HomeMy WebLinkAboutItem No. 20 Issuance fo Tax Exempt Bonds for Mission Trails AptsText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: RES 2014-029
Agenda Date: 6/27/2017 Status: Public HearingVersion: 1
File Type: ResolutionIn Control: City Council
Agenda Number: 20)
Page 1 City of Lake Elsinore Printed on 6/22/2017
REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by: Jason Simpson, Assistant City Manager
Date:June 27, 2017
Subject:Consideration of Public Hearing on Issuance of Tax Exempt Bonds for the
Mission Trails Apartments and Resolution Approving the Issuance of
Bonds
Recommendation
Conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing in consideration of the
issuance of tax exempt bond financing by the California Statewide Communities Development
Authority for the benefit of Willow Partners, to provide financing for the acquisition, construction,
and equipping of an 81-unit multifamily rental housing project generally known as Mission Trail
Apartments.
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING THE ISSUANCE OF BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY NOT TO EXCEED $20,000,000, FOR THE
BENEFIT OF C&C DEVELOPMENT, LLC TO PROVIDE FINANCING FOR THE ACQUISITION,
CONSTRUCTION AND EQUIPPING OF AN 81-UNIT MULTIFAMILY RENTAL HOUSING
PROJECT GENERALLY KNOWN AS MISSION TRAILS APARTMENTS.
Background
C&C Development Co., LLC (the “Borrower”) has requested that the California Statewide
Communities Development Authority (“CSCDA”) serve as the municipal issuer of tax-exempt
multi-family housing revenue bonds in an aggregate principal amount not to exceed
$20,000,000 (the “Bonds”). The proceeds of the Bonds will be used for the purpose of making a
loan to the Borrower, to enable the Borrower to finance the acquisition, construction and
equipping of an 81-unit affordable multifamily housing rental project located on the west side of
Mission Trail, South of Hidden Trail (APN: 365-030-001), Lake Elsinore, California (the
“Project”), which will be owned and operated by the Borrower.
TEFRA HEARING – MISSION TRAIL APARTMENTS
June 27, 2017
Page 2
Page 2 of 2
Discussion
In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Lake
Elsinore (“City”) must conduct a public hearing (the “TEFRA Hearing”) providing the members of
the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the
financing of the Project. Adoption of the resolution is solely for the purposes of satisfying the
requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA), the Internal Revenue
Code and the California Government Code Section 6500 (and following). Prior to such TEFRA
Hearing, reasonable notice must be provided to the members of the community. Following the
close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit
hosting the Project must provide its approval of the issuance of the Bonds for the financing of
the Project. A public notice was published on May 30, 2017 (Exhibit A).
CSCDA is a joint powers authority sponsored by the League of California Cities ("League") and
the California State Association of Counties ("CSAC"). CSCDA was created by the League and
CSAC in 1988 to enable local government and eligible private entities access to low-cost, tax-
exempt financing for projects that provide a tangible public benefit, contribute to social and
economic growth and improve the overall quality of life in local communities throughout
California. CSCDA is comprised of more than 530 members, including the City of Lake
Elsinore. CSCDA has issued more than $60 billion through 1,400 plus financings since 1988.
Fiscal Impact
There is no fiscal impact to the City. The Bonds will be issued as limited obligations of CSCDA,
payable solely from revenues and receipts derived from a loan to be made by CSCDA to the
Borrower with the Bond proceeds. The City bears no liability with respect to the issuance of the
Bonds. Further, the City is not a party to any of the financing documents related to the Bond
issuance and is not named in any of the disclosure documents describing the Bonds or the
proposed financing.
Exhibits
A - Reso. Approving Issuance of Bonds
B - Public Hearing Request
C - Bond Application
D – Proof of Publication for Public Hearing
RESOLUTION NO. 2017- _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE
BONDS FOR THE MISSION TRAIL APARTMENTS
Whereas,the California Statewide Communities Development Authority (Authority) is authorized
pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an
Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (Agreement),
among certain local agencies throughout the State of California, including the City of Lake Elsinore
(City), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California
Health and Safety Code for the purpose of financing multifamily rental housing projects; and,
Whereas,Lake Elsinore CCR, LLC or a partnership created by C&C Development Co., LLC
(Developer), consisting at least of the Developer or a related person to the Developer and one or
more limited partners, has requested that the Authority adopt a plan of financing providing for the
issuance of multifamily housing revenue bonds (Bonds) in one or more series issued from time to
time, including bonds issued to refund such revenue bonds in one or more series from time to time,
and at no time to exceed $20,000,000 in outstanding aggregate principal amount, to finance the
acquisition, construction and development of a 81-unit multifamily rental housing project located
on the West side of Mission Trail, South of Hidden Trail (APN: 365-030-001), Lake Elsinore,
California, generally known as Mission Trail Apartments (Project) and operated by Advanced
Property Services; and,
Whereas,the Bonds or a portion thereof will be “private activity bonds” for purposes of the Internal
Revenue Code of 1986 (Code); and,
Whereas,pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are
required to be approved by the “applicable elected representative” of the governmental units on
whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction
over the entire area in which any facility financed by such bonds is to be located, after a public hearing
held following reasonable public notice; and,
Whereas,the members of this City Council (Council) are the applicable elected representatives of
the City of Lake Elsinore (City); and,
Whereas,there has been published, at least 14 days prior to the date hereof, in a newspaper of
general circulation within the City, a notice that a public hearing regarding the Bonds would be held
on a date specified in such notice; and,
Whereas,such public hearing was conducted on such date, at which time an opportunity was
provided to interested parties to present arguments both for and against the issuance of the Bonds;
and,
Whereas,the Authority is also requesting that the Council approve the issuance of any refunding
bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed
the Project (the “Refunding Bonds”), but only in such cases where federal tax laws would not
require additional consideration or approval by the City Council; and,
Whereas,it is intended that this resolution shall constitute the approval of the issuance of the Bonds
required by Section 147(f) of the Code and Section 9 of the Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE AS FOLLOWS:
Section 1.The above recitals are true and correct.
Section 2.The City Council hereby approves the issuance of the Bonds and the Refunding
Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitutes
approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the
Agreement.
Section 3.The officers of the City are hereby authorized and directed, jointly and severally, to
do any and all things and to execute and deliver any and all documents that they deem necessary
or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution
and the financing approved hereby.
Section 4.This resolution shall take effect immediately upon its passage.
Passed and Adopted on this 27th day of June, 2017.
Robert E. Magee, Mayor
Attest:
___________________________
Susan M. Domen, MMC
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify
that Resolution No. 2017- _________ was adopted by the City Council of the City of Lake
Elsinore, California, at the Regular meeting of June 27, 2017, and that the same was adopted
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Susan M. Domen, MMC
City Clerk
1700 North Broadway, Suite 405 • Walnut Creek, California 94596
Phone (800) 531-7476 • Fax (925) 391-3590 • www.cscda.org
May 11, 2017
VIA EMAIL
Michael Busch
CEO
Urban Futures, Inc.
17821 17th Street, Suite 245
Tustin, CA 9 2780
Re: Public Hearing Request for Mission Trail Apartments
Dear Michael:
C & C Development (the “Applicant”) has submitted to the California Statewide Communities
Development Authority (the “Authority”) an application for the financing of the Mission Trail Apartments (the
“Project”) through the issuance of tax-exempt obligations in an aggregate principal amount not to exceed $20
million. The purpose of this letter is to request the assistance of the City of Lake Elsinore (the “City”) in
conducting a public hearing with respect to the proposed financing. We understand that the City will conduct the
public hearing on June 13, 2017.
The Authority is a joint exercise of powers authority comprised of over 500 California cities, counties and
special districts, including the County. The Authority, pursuant to its Amended and Restated Joint Exercise of
Powers Agreement is authorized to assist in the financing of facilities for multifamily housing projects. In order to
initiate such a financing, the member participant of the Authority in which the proposed facilities will be located
must (i) conduct a public hearing and (ii) approve the Authority’s issuance of indebtedness. Therefore, although the
Authority will be the issuer of the tax-exempt revenue obligations for the Applicant, the financing cannot proceed
without the County’s approval of the financings.
You will be receiving shortly a letter from Orrick, Herrington & Sutcliffe, serving as bond counsel,
describing the public hearing process and the requirements under state and federal laws, including the Tax Equity
and Fiscal Responsibility Act (TEFRA). This letter will include for your review the form of Notice of Public
Hearing and the form of the City Council Resolution evidencing that the City has approved the financing. Thank
you again for your assistance. Please let me know if you require any additional information concerning the
scheduling of the public hearing or if I can be of any other assistance.
Sincerely,
James Hamill
Managing Director
Submission Date
Affordable Housing Bond Application
Applicant Information
Name of Developer:
Primary Contact
Full Name:
Title:
Address:
Phone Number:
E-mail:
Name of Borrowing Entity:
Type of Entity:
Will you be applying for State
Volume Cap?
Date Organized:
Name of Property
Management Firm
Number of Multi-Family
Housing Projects Completed
in the Last 10 Years:
Number of Low Income Multi-
Family Housing Projects
Completed in the Last 10
Years:
Primary Billing Contact
Affordable Housing Bond Application
2016-10-28 13:25:56
C&C Development Co., LLC
Jahi Akobundu
Director of Finance
14211 Yorba Street, Suite 200
Tustin
CA
92780
(714) 288-7600x45
jakobundu@c-cdev.com
TBD
Partnership
Yes
01-13-2017
Advanced Property Services
15
15
Organization:
Title:
Full Name:
Address:
Phone Number:
E-mail:
Project Information
Project Name:
Facility #1
Facility Name:
Facility Bond Amount:
Facility Address:
County:
Is facility located in an
unincorporated part of the
County?
Lot Size (Acres):
Number of Units:
Market:
Restricted:
Total:
Amenities:
C&C Development Co. LLC
Principal
Todd Cottle
14211 Yorba Street, Suite 200
Tustin
CA
92780
(714) 288-7600x25
todd@c-cdev.com
Mission Trail Apartments
Mission Trail Apartments
15870000
One Mission Trail, South of Hidden Trail
APN 365-030-001
Lake Elsinore
CA
92595
Riverside
No
5.37
0
81
81
Open space for children, seating area/BBQ pavillion, community center. Amenities
within 1 mile include bus stop, bank, grocery & retail, department stores, pharmacy,
medical center.
Type of Construction (i.e.
Wood Frame, 2 Story, 10
Buildings):
Type of Housing:
Facility Use:
Is this an Assisted Living
Facility?
Has the City or County in
which the facility is located
been contacted? If so, please
provide appropriate contact
information below.
Name of City/County Agency:
City/County Contact:
Phone Number:
E-mail:
Public Benefit Information:
Percentage of Units
Designated for Low Income
Residents:
Percentage of Area Median
Income (AMI) for Low Income
Housing Units:
Total Number of Management
Units:
Unit Composition and Rents:
Note: Restricted Rent must be at least 10% lower than Market Rent and
must be equal to or lower than the HUD rent limit.
Government Information - Facility is located in:
Congressional District #:
Wood frame, 2 story and town-home style, four buildings
New Construction
Family
No
Yes
City of Lake Elsinore
Jason Simpson
(951) 674-3124x36
jsimpson@lake-elsinore.org
100
50
1
Bedrooms %
AMI
No. Restricted
Units
Restricted
Rent
Market
Rent
Expected
Savings
Studio
42
State Senate District #:
State Assembly District #:
Would you like to include an
additional facility?
Facility #2
Number of Units:
Public Benefit Information:
Note: Restricted Rent must be at least 10% lower than Market Rent and
must be equal to or lower than the HUD rent limit.
Government Information - Facility is located in:
Facility #3
Number of Units:
Public Benefit Information:
Note: Restricted Rent must be at least 10% lower than Market Rent and
must be equal to or lower than the HUD rent limit.
Government Information - Facility is located in:
28
67
No
Facility #4
Number of Units:
Public Benefit Information:
Note: Restricted Rent must be at least 10% lower than Market Rent and
must be equal to or lower than the HUD rent limit.
Government Information - Facility is located in:
For projects with more than 4 facilities, please include additional
facility information with your application attachments
Financing Information
Tax Exempt Bonds:
Total Principal Amount:
Estimated Closing Date:
Bond Maturity:
Bond Denominations:
Estimated Interest Rate:
Interest Rate Mode:
Type of Offering:
Type of Financing:
Is this a transfer of property
to a new owner?
1587000
1587000
02-14-2018
2055
5000
5
Fixed
Private Placement
New Construction
No
Construction Financing
Credit Enhancement:
Name of Construction
Financing Credit
Enhancement Provider or
Private Placement Purchaser:
Permanent Financing Credit
Enhancement:
Name of Permanent
Financing Credit
Enhancement Provider or
Private Placement Purchaser:
Expected Credit Rating:
Projected State Allocation
Pool:
Will the Project use Tax
credits as a source of
funding?
Finance Team Information
Bond Counsel
Firm Name:
Primary Contact:
Title:
Address:
Phone Number:
E-mail:
Underwriter/Bank/Bond Purchaser
Firm Name:
Primary Contact:
Other
Bank of America
Other
California Community Reinvestment Corporation (CCRC)
Unrated
General
Yes
Orrick, Herrington & Sutcliffe
Philip Morgan
Attorney
405 Howard Street
San Francisco
CA
94105
(415) 773-5524
pmorgan@orrick.com
Bank of America
Maria Joyce Maynard
Title:
Address:
Phone Number:
E-mail:
Financial Advisor
Trustee
Application Attachments
Upon submission of your application, please send a nonrefundable $5,000 issuance fee deposit* made payable to CSCDA to
1700 North Broadway, Suite 405, Walnut Creek, CA 94596.
*Applied to issuance fee collected upon bond issuance.
After submission of your application, please forward the following Application Attachments via email to CSCDA Staff or you
may upload the attachment files below.
Attachment A: Applicant Background/Resume
Attachment B: Description of Project and Each Facility to be Financed or Refinanced
Attachment C: Project Photographs/Drawings (If Available)
SVP, Community Development
333 S. Hope, 20th Floor
Los Angeles
CA
90071
(213) 621-7590
maria.joyce@baml.com
1825 Chicago Ave, Suite 100
Riverside, CA 92507
951-684-1200
951-368-9018 FAX
ORRICK, HERRINGTON, & SUTCLIFFE LLP
405 HOWARD ST
SAN FRANCISCO, CA 94105
05/30/2017
I am a citizen of the United States. I am over the age of eighteen years
and not a party to or interested in the above entitled matter. I am an
authorized representative of THE PRESS-ENTERPRISE, a newspaper in
general circulation, printed and published daily in the County of Riverside,
and which newspaper has been adjudicated a newspaper of general
circulation by the Superior Court of the County of Riverside, State of
California, under date of April 25, 1952, Case Number 54446, under date
of March 29, 1957, Case Number 65673, under date of August 25, 1995,
Case Number 267864, and under date of September 16, 2013, Case
Number RIC 1309013; that the notice, of which the annexed is a printed
copy, has been published in said newspaper in accordance with the
instructions of the person(s) requesting publication, and not in any
supplement thereof on the following dates, to wit:
PROOF OF PUBLICATION OF
Ad Desc.: /
I certify (or declare) under penalty of perjury that the foregoing is true
and correct.
Date: May 30, 2017
At: Riverside, California
Ad Number: 0010956761-01
P.O. Number:
Publication(s): The Press-Enterprise
Ad Copy:
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(2010, 2015.5 C.C.P)
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