HomeMy WebLinkAbout6.1 FairwayRchHousing
CITY CLERK
File # D~[Q]IO:]-[6JQ]
)C. 1..f M -80
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: November 15, 2005
SUBJECT:
PUBLIC HEARING: PA 03-010, Fairway Ranch Affordable
Housing Community, Approval of Issuance of Multifamily
Housing Revenue Bonds by the California Statewide Communities
Development Authority (CSCDA).
Report Prepared hy: Julia Abdala, Housing Specialist~
ATTACHMENTS:
1. Resolution for the Tax Equity and Fiscal Responsibility Act
(TEFRA) for the issuance of Multifamily Housing Revenue
Bonds for Fairway Family Apartments.
2. Resolution for the Tax Equity and Fiscal Responsibility Act
(TEFRA) for the issuance of Multifamily Housing Revenue
Bonds for Dublin Raneh Senior Apartments.
RECOMMENDATION: ~ 1. Open TEFRA Hearing and reccive Staff presentation;
\ 2. Take testimony from the Applicant and the Public;
3. Close the TEFRA Hearings and deliberate; and
5. Adopt TEFRA resolutions approving the issuance of the Bonds.
FINANCIAL STATEMENT:
The TEFRA Hearings do not commit the City of Dublin to
undertake any financing or to make any payments.
DESCRIPTION:
On July 1, 2003 the City Council approved the Site Development Review for Fairway Ranch, including
both the Fairway Family Apartments and the Dublin Ranch Senior Apartments, and approved the density
bonus the developer was seeking. The City also provided funding for the Project in the amount of
$2,250,000 for the family apartments and $2,250,000 for the senior apartments, contingent upon the
issuance of tax-exempt bonds. Both projects are now under construction.
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COPY TO: In-House Distribution
Dublin Ranch
ITEM NO.
(0.1
Page 1 of2
G~\PA#\2003\03-0]O Fairway R.anch Grovcs\Stafl:" Rcports\CCSR TEPRA /lcariTIg 05 (Faìrway).doc
At this time the developer of the multi-family and senior projects has submitted to the California
Statewide Communities Development Authority (CSCDA) an application to increase the tax-exempt bond
financing for the construction of the senior housing facility known as Dublin Ranch Senior Apartments in
an amount not to exceed $36,000,000 and an application to increase the tax-exempt bond financing for the
construction of the multifamily housing facility known as Fairway Family Apartments in an amount not to
exceed $38,000,000.
The new submittals request an increase in the tax-exempt bond financing over what was previously
approved in 2003 in the amount of an additional $6,000,000 for the Dublin Ranch Senior Apartments and
an additional $8,000,000 for the Fairway Family Apartments.
ANALYSIS:
A TEFRA Hearing, as œquired for the issuance of tax-exempt bonds, was held for the Dublin Ranch
Senior Apartments and for the Fairway Family Apartments on August 5, 2003. At that time the City
Council approved CSCDA's issuance of up to $30,000,000 in tax-exempt bonds for the senior apartments
and up to $30,000,000 for the family apartments.
After the developer received the requested bond allocation, it was determincd that the original budget for
both projects underestimated construction costs and that the price of materials had signi fjcant]y increased.
At the same time, in order for the two projects to continue to qualify for the 4% low-income housing tax
credits that have been awarded, at least 50% of construction costs must be funded by tax-exempt bonds.
The increased budgets created a situation wheœ the original bond allocation did not satisfy the 50% test.
Additional bond allocations for both projects are necessary to meet the 50% test in order to allow the tax
credits to be used as a source to build both projects as planned.
The California Statewide Communities Development Authority will be issuing the bonds. The City
became a member of the California Statewide Communities Development Authority (the "Authority") on
August 5, 2003. In order to initiate this addition a] tax-exempt bond financing, the member participant of
the Authority (City of Dublin) in the jurisdiction where the housing 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 obligations for the two projects, the financing cannot
proceed without the approva] of the City of Dublin.
Notice of the TEFRA Hearing has been published in a local newspaper of general cireulation, as required,
fourteen days prior to the public hearing.
RECOMMENDATION:
Staff recommends that the City Council: 1) Open the TEFRA Hearing; 2) Reccivc Staff presentation; 3)
Take testimony from the Applicant and the Public; 5) Close the TEFRA Hearing; 6) Deliberate; and 7)
Adopt the TEFRA reso]utions approving the increased issuance of tax-exempt bonds for Fairway Family
Apartments and Dublin Ranch Senior Apartments.
Page 2 of 2
lG(¡'-\
RESOLUTION NO. XX - 05
A RESOLUTION 01<' THE CITY COUNCIL
01<' THE CITY OF DUBLIN
************************...**************
APPROVING THE ISSUANCE OF MUL TIFAMIL Y HOUSING REVENlÆ BONDS
FOR THE FAIRWAY FAMILY COMMUNITY
BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
WHEREAS, the California Statewide Communities Development Authority (the "Authority") is
authorized pursuant to the provisions of Califomia 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 (the "Agreement"),
among certain local agencies throughout the State of Califomia, including thc City of Dublin (the "City"), to
issue œvenue bonds in accordance with Chapter7 of Part 5 of Division 31 of the California Health and
Safety Code for the purpose of financing multifamily rental housing projects; and
WHEREAS, Fairway Family Community, L.P., a California limited partnership, or related entities,
has requested that the Authority adopt a plan of financing providing for the issuance of multifamily housing
revenue 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 cxceed $38,000,000 in outstanding
aggœgate principal amount, to finance the acquisition, construction and development of a 304"unit
multifamily rental housing projcct, located at 4161 Keegan Street, Dublin, California, and gcnerally
known as Fairway Family Apartments (the "Project"); and
WHEREAS, thc Bonds or a portion thereof will be "private activity bonds" for purposes of the
Internal Revenue Code of 1986 (the "Code"); and
WHEREAS, pursuant to Section 147(f) of the Codc, prior to their issuance, private activity honds are
required to be approved by the "applicable elected representative" ofthe governmental units on whose beha1f
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 (this "Council") are the applicable elccted
representati ves ofthe 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 heating 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, it is intended that this resolution shall constitute the approval of the iSSl.lance 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
DUBLIN AS FOLLOWS: ATTACHMENT I
::r:-rEN\ l.p,' 11-1 s:.0"5"
9-6b ~
Section 1.
The above recitals are true and correct.
Section 2. Thc Council hereby approves the issuance of the 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(1) of the Code and (b) Section 9 ofthe Agreement.
Section 3. The officers of the City are hereby authorized and directed, jointly and severally, to do
any and an things and to execute and deliver any and all documents that they deem necessary or advisable in
order to carry out, gi ve effect to and comply with the terms and intent of this œsolution and the financing
approved hereby_
Scction 4. The City Clerk shall forward a certified copy of this Resolution and a copy of the
affidavit of publication of the hearing notice to:
Justin Cooper, Esq.
Orrick, Herrington & Sutcliffe liP
405 Howard Street
San Francisco, California 94105
Section 5.
This resolution shaJl take effect immediately upon its passage.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin at a regular
meeting of said Council held on the J 5th day of Novembcr, 2005, by the foJlowing vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
O;\PAIroOO3\03-010 Fairway Ranch Groves\Reso's & Qrd.'s\RESO TEPH.A.flairway FlI.rnily.111S05.doc
3664
RESOLUTION NO. XX - 05
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
***************************************
APPROVING THE ISSUANCE OF MUL TlFAMIL Y HOUSING REVENUE BONDS
FOR THE DUBLIN RANCH SENIOR APARTMENTS
BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
WHEREAS, the California Statewide Communities Development Authority (the "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 (the "Agreement"),
among certain local agencies throughout the State of California, including the City of Dublin (the "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, Dublin Ranch Senior Apartments, L.P., a California limited partnership, or related
entities, has requested that the Authority adopt a plan of financing providing for the issuance of multifamily
housing revenue honds 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 $36,000,000 in outstanding
aggregate principal amount, to finance the acquisition, construction and development of a 322-unit
multifamily rental housing project, located at 3115 Finnian Way, Dublin, California, and generally known
as Dublin Ranch Senior Apartments (the "Project"); and
WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the
Jnternal Revenue Code of 1986 (the "Code"); and
WHEREAS, pursuant to Section 147(t) of the Code, prior to their issuance, private activity honds are
required to he approved hy 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 foHowing reasonable
public notice; and
WHEREAS, the members of this City Council (this "Council") are the applicable electcd
representatives of the City; and
WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of
general cireulation 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 heating 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, it is intended that this œsolution shaH constitute the approval of the issuance of the
Bonds required by Section 147(t) ofthe Code and Section 9 of the Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBLIN AS FOLLOWS:
ATTACHMENT 2
Y6bY
Section L
The above recitals are true and correct.
Section 2. The Council hereby approves the issuance of the Bonds by the Authority. It is the
purpose and intent of the Council that this resolution constitute approval of the Bonds for thc 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 diœcted, jointly and severally, to do
any and al1 things and to executc 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 thc financing
approved hereby.
Section 4. The City Clerk shall forward a certified copy of this Resolution and a copy of the
affidavit of publication of the hearing notice to:
Justin Cooper, Esq.
Orrick, Herrington & Sutcliffe lLP
405 Howard Street
San Francisco, California 94105
Section 5.
This resolution shall take effect immediately upon its passage.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin at a regular
meeting of said Council held on the 15th day of November, 2005, by the fol1owing vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
G~\PA#\200~\O:3-0l0 Fairway Ranch (:irove!i\Reso's & Ord'!i\RESO TEFRADublin Ranch Sr. II J$05.d.oc