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Home My WebLink About7/15/2009 - STAFF REPORTS - 1.E. F VALMS Hcy �' 0441FORN�P^ City Council Staff Repoli DATE: July 15, 2009 PUBLIC HEARING SUBJECT: CONDUCTING A TEFRA (TAX EQUITY AND FISCAL RESPONSIBILITY ACT) HEARING FOR THE PROPOSED ISSUANCE OF TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY NOT TO EXCEED $13,000,000 AGGREGATE PRINCIPAL AMOUNT FOR THE BENEFIT OF THE COACHELLA VALLEY HOUSING COALIATION, A CALIFORNIA NOW PROFIT PUBLIC BENEFIT CORPORATION, FOR THE ACQUISITION, CONSTRUCTION AND DEVELOPMENT OF THE ROSA GARDENS APARTMENTS AT 555 ROSA PARKS ROAD IN THE DESERT-HIGHLAND GATEWAY ESTATES NEIGHBORHOOD FROM: David H. Ready, City Manager BY: Department of Community & Economic Development SUMMARY These actions conduct the required TEFRA public hearing in conjunction with the proposed issuance by the California Municipal Finance Authority (the "CMFA"), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $13,000,000 of tax-exempt multi-family housing revenue bonds (the `Bonds")- The proceeds of the Bonds will be used for the purpose of making a loan to Coachella Valley Housing Coalition (the "CVHC"), a California non-profit public benefit corporation, or any limited partnership or limited liability company established by CVHC (the `Borrower")- The Borrower will finance the costs of the acquisition, construction and development of a 57-unit multi-family residential rental facility to be known as Rosa Gardens Apartments (the "Project") located on 4.45 acres at 555 Rosa Parks Road in the Desert-Highland Gateway Estates Neighborhood. RECOMMENDATION: 1) Open the Public Hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the "Code") for public testimony; and 2) Approve Resolution No. , "AUTHORIZING THE ISSUANCE OF TAX- EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY NOT TO EXCEED $13,000,000 AGGREGATE. PRINCIPAL AMOUNT FOR THE BENEFIT OF THE COACHELLA VALLEY HOUSING COALIATION, A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION, FOR THE ACQUISTION, CONSTRUCTION AND DEVELOPMENT OF THE ROSA GARDENS APARTMENTS AT 555 ROSA PARKS ROAD". VTEM NO. ' City Council Staff Report July 15, 2008-Page 2 of 2 Rosa Gardens Apartments' TEFRA Hearing STAFF ANALYSIS: On February 20, 2008, the Community Redevelopment Agency of the City of Palm Springs approved an Owner Participation Agreement (OPA) with Coachella Valley Housing Coalition (CVHC) and the Desert Highland Associates, L.P., a California Limited Partnership, for the development of a 57-unit multi-family residential rental facility to be known as Rosa Gardens Apartments (the "Project") located on a 4.45 Acre at 555 Rosa Parks Road in the Desert-Highland Gateway Estates Neighborhood. The City Council had previously conducted a TEFRA Hearing and approved the issuance Bonds on July 9, 2008. Due to the delay in the bond issuance because of this past year's credit market condition, it is necessary to once again conduct the TEFRA hearing process as a result of the one-year lapse of time. The project will be a mix of one, two, three and four bedroom units and will include typical site amenities such as pool, community room, laundry, and tot lots. The project will also supply a variety of community services such as computer classes, after-school programs, ESL classes, health education, and music and arts programs. Common to all affordable housing developments, the financing structure will utilize a combination of Low Income Housing Tax Credits (LIHTC) through the California Tax Credit Allocation Committee (TCAC), tax-exempt bond financing authorized through the California Debt Limit Allocation Committee (CDLAC) and construction financing from the California Housing Finance Agency (CaIHFA). Other project financial commitments include $4.1 million of State HOME Investment Partnership Program (HOME) funds and $4 million in State Multi-family Housing Program (MFP) funding. FISCAL IMPACT: There is no fiscal impact to the City and issuance of the bonds does not obligate the City financially in any way, nor does it affect the City's bonding capacity for City-funded projects. The bonds would be repaid by CVHC through the rents received from the project.� DALE E. COOK, JR. THOMAS J. t SON Community Development Administrator Assistant City Manager DAVID H. READ h.D. City Manager ATTACHMENT: 1. Resolution 2. Vicinity Map pa1er/Housing/CVHC_RosaGardcns_CC_StaffRapod_TEFRA2 Jul09 2 002 as, Department of Planning Services " w+E Vicinity Map r t I O __. PALM VISTA OR " COROZON AVE.� �� MIRAGRANDE _UPJ N _� 1 _ BC) G t / 1 I \ � AVENIDACERCA N �. . W 2 ROSA PARKS RD - (5 xz 1¢ 7�1 Y, GATEWAY DR C - ---RADIO RD % I ........... o r a a % I o Legend O i G\� 400' Project Site f Oyw -- --- SAN RAFAEL DR CITY OF PALM SPRINGS CASE NO: 3.3157 MAJ DESCRIPTION: To consider an application for Major Architectural approval of a 2-story, 59-unit affordable APPLICANT: Desert Highland apartment complex on approximately 4.54 acres at the Associates, LP northwest corner of McCarthy Road and Radio Road, zoned R-2, Section 34, APN 669-420-009. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AUTHORIZING THE ISSUANCE OF TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY NOT TO EXCEED $13,000,000 AGGREGATE PRINCIPAL AMOUNT FOR THE BENEFIT OF THE COACHELLA VALLEY HOUSING COALIATION, A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION, FOR THE ACQUISTION, CONSTRUCTION AND DEVELOPMENT OF THE ROSA GARDENS APARTMENTS AT 555 ROSA PARKS ROAD WHEREAS, the California Municipal Finance Authority (the "Authority") intends to issue tax-exempt obligations (the "Obligations") at the request of Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, on behalf of and together with its successors or assigns or any limited partnership or limited liability company established by Coachella Valley Housing Coalition (the 'Developer"), for the purpose, among other things, of making a loan to the Developer, the proceeds of which shall be used by the Developer to finance the acquisition, construction and development of a 57-unit multifamily housing rental facility to be known as Rosa Gardens Apartments and to be located at 555 Rosa Parks Road in the City of Palm Springs, California (the "Project"); and WHEREAS, the City of Palm Springs (the "City") had determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefore by the Authority; and WHEREAS, the City Council of the City (the "City Council") approved entering into the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority (the "Agreement") on July 9, 2008, among certain local agencies; and WHEREAS, the Obligations will be considered to be "qualified exempt facility bonds" under Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section 147(f) of the Code requires that the "applicable elected representative" with respect to the City hold a public hearing on and approve the issuance of the Obligations; and WHEREAS, this City Council is the elected legislative body of the City; and WHEREAS, a notice of public hearing in a newspaper of general circulation in the City has been published, to the effect that a public hearing would be held by this City Council on the date hereof regarding the issuance of the Obligations by the Authority and the nature and location of the Project; and Resolution No. Page 2 WHEREAS, on July 15, 2009 the City Council held said public hearing, at which time an opportunity was provided to present arguments both for and against the issuance of such Bonds and the nature and location of the Project; and WHEREAS, it is in the public interest and for the public benefit that the City approve the issuance and delivery of the Obligations for the purpose of financing the acquisition, construction and development of the Project, and WHEREAS, the City shall not have any liability for the repayment of the Obligations or any responsibility for the Project; THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct. SECTION 2. The City Council hereby approves the issuance of the Bonds in an aggregate principal amount not to exceed $13,000,000 by the Authority. It is the purpose and intent of the City that this resolution constitute approval of the issuance of the Bonds (a) by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) by the City in accordance with Section 4 of the Agreement. SECTION 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. SECTION 5. The Mayor, or designee thereof, the Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. Resolution No. Page 3 SECTION 6. The Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel: Harriet M. Welch, Esq. Squire, Sanders & Dempsey LLP 555 South Flower St., Suite 3100 Los Angeles, CA 90071-2300 SECTION 7. This resolution shall take effect upon its adoption. ADOPTED THIS day of July, 2009. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. _ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote- AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California DaleC/Housing/CVHC_RosaGardens CC Reso TFFRA2.Ju109 e0s CITY OF PALM SPRINGS PUBLIC HEARING NOTIFICATION City Council Meeting Date: July 15, 2009 Subject: ROSA GARDENS APARTMENTS ISSUANCE OF TAX-EXEMPT MULTI-FAMILY REVENUE BONDS AFFIDAVIT OF PUBLICATION 1, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on July 1, 2009. 1 declare under penalty of perjury that the foregoing is true and correct., Kathie Hart, CMC Chief Deputy City Clerk AFFIDAVIT OF POSTING 1, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the City Clerk on July 1, 2009. 1 declare under penalty of perjury that the foregoing is true and correct. M- Kathie Hart, CMC Chief Deputy City Clerk 007 PROOF OF PU13LICATION llus is space for County Clerk's Pllin;Stamp (2015.5.C.C.P) STATE OF CALIFORNIA County of Riverside I am a citizen of the United States and a resident of Proof of Publication of the County aforesaid;I am over the age of eighteen ----------•------------- years,and not a party to or interested in the above•entitled matter.I am the principal clerk of a printer of the,DESERT SUN PUBLISHING _ COMPANY a newspaper of general circulation, �— printed and published in the city of Palm Springs, No 280 NOTICE OF PUBLIC HEARING CITY COUNCIL County of Riverside,and which newspaper has been CITY OF PALM SPRINGS adjudged a newspaper of general circulation by the ISSUANCE OFTAX-EXEMPT Superior Court of the County of Riverside,State of pONULTI PS RO5A GARDENS HOUSING REVENUE California under the date of March 24,1988,Case Number 191236•that the notice,of which the NOTMFNTS ICE IS f 111 GIVEN that the ,will Council of the Clry of P31m Springs,Cahforma,will Pold a annexed i5 a tinted CU Set In C not SmaIICY public h0armg el As moetinq of July 15 2009 The P copy( type Oiry Council mrehn9 hL9m;•et 5.00 m In the than non pariel,has been published in each regular council chamber al arty Hau, 32o0 �angmtm Canyon Way,Palm 5pril _ and entire issue of said newspaper and not in any p su lement thereof on the following dates,to wit: The purpose of Inls yills hearing m consider a ro- PP g vat of rile Iss-uanco by Inc emptpmul Municipal Fi- nance Aulnoillyan of matte apt mulb•l final if, .July I"`,2009 el nun hoods in en Csnr"rted one Procaedsnof wlMch Ilon Collars(In 000000), will bo used to assist IP the Val, rig of file ac- ----- --------------� qu!^Irian conslymcnon and developmegt of a 67- know�s RosallGardsn�Appuerlment�hal elhPYoJe t") _—,•_____�__,,,,___�__�_____ __� loceled on a u 45 Acre et.55S Rost!t s N Road r- the Oesan-WghlaOd Gateway Estatus Nclghl>or- All in the year 2009 hood. The owner of the P elect Is nxpected to be 'Coachella Valley Housing Coalition(the CVHC`), I certify(or declare)under penalty of perjury that the a coltish non-plofa public benefit car oration foregoing i5 true and correct. or any Ilmilnd dillerl or limited li.nilily com- pe g pany eslablk.11 by CVHC REVIEW OF PROJECT INFORMATION: Dated at Palm Springs I or is this—2"", --day The staff report and other supportihq documents _ - regandirtp this matter are avalll.able for public 00 _ am.andh 600 pm� Mo daY theca h 1hd�sd Y of--...— duly -- — ----,2009 Plea^e comet the Olio; of the �IIY Cmrk at _ 750 323 870A for a scheduled appomtmcn[to re- vicw thaw document. - ' COMMENT ON THIS PROJECT; the lulse Hanrling andlor in writce pri be ing before mc,hear og I Vint- ;an__..-�... —.�..._--......-_—__.......� cornea is can he made to Ine City Counol by j orate urear[tor mail or hand delivery)to' James Thompson Caryvry Clork99 PSOm SP IP9sVCA 92E52-2M �j Any challenge of the proposed project In court mayy be lindted to alshig only those Issues ral.ed Y at the pub6o hearing:11- lhod In tills nacco,or In -- mnttnn coma:.ppandenco d,Ivered to the Clry Clerk' at,le palls, la the ppublic hearing. (Government Code Section 65009(p)(2)). An opportunity will be given et said hoanng for all Interested portions to be hard. GafetCoo regard irig this case mayv be direcb'.d to Ogle Cook Com• �L m rl fT- �• Imurtialk, oak®ppealnopmegrit.Ca gAcdmlNos`Irtar&)523 gig8rr0O i6o.964 S527. ''_r��- '�— ` SI mcesQe ayud:l con esta cads polfavor Ilnme o 'J —, Is Ciudad de Palm Springgs yy puede ha0lar con p. Nadine Flagor lelafonc 768 323 e245. 0 James Thamp:.on Clty Clerk c..l Publlshctl:711109 NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS ISSUANCE OF TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE BONDS ROSA GARDENS APARTMENTS NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of July 15, 2009. The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs. The purpose of this hearing is to consider approval of the issuance by the California Municipal Finance Authority of tax-exempt multifamily revenue bonds in an estimated amount of Thirteen Million Dollars ($13,000,000), the proceeds of which will be used to assist in the financing of the acquisition, construction and development of a 57-unit multi-family residential rental facility to be know as Rosa Gardens Apartments (the "Project") located on a 4.45 Acre at 555 Rosa Parks Road in the Desert-Highland Gateway Estates Neighborhood. The owner of the Project is expected to be Coachella Valley Housing Coalition (the "CVHC"), a California non-profit public benefit corporation, or any limited partnership or limited liability company established by CVHC. REVIEW OF PROJECT INFORMATION: The staff report and other supporting documents regarding this matter are available for public review at the City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact the Office of the City Clerk at 760.323.8204 for a scheduled appointment to review these documents. COMMENT ON THIS PROJECT: Response to this notice can be made verbally at the Public Hearing and/or in writing before the hearing. Written comments can be made to the City Council by letter (for mail or hand delivery) to. James Thompson, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262-2743 Any challenge of the proposed project in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to Dale Cook, Community Development Administrator at Dale.Cook(a7palmsprinos-ca.gov , or 760.323.8198/TDD 760.864,9527. Si necesita ayuda con esta carta, porfavor flame a la Ciudad de Palm Springs y puede hablar- con Nadine Fieger telefono 760.323.8245. ?James Thompson, City Clerk = • - �V1c