HomeMy WebLinkAbout75B - PH - RESO TAX EXEMPTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 17, 2015
TITLE:
PUBLIC HEARING -
RESOLUTION APPROVING
THE ISSUANCE OF TAX -
EXEMPT OBLIGATIONS AND
DIRECTING CERTAIN
ACTIONS
{STRATEGIC PLAN NO. 5,31
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 181 Reading
❑ Ordinance on 2n0 Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt the resolution approving the issuance of the Bonds by the California Municipal Finance
Authority not to exceed $17,500,000, for the benefit of C &C Development Co, LLC, to provide
financing for the acquisition, construction and equipping of an 82 -unit multifamily rental housing
project generally known as Lemon Grove Apartments,
DISCUSSION
C &C Development Company, LLC (the "Borrower") requested that the California Municipal
Finance Authority (CMFA) serve as the municipal issuer of the Bonds in an aggregate principal
amount not to exceed $16,000,000 of tax - exempt revenue bonds. The proceeds of the Bonds will
be used for the purpose of making a loan to the Borrower, to enable the Borrower to finance the
acquisition, construction, rehabilitation, improvement and equipping of an 70 -unit affordable
multifamily housing rental project located at 803 -815 North Harbor Boulevard, Santa Ana,
California (the "Project"), which will be owned and operated by the Borrower.
In order for all or a portion of the Bonds to qualify as tax - exempt bonds, the City of Santa Ana
must conduct a public hearing (the "TEFRA Hearing ") providing the members of the community
an opportunity to speak in favor of or against the use of tax- exempt bonds for the financing of the
Project. Adoption of the resolution is solely for the purposes of satisfying the requirements of
TEFRA, the Code and the California Government Code Section 6500 (and following). Prior to
such TEFRA Hearing, reasonable notice must be provided to the members of the community.
Following the close of the TEFRA Hearing, an "applicable elected representative" of the
75B -1
Public Hearing- Resolution Approving
Tax Exempt Obligations
February 17, 2015
Page 2
governmental unit hosting the Project must provide its approval of the issuance of the Bonds for
the financing of the Project.
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to
promote economic, cultural and community development, through the financing of economic
development and charitable activities throughout California. To date, over 200 municipalities have
become members of CMFA.
The CMFA was formed to assist local governments, non - profit organizations and businesses with
the issuance of taxable and tax - exempt bonds aimed at improving the standard of living in
California. The CMFA's representatives and its Board of Directors have considerable experience
in bond financings.
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the
Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for
the Project or the repayment of the Bonds for the financing of the Project. All financing
documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds
are not obligations of the City or the State of California, but are to be paid for solely from funds
provided by the Borrower.
There are no costs associated with membership in the CMFA and the City will in no way become
exposed to any financial liability by reason of its membership in the CMFA. In addition,
participation by the City in the CMFA will not impact the City's appropriations limits and will not
constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing and
adopting the required resolution, no other participation or activity of the City or the City Council
with respect to the issuance of the Bonds will be required.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #5 (Community Health, Livability, Engagement
& Sustainability), Objective 3 (Facilitate diverse housing opportunities and support efforts to
preserve and improve the livability of Santa Ana neighborhoods).
FISCAL IMPACT
There is no fiscal impact associated with this action
The Board of Directors of the California Foundation for Stronger Communities, a California non-
profit public benefit corporation (the "Foundation "), acts as the Board of Directors for the CMFA.
Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it
receives with its member communities and donates a portion of these issuance fees to the
Foundation for the support of local charities. With respect to the City of Santa Ana, it is expected
75B -2
Public Hearing- Resolution Approving
Tax Exempt Obligations
February 17, 2015
Page 3
that that a portion of the issuance fee attributable to the City will be granted by the CMFA to the
general fund of the City. Such grant may be used for any lawful purpose of the City. The
Borrower will be the beneficiary of the CMFA's charitable donation through a 25% reduction in
issuance fees.
WW-A0X/'-
Kelly L. R n ers
Executive !rector
Community Development Agency
KR/SS /NV /sb
Exhibit: 1. Resolution
75B -3
75B -4
219115 LES
RESOLUTION NO, 2015-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY MULTIFAMILY HOUSING REVENUE BONDS IN
AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $16,000,000
FOR THE PURPOSE OF FINANCING OR REFINANCING THE
ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING
OF 815 N. HARBOR APARTMENTS AND OTHER MATTERS RELATING
THERETO
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
SECTION 1: The City Council of the City of Santa Ana hereby, finds, determines
and declares as follows:
A. C &C Development Co., LLC, a California limited liability company, or
entities related thereto (the "Borrower"), has requested that the California Municipal
Finance Authority (the "Authority') participate in the issuance of one or more series of
revenue bonds issued from time to time, including bonds issued to refund such revenue
bonds in one or more series from time to time, in an aggregate principal amount not to
exceed $16,000,000 (the "Bonds ") for the acquisition, construction, improvement and
equipping of a 70 -unit multifamily affordable rental housing project located at 803 -815
North Harbor Boulevard, Santa Ana, California, generally known as 815 N. Harbor
Apartments (the "Project') and operated by Advanced Property Services, LLC.
B. Pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the
"Code "), the issuance of the Bonds by the Authority must be approved by the City of
Santa Ana (the "City ") because the Project is to be located within the territorial limits of
the City.
C. The City Council of the City (the "City Council") is the elected legislative
body of the City and is one of the "applicable elected representatives' required to
approve the issuance of the Bonds under Section 147(f) of the Code.
D. The Authority has requested that the City Council approve the issuance of
the Bonds by the Authority in order to satisfy the public approval requirement of Section
14z(f) -of -the -Code- and- the - requirements -of -Section -4 -of- the -Joi nt-- E- xereise -of- Powers
Agreement Relating to the California Municipal Finance Authority, dated as of January
1, 2004 (the "Agreement'), among certain local agencies, including the City; and
E. Pursuant to Section 147(f) of the Code, the City Council has, following
notice duly given, held a public hearing regarding the issuance of the Bonds, and now
desires to approve the issuance of the Bonds by the Authority.
75B -5
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa
Ana as follows:
Section 2. The foregoing determinations and declarations are true and correct.
Section 3. The City Council hereby approves the issuance of the Bonds by the
Authority. It is the purpose and intent of the City Council that this resolution constitute
approval of the issuance of the Bonds by the Authority, for the purposes of
(a) Section 147(f) of the Code 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) of the Code and Section 4 of the
Agreement.
Section 4. 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 5. The adoption of this Resolution shall not obligate the City or any
department thereof to (1) 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, rehabilitation, installation 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 6. The City Manager or his designee is hereby authorized and directed,
jointly and severalty, to do any and all things and to execute and deliver any and all
documents which are deemed necessary or advisable in order to carry out, give effect
to and comply with the terms and intent of this resolution and the financing transaction
approved hereby,
Section 7. This resolution shall take effect immediately upon its adoption.
75B -6
ADOPTED this day of February, 2015.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: c
Lisa Storck
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2015- to be the original resolution adopted by the City Council of
the City of Santa Ana on , 2015.
Date:
Clerk of the Council
City of Santa Ana
75B -7
75B -8