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HomeMy WebLinkAbout1997-11-25 - AGENDA REPORTS - TEFRA BOUQUET CYN SENIORS (2)AGENDA REPORT PUBLIC HEARING DATE: November 25, 1997 CityManaf Item to be Steve Stark SUBJECT: TAX EQUITYAND FISCAL RESPONSIBILITYACT (TEFRA) HEARING FOR BOUQUET CANYON SENIORS HOUSING PROJECT -- TAX EXEMPT FINANCING RESOLUTION NO. 97-138 DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council open the public hearing, receive testimony, close the public hearing, and adopt Resolution No. 97-138, approving the issuance by CSCDA of not to exceed $17,000,000 aggregate principal amount of Multi -Family Housing Revenue Bonds. BACKGROUND The California Statewide Communities Development Authority (CSCDA) has proposed the issuance of $17,000,000 in multi -family housing revenue bonds for the acquisition and construction of a 264 -unit affordable senior housing project in the City of Santa Clarita, on behalf of Bouquet Canyon Seniors. In order for CSCDA to complete the financing, the City, as the local jurisdiction, has been requested to hold a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing and adopt a Resolution of support. There is no financial or legal obligation/ liability to the City of Santa Clarita. The CSCDA is a joint powers authority (JPA) established by the California State Association of Counties and the League of California Cities in 1987 to serve as a public conduit issuer of private entities such as manufacturers, nonprofit agencies, and low-income housing providers, all of which are eligible for tax-exempt financing. CSCDA assumes the legal and administrative responsibility for financings as an alternative to a City or County serving as the conduit issuer. Currently the JPA has over 240 participants, one of which is the City. A conduit issuer acts as a pass-through which enables an agency to receive the tax -exempt -status. This process is similar to the one the City did for the YMCA in 1993. Adopted:1 3 Agenda3—i-sw RESOLUTION NO, 97-138 November 25, 1997 - Page 2 In order to provide for the issuance of bonds by the CSCDA, the City Council must be a member of the JPA, hold a TEFRA hearing to take public testimony on the proposed project, and approve a resolution authorizing the issuance of bonds by CSCDA for the project. Bouquet Canyon Seniors has asked the CSCDA to act as issuer in connection with the issuance of tax exempt bonds for the purpose of acquiring land and constructing 264 units to be located on a 12.35 acre parcel to be known as Bouquet Canyon Seniors. It will be located adjacent to and westerly of Bouquet Canyon Road, Festividad Drive and Espuella Drive. The project itself will come before the City Council early next year; however, in order for the developer to qualify for tax-exempt financing, they must apply to the State for funding allocation by December 15, 1997. The State only issues a certain amount of allocation per year, and the demand far exceeds the supply. Therefore, the developer must go through this process before the project has been approved. The Internal Revenue Code requires that a public hearing be held concerning the proposed financing. The required hearing must be preceded by a notice published at least 14 days in advance of the hearing. Notice of the proposed hearing was published in accordance with these requirements. FISCAL IMPACT There is no financial or legal obligation/liability to the City. The Developer, Hamilton Larkin, LLC, is responsible for all payments of the bonds. Additionally, any City staff time or cost will be reimbursed by the Developer. ATTACHMENT Resolution No. 97-138 SSM ...ndl\.9713813 RESOLUTION NO. 97-138 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA APPROVING THE ISSUANCE OF NOT TO EXCEED $17,000,000 AGGREGATE PRINCIPAL AMOUNT OF MULTI -FAMILY HOUSING REVENUE BONDS WHEREAS, the California Statewide Communities Development Authority (the "Issuer") has proposed to issue an amount not to exceed $17,000,000 in aggregate principal amount of Multi -family Housing Revenue Bonds (the "Bonds") pursuant to the Joint Powers Act, being Section 6500 et. seq. of the Government Code of the State of California, as amended and supplemented, and Section 52075 et. seq. of the Health and Safety Code of the State'of California (collectively, the "Act"); and WHEREAS, the project to be financed by the Bonds consists of the acquisition of land and the construction of a multi -family senior rental housing project (the "Project") to be owned by Bouquet Canyon Seniors, L.P., a California limited partnership, or related entities; and WHEREAS, the Issuer has requested that the City Council of the City of Santa Clarita (the "City") approve the issuance of the Bonds in order to satisfy the public approval requirement of Section 147(f) of the Internal Revenue Code of 1986 (the "Code") and the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers Agreement (the "Agreement"), dated as of June 1, 1988, among certain local agencies, including the City; and WHEREAS, the City has held a.public hearing providing a reasonable opportunity for persons to comment on the issuance of the Bonds and the location of the Project, which hearing. was properly noticed in a newspaper of general circulation within the City at least fourteen days prior to such hearing; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds as required by Section 147(f) of the Code and Section 9 of the Agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA does resolve as follows: SECTION 1. The issuance of the Bonds by the Issuer is hereby approved for the purposes of Section 147(fl of the Code and Section 9 of the Agreement. SECTION 2. This resolution shall become effective immediately upon its adoption. PASSED, APPROVED AND ADOPTED this day of 19 RESOLUTION NO. 97-138 November 25, 1997 - Page 2 ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of ,19_ by the following vote of Council: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK KS:hds munriM.971381. CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING WITH RESPECT TO. THE PROPOSED ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN THE AMOUNT NOT TO EXCEED $17,000,000. CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY WILL BE THE ISSUER OF THE BONDS. PUBLIC NOTICE IS HEREBY GIVEN: The City of Santa Clarita, California (the "City") will hold a public hearing with respect to the proposed issuance of multifamily housing revenue bonds in an amount not to exceed $17,000,000 (the "Bonds"). California Statewide Communities Development Authority will be the issuer of the Bonds. The Bonds are for the purpose of assisting in the financing of the acquisition of land and the construction of a multifamily senior rental housing project consisting of approximately 264 units to be located on an approximately 12.35 acre parcel to be known as Bouquet Canyon Seniors to be located adjacent to and westerly of Bouquet Canyon Road and Festivad Drive and Espuella Drive in the City for the purpose of providing housing for low-income seniors (the "Project"). The Project will be owned and operated by Bouquet Canyon Seniors, L.P., a California limited partnership, or related entities. The hearing will be held by the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Blvd., 1st Floor, Santa Clarita, the 25th day of November, 1997, at or after 6:30 p.m. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the City Clerk's office, Santa Clarita City Hall, 23920 Valencia Blvd., 3rd Floor, Santa Clarita. If you wish to challenge this order in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at or prior to the public hearing. Dated: November 1, 1997 Publish Date: November 5, 1997 Sharon Dawson, CMC City Clerk Pubntc.