HomeMy WebLinkAboutCC 8 T. ROYALE FINANCNG 5-20-85 ' - -~ ~ -' CONSENT CALENDAR
- NO. 8
_ 5-20-85
DATE: NAY ZO, 1985 ~~/ .L~l~e~'- ~.~0
TO:
FROM:
SUBJECT:
HONORABLE NAYOR AND CITY COUNCIL
COMMUNITY DEVELOPMENT DEPARTMENT
COOPERATION AGREEMENT WITH COUNTY
ROYALE FINANCING
OF ORANGE FOR TUSTIN
BACKGROUND AND DISCUSSION:
An 85 unit senior citizen housing project at 1262 Bryan Avenue has
been approved by the City of Tustin, as proposed by Goldrich, Kest and
Associates.
On October 15, 1984, the City Council approved an agreement with the
County of Orange to transfer the City's 1984 allocation of private
bonding limit to the County of Orange for the financing of the
project.
A request has been made by Goldrich, Kest and Associates to finance
this project in part from the 1985 private bond allocation limit.
The 1985 allocation of private bond limit for the City of Tustin in
$2,093,000.00, and the agreement transferring this allocation to the
County of Orange for Tustin Royale would exhaust the private bonding
allocation for the City. There ts a measure before the governo? to
increase the ceiling on private bdnding for 1985, but the status of
this legislation is unpredictable.
There are no other pending private projects requesting private bond
financing in the City of Tustin so the allocation of the full funding
limits would not adversely impact other property owners.
It is also noted that the agreement transferring the bond ceiling
limit to the County of Orange for the Tustin Royale Senior Citizen
Project does not create a liability upon the City or the County.
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 85-52,
transferring the 1985 "Private Bond Limit" to the County of Orange for
the Tustin Royale Project, and direct the City Clerk to file notice of
t~~h~ia Debt Limit Allocation Committee.
Donald D. La~m V
Director of Community Development
DDL:RKF:pef
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RESOLUTION NO. 85-52
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF TUSTIN, CALIFORNIA,
TRANSFERRING "PRIVATE ACTIVITY BOND LIMIT"
TO THE COUNTY OF ORANGE
(TUSTIN ROYALE PROJECT)
WHEREAS, the Tax Reform Act of 1984 (the "Act") imposes a private activity
bond limit (the "limit") on the State of California; and
WHEREAS, the Governor has issued a proclamation dated July 19, 1984 in
which a system for allocation such Limit for calendar year 1985 is
$2,093,000; and
WHEREAS, pursuant to Chapter 7 of Part 5 of Division 31 of the Health and
Safety Code of the State of California and a certain Coopertaive Agreement
between the City of Tustin and the County of Orange, the County proposes to
finance the 85-unit senior citizen multifamily housing project of Tustin
Royale, a California limited partnership, to be located at 1262 Bryan
Avenue (the "Project") by the issuance of bonds in the principle amount of
approximately $3,890,000; and
WHEREAS, the City Council wishes to allocate a portion of the Limit to the
County of Orange for such Project;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Tustin
as follows:
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There is hereby allocated to the County of Orange for use in
conjunction with the bonds for the Project $2,093,000 of the
private activity bond limit available to the City.
The City Clerk shall cause a notice of this allocation to be
filed with the California Debt Limit Allocation Comn~ittee as
soon as practicable.
Such transfer of allocation shall be null and void if the issue
of bonds for which the issue is made is not completed prior to
September 1, 1985.
PASSED AND ADOPTED at a regular meeting of the City Council held on the
day of , 1985.
~ MARY E. WYNN
II
City Clerk
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FRANK H. GREINKE