HomeMy WebLinkAbout2002-08-06; City Council; 16846; Affordable Apartments Within Villages Of La CostaCITY OF CARLSBAD - AGENDA BILL J
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i~# 16,846 DEPT. HD. m: DECLARATION OF INTENT TO ISSUE $20 MILLION IN
ITG, 8-6-02
TAX EXEMPT PRIVATE ACTIVITY BONDS FOR THE
CONSTRUCTION OF ONE HUNDRED EIGHTY (180)
AFFORDABLE APARTMENT UNITS WITHIN THE VILLAGES CITY ATTY. (ZiT
)EPT. HlRED OF LA COSTA MASTER PLAN CITY MGR. %
RECOMMENDED ACTION:
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 $20 million to finance the
construction of one hundred eighty (180) affordable apartment units within the Villages of La Costa
Master Plan; and 2) if acceptable, ADOPT Council Resolution No. 2002-237 , APPROVING
the Council’s declaration of intent to issue the subject tax exempt bonds.
ITEM EXPLANATION:
Backqround
The Villages of La Costa affordable apartment project is a 180-unit development located at the northwest
corner of the future intersection of Alga Road and Estrella de Mar Road. The project is being developed
by Dove Family Housing Associates, L.P, a partnership comprised of Community Housing of North
County and Mercy Housing (Developer). The development will satisfy the affordable housing requirement
for the first phase of development in the Villages of La Costa Master Plan. The project includes one, two,
three and four bedroom units. Of the 180 units, 53 units (30% of the project) will be affordable to
affordable to households earning 60% of AMI, and there will be two manager units.
households earning 50% of the San Diego County Area Median Income (AMI), 125 units (70%) will be
On June 18, 2002, the City Council approved the Site Development Plan for the development of the
affordable apartments. On July 9, 2002, the City Council took several actions related to the financing of
the project. First, the City Council approved a construction loan in the amount of $2,070,000, or $1 1,500
per unit, from the Housing Trust Fund. The City Council also adopted a resolution expressing the City’s
financing the subject project. In addition, the City Council authorized staff to apply to the California Debt
intent to issue tax-exempt multi-family revenue bonds in an amount not to exceed $20 million to assist in
Limit Allocation Committee (CDLAC) to receive an allocation for the issuance of the tax-exempt bonds.
Tax Exempt Bond Allocation
City to hold a public hearing to accept comments on the City’s intent to issue the bonds. At this time, staff
Prior to any action to authorize issuance of the tax-exempt bonds, the Internal Revenue Code requires the
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 yet obligate the City to actually
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 Reso/ufion”authorizing the actual sale and issuance of the bonds. Action
to authorize issuance of the bonds will most likely be requested in December, 2002.
ENVIRONMENTAL REVIEW
A Negative Declaration was approved by the City Council for the Site Development Plan (SDP 01-17) on
June 18, 2002. No further environmental review is required as part of the approval of the subject bond
issuance.
AB# 16.846
Page 2
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 $20 million to finance the construction of one hundred eighty (180) affordable
apartment units 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. Once project construction is complete, the
bonds will be paid down to approximately $10.6 million, and repaid over a 30-year period. To date, the
applicant has made a deposit of $20,000 to cover staff costs, and the costs of the City’s financial advisor.
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. 2002-237 approving the City’s intent to issue tax exempt
private activity bonds in an amount not to exceed $20 million.
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CITY COUNCIL RESOLUTION NO. 2002-237
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
EXEMPT OBLIGATIONS IN AN AMOUNT NOT TO EXCEED $20
MILLION TO FINANCE THE CONSTRUCTION OF ONE HUNDRED
EIGHTY (180) AFFORDABLE APARTMENT UNITS WITHIN THE
VILLAGES OF LA COSTA MASTER PLAN AND DIRECTING
CERTAIN ACTIONS
APPLICANT: DOVE FAMILY HOUSING ASSOCIATES, L.P.
CASE NO: SDP 01-17
CARLSBAD, CALIFORNIA, APPROVING THE ISSUANCE OF TAX-
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 Dove Family
Housing Associates ("Dove") or a limited partnership or limited liability company to be
established by Dove (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 near the Northeast comer of Alga Road and El Camino Real in the City of Carlsbad,
California (the "Project"); and
WHEREAS, the City is authorized by Chapter 7 of Part 5 of Division 31 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"
under 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 City 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
has been published, to the effect that a public hearing would be held by this City Council on the
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CC Resolution No. 2002-237
Page 2
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; and
WHEREAS, the City shall not have any liability for the repayment of the Obligations or
any responsibility for the Project;
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 the issuance and delivery of the Obligations for the
purpose of paying the costs of financing the acquisition, construction and
development of the Project, subject to the review and approval of the documents
to be executed and delivered in connection with the Obligations.
3. This resolution shall take effect upon its adoption.
Ill
Ill
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 6th day of August , 2002,
by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, and Hall
NOES: None
ABSENT: Council Member
ABSTAIN: None
CC Resolution No. 2002-237
Page 3
PROOF OF PUBLICATION
(2010 & 2011 C.C.P.)
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
North County Times Proof of Publication of
Formerly 'mown 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 County of San Diego,
that the notice of which the annexed is a printed
CITY OF CARLSBAD
NOTICE
PUBLIC HEARING
copy (set in type not smaller than nonpariel), has
been published in each regular and entire issue Of bad (the "City"), at its re ular meenn on August 6, 2002, WIII hold a NOTICE IS HEREBY GIVEN that *e City Council of the City,of Carls-
said newspaper and not in any supplement thereofPUbliC heann and cons1 er a prOvd 0 the issuance by the Cit of tax- exempt multl ami1 revenue gonds in an estimated amount o?Twent on the following dates, to-wit: Million Dollars (S&,OOO,O00) (the "Bonds"), *e proceeds of which wifi be used to assist in the financin of the acquwbon, construction and de-
1Fah near the Northeast corner of Alga Roacfand El Camino Real m the vel0 ment of a 180-untt multt&mily housm residential facility to be
s .% +
. .- City of Carlsbad, Caltfornla. The owner of the Project is ex ected to be the Dove Family Housing
tablished bv Dove (the "Owner"). Associates rDove") or a iimitdpartnership OT limited liability to be es-
All those interested in matters ;elated to the issuance of the Bonds are invited to attend and be he&d at the meeting which Will commence at or afw 600 p.m. and will be held at Cit Council Chambers, 1200 Carlsbad I certify (or declare) under penalty of perjury that Vdla e Drive, Carlsbad, California $2008. If you have any questions
the foregoing is true and correct. regar%m the ubllc heanng, please contact Mr. Craig Ruiz, City of ,Carlsba$(76Of434-28l'7.
PUBLISH: Monday, July 15,2002
Dated at SAN MARCOS, California ~ ~ ~ ~i.
This 17TH day
Of JULY, 2002
, Signature
NORTH COUNTY TIMES
Legal Advertising
This space is for the County Clerk's Filing Stamp
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad (the
“City”), at its regular meeting on August 6,2002, will hold a public hearing and consider
approval of the issuance by the City of tax-exempt multifamily revenue bonds in an
estimated amount of Twenty Million Dollars ($20,000,000) (the “Bonds”), the proceeds
of which will be used to assist in the financing of the acquisition, construction and
development of a 180-unit multifamily housing residential facility to be located near the
Northeast comer of Alga Road and El Camino Real in the City of Carlsbad, California.
The owner of the Project is expected to be the Dove Family Housing Associates
(“Dove”) or a limited partnership or limited liability to be established by Dove (the
“Owner”).
All those interested in matters related to the issuance of the Bonds are invited to
attend and be heard at the meeting which will commence at or after 6:OO p.m. and will be
held at City Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California
92008. If you have any questions regarding the public hearing, please contact Mr. Craig
Ruiz, City of Carlsbad, (760) 434-2817.
PUBLISH: Monday, July 15,2002