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HomeMy WebLinkAbout5/15/2002 - STAFF REPORTS (24) DATE: MAY 15, 2002 TO: CITY COUNCIL FROM: DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT CONDUCTING A TEFRA (TAX AND EQUITY FISCAL RESPONSIBILITY ACT) HEARING FOR THE PROPOSED ISSUANCE OF CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY BONDS IN AN AMOUNT NOT TO EXCEED $5,000,000 FOR THE PURPOSE OF ASSISTING SEMINOLE GARDENS PRESERVATION, LP ACQUIRE AND REHABILITATE THE SEMINOLE GARDENS APARTMENTS AT 2607 LINDEN WAY RECOMMENDATION: It is recommended that the City Council consider an application by Seminole Gardens Preservation LP for tax-exempt bond financing for the purchase of Seminole Gardens Apartments at 2607 Linden Way, with bonds issued by the California Statewide Communities Development Authority. Though the City is already a member of the Authority, such an approval requires the City to conduct the public hearing and approve the Authority's issuance of indebtedness. SUMMARY: Seminole Gardens Preservation LP is purchasing the Seminole Gardens Apartments on Linden Way and has applied for tax exempt bonds and 4% Low Income Housing Tax Credits for the acquisition and rehab financing. They propose to spend about $19,000 per unit updating and repairing the units, which have suffered from lack of maintenance. The City, however, is required to conduct a TEFRA public hearing required of all tax-exempt bonds; the City is already a member of the California Statewide Communities Development Authority. The project retains and upgrades 60 low-income housing units in the community. BACKGROUND: Seminole Gardens Preservation LP is purchasing the Seminole Gardens Apartments on Linden Way and has applied for tax exempt bonds and 4% Low Income Housing Tax Credits for the acquisition and rehab financing. The buyers propose to spend about $19,000 per unit updating and repairing the units, which have suffered from lack of maintenance. The Sources and Uses of Funds are as follows: az' 14 Sources Uses Bond Proceeds $3,385,000 Land Acquisition $900,000 Tax Credits $939,000 Building Acquisition $1,700,000 Developer Equity Construction/Remode $1,144,325 I Deferred $449,000 Cost of Issuance $150,000 Development Fee Cash Flow Developer Fee $449,000 Reserves Relocation $100,000 Legal, Title, Taxes $329,675 Total $4.773,000 Total $4,773,000 The total investment per unit is $79,550. Neither the City nor the Agency is contributing financially to the project. The project retains and upgrades 60 low- income housing units in the community, with the rents as follows: 40% at 50% of median income, and 60% at 60% of median income. The City is required to conduct a TEFRA public hearing required of all tax- exempt bonds; the City is already a member of the California Statewide Communities Development Authority. IJO N S. AYMt*.D Director f Community and Economic Development APPROV -�� City Manager �© ATTACHMENTS: 1. Resolution approving the proposed bond issue REVIEWED BY DEPT.OF FINANCE ai#4 z d Mq r PROOF OF PUBLICATION This is space for County Clerk's Fiitng$tamp (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 No.1106 CITY OF PALM SPFINOS above-entitled matter. I am the principal cleric of a NOTICE OF PUBLIC HEARING prill ter of the,II ESERT SUN PUBLISHING NOTICE Is HEREBY GIVEN that thu Palm sprints City Council at it; regular meeting on May 1'`+, COMPANY a newspaper of general circulation, 0 2,will hold a pubhc huXingg on tl consider ap- proval of line Issuance by the GaMornia 5Yarewlde printed and published in the city of Palm Springs, Co u tws Oavelopment Authority (the Countyof Riverside,and which news a er has been CSCIDA') of multifamily hou ariq revenue bonds p p in the Irlirqate princlpal amount of appraxi z- ntal adjudged a newspaper of general circulation by the ly 34,006 00o the pnnpipal amount of which will b,' appplied to the financing of thu•4ucurizion and Superior Court of the County of Riverside,State of rehabildation of a 6o-unli munifamkly residgntial California under the date of March 24, 1988.Case rental taclllty commonly Icn"Pr the Seminole Norther 191236;that the notice,of which the a'd Linden Way ins (h rY o{$0,Springs.CAI annexed is a printed copy(set in type not smaller The owner of I,hP Prolect will be Seminole Gar• dens preservation Limdcd POrtnerenlp, a Califor- than non oriel,has been published in each regular nia limilcd partnership, or a limited liabrldy Com- p P g pony to be formed by SCminOle Gardens Preser- and entire issue of said newspaper and not in any „aeon Lnmled Partnership. supplement thereof on the following dates,to wit; All those intorestcd in m Auers related to the issu- May Ist .rnpG of the revenue bonds are mviVd to attend and be'hcarCl al this mee�e hod In coy Half:._ manta.aL-'F:170pm ;+ d _ Canyonl Way, Palm 5p Chimbcr� rjngcc'•I, CA at 31f you have any quesvon.,.regarding this matter,gicG;.e call Mi- ^-'----�----`^-----��--•-- chael LaPiarrc of the CSCDA, at .126/033-0229. All in the year 2002 It is the intonl,on of the city ro compply with Inc I certify(0Y declare)under penally of perjury that the American wdh Djy„yihhes Act (ADA) in all rc- %pect: If, as an artcndu0 or a participant at this foregoing is Irne and correct. hearing, -Pema1 assistance is needed beyond g g what is norm•1lly provided,the City will allcrnpl to 2nd accommodate in ;very reasonable manner. PIc39C contact Phil Kaplan, ADA Coordinator, Dated at Palm Springs,California this day 323-6219, •d Ir-oar 3 days prior to the Pv,.+rin to Inform us of the panccular needls) and to d"vr- MaY mate n accommodation i; fr••aibe. of—---—,2002 By:/s/Patnri,r A.Sanders Dated: May 1.2002 PUIg GMaly 9 2002 _.—...�/_X�7.�.!•^vSi4ghnJlaCtu1�re RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $5,000,000 AGGREGATE PRINCIPAL AMOUNT OF CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PURPOSE OF ASSISTING SEMINOLE GARDENS PRESERVATION, LP TO ACQUIRE AND RENOVATE THE SEMINOLE GARDENS APARTMENTS AT 2607 LINDEN WAY WHEREAS, the City of Palm Springs is a member of the California Statewide Communities Development Authority; and WHEREAS, Seminole Gardens Preservation, LP, a California nonprofit public benefit corporation (the "Borrower') qualified as an exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), has requested that the California Statewide Communities Development Authority ("Authority") issue and sell revenue bonds for the purpose of providing financing for the acquisition and renovation of a 60 unit low-income apartment project located at 2607 Linden Way in the City of Palm Springs, California (the 'Project'); and WHEREAS, the financing of the Project will lessen the governmental burden of the City by preserving 60 affordable housing units within the City; and WHEREAS, the Authority proposes to issue its not to exceed $5,000,000 aggregate principal amount Bonds in one series (the 'Bonds") pursuant to the Law to finance the acquisition and renovation by the Borrower of the Project; and WHEREAS, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, this City Council has on this date conducted a duly noticed public hearing with respect to the proposed issuance of the Bonds and financing the Project, such notice being published in a newspaper of general circulation in the City; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. ate Section 2. The California Statewide Communities Development Authority's bond issue, in an amount not to exceed $5,000,000 aggregate principal amount, pursuant to the Law to finance the acquisition and renovation by Seminole Gardens Preservation, LP of the Seminole Gardens Apartments at 2607 Linden Way, are hereby approved. ADOPTED THIS _ day of , 2002. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk City Manager REVIEWED AND APPROVED AS TO FORM: