HomeMy WebLinkAboutAgenda Statement 1985/11/05 Item 7,7a COUNCIL AGENDA STATEMENT
Item 7' 7a
Meeting Date 11/5/85
ITEM TITLE: Resolution /a 3 Authorizing the issuance, sale, and
delivery of $21 ,885,000 principal amount of Multi-Family
Revenue Bonds (Eucalyptus Grove Project) 1985 Series,
approving associated documents of said issuance and rescinding
City Council Resolution No. 12152 approved August 27, 1985
a. Resolution /q-q35/Authorizing approval of an amendment to the
fee agreement for bond counsel
SUBMITTED BY: Community Devel pment Director 0
REVIEWED BY: City Manage /(4/5ths Vote: Yes No X )
On August 7, the City Council conducted a public hearing (as required by the
Federal legislation TEFRA) and adopted a resolution authorizing the sale of
Multi-Family Housing Revenue Bonds for the Eucalyptus Grove Apartments
Project. On August 27, the City Council adopted a resolution approving the
bond documents for the 376-unit apartment project located at the intersection
of Flower Street and Bonita Road. Since the approval of those documents, the
financial structure of the $21 ,885,000 bond issue has changed, requiring a
reconfiguration of the documents; but there is no impact on the City.
Furthermore, the Housing Cooperation Agreement remains unchanged, and the Bond
Counsel Services Agreement has been renegotiated. The new documents have been
completed and are on file in the City clerk' s office.
RECOMMENDATION: That Council adopt the resolution authorizing the issuance,
sale, and delivery of the Eucalyptus Grove Apartments Multi-Family Housing
Revenue Bonds Issue, approving associated documents of said issuance and
rescinding City Council Resolution No. 12152.
BOARDS/COMMISSIONS RECOMMENDATION: The Human Relations Commission has
reviewed a Community Development staff report on the Redevelopment Agency's
Low- and Moderate-Income Housing Fund use. The Commission endorsed a
five-point strategy in their report which included use of the funds in
conjunction with mortgage revenue bond financing.
DISCUSSION:
Since the approval of the Multi-Family Housing Revenue Bond documents on
August 27, circumstances beyond our control have necessitated a change in the
structure of the bond issue. Therefore, it is necessary to rescind City
Council Resolution No. 12152 which approved the old bond documents. The new
bond documents (including the Housing Cooperation Agreement and the Bond
by the City Council of
Chula Vista, California
Dated
/'
Page 2, Item 7, 7a
Meeting Date 11/5/85
Counsel Services Agreement) are being submitted in the attached resolution for
approval . The Housing Cooperation Agreement remains unchanged but the amount
of the Bond Counsel Services Agreement has been renegotiated downward.
Although the financial structure of the issue and associated documents has
changed, there is no impact on the City. Similarly, there is no cost or
fiscal liability to the City. Debt service on the bonds is paid from project
mortgage payments and bond fund revenues, with a surety bond as a guarantee of
bond debt service payment in case of mortgage delinquency or default.
The Housing Cooperation Agreement between the City and Eucalyptus Grove
International remains unchanged. This agreement specifies the low-income
housing obligations to be undertaken by the developer in accordance with the
City's Multi-Family Mortgage Revenue Bond Policy.
The amount of the Bond Counsel Services Agreement between Jones Hall Hill and
White and the City has been renegotiated downward from $67,000 to an amount
not to exceed $60,000. The amendment to the original agreement specifying the
reduction in bond counsel fees is provided.
The new documents are on file in the City Clerk' s office.
FISCAL IMPACT: All costs of issuance of bonds are paid for from bond
proceeds or developer fees. The bonds will be repaid from the project
mortgage payments and bond issue special funds will be secured by the surety
bond from CNA Insurance Company, and will not constitute a liability or
obligation to the City.
Some staff cost will be associated with monitoring compliance with the Housing
Cooperation Agreement. Those costs will be reimbursed from the Low-and
Moderate-Income Housing Fund salary appropriations.
WPC 1889H
COUNCIL AGENDA STATEMENT
Item 7, 7a
Meeting Date 11/5/85
ITEM TITLE: Resolution /`7A-33 Authorizing the issuance, sale, and
delivery of $21 ,885,000 principal amount of Multi-Family
Revenue Bonds (Eucalyptus Grove Project) 1985 Series,
approving associated documents of said issuance and rescinding
City Council Resolution No. 12152 approved August 27, 1985
a. Resolution (,7q1/Authorizing approval of an amendment to the
fee agreement fond counsel
SUBMITTED BY: Community Devel pment Director
REVIEWED BY: City Manage (4/5ths Vote: Yes No X )
On August 7, the City Council conducted a public hearing (as required by the
Federal legislation TEFRA) and adopted a resolution authorizing the sale of
Multi-Family Housing Revenue Bonds for the Eucalyptus Grove Apartments
Project. On August 27, the City Council adopted a resolution approving the
bond documents for the 376-unit apartment project located at the intersection
of Flower Street and Bonita Road. Since the approval of those documents, the
financial structure of the $21 ,885,000 bond issue has changed, requiring a
reconfiguration of the documents; but there is no impact on the City.
Furthermore, the Housing Cooperation Agreement remains unchanged, and the Bond
Counsel Services Agreement has been renegotiated. The new documents have been
completed and are on file in the City clerk' s office.
RECOMMENDATION: That Council adopt the resolution authorizing the issuance,
sale, and delivery of the Eucalyptus Grove Apartments Multi-Family Housing
Revenue Bonds Issue, approving associated documents of said issuance and
rescinding City Council Resolution No. 12152.
BOARDS/COMMISSIONS RECOMMENDATION: The Human Relations Commission has
reviewed a Community Development staff report on the Redevelopment Agency' s
Low- and Moderate-Income Housing Fund use. The Commission endorsed a
five-point strategy in their report which included use of the funds in
conjunction with mortgage revenue bond financing.
DISCUSSION:
Since the approval of the Multi-Family Housing Revenue Bond documents on
August 27, circumstances beyond our control have necessitated a change in the
structure of the bond issue. Therefore, it is necessary to rescind City
Council Resolution No. 12152 which approved the old bond documents. The new
bond documents (including the Housing Cooperation Agreement and the Bond
by the City Council of
Chula lilsta, California
Dated //` ��
Page 2, Item 7 , 7a
Meeting Date 11/5/85
Counsel Services Agreement) are being submitted in the attached resolution for
approval . The Housing Cooperation Agreement remains unchanged but the amount
of the Bond Counsel Services Agreement has been renegotiated downward.
Although the financial structure of the issue and associated documents has
changed, there is no impact on the City. Similarly, there is no cost or
fiscal liability to the City. Debt service on the bonds is paid from project
mortgage payments and bond fund revenues, with a surety bond as a guarantee of
bond debt service payment in case of mortgage delinquency or default.
The Housing Cooperation Agreement between the City and Eucalyptus Grove
International remains unchanged. This agreement specifies the low-income
housing obligations to be undertaken by the developer in accordance with the
City's Multi-Family Mortgage Revenue Bond Policy.
The amount of the Bond Counsel Services Agreement between Jones Hall Hill and
White and the City has been renegotiated downward from $67,000 to an amount
not to exceed $60,000. The amendment to the original agreement specifying the
reduction in bond counsel fees is provided.
The new documents are on file in the City Clerk' s office.
FISCAL IMPACT: All costs of issuance of bonds are paid for from bond
proceeds or developer fees. The bonds will be repaid from the project
mortgage payments and bond issue special funds will be secured by the surety
bond from CNA Insurance Company, and will not constitute a liability or
obligation to the City.
Some staff cost will be associated with monitoring compliance with the Housing
Cooperation Agreement. Those costs will be reimbursed from the Low-and
Moderate-Income Housing Fund salary appropriations.
WPC 1889H