HomeMy WebLinkAbout1985-03-19; City Council; 7993-1; MULTI-FAMILY RESIDENTIAL MORTGAGE REVENUE BONDS, $16.5 MILLION-LINCOLN SEASCAPEx CIT~F CARLSBAD - AGEND~ILL
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." IAB# 7?23-*/ I TITLE; MULTI-FAMILY RESIDENTIAL MORTGAGE (DEPTm
MTG.3/19/85
DEPT. RED
REVENUE BONDS, $16.5 MILLION - CITY 1 LINCOLN SEASCAPE CITY c
RECOMMENDED ACTION:
Adopt Resolution No. 7ywauthorizing the issuance of Multi-F Residential Mortgage Revenue Bonds (Lincoln Seascape), and authorizing the execution of necessary documents. I ITEM EXPLANATION
On December 18, 1984, Resolution of Inducement No. 7844 was
adopted expressing Council's intent to provide Mortgage Revenu
Bond financing for a multi-family housing project. Lincoln
Seascape, a California Limited Partnership, proposes a 208 unit apartment project located on a 21 acre parcel near the northwest corner of Buttercup Lane and Batiquitos Drive. The
amount of the bond issue is $16.5 million.
The applicant will offer 42 units (20%) to eligible low and
moderate income renters.
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The City Attorney and the Director of Building and Planning
and the City's Bond Counsel, Stradling, Yocca, Carlson and Rauth, have reviewed the documents and found them to be consiE with the General Plan, the City's Housing Element, Council's
affordable housing goals and applicable state and federal
regulations. 1
On the date of issuance of the bonds, the owner shall pay to the City the sum of one-tenth of one percent of the aggregate principal amount of the bonds to reimburse the City for its
expenses incurred in preparing to issue the bonds.
Staff recommends City Council authorize the execution of certz
documents pertaining to this $16.5 million multi-family reven1
bond issue now on file in the City Clerk's office.
FISCAL IMPACT
Costs incurred by the City will be recovered as part of the mortgage revenue bond issue. The one-tenth of one percent of the aggregate principal amount of the bonds is estimated
to be $16,500. In addition Bond Counsel fees of $41,000 and
Underwriting fees of $412,500 are estimated to be paid from bc
proceeds. Estimated developer cost is 7 to 10 percent of the
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EXHIBITS
1 - Resolution No. 777&b
2 - Location Map
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RESOLUTION NO. 7940
A RESOLUTION OF THE CITY OF CARLSBAD, CALIFORNIA AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF
MULTIFAMILY HOUSING REVENUE BONDS IN A PRINCIPAL
AMOUNT NOT TO EXCEED $16,500,000 FOR THE PURPOSE
OF MAKING A LOAN TO PROVIDE FUNDS TO PROVIDE THE
INTERIM AND PERMANENT FINANCING OF THE COST OF DEVELOPING A MULTIFAMILY RENTAL PROJECT, DETERMININ AND PRESCRIBING CERTAIN MATTERS RELATING THERETO, A
APPROVING AND AUTHORIZING THE EXECUTION OF RELATED
DOCUMENTS, AGREEMENTS AND ACTIONS.
(SEASCAPE VILLAGE PROJECT)
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WHEREAS, by the provisions of Chapter 7 of Part 5 of Di
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in the community; and 14
housing in order to meet a substantial housing need identif: 13
funds to finance the development of affordable multifamily 1 12
bonds for the purpose of making loans or otherwise providinc 11
rrActlg) the City is authorized to issue multifamily mortgage 10
31 of the Health and Safety Code of the State of California
WHEREAS, the City desires to make a loan (the "Developt
16 Loan") to Lincoln Seascape, A California Limited Partnershi]
17 (the "Developer") , to finance the construction of a 208-uni.
18 multifamily rental housing development (the "Project") , and
19 1 order to do so intends to sell and issue not to exceed $16,
20 of its Multifamily Housing Revenue Bonds, Series 1985B (Sea il
21 Village Project) (the "Bonds") ; and
22 WHEREAS, the City Council has now determined to make t
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WHEREAS, there have been prepared and presented to the 26
moderate income persons or families; and 25
the Project for the purpose of providing housing for low an 24
Developer Loan to provide funds to assist in'the financing
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27 Council for consideration at this meeting the following
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1 (1) The form of Indenture of Trust (the "Indenture"), inclu
2 the form of Bond;
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4 (2) The' form of Loan Agreement:
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6 (3) The form of Regulatory Agreement and Declaration of
7 11 Restrictive Covenants (the "Regulatory Agreement"):
8 ll 9 (4) The form of Bond Purchase Contract;
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(5) The forms of the Deed of Trust, Assignment of Rents an1
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Security Agreement, Second Deed of Trust, Assignment o
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Rents and'security Agreement and Third Deed of Trust,
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Security Agreement and Assignment of Rents (collective
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the "Deeds of Trust").
I.7 (6) ,The form of the Developer Agreement:
I.8 I l9 1 (7) The form of Official Statement relating to the Bonds: I 20 II
21 (8) The form on Intercreditor Agreement;
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23 WHEREAS, it appears that each of the documents and ins
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appropriate form and is an appropriate instrument to be ex€ 25
referred to above which is now before this meeting is in
26 and delivered for the purposes intended ; and
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(collectively, the "Underwriter") have expressed their intt 28
WHEREAS, Newman and Associates, Inc. and PaineWebber :
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to purchase the Bonds, and the City Council finds that the p'
arrangements for the sale of the Bonds; and 3
interest and necessity require that the City at this time ma
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4 WHEREAS, pursuant to §103(k) of the Internal Revenue Co
5 of 1954, as amended, the City Council has held a public hear
6 regarding the issuance of the Bonds and now desires to autho
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the issuance of the Bonds;
NOW, THEREFORE, the Council of the City of Carlsbad her
9 FINDS, DETERMINES, ORDERS AND RESOLVES as fo~~ows:
10 Section 1. Finding and Determination. It is hereby fc
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to assist in the financing of the Project through the issuan l2
and determined that it is necessary and desirable for the Ci
. l3 and sale of the Bonds in order to assist in the development
l4 dwelling units to be occupied by low and moderate income per
l5 in the community.
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17 Section 2. Authorization of the Bonds. For the purpc
l8 11 of raising moneys with which to make the Developer Loan in c
I' Ii to effectuate the construction and permanent financing of tl I. 2o
principal amount not to exceed $16,500,000, which the exact 21
Project, the City hereby determines to issue the Bonds, in E
22 11 principal amount to be such amount as is necessary to financ
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substantially the form set forth in the Indenture, with sucl
as are permitted or required .by the Indenture, which shall 1 26
appropriate variations, omissions, insertions and provision!
the Developer Loan for the Project. The Bonds shall be in
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28 I1 The Bonds shall be limited obligations of the City and
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1 be payable as to principal, premium, if any, and interest, a ll -
2 the obligations of the City under the Indenture shall be pai
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pledged-therefor under the Indenture. 4.
and satisfied, solely from the revenues, receipts and other
5 Section 3. Execution and Delivery of the Bonds. Th
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or imprinted thereon and attested with the manual or facsimj 9
seal of the City, or a facsimile thereof, shall be impressec 8
facsimile signature of the Mayor or Deputy Mayor, and the of 7
Bonds shall be executed on behalf of the City by the manual
10 siqnature of the City Clerk.
11 Section 4. Approval of Indenture. To provide for I
12 details of the Bonds, and to prescribe the terms and condit:
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by the officers of the City executing the same, upon consul, 18
presented to this meeting or with such changes as may be ap: 17
to execute and deliver the Indenture, in substantially the 16
serviced, the Mayor and the City Clerk are hereby authorize( 15
and held and upon which the Developer Loan is to be made an( 14.
upon which they are to be issued, secured, executed, autheni
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with the City Attorney, their execution thereof to constitu
conclusive evidence of their approval of all changes form t
form of Indenture presented to this meeting, which form of
is hereby in all respects approved and incorporated by refe
and made a part hereof.
Section 5. Approval of Loan Aqreement. To provide
the details of the making of the Developer Loan, and the du
and obligations of the Developer, the Mayor or the City Cle
are hereby authorized to execute and deliver the Loan Agree
in substantially the form presented to this meeting or witk
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changes as may be approved by the officers of the City execu -
the same, upon consultation with the City Attorney, their ex
thereof to constitute conclusive evidence of their approval
all changes from the form of Loan Agreement presented to thi
meeting, which form of Loan Agreement is hereby in all respe
approved and incorporated by reference and made a part herec
7 11 Section 6. Approval of Regulatory Agreement. To E
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for certain conditions and terms of the operation of the prc
and the duties and obligations of the Developer, the Mayor,
the City Clerk are hereby authorized to execute the Regulatc
Agreement, in substantially the form presented to this meet:
or with such changes as may be approved by the officers of i
City executing the same, upon consultation with the City At-
their execution thereof to constitute conclusive evidence 0:
their approval of all changes from the form of Regulatory AI
presented to this meeting, which form of Regulatory Agreeme!
is in al1,respects approved and incorporated by reference a:
made a part hereof. Based upon information available from 1
of San Diego, State of California and federal housing progr
it is hereby found and determined that it is not feasible t
make any of the units to be reserved for low and moderate i
individuals or families in the Project available to very lo
income households except in the manner and to the extent se
forth in the form of Regulatory Agreement.
Section 7. Approval of Bond Purchase Contract. 'I
form of Bond Purchase Contract presented to this meeting is
approved in all respects and incorporated herein by referer
and made a part hereof, and the Mayor is hereby authorized
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execute and deliver to the Underwriter a Bond Purchase Contr
with the City Attorney, such execution to constitute concluz 4
by the officer of the City executing the same, upon consulta 3
in substantially such form or with such changes as may be aF
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which form of Bond Purchase Contract is in all respects appr ' the form of Bond Purchase Contract presented to this meeting 6
evidence of the approval by such officer of all changes fron 5
and incorporated by reference and made a part hereof.
9 Section 8. Approval of the Deeds of Trust. The for
lo of the Deeds of Trust presented to this meeting are hereby z
I' in all respects and incorporated herein by reference and mac
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l2 a part hereof, and the Mayor is hereby authorized to executc
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and deliver .to the Deed of Trust in substantially such form
made a part hereof. 2o
1 is in all respects approved and incorporated by reference ar I'
Trust .presented to this meeting, which form of the Deeds of l8
of such officer of all changes from the form of the Deeds oi l7
such execution to constitute conclusive evidence of the appr l6
executing the same, upon consultation with the City Attornel l5
with such changes as may be approved by the officer of the C
21 Section 9. Approval of Developer. Agreement. The fc
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in all respects and incorporated herein by reference and ma( 23
of Developer Agreement presented to this meeting is hereby E
such execution to constitute conclusive evidence of the app: 28
City executing the same, upon consultation with the City At- 27
or with such changes as may be approved by the officer of tl 26
and deliver a Developer Agreement in substantially such for1 25
a part hereof, and the Mayor is hereby authorized to execul 24
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made a part hereof. 4
is in all respects approved and incorporated by reference anc 3
presented to this meeting, which form of Developer Agreement 2
by such officer of all changes form the form of Developer Ag] -
5 Section 10. Approval of Official Statement. The fo
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hereby in all respects approved and incorporated herein by 7
of Preliminary Official Statement presented to this meeting
reference and made a part hereof and the Underwriters are 8
Q authorized to distribute the Preliminary Official Statement
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authorized to execute and deliver a final Official Statement 11
connection with the sale of the Bonds, and the Mayor is here
in substantially such form or with such changes therein as n 12
' 13 be approved by the officer of the City executing the same, 1:
14 consultation with the City Attorney, such execution to const
15 conclusive evidence of the approval by such offi-cer of all c
16 from the form of Preliminary Official Statement presekted tc
.17 this meeting, which form of Preliminary Official Statement I
18 in all respects approved and incorporated by reference and I
19 1 .a part hereof.
20 Section 11. Approval of Intercreditor Agreement. r
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to this meeting is hereby approved, and the Mayor, and the ( 22
form of Intercreditor Agreement substantially in the form SI
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constitute conclusive evidence of the approval of such offi 25
Agreement in substantially such form or with such execution 24
clerk are hereby authorized to execute and deliver an Inter( 23
all respects approved and incorporated by reference and mad 28
to this meeting, which form of Intercreditor Agreement is i 27
of all chanyes from the form of Intercreditor Agreement pre
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1 a part hereof. -
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3 California, N.A. is hereby selected to serve as the Trustee
4 the Indenture, provided that, if necessary, the City Manager
5 is hereby authorized and directed to select a substitute trt
Section 12. Selection of Trustee. The Bank of
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to serve as Trustee under the Indenture, provided that sucl
Trustee must comply with the qualification requirements set
in Section 901 of the Indenture. The Trustee is hereby reql
,and directed to authenticate the Bonds by executing the Tru!
Certificate of Authentication and Registration appearing thc
and to deliver the Bonds, when duly executed and authentica.
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to the parties named in the Bond Purchase Agreement, in acc
with written instructions executed on behalf of the City by
Director of Building and Planning, which instructions said (
is hereby authorized and directed, for and in the name and 1
behalf of the City, to execute and deliver to the Trustee.
instructions shall provide for the delivery of the Bonds in
accordance with the Bond Purchase Agreement, upon payment o
.the purchase price thereof.
Section 13. Actions Ratified and Authorized. All
heretofore taken by the officers and agents of the City wit
respect to the sale and issuance of the Bonds are hereby ap
confirmed and ratified, and the Director of Building and P1
and the City Attorney are hereby authorized and directed, f
an in the name and on behalf of the City, to do any and all
and take any and all actions and execute and deliver any ar
,all certificates, agreements and other documents, includinc
not limited to those described in the Bond Purchase Agreemc ll -8-
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1 which they, or any of them, may deem necessary or advisable -
2 in order to consummate the lawful issuance and delivery of t
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the Act and this resolution. 4'
Bonds and the making of the Developer Loan in accordance wit
5 Section 14. Conflicting Resolutions Repealed. All
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extent of such conflict, hereby repealed. 7
resolutions or parts thereto in conflict herewith are, to th
or provision of this resolution shall be held to be invalid 9
Section 15. Severability. If any section, paragrag 8
10 or unenforceable for any reason, the invalidity or unenforcc
1111 of such section, paragraph or provision shall not affect an1
1211 remaining provisions of this resolution.
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the purpose and intent of this City Council that this resoll 14
Section 16. Resolution Constitutes Approval. It ic
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representative in accordance with S103(k) of the Internal Re 16
constitute approval of the Bonds by the applicable elected
1 effect on the date of its adoption. l9
Section 17. Effective Date. This resolution shall 18
Code of 1954, as amended. l7
20 PASSED, APPROVED AND ADOPTED on this 19th day of March :
21 by the following vote, to wit:
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AYES: Council ms Casler, Lewis, Kulchin, Chick and Pettine
NOES : IW-E
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ABSENT : None
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7fL+dedL+
ASLER, Mayor
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ud@- ALETHA L. RAUTENKRANZ, Cit
(Seal)
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CITY OF CARLSBAD
NOTICE OF PUBLIC HEARING
RE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS
NOTICE IS HEREBY GIVEN that at its regular meeting tl
be held on March 19, 1985, at 6:OO p.m. in its council chambe
at 1200 Elm Avenue, Carlsbad, California, the City Council of
the City of Carlsbad will conduct a public hearing as require1
by Section 103(k) of the Internal Revenue Code of 1954, as
amended, at which it will hear and consider information
concerning its possible issuance of multifamily housing reven bonds to finance the construction of the multifamily housing projects listed below:
1. A 320-unit multifamily rental housing project to be owned by La Costa Partners, a California general
partnership in which Rodney F. Stone and George A.
Fermanaian will be general partners, proposed to be
located on a 21.6 acre parcel of land near the
southeast corner of La Costa Avenue and Rancho Santa
Fe in the City of Carlsbad, with bonds to be issued
a maximum aggregate principal amount not to exceed
$16,000,000; and
2. A 208-unit multifamily rental housing project to be owned by Lincoln Seascape, A California Limited
parcel of land near the northwest corner of Buttercu
Lane and Batiquitos Drive in the City of Carlsbad,
with bonds to be issued in a maximum aggregate
principal amount not to exceed $16,500,000.
Partnership, proposed to be located on a 2136 acre
At least 20% of the rental units in each of the projects
financed with bond proceeds will be required to be rented to
low or moderate income individuals or families as defined in
Section 103(b)(12)(C) of the Internal Revenue Code of 1954, a
amended.
ALL PERSONS HAVING ANY INFORMATION RELEVANT TO THE
PROPOSED ISSUANCE OF BONDS TO FINANCE THE PROJECTS ARE INVITE
TO APPEAR AT THE TIME AND PLACE MENTIONED ABOVE TO PRESENT SU INFORMATION TO THE CITY COUNCIL.
Dated: February n, 1985
Publish: March 2, 1985
3728~/2062-11
'LOCATION MAP t I EXHIBIT
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1200 ELM AVENUE
CARLSBAD, CALIFORNIA 92008
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ditp of Carls'bab
TELE
(71 4)
March 22, 1985
Lincoln Property, Co.
701 "B" Street, Suite 705
San Diego, CA 92112
Enclosed for your records, please find a copy of the
following Resolution 7940 .___ , adopted by the
Carlsbad City Council on March 19, 1985
&f* Sincerely,
LEE RAUTENKRANZ ,
City Clerk
LR : adm
Enclosures ( I )
-' Carlsbad Journa,
Decreed a Legal Newspaper by the Superior Court of Son Diego County
3 138 ROOSEVELT ST. P.O. BOX 248 CARLSBAD, CA 92008 0 729-2345
Proof of Publication
STATE OF CALIFORNIA, ss,
COUNTY OF SAN DIEGO,
ALL PERSONS HAVING ANY amended,
INFORMATION RELEVANT TO THE PROPOSED ISSUANCE OF BONDS TO FINANCE THE PROJ- ECTS ARE INVITED TO APPEAR AT THE TIME AND PLACE MEN- TIONED ABOVE TO PRESENT SUCH INFORMATION TO THE CITY COUNCIL. Dated February 27,1985 ALETHA L. RAUTENKRANZ City Clerk
CJ 4120: March 2,1985 City of Carlsbad
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FRITZ R. STRADLING
C. CRAIG CARLSON
NICK E. YOCCA
WILLIAM R. RAUTH 111
K. C. SCHAAF
RICHARD C. GOODMAN JOHN J. MURPHY
THOMAS P. CLARK, JR.
BEN A. FRYDMAN
DAVID R. MCEWEN PAUL L. GALE RUDOLPH C. SHEPARD M. D. TALBOT
BRUCE C. STUART
DOUGLAS F. HIGHAM
E. KURT YEAGER
ROBERT J. WHALEN
ROBERT E. RICH
PETER J. TENNYSON
THOMAS A. PISTONE
STBADLING, YOCCA, CARLSON & RAUTH
A PROFESSIONAL CORPORATION
SCOTT E. MCCONNELL ATTORNEYS AT LAW
RENA C. STONE RANDALL J. SHERMAN
BRUCE FEUCHTER LAWRENCE D. FRENZEL
MARK J. HUEQSCH
PEG1 A. GROUNDWATER
JOHN J. SWIGART, JR.
DONALD J. HAMMAN TELEPHONE (714) 640-7035
TONY L. LOWE
NEILA R. BERNSTEIN
CHRISTOPHER J. KlLPATRlCK
NANCY RADER WHITEHEAD LEWIS G. FELDMAN SYLVIA D. LAUTSCH CLARK H. LIBENSON ERNEST W. KLATTE 111 LAWRENCE 8. COHN
ANN D. CATRON
660 NEWPORT CENTER DRIVE, SUITE 1600
POST OFFICE BOX 7680
NEWPORT BEACH, CALIFORNIA 92660-6401
February 26, 1985
JOHN E. E
DARYL
OF,
TEL
(714) '
Mr. Martin Orenyak 1 D
Director
Carlsbad Redevelopment Agency
1200 Elm Avenue -
Carlsbad; California 92008
- - FEB 27 2985
P!-=.t OF CARLSBAD
Re: TEFRA Notice euifding Department
Dear Marty:
Enclosed is a form of the Notice of Public Hearing to
be published in connection with the TEFRA hearing that the Cit
Council will be conducting for the La Costa Partners (So-Cal)
and Lincoln Seascape projects.
As we discussed, Section 103(k) of the Internal
Revenue Code of 1954, as amended, requires that this public
notice be published at least 14 days prior to the hearing in a
newspaper of general circulation within the City. Thus, this
notice should be published no later than March 4 for the
hearing to be held on March 19.
By March 12, 1985, I will submit to you and to Vince Biondo the forms of the resolutions to be adopted by the City Council authorizing the issuance of bonds for each project, 2
that time, the documents to be approved by the City in connection with the issuance of the bonds will also be submitted in substantially final form.
Provided that the Council does authorize the issuance of the bonds for the projects on March 19, shortly thereafter,
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1 Mr. Martin Orenyak
February 26, 1985 Page Two
the underwriters will sell the bonds and schedule the closing
of the issues.
We will need an Affidavit of Publication from the
newspaper verifying publication no later than March 4, and I
would appreciate it if you could ask someone on your staff to clip a copy of the notice as published and send it to me for n files.
Thank you for your help. If you have any questions, please call.
Very truly yours,
STRADLING, YOCCA, CARLSON & RAUTE wr
Robert J. Whalen
RJW: pm Enclosure