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HomeMy WebLinkAboutR13-Redevelopment Agency . , "'~DEVELOPMEN1j AGENCr~.QUEST R._, CO.'SSION/COUNCIL'ACTIOt '\ ... From: Glenda Saul, Executive Director Subject: AMENDING APPLICATION FOR IDB AND RATIFYING PUBLICATION OF NOTICE _ DEL ROSA GARDENS PROJECT Dept: Redevelopment Agency Date: November 12, 1985 SynopSis of Previous Commission/Council action: 6-17-85 Ordinance 3815 providing for the issuance of Industrial Development Bonds. Adopted Resolution 85-213 - Inducement Resolution - for the project. Recommended motion: (MAYOR AND COMMON COUNCIL) MOVE TO ADOPT RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING A CERTAIN APPLICATION AND RATIFYING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF APPROXIMATELY $11,400,000 PRINCIPAL AMOUNT OF MULTIFAMILY MORTGAGE REVENUE BONDS (DEL ROSA GARDENS PROJECT). Contact person: -2)l ~ r ~, 'l{ /, __ -- "---I ~1'-(;;r C/ I ( 'c~. . ~L ....- Sitfnature GLENDA SAUL Supporting data attached: YES Amount: $ N/A Phone: 383-5081 7 Ward: Project: N/A Date: November 18, 1985 FUNDING REOUIREMENTS: No adverse I mpact on City: Council Notes: 0088G/EB Agenda J tern NO/( /3 j "ITV OF SAN BERNAC',NO - RE,"- JEST FOR COUNCIL ACTIO~ ...... STAFF REPORT The Resolution before you today sets a TEFRA Public Hearing for December 2,1985, at 11:00 a.m. and makes changes to the original application. These changes include changing the name10f the developer to Elmwood Del Rosa, a partnership, a decrease in the number of rental units from 232 to 200 and increase the amount of the financing from $8,500,000 to $11,400,000. Due to higher interest rates, the amount needed to finance the project has increased. Below is a recap of the amended application. PRINCIPALS: Elmwood Del Rosa, a partnership AMOUNT OF FINANCING: $11,400,000 PROJECT: Construction of a 200 unit senior citizen multifamily rental and congregate housing development on a 4.5 acre site. LOCATION: Del Rosa Avenue on the west, Del Rosa Avenue on the south, Elmwood Road on the east and Highland Avenue on the north. TARGET DATE FOR FINANCING: December, 1985 CONSTRUCTION SCHEDULE: 1 Phase - 12-18 months to complete INCREASE IN JOBS: During construction only. RESERVE & DEVELOPMENT FEE: 1% of $11,400,000 = $114,000 RENT SCHEDULE: 116 Units - 1 Bed room 1 Bath $395/mo. 116 units congregate care - will provide recreation) transportation, limited medical assistance, beauty shop, meals (3) maid and security service. The proposed project would have approximately 44 units per acre and is currently zoned C3A which is limited general. 70 private - single occupancy _ 46 semiprivate - double occupancy _ $990/mo. $550/mo. The Planning Commission recommended scaling down the project for density and building height (from 3 stories to 2 stories). The developer appealed the Planning Commission recommendation to the Mayor and Council at the November 4th meeting and won the appeal. The project will receive a Conditional Use Permit including a higher density of approximately 25% OVer zoning requirements. 75.0264 ^^nn....,I__ 2,213-1/1169S/ak 11111185 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING A CERTAIN APPLICATION AND RATIFYING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF APPROXIMATELY $11,400,000 PRINCIPAL AMOUNT OF MULTIFAMILY MORTGAGE REVENUE BONDS (DEL ROSA GARDENS 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 and regularly enacted Ordinance WHEREAS, pursuant to its home rule powers, the City duly No. 3815, as amended (the "Ordinance"). to finance va r i ous types of proj ects, as def ined in the Ordinance, and to issue its special revenue bonds for the prOjects, and has amended the same from time to time; and purpose of enabling various developers to finance the cost of such the development of industry and commerce and to thereby broaden the WHEREAS, the Ordinance, as amended, is intended to finance 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 Ci ty wi thou t any 1 i abi 1 i ty to the City whatsoever; and - 1 - WHEREAS, the Mayor and Common Council of the City of San Bernardino, California (the "Mayor and Common Council"), pursuant to its Resolution No. 85-213, adopted June 17, 1985, has accepted a certain Application (the "Application") by ELMWOOD DEL ROSA PARTNERSHIP, a partnership, a California general partnership in the process of formation, or its successors or assigns (the "Original Applicant"), requesting the issuance of multifami ly mortgage revenue bonds In the principal amount not to exceed $9,775,000 for the purpose of financing, on behalf of the Original Applicant, a certain Project, to wit: the acquisition of land and the construction thereon in one or more phases of a two hundred thirty-two (232) unit senior citizen multifamily rental and congregate housing development which was to be constructed on an approximately four and one-half (4.5) acre parcel bounded on the north by Highland Avenue, on the west by Del Rosa Avenue, on the south by Rosa Avenue and the east by Elmwood Road and said Projec~ was to consist of approximately one hundred sixteen (ll6) one-bedroom, one-bath senior citizen rental units and one hundred sixteen (116) congregate units of which seventy (70) of said congregate units will be private, or single occupancy units and forty-six (46) of said congregate units will be semi-private, or double occupancy units, on-site vehicle parking spaces, laundry and recreational rooms, appurtenant landscaping and other improvements and other improvements; and WHEREAS, the City has been requested by the Original Applicant to accept certain conforming amendments to the Application - 2 - to affect a substitution ln the developer of the Project from the Original Applicant to ELMWOOD DEL ROSA, a partnership, a California limited partnership in the process of formation, or its successors or assigns (the "Developer"), a decrease in the number of senior citizen rental and congregate units in Project from two hundred thirty-two (232) to two hundred (200) such units in view of certain increases ln the total anticipated cost of construction of the Project, an increase in the aggregate principal amount of tax-exempt financing for the Project to $11,400,000; and that WHEREAS, the above it is the intent of the Mayor and Common Council referenced Resolution No. 85-213 shall remain effective as of the date of adoption thereof in that this Resolution of the Mayor and Common Council shall not be deemed to alter, amend or modify the effective date of said Resolution No. 85-213 in any manner whatsoever; 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 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 for the purpose of enabling various developers to finance the cost of multifamily rental housing; and - 3 - WHEREAS, the City has been requested by 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 City as permitted by the Ordinance, as amended; and WHEREAS, the City must now approve the requests of the Original Applicant 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. The reci tals set forth hereinabove are true and correct in all respects. Section 2. The Mayor and Common Counci 1 hereby accepts and approves the conforming amendments to the Application of the Original Applicant, which amendments effect a substitution in the developer of the Project from the Original Applicant to the Developer a decrease the number of senior citizen rental and congregate units in the Project from two hundred thirty-two (232) to two hundred (200) such units and in view of certain increases in the total anticipated cost of construction of the Project, an increase in the aggregate principal amount of tax-exempt financing for the Project to $11,400,000. - 4 - Section 3. Pursuant to the requirements of Code Section 103(k), the Mayor and Common Council hereby ratifies and approves 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 December 2, 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 the Ordinance, as amended. 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 and approves the action of the City Clerk, which City Clerk caused to be published by at least two (2) insertions, one of which shall not be 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 "A" and incorporated herein by reference and made a part hereof. Section 4. The Developer 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. - 5 - Section 5. Prior to issuance of any bonds for the Project as may hereafter be approved pursuant to an appropriate resolution or resolutions of the City, the Developer 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 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. Section 6. 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 adminstrative procedures and appeals basep solely on the information avai lable 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 Developer wi 11 be required to comply with all applicable laws and ordinances of the City, State and federal government. - 6 - Section 7. adoption. I HEREBY adopted by the San Bernardino at day of ... This Resolution shall take effect upon CERTIFY Mayor a that and the foregoing resolution was Common Council of the City meeting thereof, held on by the following vote, to wit: , 1985, AYES: NAYS: ABSENT: Council Members City Clerk The foregoing resolution is hereby approved this , 1985. of Mayor of the City of San Bernardino Approved as to form: ~~/IP~ City Attorney - 7 - duly of the day STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss. CITY OF SAN BERNARDINO ) I, SHAUNA CLARK, City Clerk Bernardino, DO HEREBY CERTIFY that the of San Bernardino City Resolution No. correct copy of that now on file in this in and for the City of San foregoing and attached copy is a full, true and 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 - - EXHIBIT "A" NOTICE OF PUBLIC HEARING BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, FOR A CERTAIN MULTIFAMILY MORTGAGE REVENUE BOND FINANCING AND THE ISSUANCE BY THE CITY OF MULTIFAMILY MORTGAGE REVENUE REVENUE BONDS IN CONNECTION THEREWITH (DEL ROSA GARDENS 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 Monday, December 2, 1985, at the hour of 11:00 A.M., ln 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 lS to consider a proposal by ELMWOOD DEL ROSA, a partnership, a California limited partnership in the process of formation, or its successors or assigns (the "Developer"" in accordance with Section 103(k) of the Internal Revenue Code of 1954, as amended, for the City of San Bernardino, California (the "Ci ty"), to provide certain industrial development revenue bond financing by the issuance of multifamily mortgage revenue bonds for the "Del Rosa Gardens Project" which Project shall consist of the acquisition of land and the construction thereon in one or more phases of a two hundred (200) unit senior citizen multifamily rental and congregate housing development which is to be constructed on an approximately four and one half (4.5) acre parcel bounded on the north by Highland Avenue, on the west by Del Rosa Avenue, on the south by Rosa Avenue and the east by Elmwood Road and shall consist of an appropriate mix of - 1 - ... one-bedroom, one-bath senior citizen rental units and congregate units, on-site vehicle parking spaces. laundry and recreational rooms, appurtenant landscaping and other improvements, recreation rooms, appurtenant landscaping and other improvements. The City intends to issue its multifamily mortgage revenue bonds pursuant to Ordinance No. 3815, as amended. 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 Eleven Million Four Hundred Thousand Dollars ($11,400,000). The City intends to issue its bonds pursuant to Ordinance No. 3815, as amended, In an amount presently estimated not to exceed $11,400,000 for the financing thereof without any liability to the City whatsoever. All persons interested In the sUbject matter and the public purposes and public benefits and the issuance by the City, of multifamily mortgage revenue revenue bonds in an estimated principal amount not to exceed $11,400,000 in connection with the Project may attend such hearing and/or file their written comments thereto. 1985. NOTICE GIVEN as of this day of City Clerk of the City of San Bernardino, California To be published in The Sun on 11/14/85 and 11/21/85 - 2 - l,020-45/0754S/cmh 6/12/85 APPLICATION OF ELMWOOD DEL ROSA PARTNERSHIP, A PARTNERSHIP 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 "Elmwood Del Rosa' Partnership, a partnership." 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 two hundred thirty-two (232) unit senior citizen multifamily rental and congregate housing development consisting of one hundred sixteen (116) senior citizen multifamily rental housing units and one hundred sixteen (ll6) congregate housing units located on a four and one-half (4.5) acre site bounded by Del Rosa Avenue on the west, Rosa Avenue on the south, Elmwood Road on the east and Highland Avenue on the north of which seventy (70) of said congregate housing units will be private, or single occupancy units, and forty-six (46) of said congregate housing units will be semi-private, or double occupancy units, in the City of San Bernardino, California (the "Project"). The Applicant has opened an escrow to acquire the property necessary for the proposed senior citizen multifamily rental and congregate housing development (the "Property") 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: ELMWOOD DEL ROSA PARTNERSHIP, a partnership 180 Newport Center Drive Suite 180 Newport Beach, California 92660 1.4 Employer Tax I.D. No. has been applied for. 1.5 Mr. Robert Brownsberger is the principal contact for the Applicant. 1.6 Telephone Number (714) 752-1551. 1.7 The Applicant is a California general partnership which is in the process of formation. - 1 - 1. 7.1 1. 7.2 ... The Applicant shall own property and conduct business in the County of San Bernardino, State of California. The general partnership organizational documents of the Applicant shall be executed prior to the time when the Applicant acquires legal ti tIe 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: Robert Brownsberger, an individual - 1001 1.9 Mr. Robert Brownsberger will have primary responsibility for conducting the business of the Applicant. 1.10 Business ventures of the general partners of the Applicant. 1. 10. 1 loll Employees 1.11.1 1.11.2 Mr. Robert Brownsberger is the owner of RHB Development, a sole proprietorship, which commenced operations in 1974. RHB Development has interests in several other business ventures, including real estate development projects in Los Angeles County, San Diego County, Riverside County, San Bernardino County and Orange County. The Applicant currently has four (4) employees. Although the principal objective of the Project is to provide affordable senior citizen rental and congregate housing to the senior citizens of the City of San Bernardino, the construction and operation of the Project will create approximately ten (10) full-time employment opportunities within the City. The business offices of Applicant shall be located at 180 Newport Center Drive, Suite 180, Newport Beach, California 92660. 1.12 Professional services will be provided by the following: 1.12.1 1.12.2 1.12.3 Ernst & Whinney, CPA, shall serve as the accountant for the Applicant and the contact person with said firm is Tom Testman, 4000 MacArthur Boulevard, Suite 800, Newport Beach, California 92660. Terry Rhodes of the Law Firm of Rhodes & Bidna, 1400 Dove Street, P.O. Box 8387, Newport Beach, California 92660-2091, is the attorney for the Applicant. The law offices of Sabo & Gondek, a Corporation, shall serve as Bond Counsel with regard to the tax-exempt financing for Professional to the Ci ty the Project. - 2 - 1.12..4 1.12..5 ~ Principal Civil Engineer - Garner, Troy &. Associates, Inc., 813 North "D" Street, Suite 3, San Bernardino, California 92401. Principal Architect - Sidney M. Levee, Jr., of Maxwell Starkman &. Associates, 942.0 Wilshire Boulevard, Beverly Hills, California 902.12.. 1.13 The principal banking accounts of the Applicant shall be held by Bank of Newport, 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 2.1. 2. 2..1.3 , '. ,>. 2..1.4 2..1.5 2.1.6 Project cost - $5,846,000 Legal, printing and related fees - $114,000 Financing costs and fees - $545,000 Capitalized interest - $720,000 Other miscellaneous costs - $75,000 Land acquisition - $1,2.00,000 Total: $8,500,000 2.2. The estimated target date for the financing is presently anticipated in the fourth quarter of 1985, 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. - 3 - 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. PART III FINANCIAL INFORMATION 3.1 The financial statements of the general partner 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. Al though 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 thereon of a two hundred thirty-two (232) unit senior citizen multifamily rental and congregate housing development on a four and one-half (4.5) acre site bounded by Del Rosa Avenue on the west, Rosa Avenue on the south, Elmwood Road on the east and Highland Avenue on the north. The Project shall consist of one hundred sixteen (116) one-bedroom/one-bath units of senior citizen multifamily rental housing and one hundred sixteen (116) units of congregate housing. The Project shall include on-site vehicle parking spaces as required by the Ci ty, laundry and recreational rooms, appurtenant landscaping and other improvements. The Project shall be located on land more particularly described and included as Exhibi t "B" hereto. I,. 4.1.1 The one hundred sixteen (16) units of multifamily rental housing shall have proposed rent schedule: senior citizen the fOllowing Unit DescriPtion 1 bedroom - 1 bath Proposed Rent/month $395 4.1.2 The one hundred sixteen (116) unit senior citizen congregate care development will provide recreation directors, transportation, limi ted medical assistance, beauty shop services, three meals a day, maid service and security service. Seventy (70) of said units will be private, or single occupancy units, and will rent at nine-hundred ninety dollars ($990.00) per month. Forty-six (46) of said units will be semi-private, or double occupancy units, and will rent at a cost of five-hundred and fifty dollars ($550.00) per occupant. - 4 - ---- .'- 4.2 The components and the estimated total cost of the functional parts of the Project are as follows: 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 Land - $1,200,000 Building construction - $4,646,000 Site preparation - $200,000 Engineering and technical services - $200,000 City fees - $500,000 $6,746,000 Total: Miscellaneous items a. 5% construction contingency _ $342,000 b. Developer's overhead and profit - $300,000 c. Interest during construction _ $720,000 d. Real estate brokerage commission _ $92,000 e. Other miscellaneous costs - $300,000 Total: $8,500,000 4.3 The estimated construction period for the Project is as follows: 4.3.1 4.3.2 Construction of the Project would commence as Soon as possible after issuance of the tax-exempt obligations. The planned construction shall OCcur and be completed within twelve (12) months from the date of commencement. in one (1) phase to eighteen (18) 4.4 The supervising civil engineer responsible for the design of the Project on behalf of the Applicant shall be Mr. Russ Garner of Garner, Troy and Associates. 4.5 The Project shall be known as "Del Rosa Gardens". 4.6 The Project is the development of a senior citizen multifamily rental and congregate housing development and is not an expansion or an alteration of an existing facility. The Applicant desires to obtain below market rate tax-exempt construction and permanent financing of the on-site 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 Highland Del Rosa, a partnership, a California general partnership, and the Applicant has entered into an escrow to acquire said property for a total consideration not to exceed $1,200,000. - 5 - ~ 4.8 The Pro jec t will provide two hundred thirty two (232) uni ts of affordable senior citizen rental and congregate housing to the senior 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. 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 wi th 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 senior citizen multifamily rental and congregate 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 senior citizen rental and congregate housing that is needed within the City of San Bernardino. - 6 - 5.1.1 5.1.2 5.1.3 5.2 ... The Project will provide long-term affordable senior citizen rental and congregate housing opportunities for the inhabitants of the City of San Bernardino. Construction of the Project is anticipated approximately $8,000,000 to $9,000,000 of valuation to the tax rolls of the City. to add assessed The useful method of financing provided for in Ordinance No. 3815 of the City vis-a-vis the use of the conventional method will permit 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. 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 senior citizen rental and congregate 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 community. \ There are no detriments that can be incurred by the City wi th regard to this type of financing for this Project, and the City of San Bernardino will receive substantial benefits through increases in assessed valua tion of property, plus the increased long-term affordable senior citizen housing opportunities that will be available to the local residents of the City. PART VI COMMITMENTS 6.1 The Applicant by the submiss ion of this Applica tion 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, qual if ica t ion 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 - 7 - -----"-~-- 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. 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 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. i. 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 - 8 - ~ -~ ..._-~ 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. 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. "APPLICANT" ELHWOOD DEL ROSA PARTNERSHIP. a partnership, a California general partnership By: Robert Brownsberger, general partner - 9 - --. - Exhibi t "AIt (Attach Financial Statement of Applicant) - -. ~ . 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