approved this , 1985. - L Approved as to form: A~lne'hr -- ~. Mayor of the City of San Bernardino - 9 -