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Home My WebLink About75F - TEFRA FIRST POINT APTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 7, 2017 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT OF FIRST POINT APARTMENTS AND RESOLUTION APPROVING THE ISSUANCE OF BONDS (STRATEGIC PLAN NO. 5, 3) CITY 64ANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf of the Santa Ana Pacific Associates, L.P. (the 'Borrower"), for the benefit of First Point Apartments (the "Project') to finance the acquisition, construction, improvement and equipping of First Point Apartments, a 346 -unit multifamily rental housing project located at 2114 E. 1st Street, Santa Ana, California. Adopt a resolution approving the issuance of revenue bonds by the Authority in an amount not to exceed $157,500,000 for the purpose of financing the acquisition, construction, improvement and equipping of First Point Apartments, a 346 -unit multifamily rental housing project. DISCUSSION Santa Ana Pacific Associates, a California Limited Partnership or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "CMFA") adopt a plan of financing providing for 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 $157,500,000 (the "Bonds") for the acquisition, construction, improvement and equipping of a 346 -unit multifamily rental housing project located at 2114 E. 1st Street, Santa Ana, California, generally known as First Point Apartments and operated by Barker Management, Inc. However, 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 TTEFRA Hearing") providing for the members of 75F-1 First Point Apartments — TEFRA Hearing November 7, 2017 Page 2 the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project. The bonds to be issued by the Authority are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. In addition, this TEFRA Hearing and the adoption of the 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, 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. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of this project. The Housing Element of the City's General Plan contains various goals and policies which are intended to provide a diversity of quality housing, affordability levels and living experiences that accommodate Santa Ana's residents to foster an inclusive community. Additionally, the General Plan encourages development of affordable rental and ownership housing for seniors, people with disabilities, families with children, and people needing emergency, transitional or supportive housing options. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts 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 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 California Municipal Finance Authority (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 that 25 percent of the issuance fee 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 CMFA does not receive issuance fees until a bond issuance closes. The fees the CMFA receives are based upon the par amount of the bonds issued. The Borrower ultimately decides when and if the bonds are actually issued and the final amount of bonds issued. The amount granted to the City is to be determined, but will not exceed $35,416 under the assumption the 75F-2 First Point Apartments — TEFRA Hearing November 7, 2017 Page 3 entire $157.5 million in bonds are issued. Upon receipt, the funds will be deposited to the Miscellaneous Revenues, Miscellaneous Recoveries Revenue Account (no. 01102002-57010). RobertM Zur Schmiede Interim Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency Candida Neal, AICP Acting Executive Director Planning & Building Agency Exhibits: 1. Resolution 2. Narrative Description of Proposed Project 3. Notice to Applicant 75F-3 75F-4 RESOLUTION NO. 2017 - 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 $157,500,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF FIRST POINT APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO - - — ._WHERE -Aa, -Santa Arra--Pacific- A-ssociates, -a— California-Limited—Partrrershiir(ti EF -- -__ - "Borrower") or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "Authority") adopt a plan of financing providing for 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 $157,500,000 (the "Bonds") for the acquisition, construction, improvement and equipping of a 346 -unit multifamily rental housing project located at 2114 E. 1st Street, Santa Ana, California, generally known as First Point Apartments (the "Project") and operated by Barker Management, Inc.; and WHEREAS, 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 located within the territorial limits of the City; and WHEREAS, 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; and WHEREAS, 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 147(f) of the Code and the requirements of Section 4 of the Joint Exercise 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 WHEREAS, 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; NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The foregoing recitals are true and correct. Section 2. 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 Exhibit V 75F-5 which the Project is located, in accordance with said Section 147(f) and (b) 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, rehabilitation, installation or operation of the Project; (iii) make any contfibution 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 officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem 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 6. This resolution shall take effect immediately upon its adoption ADOPTED this _ day of , 2017. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 75F-6 Narrative Description of Proposed Project First Point Family Apartments, Santa Ana, Orange County, California Location The site for the proposed project, First Point Family Apartments, is on approximately 3.98 +/- acres of land identified as APNs 402-191-01 and 402-191-02. The site is situated south of East First Street, between Interstate 5 and the Costa Mesa Freeway (State Route 55) in the City of Santa Ana, Orange County, California. Adjacent Land Uses NORTH: Commercial / Retail SOUTH: Multi -Family Residential EAST: Rehabilitation and Care Center WEST: Commercial/Retail Housing Tvoe The proposed development will be a 346 -unit rental new construction apartment community. With a mix of 26 one -bedroom units (approximately 610 sq. ft.), 160 two-bedroom units (approximately 929 sq. ft.), 84 three-bedroom units (approximately 1,170 sq. ft.) and 76 four-bedroom units (approximately 1,243 sq. ft.), First Point Family Apartments will provide affordable housing for families earning up to 60% of the area median income (AMI) for Orange County. Construction Design & Project Description The project will consist of one, elevator serviced residential building. The proposed type of construction will be a six story, wood frame structure, designed and detailed in conformance with applicable building, life, safety and fire codes, supported by perimeter foundations with concrete slab flooring on top of the parking podium. Parking will be contained within the ground level, reinforced concrete and masonry podium structure. This type of construction will allow the building to conform to the natural terrain with only minor amounts of grading. Minimum construction standards will be adhered to in order to assure that a quality family housing development is provided. The building will have various amenities such as community gathering areas, community rooms, a playground, and community laundry facilities located on the first, third, and fifth levels. Courtyards will provide open space and opportunities for families and children to recreate and socialize. Three managers will provide assistance and management while residing in designated manager's units. Exhibit 2 First Point Family Apartments 75F-7 Narrative Description of Proposed Project The unit mix will be as follows: Number of Units Bedrooms Unit Size AMI 26 1 610 sq. ft. (approximate) 50% & 60% 159 2 929 sq. ft. (approximate) 50% & 60% 82 3 1,170 sq. ft. (approximate) 50% & 60% 76 4 1,243 sq. ft. (approximate) 50%& 60% 1(Manager's Unit) 2 929 sq. ft. (approximate) 2 (Manager's Units) 1 3 1,170 sq. ft. (approximate) Within the units, tenants will enjoy standard features such as refrigerators, exhaust fans, dishwashers, disposals, and ranges with ovens. Most units will feature a covered patio or balcony and provide secure storage. Fully accessible units will serve disabled individuals. First Point Family Apartments will be water and energy efficient, provide healthy indoor air quality and will incorporate long lasting durable materials on both the interior and exterior of the project. The design of these apartments will adhere to all necessary requirements to satisfy Section 504 as well as any additional mandates that the local jurisdiction deems appropriate. Unit Amenities All units will feature: • Refrigerators • Exhaustfans • Dishwashers • Garbage disposals • Ranges with ovens • Covered patio or balcony (most units) Project Amenities Project amenities include: • Approximately 100,000 sq. ft. of community facilities and common areas • Exercise room • Computer room • Recreation room including TV and lounge area, seating and kitchen • Community laundry rooms • Playground area for children • Elevators • Podium parking • Controlled access and security features First Point Family Apartments Narrative Description of Proposed Project 75F-8 Development Schedule The community will be developed in one phase. The anticipated construction phase will be approximately thirty [30] months. The anticipated construction start date is June 2018 with a projected completion date of December 2020. First Point Family Apartments 75F-9 Narrative Description of Proposed Project 75F-10 MAYOR Miguel A. Pulido MAYOR PRO TEM Michele Martinez COUNCILMEMBERS P. David Benavides Vicente Sarmiento Jose Solorio Sal Tinalero Juan Villegas November 2, 2017 Tony Crowder The Pacific Companies 430 E State Street, Suite 100 Eagle, ID 83616 CITY OF SANTA ANA 20 Civic Center Plaza . P.O. Box 1988 Santa Ana, California 92702 714-647-6900 vmvv.santa-ana.oro Subject: Notice to Applicant Regarding Request for TEFRA Hearing Dear Mr. Crowder, INTERIM CITY MANAGER Cynthia J. Kurtz CITY ATTORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria D. Huizar This is in response to your request for the City of Santa Ana to conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority ("Authority") on behalf of the Santa Ana Pacific Associates, L.P. The TEFRA Hearing has been placed on our City Council agenda per your request. This TEFRA Hearing is not being considered by City Council as a recommended action per our staff. Instead this item is being considered as an applicant requested action. In addition, this TEFRA Hearing and the adoption of the 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, 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. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of your project. If you have any questions regarding this letter, I may be reached by telephone at (714) 667-2241 or by e-mail at jbrown(cilsama-ana.orQ. Sincerely, Judson Brown Housing Division Manager Exhibit 3 SANTA ANA CITY COUNCIL Miguel A %Fdo Michela MaNnm NA.M. Samuenfo Jose Solorio P. David Ben"des Juan Villages Sal Tmalero Mayor Mayor Pro Tem, Ward 2 Word Ward 34 Ward Word rrioulidonsanta-ana.Oro mlmaninesCdsanla-ana.oro vsann'ento(olsanta-anaora =nt an dbenaNdes/a�santa-ana.om 'v'lleoasna sanla-ane Ora sVnaero(oieaa1a-.ra.oro 75F-12