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HomeMy WebLinkAboutCC 7 INDUS DEV BOND 10-15-84 CONSENT CALENDAR · -' N0. 7 10-15-84 /~-i~- ~ ' '- . TO: FROM: S UBJ ECT: HONORABLE RRYOR AND CITY COUNCIL CO)14UN[TY DEVELOPMENT DEPARI'MENT EXECUTION OF COOPERATION AGREEMENT/INDUSTRIAL DEVELOPMENT FINANCING. BOND BACKGROUND AND D*[SCUSSION: Recently a firm known as G61drich, Kest and Associates r~celved Planning Commission a~proval to construct an 85 unit senior citizen housing project at 1262 Bryan Avenue. In an effort to provide these units at an affordable rental rate, Goldrich, Kest is attempting to receive Industrial Development Bond {IDB) financing through the County of Orange. As such, the City Council is required to execute the attached agreement if the Council determines that IDB financing is appropriate for the subject project. It should be noted that the Goldrich, Kest project would exhaust the City's allocation of such bond financing for the remainder of 1984. However, the full allotment capacty would be available again in calendar year 1985. RECO~ENDATION: It is recommended that the Council authorize the Mayor to execute the attached agreement on the condition that if the project does not use funds from the 1984 allocation, the Council must again review the project prior to the use of any funds from the 1985 allotment. Assistant Planner JD:do COOPERATIVE AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF THIS COOPERATIVE AGREEMENT (the "Cooperative Agreement") is hereby made and entered into as of , 1984 by and between the COUNTY OF ORANGE, a legal subdivision and body corporate and politic of the State of California (the "County"); and the CITY OF TUSTIN a municipal corporation of the State of California (the "City"). ~¥ I T N E S S ET H WHEREAS, Chapter 7 (commencing with section 52075) of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") authorizes the County to incur indebtedness for the purpose of fi- nancing the construction or development of multifamily rental housing in the County; and WHEREAS, the County has -determined to engage in a multifamily rental housing program pursuant to the Act (the '?rogram");, and WHEREAS, the County has determined to borrow money to finance the Program by the issuance of revenue bonds (the "Bonds") as authorized by the Act; and WHEREAS, the City has approved the Program and dete. rmined to co- operate with the County pursuant to the Act in the exercise of their powers under the Act for the purposes of the Program; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the parties hereto agree as follows: SECTION 1. The words and phrases of this Cooperative Agreement shall, for all purposes hereof unless otherwise defined herein, have the meanings assigned to such v}ords and phrases in the Act. SECTION 2. The County agrees to use its best efforts to undertake the Program and to issue the Bonds therefor pursuant to the Act as soon as the County determines the same to be necessary and advisable. SECTION 3. The City represents and warrants to the County that: (i) the City has~ heretofore adopted a general plan for the City in con- formance with the provisions of the Planning and Zoning Law of the State of California (Government Code Sections 65000 et seq.), (ii) said general plan includes a land use element and a housing element as required by Government Code Section 65302, and (iii) the Program complies with said land use element and housing element. SECTION 4. The City agrees that the County may make or acquire loans for the financing of multifamily rental housing projects under the Pro- gram, all as more specifically set forth in the Act, with respect to property located within the geographic boundaries of the City an~d~ that, subject to the provisions of Section 5 hereof, any and all of its powers for the ~purpose of financing such projects pursuant to the Act with respect to such property shall be exercised by the County. SECTION 5. The City agrees that, in connection with its approval of multifamily rental housing projects which are to be financed pursuant to the Program, it will consider opportunities to contribute to the economic feasibility of the units therein through reduction in construction and design require- ments, by making provision for density bonuses, by providing for expedited processing, and by making provisions for other financial incentives for such -projects; provided, however, that nothing contained herein shall be construed to require the City to-approve any such project .or to effect any of such opportunities. SECTION 6. The City reserves to itself the right to undertake its own program of financing multifamily rental housing projects under the Act, provided that under no circumstances will the City conduct or participate in a multifamily rental housing finance program from which bond proceeds would be made available to provide financing for any project with respect to which the County has provided financing from the Program. SECTION 7. The City agrees, to undertake such further proceedings or actions as may be necessary in order to carry out the terms and the intent of this Cooperative Agreement; and the City further agrees to refrain from taking any action which would to its knowledge tend to adversely affect the rating on the Bonds. SECTION 8. Nothing in this Cooperative Agreement shall prevent the County from entering into one or more agreements with other municipal corpo- rations within the County, if deemed necessary and adv~.',sable to do so by the County. SECTION 9. This Cooperative Agreement may be amended by one or more supplemental agreements executed by the County and the City at any time, except that no such amendment or supplement shall be made which shall adversely affect the rights of the holders of the Bonds. IN WITNESS WHEREOF, the parties hereto have caused this Cooperative Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, all as of the day first above written. COUNTY OF ORANGE (SEAL) ATTEST: By Chairman of the Board of Supervisors Clerk of the Board of Supervisors APPROVED AS TO FORM: County Counsel CITY OF- TUSTIN ATTEST: By Mayor City Clerk APPROVED AS TO FORM: City Attorney V/RD.501