HomeMy WebLinkAbout2005-12-20; City Council; 18392; Hunters Pointe Private Activity/Construction BondsAB# 18,392 TITLE: DECLARATION OF INTENT TO ISSUE UP TO $30
THE CONSTRUCTION OF ONE HUNDRED SIXTY EIGHT (168)
MILLION IN TAX EXEMPT PRIVATE ACTIVITY BONDS FOR
AFFORDABLE APARTMENT UNITS (HUNTERS POINTE)
MTG. 12/20/05
DEPT. HlRED WITHIN THE VILLAGES OF LA COSTA MASTER PLAN
RECOMMENDED ACTION:
DEPT. HD.m -&
CITY
That the City Council take the following actions: 1) ACCEPT public comment on the Council’s declaration
of intent to issue tax-exempt private activity bonds in an amount not to exceed $30 million to finance the
construction of one hundred sixty-eight (1 68) affordable apartment units (Hunters Pointe) within the
Villages of La Costa Master Plan; and 2) if acceptable, ADOPT Council Resolution No. 2005380
APPROVING the Council’s declaration of intent to issue the subject tax exempt bonds.
ITEM EXPLANATION:
Bac kq rou nd
The Hunters Pointe Apartments represents a 168-unit development located on the east side of realigned
Rancho Santa Fe Road. It lies south of San Elijo Road (old Questhaven Road) and west of the City limit for
the City of San Marcos. It is located on a 15.84 acre parcel that is currently referred to as La Costa Oaks
Village 3.6 of the Villages of La Costa Master Plan. The project is being developed by Chelsea Investment
Corporation of Solana Beach and will satisfy the affordable housing requirement for Phase II of the Villages
of La Costa Master Plan. The project includes one, two and three bedroom units. Of the 168 units, 59 units
will be affordable to households earning 35% of the Area Median Income (AMI), 31 units at 50% of AMI
and 76 units at 55% of the AMI. There will be two (2) manager units.
On April 5, 2005, the City Council approved the Site Development Plan for the development of the
affordable apartments. On August 16,2005, the City Council took action to approve a loan in the amount of
$1,932,000 to provide financial assistance for the project. The developer subsequently requested that the
City agree to issue tax-exempt multi-family revenue bonds in an amount not to exceed $30 million to assist
in financing the subject project and authorize staff to apply to the California Debt Limit Allocation
Committee (CDLAC) to receive an allocation for the issuance of the tax-exempt bonds.
Tax ExemDt Bond Allocation
Prior to any action to authorize issuance of the tax-exempt bonds, the Internal Revenue Code requires the
City to hold a public hearing to accept comments on the City’s intent to issue the bonds. At this time, staff
and the Developer are requesting that the Council hold the public hearing to accept comments on the
City’s intent to issue the tax exempt bonds for the subject project. Approval of the attached resolution sets
forth the City’s intent to issue bonds. The resolution, however, does not obligate the City to issue bonds for
the project. Once the City has been granted a bond allocation from CDLAC, the Council will be required to
adopt a “Bond Resolution” authorizing the actual sale and issuance of the bonds.
ENVIRONMENTAL REVIEW
The Hunters Pointe affordable apartment project was reviewed pursuant to the California Environmental
Quality Act (CEQA). Staff prepared an initial study for the project and concluded that no potentially
significant impacts would result with the implementation of the project that were not previously examined
and evaluated in the Final Program Environmental Impact Report for the Villages of La Costa Master Plan
(EIR 98-07), dated October 23, 2001. The City Council certified the EIR on October 23, 2001. At that time
CEQA Findings of Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and
Reporting Program were approved. All mitigation measures contained in the adopted Mitigation Monitoring
and Reporting Program that were applicable to the subject project were completed, incorporated into the
project design or were required as conditions of approval for the project.
The proposed project will have no effects beyond those analyzed in the program EIR, as they are a part of
the program analyzed earlier. This project is within the scope of Final Program EIR 98-07 and no further
CEQA compliance is required.
FISCAL IMPACT
The Council is being asked to take action to declare the City’s intent to issue tax-exempt bonds in an
amount not to exceed $30 million to finance the construction of one hundred sixty-eight (168) affordable
apartment units (Hunters Pointe) within the Villages of La Costa Master Plan. The bond issue will be
structured to pay down the bonds as equity funds are paid in to the development. The bonds will be repaid
over a 30-year period. The developer has submitted an initial deposit of $20,000 to cover initial staff and
consultant costs for said bond issuance. If the City Council takes action at a later date to authorize
issuance of the bonds, the costs associated with issuance not covered by the deposit (staff costs, bond
counsel, underwriting, financial advisor, etc.) will be fully recovered from the proceeds of the bond
issuance. It is also important to note that the entire legal obligation to repay the bonds rests with the
Developer. Therefore, there will be no fiscal impact to the City resulting from the issuance of the bonds.
EXHIBITS
1. City Council Resolution No. 2005-380 approving the City’s intent to issue tax exempt private
activity bonds in an amount not to exceed $30 million.
Contact: Debbie Fountain, Housing and Redevelopment Director, (760) 434-281 5, dfoun@ci.carlsbad.ca.us
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CITY COUNCIL RESOLUTION NO. 2005-380
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EXEMPT OBLIGATIONS IN AN AMOUNT NOT TO EXCEED $30
MILLION TO FINANCE THE CONSTRUCTION OF ONE HUNDRED
VILLAGES OF LA COSTA AND DIRECTING CERTAIN ACTIONS
APPLICANT: CHELSEA INVESTMENT CORPORATION
CARLSBAD, CALIFORNIA, APPROVING THE ISSUANCE OF TAX-
SIXTY-EIGHT (1 68) AFFORDABLE APARTMENT UNITS WITHIN
CASE NO: SDP 04-13
WHEREAS, the City of Carlsbad (the "City") intends to issue tax-exempt obligations (the
"Obligations") for the purpose, among other things, of making a loan to Chelsea Investment
Corporation ("Chelsea") or a limited partnership or limited liability company to be established by
Chelsea (the "Developer"), the proceeds of which shall be used by the Developer to finance the
acquisition, construction and development of a multifamily housing rental facility to be located
on the east side of the realigned Rancho Santa Fe Road, south of San Elijo Road, and west of the
City limit for the City of San Marcos in the City of Carlsbad, California (the "Project"); and
WHEREAS, the City is authorized by Chapter 7 of Part 5 of Division 3 1 of the Health
and Safety Code of the State of California (the "Law") to issue and sell revenue bonds for the
purpose of financing the acquisition, construction and development of multifamily rental housing
facilities to be occupied in part by low and very low income tenants; and
WHEREAS, the Obligations will be considered to be "qualified exempt facility bonds''
inder Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and
Section 147(f) of the Code requires that the "applicable elected representative" with respect to the
Clity hold a public hearing on and approve the issuance of the Obligations; and
WHEREAS, this City Council is the elected legislative body of the City; and
WHEREAS, a notice of public hearing in a newspaper of general circulation in the City
ias been published, to the effect that a public hearing would be held by this City Council on the
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date hereof regarding the issuance of the Obligations by the City and the nature and location of
the Project; and
WHEREAS, this City Council held said public hearing, at which time an opportunity was
provided to present arguments both for and against the issuance of such Bonds and the nature and
location of the Project; and
WHEREAS, it is in the public interest and for the public benefit that the City approve the
issuance and delivery of the Obligations for the purpose of financing the acquisition, construction
and development of the Project;
WHEREAS, the City shall not have any liability for the repayment of the Obligations or
any responsibility for the Project; and
WHEREAS, the City reasonably expects to use a portion of the proceeds of such
Obligations to reimburse the City and/or the Developer for certain expenditures eligible for
reimbursement (the “Reimbursement Expenditures”) made prior to the date such Obligations are
issued.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City
of Carlsbad, California, as follows:
1. The City hereby finds and determines that the foregoing recitals are true and correct.
2. The City hereby approves its intent to issue and deliver the said Obligations for the
purpose of paying the costs of financing the acquisition, construction and development of
said Project, subject to the final review and approval of the documents to be executed and
delivered in connection with the Obligations. It is intended that this Resolution shall
constitute a declaration of “official intent’’ within the meaning of Section 1.150-2 of the
Treasury Regulations promulgated under the Code for purposes of providing for and
authorizing the reimbursement of Reimbursement Expenditures from the proceeds of the
Obligations.
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3. The City staff is hereby authorized and directed to submit, or cause to be submitted, an
application with the California Debt Allocation Committee (“CDLAC”) for allocation by
CDLAC to the City of a portion of the “State ceiling” for private activity bonds pursuant
to Section 146 of the Code for use in connection with the issuance of the Bonds.
4. The adoption of this Resolution shall not bind the City to issue the Obligations until
and unless all other necessary actions and approvals are taken or received in accordance
with all applicable laws. Additionally, the adoption of this Resolution does not and shall
not limit in any manner whatever the full discretion of either the City to deny any fbrther
permit or approval that may be necessary for ultimate completion of the proposed Project.
5. This resolution shall take effect upon its adoption.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
day of December, 2005, by Council of the City of Carlsbad, California, held on the
the following vote, to wit:
20th
AYES: Council Members Lewis, Hall, Packard, Sigafoose
NOES: None
ABSENT: Council Member Kulchin
ABSTAIN: None
W "I v\/ CLAUDE AYLEWIS , Mayor
ATTEST:
LORRAINE M. WOOD, City Clerk
(SEAL)
November 23,2005
TO: CITY CLERK'S OFFICE
FROM: HOUSING AND REDEVELOPMENT DEPARTA
RE: PUBLIC HEARING REQUEST
ENT
Attached are the materials necessary for you to notice the Public Hearinq to
consider approval of the issuance bv the City of revenue bonds in a principal
amount not to exceed $30 million for the Hunters Pointe affordable housincl
proiect. The notice must provide for a newspaper notice at least fourteen days prior to
the scheduled public hearing. Please notice the item for the City Council meeting on
December 20,2005.
Thank you.
Housing and Redevelopment Director DATE
CITY OF CARLSBAD
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad, Wornia
(the "City") at its regular meeting on December 20, 2005, will hold a public hearing and
consider approval of the issuance by the City of revenue bonds in a principal amount not to
exceed Thirty Million Dollars ($3O,OOO,OOO) for the purpose of financing the acquisition,
construction and development of a multifamily rental housing development to be located in the
City.
The project to be financed, currently known as Hunters Pointe Apartments, will consist
of 168 rental housing units affordable to lower income households to be located on an
approximately 15.84 acre site located on the east side of realigned Rancho Santa Fe Road, south
of San Elijo Road (old Quethaven Road) and west of the City's eastern border with the City of
San Marcos. The initial owner of the project will be Chelsea Investment Corporation
("Chelsea") or a limited liability partnership or limited liability company to be established by
Chelsea (the "Developer").
This notice is intended to comply with the public notice requirements of Section 147(f)
of the Internal Revenue Code of 1986, as amended.
All those interested in matters related to either the issuance of the revenue bonds or the
location or operation of the project are invited to attend and be heard at the meeting, which will
commence at 600 p.m. or as soon thereafter as the matter may be heard, and will be held in the
City Council Chambers located at 1200 Carlsbad Village Drive, Carlsbad, California.
If you have any questions regarding the proposed development, please call Debbie
Fountain, Housing and Redevelopment Director of the City of Carlsbad at (760) 434-2935,
dfoun@ci.carlsbad.ca.us.
Publish: December 6,2005
Carlsbad City Council
01009.25: JsoSl
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
This space is for the County Clerk's Filing Stamp
STATE OF CALIFORNIA
County of San Diego
I am a citizen of the United States and a resident of
the County aforesaid: I am over the age of eighteen
years and not a party to or interested in the above-
entitled matter. I am the principal clerk of the
printer of
Proof of Publication of
North County Times
Formerly -known as the Blade-Citizen and The
Times-Advocate and which newspapers have been
adjudicated newspapers of general circulation by
the Superior Court of the County of San Diego,
State of California, for the City of Oceanside and
the City of Escondido, Court Decree number
171349, for the County of San Diego, that the
notice of which the annexed is a printed copy (set
in type not smaller than nonpariel), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to-wit:
December 06'h, 2005
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at SAN MARCOS California
This 06"' Day of December, 2005
I Thisnotice is intended to com ly with the public notice requirements of Section 147(ffof the Internal Revenue I Code of 1986, as amended. I All those interested in matters related to either the Is- suance of the revenue bonds or the location of opera- I tion of the oroiect are invited to attend and be heard at I the rneetina. which will commence at 6 00 D rn or as1 I soon therelafter as the maner may be heard, and will be held in the Ci Council Chambers located at 1200 I Carlsbad Village%rive, Carlsbad, California. I If ou have any questions regarding the proposed de- vero ment, please call Debbie Fountain, Housing and Re&velopment Director of the City of Carlsbad at I (760) 434-2935, dfoun B ci.catlsbad.ca.us.
I
Signature
Jane Allshouse
NORTH COUNTY TIMES
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