HomeMy WebLinkAboutR11-Redevelopment Agency
o
000
MBNCY.REGUBST FOR COMMISSION/COUNCL ACTION
om:
Dept:
GLENDA SAUL
Subject: PALM CIRCLE APARTMENT COMPLEX
Redevelopment Agency
D~: AUGUST 13, 1986
Synopsis of Previous Commission/Council ection:
On March 3, 1986, the Mayor and Common Council adopted an Inducement Resolution
for this project.
Recommended motion:
(MAYOR AND COMMON COUNCIL)
o
RESOLUTIOII OF THE CITY OF SAN BERNARDIIIO AMENDIIIG RESOLUTIOII 110 86-62 TO EXTEND
TERM OF IIIDUCEMENT RESOLUTION FOR MULTIFAMILY MORTGAGE REVENUE BONDS FOR VLACH
APARTMENTS PROJECT THROUGH NOVEMBER 3, 1986.
~"J
( Signature
Contact person: GLENDA SAUL/KEN HENDERSON
Supporting data atta.Jied; YES/STAFF REPORT
Phone:
383.5081
5
Ward:
FUNDING REQUIREMENTS:
Amount: $ N/A
Project: STATE COLLEGE
No ed_ Impact on City:
OCiI Notes:
D~:
Agenda Item Nt..-j J
. CI~ OF SAN BERNARDlio - REQUBT FOR COUNCIL AcRoN
o
o
o
75000264
STAFF REPORT
On July 17, 1986, ICen Henderson met with Leo Vlach, developer of the project,
regarding bond financing for the forty (40) unit apartment complex. An
inducement resolution with a "life" of six (6) months was approved by the
Mayor and Co_on Council on March 3, 1986 (inducement expires 9/3/86)~
Staff discussed with Mr. Vlach the salient features of the recently passed
Senate tax bill and H.R. 3838, the House tax bill and indicated that in order
to hold the TEFRA public hearing, he would have to pay the $10,000 IDB fee,
with no assurance that the House/Senate conference co_ittee would have
completed its work on comprolll1se tax legislation. A TEFRA resolution also has
a "life" of six (6) aontha.
Mr. .Vlach indicated he would be willing to go forward with the TEFRA public
hearing and the related fee so the process for the approval of final bond
documents could be expedited once tax s1lllplification legislation was passed.
The market study and other IDB policy requirements have been complied with by
Mr. Vlach. The construction of forty (40) units is expected to have no effect
on current supply/demand market characteristics.
Because staff was unable to notice the public hearing fourteen (14) days prior
to the Council meeting, staff 18 recOllllllending an extension of the Inducement
Resolution to November 3, 1986, in order to properly notice the TEFRA public
hearing. Mr. Vlach will, of course, pay the $10,000 non-refundable IDB fee.
1371L
o
0 1
2
3
4
5
6
7
8
9
10
11
Q 14
15
16
17
18
o
o
o
o
RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION
NO. 86-62 '1'0 EXTEND TERM OF INDUCEMENT RESOLUTION FOR MULTI-
FAMILY MORTGAGE REVENUE BONDS FOR VLACH APARTMENTS PROJECT
THROUGH NOVEMBER 3, 1986.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Section 12 of Resolution No. 86-62 is amended to
read as follows:
.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
12 or hereafter pending in the Congress of the United States which
13 may require official action in order for the bonds to be exempt
from federal income taxation. The Project of the Applicant shall
be the beneficiary of such 'official action' for a period up to
and including the day eight (8) months from the date of original
adoption of this resolution, being through November 3, 1986. If,
within such period, the City has not issued any multifamily
19 mortgage revenue bonds for the Project or held a public hearing
20 for the Project as said public hearing is required pursuant to
21 the certain amendments to Section 103 of the Internal Revenue
22 Code of 1954, as amended (the 'Code') as enacted by Congress
23 under the Tax Equity Fiscal Responsibility Act of 1982 ('TEFRA'),
24 the 'official action' for the Project of the Applicant as
25 evidenced by this Resolution shall lapse..
26 SECTION 2. The City of San Bernardino reaffirms its
27 intention to issue multifamily mortgage revenue bonds of the City
28 for the acquisition of land and the construction, equipping and
o
0 1
2
3
4
5
6
7
8
9
10
11
12
13
0 14
15
16
17
18
19
20
21 of
22
23
o
o
o
permanent financing thereon of the Project, as set forth in the
original resolution. This resolution is adopted to assure that,
so long as the Applicant proceeds diligently on or before
November 3, 1986, and arranges to have the City hold its public
hearing on issuance of the proposed bonds by or before that date,
the official action of the City taken in Resolution No. 86-62
shall remain in full force and effect.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
I
meeting thereof, held on the
, 1986, by the following vote, to
day of
wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
, 1986.
day
Mayor of the City of San Bernardino
Approved as to form:
24
25 .~~/&<~
~-~6 'City Attorney ~
o 27
28
2