HomeMy WebLinkAboutItem No. 07 Issuance of Tax Exempt Bonds Cottages at Mission TrailText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: RES 2014-038
Agenda Date: 8/8/2017 Status: Public HearingVersion: 1
File Type: ResolutionIn Control: City Council / Successor Agency
Agenda Number: 7)
Page 1 City of Lake Elsinore Printed on 8/3/2017
Page 1 of 2
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:August 8, 2017
Subject:Issuance of Tax Exempt Bonds for the Cottages at Mission Trail and
Resolution Approving the Issuance of Bonds.
Recommendation
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 $25,000,000, FOR THE
BENEFIT OF CIVIC PARTNERS TO PROVIDE FINANCING FOR THE ACQUISITION,
CONSTRUCTION AND EQUIPPING OF AN 143-UNIT MULTIFAMILY RENTAL HOUSING
PROJECT GENERALLY KNOWN AS THE COTTAGES AT MISSION TRAIL.
Background
Civic Partners (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 $25,000,000 (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 a 143-unit
affordable multifamily housing rental project located at the intersection of Mission Trail and
Sedco, Lake Elsinore, California (Project), which will be owned and operated by the Borrower
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 (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 July 25, 2017 (Exhibit A).
Page 2 of 2
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 Application
RESOLUTION NO. 2017 – _____
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
$25,000,000, FOR THE BENEFIT OF CIVIC PARTNERS TO PROVIDE FINANCING
FOR THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF AN 143 UNIT
MULTIFAMILY RENTAL HOUSING PROJECT GENERALLY KNOWN AS THE
COTTAGES AT MISSION TRAIL
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,Mission Cottages, LP or a partnership created by Civic Partners (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 $25,000,000 in outstanding aggregate principal amount, to finance the acquisition,
construction and development of a 143-unit multifamily rental housing project located at the
Intersection of Mission Trail & Sedco Boulevard (APN 365-030-004), Lake Elsinore, California,
generally known as Cottages at Mission Trail Apartments (Project) and operated by US
Residential; 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
CC Reso. No. 2017 – _____
Page 2 of 2
the Project (Refunding Bonds), but only in such cases where federal tax laws would not require
additional consideration or approval by the 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, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOW:
Section 1: The above recitals are true and correct.
Section 2: The Council hereby approves the issuance of the Bonds and the Refunding Bonds by
the Authority. It is the purpose and intent of the Council that this Resolution constitute 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 adoption.
Section 5.The City Clerk shall certify to the adoption of this Resolution and enter it into the book
of original Resolutions.
Passed and Adopted on this 8th day of August 2017.
Robert E. Magee, Mayor
Attest:
__
Susan M. Domen, MMC
City Clerk
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 August 8, 2017, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CC Reso. No. 2017 – _____
Page 2 of 2
_______________________________
Susan M. Domen, MMC
City Clerk
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?
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
Organization:
Title:
Full Name:
Affordable Housing Bond Application
2017-04-27 19:40:32
Civic Partners
Tina Alexander
Director of Project Admininistration
7777 Center Ave
Suite 230
Huntington Beach
CA
92647
(714) 230-8000
talexander@civicpartners.com
Mission Cottages, LP
Partnership
Yes
0
1
Civic Partners
Director of Project Admininistration
Tina Alexander
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:
Type of Construction (i.e.
Wood Frame, 2 Story, 10
Buildings):
Type of Housing:
Facility Use:
Is this an Assisted Living
Facility?
7777 Center Ave
Suite 230
Huntington Beach
CA
92647
(714) 237-8000
talexander@civicpartners.com
Cottages at Mission Trail
Cottages at Mission Trail
20000000
Intersection of Mission Trail & Sedco
Lake Elsinore
CA
92530
Riverside
No
19.23
0
143
143
Wood construction, 2 stories, single unit, duplex, triplex
New Construction
Family
No
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 #:
State Senate District #:
State Assembly District #:
Yes
City of Lake Elsinore City Attorney
Barbara Leibold
(949) 585-6300
barbara@ceqa.com
100
60
1
Bedrooms %
AMI
No. Restricted
Units
Restricted
Rent
Market
Rent
Expected
Savings
2 Bedroom 50%3 612
2 Bedroom 60%9 757
2 Bedroom 50%5 612
2 Bedroom 60%21 757
3 Bedroom 50%5 700
3 Bedroom 60%34 867
3 Bedroom 50%4 700
3 Bedroom 60%34 867
3 Bedroom 50%3 700
3 Bedroom 60%24 867
42
28
67
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:
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:
No
For projects with more than 4 facilities, please include additional facility information with your application
attachments
Financing Information
Tax Exempt Bonds:
Total Principal Amount:
Please Upload Estimated
Construction Sources & Uses
(if available)
Estimated Closing Date:
Bond Maturity:
Bond Denominations:
Estimated Interest Rate:
Interest Rate Mode:
Type of Offering:
Type of Financing:
Refunding Only - Will you be
applying for State Volume
Cap?
Is this a transfer of property
to a new owner?
Construction Financing
Credit Enhancement:
Expected Credit Rating:
Projected State Allocation
Pool:
Will the Project use Tax
credits as a source of
funding?
Finance Team Information
Bond Counsel
20000000
20000000
Cottages at Mission Trail - S&U.pdf
09-01-2017
35
100000
5
Fixed
Private Placement
New Construction
No
Yes
Other
Unrated
General
Yes
Underwriter/Bank/Bond Purchaser
Financial Advisor
Firm Name:
Primary Contact:
Title:
Address:
Phone Number:
E-mail:
Trustee
Firm Name:
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)
Upload Attachment A:
Upload Attachment C:
Application Prepared By:
Phone Number:
Hunt Mortgage Company
John McAlister
Managing Director & West Coast Team Lead
488 E. Santa Clara St
Suite 203
Arcadia
CA
91006
(626) 263-9666
john.mcalister@huntcompanies.com
n/a
Civic Corp Profile.pdf
Cottages-MissionTrails Site Plan 042417.pdf
W. Brett Flanders
(626) 263-9664