HomeMy WebLinkAboutR32-Economic Development
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
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FROM: Emil A. Marzullo
Interim Executive Director
SUBJECT:
Public Hearing - Consenting to the approval of
the issuance of Health Care Revenue Bonds for
financing the Acquisition of licensed health
care facilities by Mountain Shadows Support
Group, Inc.
DATE: November 7, 2008
_______________________u__________________________________________________________________________________________-----------------------------------------------------------------------------------------
Synopsis of Previous Commission/Council/Committee Action(s):
On November 6, 2008, Redevelopment Committee approved to have the Agency conduct the TEFRA Hearing on behalf of the
Mountain Shadows Support Group Project which includes the five (5) properties located within the City's jurisdiction.
On August 18, 2008, this item was presented and tabled by the Community Development Commission at the request of the
California Statewide Community Development Agency (CSCDA).
On August 7, 2008, Redevelopment Committee Members Estrada and Johnson unanimously voted to recommend that the
Mayor and Common Council consider this action for approval to allow the County to conduct a TEFRA Hearing for the City of
San Bernardino.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Recommended Motion(s):
Open/Close Public Hearing
(Mavor and Common Conncil)
Resolution of the Mayor and Common Council of the City of San Bernardino approving the issuance of health
care revenue bonds for the purpose of financing the acquisition of licensed health care facilities by Mountain
Shadows Support Group, Inc.
_____________________________________________________________________________________________________________________________________________________________________._____________________________u______________
Contact Person(s):
Project Area(s):
Supporting Data Attached:
Carey K. Jenkins
Phone:
(909) 663-] 044
IVDA
Ward(s):
2nd, 4th and 7th
o Staff Report 0Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s)
Budget Authority:
N/A
N/A
FUNDING REQUIREMENTS:
Amount: $
-0-
Source:
Signature:
Emil A. Marzullo, Interi
aL-
Fiscal Review:
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,I (j ( ~cLlu..~- I ~
Barbara Lindseth, Administra ive s~s Director
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P:\Agendas\Comm Dev Commission\CDC 2008\11-17-08 Mountain Shadows. County Support Letter SR,doc
COMMISSION MEETING AGENDA
Meeting Date: I III 7/2008
Agenda Item Number: 12.'3'2..-
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
---------------------------------------- ------------------- -------------------- ---------------------- ----------------------- -------------------- ----------------------- ---------------------------
PUBLIC HEARING - CONSENTING TO THE APPROVAL OF THE ISSUANCE OF HEALTH
CARE REVENUE BONDS FOR FINANCING THE ACQUISITION OF LICENSED HEALTH
CARE FACILITIES BY MOUNTAIN SHADOWS SUPPORT GROUP, INC.
BACKGROUND:
On June 12,2008, the California Statewide Communities Development Agency ("CSCDA") approached
the City of San Bernardino ("City") with a request to provide a proposed letter of support/non-objection
to the County of San Bernardino to allow the County to conduct a single TEFRA hearing for a multi-
jurisdictional project.
The previously proposed letter was intended to provide support and approval by several municipalities on
behalf of a proposed financing coordinated by CSCDA for the acquisition and refinancing of several
residences located throughout the County, including 5 sites within the City. Please refer to the attached
letter. This item was previously placed on the Council agenda for August 18, 2008, but was tabled at the
request of the County when it was determined by the County that each municipality should conduct their
own independent TEFRA Hearing with the County conducting a TEFRA Hearing only for the sites
located within the County unincorporated areas.
The financing application received by CSCDA proposes the issuance of approximately $52,000,000 of
tax-exempt revenue bonds for Mountain Shadows Support Group, Inc. ("Mountain Shadows"). Mountain
Shadows is a 501(c)(3) non-profit corporation incorporated in 1988 for the purpose of promoting the
welfare of persons with developmental disabilities through providing an array of social services and
housing opportunities (www.mtnshadows.org). Specifically, Mountain Shadows provides residential
living for developmentally disabled individuals in neighborhood settings.
As a component of this financing, Mountain Shadows is seeking approximately $14.25 million to acquire
15 residences currently owned and operated by Horrigan Enterprises to provide similar services to persons
with developmental disabilities. Five of the total residences that are under consideration are located in the
City and include the following as noted by address and Ward:
1. 25787 Mesa Court (7th Ward);
2. 2917 Roadrunner Court (4th Ward);
3. 2107 East Jane Avenue (2nd Ward);
4. 2661 Mercedes Avenue (4th Ward); and
5. 3465 Darren Place (4th Ward)
The remaining $37.75 million in bonds proceeds would be used to refinance existing Mountain Shadows
indebtedness for facilities located in San Diego County and Riverside County.
-------------------------------------------------------------------------------------------------------- ---------------------------------- ---------------------------------- ------------------------------------
PlAgcndas\Comm Dev Commission\CDC 2008\11-]7-08 Mountain Shadows - County Support Letter SKdoc
COMMISSION MEETING AGENDA
Meeting Date: Il/17/2008
Agenda Item Number:
f2.?>1-
Economic Development Agency Staff Report
Mountain Shadows - County Support Letter
Page 2
CURRENT ISSUE:
In anticipation of a potential County sponsored TEFRA Hearing as was initially proposed, Agency Staff
conducted its own due diligence analysis on the 5 City properties in July 2008. This included determining
whether any code violations have occurred, the number and type of service calls associated with each
location, and an overall visual inspection of each site on September 29,2008.
According to City Code Enforcement staff, there are no existing violations with any of these sites. Per
information gathered from the San Bernardino Police Department Crime Statistics Unit, the following
crimes took place between January I, 2008 and May 31, 2008, and there have been no further incidences
since the last report of May 31,2008:
25787 Mesa 2917 Roadrunner 2107 East Jane 3465 Darren 2661 Mercedes
Court Court Avenue Street Avenue
I - 911 call with I - Burglary, Forcible I - Robbery, Strong I - Burglary- I - Robbery, Other
no report taken Entry arm Forcible entry weapon
2 - Theft over $400 I - Robbery, 2 - Theft over I - Assault-Other
Total = 0 I - Theft, $200 - $400 Forcible entry $400 weapon
I - Theft, $50 - $200 2 - Theft over $400 4 - Burglary,
I - Vehicle Theft, Total = 3 Forcible Entry
Total = 5 Auto I - Burglary, no
force
Total = 5 2 - Theft over $400
4 - Theft, $200 -
$400
3 - Theft, $50-$200
I - Theft below $50
I - Vehicle Theft,
Auto
I - Vehicle Theft,
Truck
Total = 19
During the review period, a total of 32 crimes were committed at these site addresses. Based on the types
of crimes committed, it would appear the residents are not the perpetrators of these crimes, but instead the
victims. This would be indicative of the number of forcible entry burglaries, property thefts and vehicle
thefts. As for the magnitude of the incidents, approximately 60% occurred at the 2661 Mercedes Avenue
property.
Based on an exterior inspection of all 5 properties, they were well maintained, blended into the
surrounding neighborhood and gave no outward sign of their use as group home facilities for
developmentally disabled residents. Pictures of the exterior of all 5 properties are attached for further
P:\Agendas\Comm Dev Commission\CDC 2008\] ]-]7-08 Mountain Shadows - County Support Letter SR doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2008
Agenda Item Number: ft -; 'l..
Economic Development Agency Staff Report
Mountain Shadows - County Support Letter
Page 3
review. The pictures were taken in July 2008 and were reconfirmed on the basis of a visual inspection
conducted on October 29, 2008.
In compliance with the requirement of Section 145 of the Internal Revenue Code of 1986, as amended and
Section 147(f) of the Code, the required Public Notice of this hearing was published in the San
Bernardino County Sun Newspaper of November 3, 2008.
ENVIRONMENTAL IMP ACT:
There are no environmental impacts associated with the requested action.
FISCAL IMPACT:
There are no fiscal impacts associated with the proposed action.
RECOMMENDATION:
That the Mayor and Common Council conduct the TEFRA Hearing and adopt the attached Resolution.
!-f2~
Emil A. Marzullo, Inter
P:\Agendas\Comm Dev CommissionlCDC 2008\11-17-08 Mountain Shadows - County Support Letter SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2008
Agenda Item Number: Jl;~
July 10, 2008
VIA FACSIMILE (909) 387-9815
Ms. Patricia Cole
Deputy Administrative Officer
County of San Bernardino
Economic Development Agency
215 North D Street, Suite 202
San Bernardino, CA 92415
RE: Support I Non-Objection Letter Concerning Mountain Shadows Support Group
Dear Ms. Cole:
The purpose of this letter is to acknowledge the proposed tax-exempt bond financing by
the California Statewide Communities Development Authority (the "CSCDA") on behalf
of Mountain Shadows Support Group, Inc. and the proposed projects known as Robinson
House (25787 Mesa Court), Elm House (2917 Roadrunner Court), La Paix House (2107
East Jane Avenue), Jane House (2661 Mercedes), and Highland House (3465 Darren
Place) located in the City of San Bernardino.
We understand that a non-objection letter and confirnlation that the proposed project
locations meet local land use requirements has been requested by the County of San
Bernardino to hold a TEFRA hearing for all of the projects located in the City of San
Bernardino on behalf of Mountain Shadows Support Group.
Please be advised that the City of San Bernardino supports the proposed project financing
by Mountain Shadows Support Group, the proposed projects to be financed meet local
land use requirements, and the City does not object to the County of San Bernardino
conducting the TEFRA hearing for the projects located in the City of San Bernardino.
If you have any questions, please contact me at L..J _-_'
Sincerely,
Fred Wilson
City Manager
City of San Bernardino
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RESOLUTION NO.
t(Q)f
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE ISSUANCE OF HEALTH CARE
REVENUE BONDS FOR THE PURPOSE OF FINANCING THE
ACQUISITION OF LICENSED HEALTH CARE FACILITIES BY
MOUNTAIN SHADOWS SUPPORT GROUP, 1Ne.
WHEREAS, Mountain Shadows Support Group, Inc., a California nonprofit public benefit
corporation (the "Borrower"), has requested the California Statewide Communities Development
Authority (the "Authority") to issue and deliver health care revenue bonds in the anticipated
principal amount of approximately $55,000,000 (the "Obligations"), a portion of the proceeds 0
which shall be used for the purpose of financing the acquisition of licensed health care facilities
commonly known as Jane House located at 2661 Mercedes Avenue, Highland House located at
3465 Darren Place, La Paix House located at 2107 East Jane Avenue, Elm House located at 2917
Roadrunner Court, and Robinson House located at 25787 Mesa Court, each in the City of San
Bernardino, California (collectively, the "Project"); and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"),
the issuance of the Obligations by the Authority must be approved by the City of San Bernardino
("City") because the facilities constituting the Project are located within the territorial limits of the
19 City; and
20 WHEREAS, the Obligations to be issued and delivered to finance the acquisition of the
21 Project will be considered "qualified 50I(c)(3) bonds" under Section 145 of the Code subject to the
22 requirements of Section 147(f) of the Code as set forth above; and
23 WHEREAS, the Mayor and Common Council of the City of San Bernardino (the "Council")
24 is the elected legislative body of the City and constitutes the applicable elected representatives
25 required to approve the issuance of the Obligations under Section 147(f) of the Code; and
26 WHEREAS, the Authority has requested that the Council approve the issuance of the
o 27 Obligations by the Authority in order to satisfy the public approval requirement of Section 147(f) 0
28 the Code and the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers
l{~flo.(en1e'11 r / I -17- 8
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P:~endu\Jl.esol\ltions'Jtcsolutionsl200Sl11.17"'()8 TEFRA Hearina . Mountain Shadows MCC Resodoc
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I Agreement, dated as of June I, 1988 (the "Agreement"), among certain local agencies, including the
2 City; and
3 WHEREAS, pursuant to Section I 47(f) of the Code, the Council has, following notice, duly
4 given on November 3, 2008, held' a public hearing regarding the issuance of the Obligations, and
5 now desires to approve the issuance of the Obligations by the Authority solely for the purpose 0
6 satisfying the requirement of said Section 147(f) of the Code.
7 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
8 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
9 FOLLOWS:
10 Section 1. The Council hereby approves the issuance of the Obligations by the Authority for
II the purposes of financing the acquisition of licensed health care facilities. It is the purpose and
12 intent of the Council that this Resolution shall constitute approval of the issuance of the Obligations
13 by the Authority solely for the purposes of satisfying the requirements of (a) Section 147(f) of the
14 Code by the applicable elected representatives of the governmental unit having jurisdiction over the
15 area in which the Project is located, in accordance with said Section 147(f), and (b) Section 9 of the
16 Agreement. The Council recognizes that the Borrower has been advised by other parties
17 independent of the City as to the structure, terms and provisions of the Obligations and the economic
18 viability of proceeding with the issuance and delivery of the Obligations. The City assumes no
19 liability or responsibility of any nature whatsoever with respect to the Obligations and any aspects
20 thereof as to compliance with any and all applicable federal tax and securities laws when the
21 Obligations are issued and delivered.
22 The adoption of this Resolution is solely for the purpose of complying with the requirements
23 of the provisions of the Code and shall not be construed in any other manner. Neither the City nor
24 its staff has fully reviewed or considered the financial feasibility of the Project or the expected
,
25 operation of the Project. The City has not evaluated this transaction with regards to any State 0
26 California statutory requirements. The adoption of this Resolution shall not obligate the City to (i)
27 provide any financing to the Borrower for any purpose or to issue the Obligations or any obligation
28 in the name of the City or its departments, agencies, authorities, board or commission, or (ii) either
2
P:\A.gend.u\ResolutiolU'Jtesolulions'2008\11.17.oS TEFRA Hearing. MoulIl.lin SlwWws MCC Reso.doc
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1 directly or indirectly through any department, agency, authority, board or commission of the City,
2 approve any application or request for, or take any other action in connection with, any
3 environmental review or proceeding, General Plan Amendment, zone change or approval of any
4 other permit or other action as may be deemed necessary for the acquisition or operation of the
5 Project.
6 Section 2. This Resolution shall take effect upon its adoption and execution in the manner
7 as required by the City Charter.
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P\Agend.u\ResolutiOTU\Resolutions\200s\11-17-OS TEFRA Hearing. Mounuin Slw:Iows Mec R.eso_dox
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE ISSUANCE OF HEALTH CARE
REVENUE BONDS FOR THE PURPOSE OF FINANCING THE
ACQUISITION OF LICENSED HEALTH CARE FACILITIES BY
MOUNTAIN SHADOWS SUPPORT GROUP, INC.
2
3
4
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a
meeting
7 thereof, held on the
, 2008, by the following vote to wit:
day of
8 Council Members:
Navs
Abstain
Absent
Aves
9 ESTRADA
10 BAXTER
11 BRINKER
12 DERRY
13 KELLEY
14 JOHNSON
15 MC CAMMACK
16
17
Rachel G, Clark, City Clerk
18
19 The foregoing Resolution is hereby approved this
day of
,2008.
20
21
22
23
Patrick J. Morris, Mayor
City of San Bernardino
24 Approved as to Form:
(1 J P.
B. "/ -- ,-,..>'.... A4
26 y., "'h_ / . ~'/.' ,'ly,
27 (J James F. Penman, City Attorney
25
28
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P:\A@~ncW\ResolutiolU\Re50lution5\2008\11.17-08 TEfRA Hearing. MounWn Shadows MCC Resodoc