HomeMy WebLinkAboutRDA Packet 2000/06/20
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ClN OF
CHUlA VISTA
TUESDAY, JUNE 20, 2000 COUNCIL CHAMBERS
6:00 P.M. PUBLIC SERVlCD BUILDING
(I_EDIATELY FOLLOWING THE CITY COUNCIL MElTING)
JOINT MEETING OF THE
REDEVELOPMENT AGENCY/CITY COUNCIL
ADJOURNED MEETING HOUSING AUTHORITY
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency/Council/Authority Members Davis, Moot, Padilla, Solos, and Choir/Mayor Horton
CONSENT ITEMS (Item I)
The staff recommendations regarding the following item(s) listed under the Consent Calendar will be
enacted by the Agency/City Council by one motion without discussion unless an Agency/Council
member, a member of the public or City staff requests that the item be pulled for discussion. If you wish
to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and
submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items
pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be
the first items of business.
1. COUNCIL ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF
RESOLUTION CHULA VISTA FOR FISCAL YEAR 2000-01 PURSUANT TO ARTICLE
XIIIB OF THE CALIFORNIA CONSTITUTION-Article XIIIB of the
California Constitution approved by the voters in 1979 and commonly
referred to as the Gann Initiative, requires each local government to establish
an Appropriations Limit by resolution each year at the regularly scheduled
meeting or noticed special meeting. The purpose of the limit is to restrict
spending of certain types of revenues to a level predicated on a base year
amount increased annually by an inflation factor. (Deputy City Manager
Powell)
Staff Recommendation: Council adopt the resolution.
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AGENDA -2. JUNE 20, 2000
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject
matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally
prohibits the Redevelopment Agency from taking action on any issues not included on the posted
agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak
Under Oral Communications Form" available in the lobby and submit it to the Secretary to the
Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your
name and address for record purposes and follow up action.
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as public hearings as required by law. If you
wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit
it to the Redevelopment Agency or the City Clerk prior to the meeting.
2. PUBLIC CONSIDERATION AND ADOPTION OF THE OPERATING AND CAPITAL
HEARING IMPROVEMENT BUDGETS FOR THE CITY, AND THE OPERATING BUDGET
FOR THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY
FOR FISCAL YEAR 2000-01-0n 5/23/00, Council received the proposed
operating budgets for FY 2000-01, and the proposed Capital Improvement Project
Budget for FY 2000-01 on 6/12/00 from the City Manager. Subsequently, the
Council conducted three work sessions to consider and deliberate not only on the
recommendations contained in those initial documents, but also on a number of
additional budget recommendations which came to light during that process. The
budgets submitted for adoption represent the City Manager's initial spending plan
as amended in accordance with tentative Council direction received during the
budget work sessions. [Deputy City Manager Powell]
a. COUNCIL APPROVING ADOPTION OF THE FINAL OPERATING AND CAPITAL
RESOLUTION BUDGETS OF THE CITY OF CHULA VISTA FOR THE FISCAL YEAR
BEGINNING JULY 1, 2000 AND ENDING JUNE 30, 2001
b. JOINT ADOPTING THE REDEVELOPMENHT AGENCY AND HOUSING
AGENCY AUTHORITY BUDGETS FOR FY 2000-01 AND APPROPRIATING FUNDS
AND THEREFOR
HOUSING AUTHORITY
RESOLUTION
STAFF RECOMMENDATION: The Council/Agency/Housing Authority accept
public testimony and adopt the fiscal year 2000-01 Operating and Capital Project
budgets as amended.
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and
deliberations by the Agency/Council, staff, or members of the general public The items will be
considered individually by the Agency/Council and staff recommendations may in certain cases be
presented in the alternative. Those who wish to speak, please fill out a Request to Speak form available
in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the
meeting.
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AGENDA -3. JUNE 20, 2000
3. HOUSING REGARDING ITS INTENTION TO ISSUE TAX EXEMPT OBLIGATIONS
AUTHORITY FOR THE SENIOR RENTAL HOUSING PROJECT WITHIN THE ROLLING
RESOLUTION HILLS RANCH MASTER PLANNED COMMUNITY-The City of Chula Vista has
received a request from Pacific Bay Homes, developer of the Rolling Hills Ranch
master planned community, to consider the issuance of tax exempt obligations to
finance the development of a 116 unit complex for low and moderate income
senior citizens. The senior rental housing project will be located on the south side
of MacKenzie Creek Road where it intersects with Mount Miguel Road within the
Rolling Hills Ranch master planned community. [Community Development
Director]
STAFF RECOMMENDATION: Adopt the resolution.
4. HOUSING AMENDING IN PART RESOLUTION NO. HA-13 OF THE HOUSING
AUTHORITY AUTHORITY OF THE CITY OF CHULA VISTA TO INCREASE THE
RESOLUTION COMBINED PRINCIPAL AMOUNT OF CERTAIN MULTI-FAMILY BONDS
FROM $5,500,000 TO $5,800,000-On 6/13/2000, the Housing Authority
appraved the issuance of the Multi-Family Housing Mortgage Revenue Bonds for
the Pear Tree Manar Apartments Series 2000A and 2000B in a combined
principal amaunt not-to-exceed $5.5 million. The borrawer is requesting that the
maximum bond size be increased to $5.8 millian fram the $5.5 million previously
approved by the Authority. This amendment is possible under the TEFRA hearing
conducted on December 7, 1999, which authorized the issuance of up to $6.5
million in private activity bonds. [Community Development Director]
STAFF RECOMMENDATION: Adopt the resolution.
OTHER BUSINESS
5. DIRECTOR'S REPORT(S)
6. CHAIR'S REPORT(S)
7. AGENCY COMMENTS
ADJOURNMENT
The meeting will adjourn to a Closed Session and thence to an adjourned Redevelopment Agency meeting
on July 11, 2000 at 6:00 p.m., immediately following the City Council meeting, in the City Council
Chambers.
CLOSED SESSION
Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise
at this time, the Agency will discuss and deliberate an the following item(s) af business which
are permitted by law to be the subject of a clased session discussian, and which the Agency is
advised should be discussed in closed sessian to best pratect the interests af the City. The
Agency is required by law to return to open session, issue any reports of final action taken in
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AGENDA -4- JUNE 20, 2000
closed session, and the votes taken. However, due to the typical length of time taken up by
closed sessions, the videotaping will be terminated at this point in order to save costs so that
the Agency's return fram closed session, reports of final action taken, and adjournment will
not be videotaped. Nevertheless, the report of final action taken will be recorded in the
minutes which will be available in the Office of the Secretary to the Redevelopment Agency
and the City Clerk's Office.
8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to Government Code
Section 54956.8
Property: 320 Third Avenue (APN #568-270-22)
Negotiating Parties: Redevelopment Agency (Chris Salomone), Cinema Star and World Harvest
Church
Under Negotiations: Price and terms for acquisition
9. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION - Pursuant to
Government Code Section 54956.9(b), Significant Exposure to Litigation
One case.
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COUNCIL AGENDA STATEMENT
Item I
Meeting Date 6/20/00
ITEM TITLE: Resolution Establishing the Appropriations Limit for the
City of Chura Vista for Fiscal Year 2000-01
SUBMITTED BY: Deputy City Manager Powell (l
REVIEWED BY: City Manager Gl'-'ol" (4/5ths Vote: Yes _No--LJ
(..
Article XIIiB of the California Constitution approved by the voters in 1979 and
commonly referred to as the Gann Initiative, requires each local government to
establish an Appropriations Limit by resolution each year at a regularly scheduled
meeting or noticed special meeting. The purpose of the limit is to restrict spending of
certain types of revenues to a level predicated on a base year amount increased
annually by an inflation factor.
RECOMMENDATION: That the City Council adopt a resolution establishing an
appropriations limit of $280,434,917 for the 2000-01 fiscal year.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Article XIlIB of the California Constitution, approved by the voters in 1979, imposed
the concept of spending limits on local governments. This Constitutional provision and
related implementing legislation specifies that annual increases in appropriations
financed from "Proceeds of Taxes" are limited to a base year (1978-79) amount
increased annually by an inflation factor comprised of the change in population of the
City combined with the greater of the change in new non-residential construction or
the change in the California per capita personal income. By definition, "Proceeds of
Taxes" includes such revenues as property taxes, sales and use taxes, utility users
taxes, transient occupancy taxes, and state subventions. Revenues from other
sources like fees/charges and federal grants are considered "Non-Proceeds of Taxes"
and are not subject to the annual spending limit. This calculation has always been
perfunctory for the City of Chula Vista, since the proceeds of taxes for the City are far
less than the statutory appropriation limit.
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Page 2, Item
Meeting Date 6/20/00
The State Department of Finance and the San Diego County Assessor's Office are
charged with providing the data necessary for local jurisdictions to establish their
appropriation limit. According to these sources, for purposes of the fiscal year 2000-
01 calculation, the population increased 4.33% and California per capita personal
income increased by 4.91 %. The, new non-residential construction increased 4.33%
but was not used in the formula to compute the limit since this increase was lower
than the increase in per capita personal income.
The fiscal year 2000-01 Appropriation limit has been calculated as follows:
Fiscal Year 1999-00 Appropriation Limit $256,215,850
Increased by an inflation factor composed
of the increases in population and California
per capita personal income X 1.0945
Fiscal Year 2000-01 Appropriations Limit $280.434.917
The "Proceeds of Taxes" as included in the fiscal year 2000-01 Proposed Budget that
are subject to the appropriations limit are estimated to be $45,312,498 (see
attachment). Therefore the City has what is referred to as an appropriation "gap" of
$235,122,419 ($280,434,917 - $45,312,498). Simply stated, this means that the
City could collect and spend up to $235,122,419 more in taxes during fiscal year
2000-01 without exceeding the Constitutional limit.
FISCAL IMPACT: This action will enable the City to appropriate and spend tax
revenues estimated at $45,312,498 in fiscal year 2000-01.
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RESOLUTION NO. -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS
LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL
YEAR 2000-01 PURSUANT TO ARTICLE XIIIB OF THE
CALIFORNIA CONSTITUTION
WHEREAS, Article XIIIB of the California Constitution
provides that the total annual appropriations subject to limitation
of each governmental entity, including this city, shall not exceed
the appropriation limit of such entity of government for the prior
year adjusted for changes in population and inflation mandated by
Proposition 4 passed in November, 1979 and Proposition 111 in June,
1990 except as otherwise provided for in said Article XIIIB and
implementing State statues; and
WHEREAS, pursuant to said Article XII IB of said
California Constitution, and Section 7900 et seq. of the California
Government Code, the City is required to set its appropriation
limit for each fiscal year; and
WHEREAS, the Director of Finance of the city of Chula
vista has interpreted the technical provisions of said propo-
sitional computations and has reviewed documentation of the City's
said appropriation limitation; and
WHEREAS, based on such calculations the Director of
Finance Administrator has determined the said appropriation limit
and, pursuant to section 7910 of said California Government Code,
has made available to the public the documentation used in the
determination of said appropriation limit.
NOW THEREFORE, BE IT RESOLVED by the City Council of the
City of Chula Vista, California that said appropriation limit for
Fiscal Year 2000-01 shall be and is hereby set in the amount of
$280,434,917 for said Fiscal Year.
Presented by Approved as to form by
~/¿
Robert Powell, Director of orney
Finance
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Attachment I
APPROPRIATION (GANN) LIMIT GAP CALCULATION
FOR FISCAL YEAR 2000-01
Proceeds of Taxes F.Y. 2000-01 Proposed Budqet
Property Taxes $ 10,827,398
Sales and Use Taxes 18,247,900
Transient Lodging Taxes 2,064,000
Utility Users Taxes 3,705,000
Other Local Taxes:
Real Property Transfer 575,000
Business License 915,200
State Motor Vehicle Licenses 8,798,000
State Homeowners Property Taxes 180,000
Total Proceeds of Taxes 45,312,498
Appropriation Lbnit 280,434,917
GAP (Under Lbnit) ($235.122.419)
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JOINT REDEVELOPMENT AGENCY/HOUSING AUTHORITY/COUNCIL
AGENDA STATEMENT
Item ,:)..
Meeting Date 6/20/00
ITEM TITLE:
Public Hearing: Consideration and Adoption of the Operating and
Capital Improvement Budgets for the City. and the
Operating Budget for the Redevelopment Agency
and the Housing Authority for Fiscal Year 2000-
2001.
Council Resolution:Adopting the Operating and Capital Improvement Budgets
for the City of Chula Vista for Fiscal Year 2000-
2001.
Agency/Housing Authority Resolutions: Adopting the Operating
Budgets for the Redevelopment Agency and
Housing Authority for Fiscal Year 2000-2001.
SUBMITTED BY: Deputy City Manager poweH-p
REVIEWED BY: (oIL (4/5ths Vote: Yes _No--LI
City Manager ¡. r' 'j) ¡v The City Council received the proposed operating budgets for fiscal year 2000-
2001 on May 23, 2000, and the proposed Capital Improvement Project Budget for
fiscal year 2000-2001 on June 12, 2000 from the City Manager. Subsequently,
the Council conducted three work sessions to consider and deliberate not only on
the recommendations contained in those initial documents, but also on a number of
additional budget recommendations which came to light during that process. The
budgets submitted for adoption represent the City Manager's initial spending plan
as amended in accordance with tentative Council direction received during the
budget work sessions.
RECOMMENDATION: Accept any public testimony and approve Resolutions
adopting the fiscal year 2000-2001 Operating and Capital Project Budgets as
amended.
02-1
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Page 2, Item~
Meeting Date 6/20/00
DISCUSSION: The City Manager presented the proposed Operating and Capital
Project Budgets for fiscal year 2000-2001 to the City Council for consideration on May
25,2000 and June 12,2000 respectively. The proposed spending plan for all Funds,
including Capital Projects totaled $189,269,514. Included in this total was a General
Fund spending plan totaling $88,192,328 and recommended appropriations for Capital
Projects, Redevelopment Agency Funds and the Housing Authority totaling
$42,517,133, $5,405,392 and $302,519 respectively. The Council held workshops on
June 5, 6, & 12 to hear staff presentations on significant budget issues and to deliberate
on any and all areas of the City Manager's proposal.
The budgets submitted at this time for formal adoption represent the City Manager's
initial spending plan, as tentatively approved and/or amended by the Council during the
budget work sessions. Attachment A represents the final appropriations submitted for
adoption, while Attachments Band C itemize adjustments to the City Manager's initial
proposal which were determined to be necessary after the proposed budget documents
were printed, and were either tentatively approved by Council during the workshops or
identified as necessary minor cleanup items. The final budgets submitted for all Funds
total $200,196,783, including General Fund appropriations of $88,074,693, Capital
Improvement Project appropriations of $42,442,133, Redevelopment Agency
appropriations of $5,405,392, and Housing Authority appropriations of $302,519. The
large increase in the overall total is generally due to funding identified for the CIP
budget.
Estimated revenues (Attachment D) total $191,035,454, leaving remaining $9,161,329
to be funded from available Fund balances. This amount is almost entirely due to large
capital projects related to sewers and streets. The General Fund operating budget is
funded in total by estimated revenues, with no impact on available Fund balance
expected.
FISCAL IMPACT: Adoption of the City Manager's proposed budget provides
authorization to spend up to $200,196,783 across all Funds during fiscal year 2000-
2001.
M:ldatalmemosldirectorlbudO1113
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RESOLUTION NO
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING ADOPTION OF THE FINAL OPERATING AND CAPITAL
BUDGETS OF THE CITY OF CHULA VISTA FOR THE FISCAL YEAR
BEGINNING JULY 1, 2000 AND ENDING JUNE 30, 2001
WHEREAS, pursuant to the provisions of the Charter of the
City of Chula Vista, Sections 1004 and 1005, the City Council is
required to adopt a budget for the fiscal year beginning July 1,
2000 and ending June 30, 2001, and
WHEREAS, the City Manager has prepared and filed with the
City Clerk his proposed budget, and
WHEREAS, due notice has been given by the city Clerk, as
required by law, that said proposed budget is on file and open to
anyone interested, and
WHEREAS, a noticed public hearing was held on June 20,
2000 on the proposed budget as required by City Charter.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Chula Vista that there is hereby appropriated out of the
resources, including prospective revenues, of the City of Chula
vista for municipal purposes and for use by the various
departments, the amounts shown in Attachment "A", attached hereto
and incorporated herein by reference as if set forth herein in
full. The City Council finds that all appropriations contained in
this resolution are within the legal spending limitations
authorized by law.
BE IT FURTHER RESOLVED that the appropriations attached
are approved as the budget for the 2000-01 fiscal year. The City
Manager and the Director of Finance are hereby jointly authorized
to transfer appropriations as set forth in Council Policy No. 220-
02 "Financial Reporting and Transfer Authority".
BE IT FURTHER RESOLVED that the Director of Finance may,
from time to time, invest temporarily idle funds from any fund in
legal investments permitted by law for charter cities.
Presented by Approved as to form by
David D. Rowlands, Jr.
City Manager
H, \HOME\ATTORNEY\RESO\annualbud
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AGENCY RESOLUTION NO.
and
HOUSING AUTHORITY RESOLUTION NO.
JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY OFTHE CITY OF CHULA VISTAADOPTING THE
REDEVELOPMENT AGENCY AND HOUSING AUTHORITY BUDGETS
FOR FY 2000-00 AND APPROPRIATING FUNDS THEREFOR
WHEREAS, Redevelopment Agency staff have prepared budget requests for various
redevelopment project areas and the Redevelopment Low and Moderate Income Housing Fund; and
WHEREAS, the Redevelopment Agency has determined that the planning and
administrative expenses proposed for the Low and Moderate Income Housing Fund are necessary for
the production. improvement, or preservation of low and moderate-income housing; and
WHEREAS, the Redevelopment Agency of the City of Chula Vista, after a Public
Hearing, has reviewed and approved the budget contained in fund numbers listed below, and has
determined that the planning and administrative expenses for non-housing redevelopment purposes are
necessary for the elimination of blight within the respective project areas.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of
Chula Vista does hereby appropriate funds for the purposes set forth in the 2000-01 Redevelopment
Agency Budget submitted by the Executive Director, subject to the same terms, conditions and
authorities given to the City Manager over the City's budget, summarized in Attachment "A" by Fund
Number as follows:
FUND PROJECT/PROGRAM
313 Housing Authority
682-684 Debt Service - Bayfront TABS
315 RDA Housing Program (CHIP)
602 Southwest Project
611 Bayfront/Town Centre I
641 Redevelopment Fine Arts
621 Town Centre II Project
317 Low/Mod Income Housing
631 Otay Valley Project
671-675 Southwest Tax Agreement
685 1993 Refunding COP
686 1993 Parking COP
687 1996 Downtown COP
688 Cypress Creek Note
BE IT FURTHER RESOLVED, that the Redevelopment Agency hereby finds and
determines that (1) the planning and administrative expenses proposed for the Low and Moderate
Income Housing Fund are necessary for the production, improvement, or preservation of low and
moderate-income housing; and (2) the planning and administrative expenses for non-housing
redevelopment purposes are necessary for the elimination of blight within the respective project areas.
Presented by Approved as to form by
(L ~
Chris Salomone
Director of Community Development
H:\home\commdev\resos\agency/housing budget
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PROPOSED CIP BUDGET AMENDMENT ATTACHMENT C
FISCAL YEAR 2000-2001
Fund Project # Project Title Amount
General Fund GG139 Civic Center Expansion (In-Kind Services for Staff) (75,000)
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HOUSING AUTHORITY AGENDA STATEMENT
ITEM NO.: ..3
MEETING DATE: 06/20/00
ITEM TITLE: HOUSING AUTHORITY RESOLUTION REGARDING ITS INTENTION
TO ISSUE TAX EXEMPT OBLIGATIONS FOR THE SENIOR RENTAL
HOUSING PROJECT WITHIN THE ROLLING HILLS RANCH MASTER
PLANNED COMMUNITY
SUBMITTED BY: COMMUNITY DEVELOP~ENT DIRECTOR \..B-~ c..s.
REVIEWED BY: EXECUTIVE DIRECTOR ~ r: í)'(V
,,'
4/5THS VOTE: YESD NO0
BACKGROUND
The City of Chula Vista has received a request from Pacific Bay Homes, developer of the Rolling Hills
Ranch master planned community, to consider the issuance of tax exempt obligations to finance the
develC'pment of a 116 unit complex for low and moderate income senior citizens. The senior rental
housinç¡ proiect will be located on the south side of MacKenzie Creek Road where it intersects with
Mount Miguel Road within the Rolling Hills Ranch master planned community.
The developer is requesting that the Chula Vista Housing Authority be the vehicle for applying for
approximately $12 million in private activity bonds from the California Debt Limit Allocation
Committee (CDLAC). At this time, it is requested that the Housing Authority adopt a resolution
expressing its preliminary intention to issue bonds. The requested actions are necessary in order to
allow the project developer to submit an application to the State bonding authority, and to allow the
developer to receive reimbursement out of bond proceeds for actual costs it incurs leading up to the
actual sale of bonds.
Additionally, Section 147{f) of the Internal Revenue Code requires the private activity bonds to be
approved by a governmental unit having jurisdiction over the area in which the project is located
following a public hearing. A notice of such public hearing must be published a minimum of fourteen
days prior to the hearing and this hearing must take place no later than thirty days from the
application submittal date. City Council will be asked to hold a public hearing on July 11, 2000 to
consider the issuance by the Housing Authority of the tax-exempt bonds for the financing of the proiect
and will be asked to approve the issuance, sale, and delivery of multi-family housing revenue bonds
by the Housing Authority at such time a bond allocation is received.
The developer is in the process of preparing an application for an allocation of the 2000 state ceiling
on private activity bonds for multi-family rehabilitation projects from the Californio Debt Limit
Allocation Committee (CDLAC) to be submitted by July 5, 2000. The applicotion process is a very
competitive one, which needs to demonstrate readiness to complete the project and strong support
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PAGE 2, ITEM NO.: .3
MEETING DATE: 06/20/00
from the community. If successful in obtaining a bond commitment from CDLAC, the developer plans
to come back to the Authority to request final approval for the issuance of the bonds.
The issuance of the bonds is in the public interest due to the reservation of a minimum of 40 percent
of the units within the proiect as affordable housing for low-income households.
RECOMMENDATION
That the Housing Authority adopt the resolution regarding its intention to issue tax-exempt obligations
for the Senior Rental Housing Proiect within the Rolling Hills Ranch Moster Planned Community.
BOARDS/COMMISSIONS RECOMMENDATION
On May 26, 1999, the Housing Advisory Commission voted to recommend the development of the
proposed senior housing project.
On September 7, 1999, the Design Review Committee reviewed the proposed plans and
recommended approvol of the proiect.
DISCUSSION
The City's State-mandated Housing Element requires the provision of housing for all economic groups
and to distribute affordable hausing developments throughout the City's iurisdiction. The City's
strategy to implement this mandate, the "Affordable Housing Program", is to require 10 percent (10%)
of any new subdivision in excess of fifty (50) units to made affordable for low and moderate income
families (5% low and 5% moderote) and to balance affordable housing development throughout the
City in the form of new development and rehabilitation of the existing housing stock. This translates
into a 131 unit low-income requirement for Rolling Hills Ranch (formally Salt Creek Ranch Planned
Community) and 131 moderate-income households. The developer is proposing to develop a 116
senior rental housing proiect to satisfy a portion af their low-income affordable housing obligation.
THE PROPOSED PROJECT
The senior housing proiect will be located at the southwest end of the planned community within a multi-
family area identified in the Rolling Hills Ranch Development Phasing Plan as Neighborhood 4A (Exhibit
2). This site is adjacent to the Cabo town homes, the Thurgood Marshall Elementary School, and the
planned Rolling Hills Ranch seven-acre Neighborhood Park.
The architectural style will be compatible with the surrounding single-family homes of Spanish design.
The proiect is planned as a three-story apartment building with target sizes ranging from 700 to 900
square feet. Floor plans will range from one bedroom and one bath to two bedrooms and two baths.
These unit sizes are at the larger end of the spectrum for senior apartment proiects. The buildings will be
designed around courtyards with exterior corridors, a central exercise pool, leasing/recreation center and
on-grade parking (one-half covered). Occupancy will be restricted to households with at least one
member age 62 or older.
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PAGE 3, ITEM NO.: .3
MEETING DATE: 06/20/00
Income. Rent. and Aae Restriction
Section 142 (d) of the Internal Revenue Services code, requires a minimum of twenty percent of the
rental units in the Proiect to be available for occupancy by persons or families whose income does not
exceed 50 percent of the median income for the San Diego Primary Metropolitan Statistical Area, or
alternatively, at least 40 percent of the rental units are required to be available for occupancy by
persons or families whose income does not exceed 60 percent of the median income for the Area. In
each case, the units are to be made available at affordable rents established by the applicable State
law.
It is proposed that the senior apartment rental rates will not exceed thirty percent of fifty percent of the
Area Median Income (AMI) or alternatively thirty percent of sixty percent of AMI. This would equate to
monthly rents of approximately $538 for a one-bedroom unit for persons/households at 50 percent of
AMI or $645 for persons/households at 60 percent AMI. All senior units will be restricted for occupancy
by senior households with at least one member 62 years of age or older.
It is proposed that the income, rent, and age restrictions for the senior rental housing proiect will be
maintained for a period not less than thirty years, consistent with the term of the bonds. However, the
current Affordable Housing Agreement with the developer requires a minimum period of affordability of
twenty years for this proiect. Should the developer receive a bond allocation, these affordability
restrictions will be dictated by the regulations of the bond financing and the Affordable Housing
Agreement may need to be amended to reflect such terms. The affordable housing commitment runs
with the land and will bind all subsequent owners.
Proposed Financina of Proiect
The total cost of the entire development is estimated at $12,000,000. The developer is proposing to
finance this project through tax-exempt bonds, low income tax credit financing, and other sources.
Funds collected from the Solt Creek I Cabo Bahia project in the amount of approximotely $280,000
are available for the development of affordable housing within Rolling Hills Ranch.
Article XXXIV
Article XXXIV of the California Constitution (Article XXXIV) requires that voter approval be obtained
before any "state public body" develops, constructs or acquires 0 "low rent housing project". A
Housing Authority is a "state public body" for purposes of Article XXXIV, and as a result, if the
Authority participates in development of a "low rent housing proiect" and that participation rises to the
level of development, construction, or acquisition of the proiect by the Authority, approval by the
electorate pursuant to Article XXXIV is required for the project.
On April 11, 1978 under Proposition C, the voters of Chula Vista authorized the development,
construction, or acquisition of 400 units of "low rent housing" by the City. Of the 400 allowable
credits, Chula Vista has utilized 293 units and has a balance of 107 units remaining.
The Authority, City or Agency is not proposing to provide direct financial assistance to this project but
the Authority is serving as the issuer of the bonds. It is developer's intent to provide the maximum
number of units affordable to low income households within this proiect. At this point in time, staff
has not yet determined the applicability of Article XXXIV to this project.
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PAGE 4, ITEM NO.: .3
MEETING DATE: 06/20/00
CONCLUSION
In light of the short time frame for application to CDLAC for bond allocation, staff recommends
approval of the Housing Authority resolution regarding its intent to issue tax-exempt obligations.
There remain two outstanding issues regarding the senior housing proiect and its use of tax-exempt
bond financing: 1) Length of the affordability restrictions; and, 2) Article XXXIV applicability.
Hawever, shauld the developer be successful in obtaining a bond allacation, these issues shall be
resolved prior to the final issuance of the bonds. Should these issues not be resolved, the Authority
may not proceed with the issuance of the bonds. Approval of this resolution does not constitute a
commitment of the Authority to issue such bonds. This resolution merely provides the opportunity for
the developer to apply to CDLAC by the July 5th submittal deadline.
FISCAL IMPACT
Approval of this resolution only indicates an intention by the Authority to issue tax-exempt obligations
and does not commit the Authority to issue bonds at this time. All costs related to the issuance of the
bonds will be paid from bond proceeds or profits. The bonds will be secured by the proiect and will
not constitute a liability or obligation to the Authority. Some staff costs will be associated with
monitoring compliance with the Regulatory Agreement. Those costs will be reimbursed from an
annual administrative and origination fee to be paid by Developer to the Authority, which will be
negotiated before the Authority approves the actual issuance of the band. The Developer will not be
requesting financial assistance from the Redevelopment Agency to contribute to the development of
this project.
ATTACHMENTS
1. Locator Map
HINES) Ho\HOME\COMMDEV\STAFF.REP\6-20-00\Rolling Hills Inducement
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RESOLUTION NO.
RESOLUTION OF THE HOUSING AUTHORITY OF
THE CITY OF CHULA VISTA REGARDING ITS
INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS
FOR THE SENIOR RENTAL HOUSING PROJECT
WITHIN THE ROLLING HILLS RANCH MASTER
PLANNED COMMUNITY
WHEREAS, the Housing Authority of the City of Chula Vista (the "Issuer")
desires to assist Pacific Bay Homes (the "Applicant") in financing the costs of
constructing and acquiring certain facilities and improvements, as provided in Exhibit A
attached hereto and incorporated herein (the "Project");
WHEREAS, the Issuer intends to assist in the financing of the acquisition and
construction of the Project or portions of the Project with the proceeds of the sale of
obligations the interest upon which is excluded from gross income for federal income tax
purposes (the "Obligations"), which Obligations are expected to be issued pursuant to
Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of
California; provided, however, that this Resolution shall not authorize the issuance of the
Obligations and provided further that neither the faith and credit nor the taxing power of
the Issuer shall be pledged to repay such Obligations if, and when, authorized; and
WHEREAS, prior to the issuance of the Obligations the Applicant desires to incur
certain expenditures with respect to the Project from its own available monies which
expenditures are desired to be reimbursed from a portion ofthe proceeds of the sale of the
Obligations if, and when, issued and upon a detennination by the Issuer of an acceptable
tenn of the affordability restrictions and the applicability of Article XXXIV of the State
of California Constitution;
NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY OF CHULA VISTA DOES HEREBY
RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. This Board of Commissioners of the Issuer has received an
application for the financing of the Project on behalf of the Applicant (the "Application").
The Applicant will incur costs with respect to the Project prior to the issuance of the
Obligations. The Issuer hereby states its intention and reasonably expects to reimburse
the Applicant for such costs with proceeds of the Obligations; provided, however, that
nothing herein obligates the Issuer to issue the Obligations or provides the Applicant with
any legal right to compel the issuance of the Obligations, which decision remains in the
final discretion of the Issuer and such decision shall be based upon, but not limited to, an
acceptable tenn ofthe affordability restrictions and a detennination of the applicability of
Article XXXIV of the State of California Constitution to the Project. Exhibit A describes
the general character, type, purpose, and function of the Project.
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SECTION 2. The reasonably expected maximum principal amount of the
Obligations is $12,000,000.
SECTION 3. This resolution is consistent with the budgetary and financial
circumstances ofthe Issuer, as of the date hereof. No monies from sources other than the
Obligation issue are, or are reasonably expected to be reserved, allocated on a long-term
basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget
or financial policies with respect to the Project costs. This Board is not aware of any
previous adoption of official intents by the Issuer that have been made as a matter of
course for the purpose of reimbursing expenditures relating to the Project and for which
tax-exempt obligations have not been issued.
SECTION 4. This resolution is adopted as official action of the Issuer in order to
comply with Treasury Regulation § 1.103-8(a)(5) and Treasury Regulation § 1.150-2 and
any other regulations of the Internal Revenue Service relating to the qualification for
reimbursement of expenditures incurred prior to the date of issue of the Obligations, is
part of the Issuer's official proceedings, and will be available for inspection by the
general public at the main administrative office ofthe Issuer.
SECTION 5. All the recitals in this Resolution are true and correct.
Presented by Approved as to form by
(~ ~ ~y ~ !JcdÞ r-
Chris Salomone
Community Development Director City Attorney
(HINES) HoIHOMEICOMMDEV\RESOSIJnducement Reso-RH
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EXHIBIT A
DESCRIPTION OF PROJECT
A proposed senior rental housing project of approximately 116 units to be located on the south
side of MacKenzie Creek Road where it intersects with Mount Miguel Road within the Rolling Hills
Ranch master planned community in the City of Chula Vista, California.
1 .3-7
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:
I
I
\
OSWELL
CHULA VISTA PLANNING AND BUILDING DEPARTMENT
LCSR ~~~: PACIFIC BAY PROPERTIES PROJECT DESCRIPTION:
PROJECT Rollin~ Hills Ranch
ADDRESS: Neigh orhaod 4A J-f"
SCALE: I ALE NUMBER:
NORTH No Scale
"'\"n~p\nbnn;nn\~~rlnc\lnr~tnr<;\rlrrnnn? rrlr 71?nlqq
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HOUSING AUTHORln AGENDA STATEMENT
IIEM NO.: 4/
MElliNG DAlE: 06/20/00
IIEM TIlLE: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF
CHULA VISTA AMENDING IN PART RESOLUTION NO. HA-13 OF
THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA TO
INCREASE THE COMBINED PRINCIPAL AMOUNT OF CERTAIN
MULTIFAMILY BONDS FROM $5,500,000 TO $5,800,000
SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR i..\à-~ c.s
REVIEWED BY: EXECUTIVE DIRECTOR ~
4/SI"S VOlE: YESDNO0
BACKGROUND
On December 7, 1999 the City Council and Housing Authority held a public hearing regarding the
Housing Authority's intent to issue tax-exempt obligations in an aggregate amount not to exceed $6.5
million for the Pear Tree Manor Apartment acquisition and rehabilitation proiect. The public hearing
was held in accordance with Section 147{f) of the Internal Revenue Code which required the proposed
project and financing be approved by the governmental unit having jurisdiction over the area for
which the proiect was to be financed.
On June 13, 2000 the Housing Authority of the City of Chula Vista approved Resolution HA-13
authorizing the issuance, sale and delivery of multifamily mortgage revenue bonds for the Pear Tree
Manor Apartments in a combined principal amount not to exceed $5,500,000.
The borrower is now requesting that the maximum bond size be increased to $5.8 million from the
$5.5 million approved by the authority on June 13, 2000.
RECOMMENDAIION
That the Housing Authority adopt the resolution amending in part Resolution No. HA-13.
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable.
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PAGE 2, ITEM NO.: 4
MEETING DATE: 06/20/00
DISCUSSION
The reason for the request to increase the bond cap is that certain of the funds being provided by the
tax credit purchaser will not be available until the rehabilitation of the units is complete. Bank of
America, the construction and permanent loan lender, has agreed to increase the size of the Series B
Bonds by approximately $300,000 so that the Borrower will have the necessary funds to purchase the
units and complete the planned rehabilitation. Once the tax credit dollars are received, the Bank will
require the Borrower to prepay a portion of the Series B Bonds so that the total bond debt will be
reduced to approximately $5.5 million.
To implement the Borrower's request, the Authority is being requested to amend the bond resolution
adopted on Tuesday, June 13 to increase the maximum bond size to $5.B million. All other terms
and conditions remain the same.
This is an increase in the taxable portion of the bonds. The additional $300,000 is payable by the
borrower on a non-recourse basis.
FISCAL IMPACT
The proposed amendment is possible under the TEFRA hearing conducted on December 7, 1999
which authorized the issuance of up to $6.5 million in private activity bonds. No other amendments
are required of the documents approved by the authority on June 13, 2000 and there is no fiscal
impact on the authority.
H:\HOME\COMMDEV\STAFF.REP\O6.20-00\AMENDING MULTIFAMILY BONOS PEAR TREE.DOC
4-,).
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HOUSING AUTHORITY OF THE
CITY OF CHULA VISTA
RESOLUTION NO. HA-
RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA
VISTA AMENDING IN PART RESOLUTION NO. HA-13 OF THE HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA TO INCREASE THE
COMBINED PRINCIPAL AMOUNT OF CERTAIN MUL TIF AMIL Y BONDS
FROM $5,500,000 TO $5,800,000
WHEREAS, Chapter I of Part 2 of Division 24 of the Health and Safety Code of the State of
California (the "Act") authorizes housing authorities to finance the acquisition, rehabilitation and
development of multifamily rental housing for persons and families meeting the income limitations
contained in the Act; and
WHEREAS, the Board of Commissioners (the "Board") of the Housing Authority of the City
of Chula Vista (the "Authority") pursuant to Resolution No. HA-13, adopted on June 13, 2000
("Resolution No. HA-13"), has approved the issuance by the Authority of multifamily housing
revenue bonds to be designated "Housing Authority of the City of Chula Vista Multifamily Housing
Mortgage Revenue Bonds (Pear Tree Manor Project), Series 2000A" (the "Series 2000A Bonds")
and "Housing Authority of the City ofChula Vista Multifamily Housing Mortgage Revenue Bonds
(Pear Tree Manor Project), Series 2000B" (the "Series 2000B Bonds" and, together with the Series
2000A Bonds, the "Bonds") in an aggregate principal amount not to exceed $5,500,000 in order to
finance the acquisition and rehabilitation of a ll9-unit multifamily housing project (the "Project")
located in the City; and
WHEREAS, because certain funds of Edison Capital Housing Investment (the "Tax Credit
Investor") will not be available for disbursement until the rehabilitation of the Project is complete, St.
Regis Park, LP (the "Borrower") requires an additional loan of approximately $300,000; and
WHEREAS, Bank of America, N.A. (the "Bank"), has agreed to purchase an additional
$300,000 of Series 2000B Bonds (the "Additional Bonds") until the Tax Credit Investor disburses its
funds so that the Borrower can obtain, in a timely manner, the necessary funding to rehabilitate the
Project; and
WHEREAS, the Additional Bonds are expected to be redeemed when the Tax Credit Investor
disburses its funds; and
WHEREAS, the Authority, in order to allow the Borrower to obtain such funds desires to
amend Resolution No. HA-13 to increase the combined not to exceed principal amount of the Bonds
to $5,800,000 from $5,500,000; and
WHEREAS, this Board hereby finds and declares that this Resolution is being adopted
pursuant to the powers granted by the Act;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing
Authority of the City ofChula Vista, as follows:
I q-3
DOCSOC\ 745857v I \24036.0009
_. "T
Section 1. The above recitals, and each of them, are true and correct.
Section 2. Resolution No. HA-13 is hereby amended in part to increase the combined
not to exceed limit of the Bonds to $5,800,000 from $5,500,000 and all references in Resolution
No. HA-13 to $5,500,000 shall be deemed to be and are hereby amended to be $5,800,000.
Section 3. Except as amended by Section 2 above, all provisions of Resolution No. HA-
13 shall remain in full force and effect.
Section 4. If any section, paragraph or provision of this Resolution shall be held to be
invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph
or provision shall not affect any remaining provisions of this Resolution.
Section 5. This Resolution shall take effect immediately upon its adoption.
PRESENTED BY APPROVED AS TO FORM BY
&. ~ 72 I if It ' fLu Ù,
.'Vl,. ~ ' '.. ¡Ii- I
Chris Salomone John M. Kaheny /
Director of Community Development Agency Attorney
H:IHOMEICOMMDEVlRESOSIPear Tree Amending Principal Amount of Bonds. DOC
2 1- 7'
DOCSOC\745857v I \24036.0009
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