HomeMy WebLinkAboutReso 1983-11131 RESOLUTION NO. 11131
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING, AUTHORIZING, AND DIRECTING
EXECUTION OF AGREEMENT FOR BOND FEASIBILITY STUDY
SERVICES WITH EMPIRE ECONOMICS
WHEREAS, the City is considering undertaking certain proceedings
for the issuance of Mortgage Revenue Bonds to finance a home mortgage program
in the City, and it is desirable to employ a feasibility consultant in
connection therewith;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Chula Vista, as follows:
1. That certain agreement by and between the City and Empire
Economics for bond feasibility services in connection with said bond issue, a
copy of which is on file with the City Clerk of the City, is hereby
authorized. The appropriate officers of the City are hereby authorized and
directed in the name and on behalf of the City to execute said agreement at
such time as the City Manager reports that the City has a strong likelihood of
receiving a bond allocation from the State Mortgage Bond Allocation Committee.
2. This resolution shall take effect immediately.
Presented b Approved as t. 9 form by
Community Development Di rector Attorney
WPC 0483H
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this llth day of January
19 83 , by the following vote, to-wit:
AYES: Councilmen Scott, Cox, Malcolm, Moore, McCandliss
NAYES: Councilmen None
ABSTAIN: Councilmen None
ABSENT: Councilmen None
Mayorl C of Chula Vista
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTTON N0. ]]]3] ,and that the same has not been amended or repealed.
DATED
(seal) City Clerk
CC-660 ~
December 10, 1982
Mr Dave Gustafson
Housing Coordinator
276 4th Avenue
Chula Vista, CA 92010
Re: Market Demand, Income, and Price Studies for
Chula Vista's Mortgage Revenue Bond Issue
Dear Mr Gustafson:
This letter will serve as a proposal, and upon execution, an
Agreement for the Market Demand, Income, and Price Studies for
Chula Vista's Mortgage Revenue Bond Issue. Accordingly, this
Agreement will provide you with a description of the research
that shall be conducted, along with the performance schedule and
financial considerations for the study.
Background
Empire Economics is a firm specializing in market demand studies
for residential, commercial and industrial projects located
throughout the Southern California region. Recently, we
conducted market demand studies for mortgage revenue bond issues
for San Bernardino County, Riverside County, Palm Springs, and
Azusa, as well as market demand studies for improvement bonds for
the cities of Ontario and Corona. Additionally, we have
published articles on housing in various professional journals
and also frequently have articles in the Los Angeles Times Real
Estate Section.
Description of Economic Research
The primary objective of the Market Demand, Income and Price
Studies is to determine the optimal portfolio of projects for the
Chula Vista Mortgage Revenue Bond Program, to ensure its success.
This will be accomplished through a professional and
comprehensive analysis of all of the relevant factors, including:
, q -
Mr. Dave Gustafson
December 10, 1982
Page Two
* Recent demographic, economic and housing market trends
in the Chula Vista market area.
* A forecast of the amount of housing demand in the Chula
Vista market area over the 1983-85 period will be
derived, through ~.o~n~ic~eP:a.~lon of the expected growth
of the economi~'.b;~'~eSin th~ market area, including
industry and g~Pnmental establishments, as well as
spillover from.,.~n. Di~:go City.
* Projects tha~e presently on the market as well as
those that a~;~c~d~])~'~ enter the market in the near
future will .~Z~'rVeya]d, in order to determine their
competitiven~O~S.S, especially in terms of the financing
that they
* a ed upo~y~:~ .... arket dem~d and supply conditions in
the Chu ~Z~Vista mark~LU]:: area along with the
character;~'i~ of the ~date '
. projects, the optimal
portfolio ~f: ~.je~:~ for the Chu!a~ Vista mortgage
revenue bond ~rogra~: ~ilt be d~:rmined. Special
consideration will be ~i~en to those ~:rojects that will
be ablc to ful~ill the:Oi'ty's housing0bjectives.
will e e ~ e t of the
income levels of Ca.~i.f~aia and San Diego households,
based upon 1980 Cens~ta. 'These will be updated to
~982, and then fore~.~ed for the 1983-84 period.
* The maximum pric0~';the housing~..~its in the program
will be derived~0ugh a com~:~'ation of all the
housing sales i~.~n Diego co~ during the most
recent 12 month'~'.'~'~'which:d.a~aare available. This
will be compa'r'e'~: '~W:~'~hthe m0s~ recently published
federal guidelines, and the highest will be chosen.
Mr. Dave Gustafson
December 10, 1982
Page Three
Therefore, the Market Demand, Income and Price Studies will
perform a comprehensive analysis of all of the related economic
and housing market conditions that will affect the success of the
Chula Vista Mortgage Revenue Bond Issue.
Performance Sch~i~!~!~l Considerations
The research for the Ma~Demand I~ome and Price Studies is
expected to commence ~!~'~te December ~982 and be completed
within three to four we ~ereaf~r, in late January , 1983.
of the study and th~7~:~'~:'~50% within 15 days after the
delivery of the study.r ~ny addi~fional consulting services will
be billed separately,.'~ The specific time schedules and fees for
the specific studies ~r~as follows:
· Ti~]]7 Financial
Task . ~ '~ Considerations
Market Demand Study 3-~'/~eks ~ $7,000
Housing Price Study ~
~;.:~ ~ 750
Income Study 750
TOTAL weeks*
$8,500
...~.:~....: ~::.!~.;..~:.:~..~::'~,':.
* If all three studies are conducted simultaneously.
,,L i/I. t
Mr Dave Gustafson
December 10, 1982
Page Four
We are certainly looking forward to assisting you with your
mortgage revenue bond program.
JTJ: re
Enclosures
APPROVED: ~ "T~i~PPROVED:
! R-11131
12 -/1 ! F l