HomeMy WebLinkAbout1984-09-04; City Council; 7852-1; REQUEST TO RECONSIDER INDUCEMENT RESOLUTION FOR MORTGAGE REVENUE BOND FINANCING*>
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CIT~F CARLSBAD - AGEND~ILL - -
AB# 7?+?32-&/ TITLE: REQUEST TO RECONSIDER INDUCEMENT CITY i RESOLUTION FOR MORTGAGE REVENUE MTG. 9/4/84
DEPT,
CITY I BOND FINANCING DEPT. CM
RECOMMENDED ACTION:
Reconsider matter as requested,
ITEM EXPLANATION:
The Council at its August 21, 1984 meeting deferred action on an inducement resolution for mortgage
revenue bond financing for a multi-family housing
project at the southeast corner of Alga Road and
Alicante. The matter was deferred until completion of a review of the impact of the project on the area and the Planning staff was to report regarding site review for apartment projects.
The applicant is asking the Council to reconsider
and has offered to submit his project to a site
review.
The applicant is still planning to develop 642 units
but is only seeking mortgage revenue bond financing
for 368 units.
EXHIBITS:
1. Letter from George A. Fermanian
dated 8/27/84
2. Agenda Bill 7852 dated 8/21/84
I
e e SO CAL DEVELOPMENT,
BUILDERS .I, DEVEl
11300 Sorrento Valley Road, S
San Diego, CaIiforn:
(619) 4,
August 27, 1984
Mayor Mary Casler City of Carlsbad 1200 Elm Avenue
Carlsbad, CA 92008
Dear Mayor Casler :
We are requesting your immediate reconsideration of an
inducement resolution for tax exempt bond financing for our proposed apartment project on Alga Road in La Costa.
At the City Council Meeting held last week, there was expressed a need for site plan review on zoned land. It was felt approval of an inducement resolution may hinder
this process.
It is our understandiny that projects induced into the bond
program are always subject to all the normal planning pro-
cedures and land use approval requirements of the City of
Carlsbad.
Even though our site is zoned and currently does not require site plan review, we will agree to such a process. We also will reduce our request from 642 units to 368 units and
$18,500,000. Since Federal tax rules place extreme hard-
ships unless an inducement resolution is in place prior to close of escrow and the fact we will proceed with site plan
review, we respectfully request your approval of our inducement resolution. Thank you.
Respectfully yours, ? Ge ge A. Fermanian
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GAF': lm [KT 4!!6 1984 cc: Ann Kulchin -'Frank Aleshire ,-4 City of
Claude Lewis Marty Orenyak \% CARLSBAR
Robert Prescott
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Richard Schick L @ 4 Carlsbad, cix si@ E i zpi \*
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1 RESOLUTION NO. 7710
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A RESOLUTION OF INDUCEMENT OF THE CITY COUNCIL
OF THE CITY OF CARLSBAD, CALIFORNIA INDICATING
ITS INTENT TO ISSUE OBLIGATIONS TO PROVIDE
FINANCING FOR THE MULTIFAMILY HOUSING PROJECT
PROPOSED BY RODNEY F. STONE AND GEORGE A.
FERMANIAN
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pursuant to Chapter 7 (commencing with Section 52075) of Pal 7
WHEREAS, the Council of the City of Carlsbad is authol
8 II of Division 31 of the Health and Safety Code (the "Act"), tc
9 provide financial assistance for multifamily residential
10 developments within the City;
11 WHEREAS, Rodney F. Stone and George A. Fermanian (col:
12 the "Developer"), on behalf of themselves and a'partnership
13 formed by them, have requested financial assistance in conm
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rental housing project proposed to be located on a 64.28 ac! .. ',.':>s. . ' 15
with .the construction of an approximately 642-unit multifam:
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.''..,. 16 'of land at the southeast corner of Alga and Alicante in the ..
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WHEREAS, the City, as an inducement to the Developer, 18
of Carlsbad (hereinafter the "Project") ; and
restrictions of the Act and all applicable state and federa: 21
sufficient to provide financing for the Project subject to 1 20
~ willing to authorize the issuance of obligations in an amoul 19
22 1 as they presently exist, providing that the Project receive!
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- 23 11 necessary governmental approvals and providing further that
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by individuals or families of low or moderate income (which 25
least twenty percent (20%) of the units in the Project are (
percent of the median gross income for the San Diego Metropl 28
1954, as amended, are persons whose income does not exceed ~ 27
defined in Section 103 (b) (12) (C) of the Internal Revenue COC 26
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Statistical Area) for at least a 10-year period from the da
issuance of the obligations, or such longer period as may b
required by State or Federal law;
NOW, THEREFORE, BE IT RESOLVED by the City Council of
City of Carlsbad as follows:
SECTION 1. The City Council hereby determines that t
undertaking of the financing of the proposed Project by the
will be a substantial factor in the accrual of public benef
be received from the Project, should the Project be approve
constructed, and that the proposed financing is in accord w
purposes and requirements of the Act.
SECTION 2, Subject to (i) the completion of the proce
and other matters relating thereto to the full satisfaction
City Council and City staff, including the execution of a Dl
Agreement,between the City and the Developer satisfactory t'
City, (ii) the proposed Project receiving all necessary
governmental approvals, and (iii) there being no further re!
in development standards such as increased densities or red
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amenities with respect to the Project, the City Council her1
agrees to provide financial assistance to the Developer, or
other affiliated entity as may be approved by the City, thrc
the issuance of obligations in an amount of approximately
$33,000,000, or such higher amount as is necessary to financ
Pro j ect .
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SECTION 3, The obligations to be issued shall be spec
obligations of the City payable solely from revenues to be 1
by the City pursuant to a loan or other financing agreement
form acceptable to the City and shall not be a general ob1i.c
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of the City, the State of California or any political subdi
the State.
3 SECTION 4, The City Manager, or his designee, is her
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required processing and approval of the Project and the Cit 7
SECTION 5. The City is hereby authorized to commence 6
of the City to proceed with the proposed financing. 5
directed to indicate to the Developer the willingness on th
8 departments are directed to consider opportunities to contr
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of indebtedness within the meaning of the Internal Revenue 12
constitute "some other similar official action" toward the 11
52080 of the Act. It is intended that this Resolution shal 10
to the economic feasibility of the units'as required by Sec
13 // 1954, ' as amended,
14 SECTION 6. The adoption of this Resolution shall not
15 the City to issue bonds until and unless all other necessar
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I ultimate completion of the Proejct. 20
1 deny any further permit or approval that may be necessary fi l9
not limit in any manner whatsoever the City's full discreti' 18
applicable laws. The adoption of this Resolution does not 17
and approvals are taken or received in accordance with all
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21 ii SECTION 7- This Resolution shall take effect inmedia
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certification to be filed in the office of the City Clerk. 25
of this Resolution and shall cause this Resolution and this 24
SECTION 8. The City Clerk shall certify to the adopt 23
upon adoption,
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PASSED, APPROVED AND ADOPTED at a regular meeting of
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of August, 1984, by the following vote, to wit: 3
City Council Of the City of Carlsbad, California on the 21s
5 AYES : Council =rs Casler, Lewis, Kulchin, Chick and Pre:
6 NOES : None
7 ABSTAIN: None
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ABSENT :
10 ATTEST :
5+L#/&/&%
-NARY H. ASLER, Mayor
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ol-dth- l2
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ALETHA L. FtdTE erk 13
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