HomeMy WebLinkAboutCC RES 01-21l0
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RESOLUTION NO. 01-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN APPROVING THE ISSUANCE OF NOT TO
EXCEED $24,850,000 AGGREGATE PRINCIPAL AMOUNT
OF MULTIFAMILY HOUSING REVENUE BONDS
The City Council of the City of Tustin does hereby resolve as follows:
A. The California Statewide Communities Development Authority (the "Issuer") has
proposed to issue an amount not to exceed $24,850,000 aggregate principal amount
of Multifamily 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")
B. The project to be financed by the Bonds consists of a 246-unit multifamily housing
project to be owned and operated by KDF Park Place, L.P. and/or a related entity
(the "Project"); and
C. The Issuer has requested that the City Council of the City of Tustin (the "City")
approve the issuance of the Bonds in order to satisfy the public approval
requirement of Section 147(0 of the Internal Revenue Code of 1986, as amended
(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
D. 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; and
E. It is intended that this resolution shall constitute the approval of the issuance of the
Bonds required by Section 147(f) of the Code and Section 9 of the Agreement;
NOW, THEREFORE, the City Council of the City of Tustin resolves as
follows'
Section 1. The issuance of the Bonds is hereby approved for the
purposes of Section 147(f) of the Code and Section 9 of the Agreement; provided,
however, that such approval is expressly conditioned with the requirement that the
regulatory agreement or other agreement executed in connection with the issuance of
the Bonds include all of the conditions identified in Exhibit A attached hereto and
incorporated herein.
Section 2. The City Clerk shall certify the adoption of this Resolution,
and thenceforth and thereafter the same shall be in full force and effect.
t
EXHIBIT A
CITY OF TUSTIN CONDITIONS FOR SUPPORT OF
PARK PLACE APARTMENT MULTIFAMILY HOUSING REVENUE BOND ISSUANCE
in consideration of the City's agreement to support the Project pursuant to the Amended
and Restated Exercise of Joint Powers Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the City
and the Developer shall agree as follows:
Section 1. Inspections. During the rehabilitation of the Project site, the City shall
have the right to inspect all dwelling unit interiors and the grounds of the Project site for
City and/or the State of California (the "State") building, housing and fire code and safety
violations. Developer shall correct any such violations within a reasonable period of time
after receiving written notice of a violation of any building, housing, fire or safety code
applicable to the Project.
Upon completion of the rehabilitation work, the City shall have the right to
conduct annual inspections of the dwelling unit interiors and Project Site grounds for City
and/or State building, housing and fire code and safety and occupancy violations. All
rental agreements and contracts with the tenants in the Project shall include the right to
inspect the interior of the dwelling units upon forty-eight (48) hours notice. The City
agrees to use its best efforts to coordinate annual inspections in conjunction with annual
inspections by other agencies.
Section 2. Rehabilitation Improvements and Code Compliance. As part of the
proposed renovation of the Project, the Developer agrees to resolve the concerns
expressed by the City regarding deferred maintenance and code compliance conditions
at the Project as identified in the City's letter to the Developer dated February 12, 2001
(Attachment 1). The Developer agrees to complete all rehabilitation improvements
identified in the Proposed Renovation Schedule (Attachment 2) by October 2002.
The Developer agrees to file a Design Review application for the rehabilitation
improvements and to obtain all required City approvals and building permits prior to any
rehabilitation construction requiring a building permit occurring for the Project in order to
conform to the City of Tustin Municipal Code requirements.
Section 3. Affordability Requirements and Relocation.
A. The Developer will restrict not more than 60% of the units to households
earning less than 60% of the area median income and will satisfy the tenant
income and other requirements contained in that certain Regulatory
Agreement to be executed by and between the CSCDA and Developer (the
"Regulatory Agreement"). Developer shall provide advance notice to those
residents above this income limit who will be required to move from the
Project Site because of the income requirements contained in the
Regulatory Agreement. CSCDA shall not approve said Regulatory
Agreement without the prior review and approval by the City of Tustin.
Based on a review of federal and state relocation laws, the City and
Developer are of the opinion that the move of the households from the
Project Site would not constitute displacement which would require the
provision of relocation assistance. Although it is anticipated that no
residents will be considered displaced pursuant to federal and state
relocation law as a result of this Project, the Developer shall offer services
to the affected households, including: 1) a minimum of sixty (60) days
advance notice to vacate which exceeds the thirty (30) day advance notice
legally required; 2)information on comparable housing available in the
area; and 3) during the last two (2) days and the initial two (2) days of any
calendar month, Developer will make available on a twenty-four (24) hour
basis one commercial rental moving truck to be operated by the tenants at
no cost to the tenants. The Developer shall cooperate with individual
residents to minimize the inconvenience caused by any move.
Co
Developer has agreed that should the City be approached by any tenants
seeking relocation assistance or information, and provided that the City
immediately refers that tenant to the. Developer, then Developer shall meet
with that tenant and review this concerns and complaints, and further
Developer shall defend, indemnify and hold harmless the City and all of its
officers, agents and employees from any and all claims' and demands,
actions, proceedings, losses, costs and judgements associated with the
relocation claim including expenses incurred in defending against any legal
actions that may arise directly or indirectly from relocation matters on the
Project. So long as (i) the Developer is not in"default hereunder; (ii) no
judgement relating to a claim for relocation assistance remains unsatisfied
or unstayed for longer' than ten (10) calendar days; (iii) the Developer is
acting in a commercially reasonable manner in addressing claims relating to
relocation assistance; and (iv) if requested, the Developer provides
reasonably satisfactory evidence of its financial ability to cover any claims
made for relocation assistance, the City shall not participate in any
settlement negotiations or settle, compromise or otherwise resolve any
claims for relocation assistance without the consent of the Developer, which
consent shall not be unreasonably withheld or delayed.
Section 4. Payment of Fees and Tax. Equivalent Payment.s..
Ao
For as long as the Project is exempt from property tax levies, the Developer
shall pay an annual administrative fee to the City of Tustin. The fee for the
first year shall be $26,640.00 commencing and due on April 30, 2002.
Bi
· Subject to Section 4D below, each year thereafter on the anniversary of the
first payment due date, Developer shall pay to the City of Tustin an
administrative fee equal to the prior year's payment plus an additional two
percent (2%).
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The administrative fee shall be payable to the Office of the City of Tustin
Finance Director at 300 Centennial Way, Tustin, California 92780, or at
such. other place or places as the City from time to time may designate by
written notice to lessee.
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D. The amounts payable under this Section 4 shall be payable from "Net
Operating Income" (defined as the difference between (1) the annualized
actual effective gross income for the property and (2) the annualized actual
expenses for the property) less all payments required to be made by the
Developer with respect to the Mortgage Loan, and provided further, that the
deferral of any payment due to the lack of Net Operating Income cash flow
shall not relieve the Developer of its payment obligation and such obligation
shall be cumulative until paid in full. The obligation to pay deferred
administrative fees which have accrued as of the termination of this
Supplemental Regulatory Agreement shall survive the termination of this
Supplemental Regulatory Agreement.
E. The administrative fee shall be due as specified in this Supplemental
Regulatory Agreement. A ten percent (10%) default penalty shall be added
to any late payment, together with interest from the date such payment was
due at the rate of seven percent (7%) per annum until paid.
Section 5. Remedies and Priorities. Upon any default by the Developer, the City
may seek specific performance of this Supplemental Regulatory Agreement or enjoin
acts which may be in violation of this Supplemental Regulatory Agreement or unlawful,
whether in favor of the City or any other person, and all such obligations shall be
subordinate in priority, in right to payment and in all other respects to the obligations,
liens, rights (including, without limitation, the right to payment) and interests arising or
created under that certain Construction Deed of Trust dated as of June 2001 made by
the Developer for the benefit of FNMA/ARCS Commercial Mortgage. Nothing contained
in this paragraph shall limit any right or remedy which the City may otherwise have
pursuant to any applicable building code, municipal code or applicable laws with respect
to any violation of the inspection and code compliance covenants contained in Sections
1 and 2 above.
Section 6. Notice. Notice is required to be given under the terms of this
Supplemental Regulatory Agreement or any law applicable thereto must be either
personally delivered or placed in a sealed envelope, postage prepaid, addressed to the
person on whom it is to be served with return receipt requested, and deposited in the
United States mail. Personal service shall be deemed complete upon delivery and
service by mail shall be deemed complete upon receipt as reflected by the return receipt.
The address to be used for any notice served by mail upon the parties shall be as
follows:
To Developer: KDF Park Place, L. P.
2400 Main Street, Suite 201
Irvine, CA 92614
Attn: Scott J. Barker, President
To City: City of Tustin
300 Centennial Way
Tustin, CA 92780
Attn: Assistant City Manager
Section 7. Term. The term of this.. Supplemental Regulatory Agreement shall
remain in effect as long as the multifamily housing revenue Bonds issued for the Project
remain outstanding or for the term of the land use controls under the Town Center
Redevelopment Plan, whichever is greater.
Attachment No. 1
i
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~~S't'~~ Community Redevelopment Agency
City of Austin
February 12, 2001
Mr. John Bernard
Partners Realty Capital, LLC
468 MacArthur Court, Suite 422
Newport Beach, CA 92660
300 Centennial Way
Tustin, CA 92780
Administration 714.573.3107
Development 714.573.3121
Housing 714.573.3128
MCAS-Tustin 714.573.3116
714.573.3124
FAX 714.573.3113
Re: Park Place Apartments - Request for Redevelopment Agency TEFRA Hearing
Dear Mr. Bernard:
In Apri12000, the Agency and City of Tustin Community Development Department completed a property
inspection of the subject property and identified deferred maintenance items and other improvements at
the Park Place Apartments that we would require to be corrected as a condition to supporting the project.
The City's and Agency's objectives are to upgrade the overall conditions at the property including a
complete renovation of the interiors of all_units and the general rehabilitation of the exterior conditions of
the buildings. This will require a thorough review by the Agency of the preliminary project cost analysis
to ensure that such improvements are addressed.
The following improvements need to be reflected in the project budget to address site conditions
identified in our inspection of the property.
Apartment Unit Interiors
• Replacement of kitchen fixtures and appliances including sinks, faucets and garbage disposals,
counter tops and cabinet faces, lights fixtures, dishwashers, stoves (cook tops/ovens) and vent fans,
refrigerators, and sheet vinyl flooring in all units to a uniform standard.
• Repair/Replacement of bathroom fixtures including toilets, sinks, tubs, shower enclosures, faucets,
light fixtures, vent fans and sheet vinyl flooring in all units to a uniform standard.
• Repair/Replacement of heating and cooling equipment, hot water heaters (replace if over 10 years
old), electrical outlets and light fixtures, and floor covering throughout all units to a uniform standard
and install hard-wired smoke detectors.
Apartment Building Exteriors
• Re-roofing of all buildings (flat & pitched segments) including replacement of damaged wood
(support and sheathing), flashing and downspouts.
• Stucco repair including weather proofing around doors and windows.
• Exterior painting of building walls and wood trim.
• Repair/Replace termite and dry rot damaged wood trim and structural members.
• Repair/Replace all exterior stairs, hand rails and second story balconies railings to current code
requirements.
• Replace patio fence enclosures to 42-inch height maximum for increased security visibility.
Mr. John Bernard
Februa~ 12, 2001
Page.2
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Repair/Install exterior lighting for increased safety and security.
Install improved signage including building identification (walls and roof) to enhance fire and safety
response capability. -
Landscape and Paving
· Repair/Replace asphalt paving in driveways and parking areas.
· Upgrade trash enclosures per City code requirements.
· Provide secured access to swimming pool area per code requirements.
· Open perimeter wall along Main Street for increased police visibility.
· Repair/replace landscape and irrigation in planting areas as needed.'
The above improvements would be required under a supplemental regulatory agreement with the Agency
for the issuance of mx-exempt bonds for the acquisition and rehabilitation of the Park Place Apartments.
Performance under the agreement would be secured by an irrevocable letter of credit to the City of Tustin
or other form of security acceptable to the Agency's Executive Director for the full amount of the
rehabilitation improvements.
On May 1, 2000, the Tustin Cit3.' Council authorized the execution of an Exercise of Joint Po~:ers by the
City and California Statewide Communities Development Authority for the issuance of private activity
bonds for multifamily housing financing. As we've discussed, if the proposed acquisition financing is to
be undertaken with a qualified non-profit entity, the supplemental regulatory a~eement would also
provide for payments of an annual administrative fee in the amount equivalent to the property tax levies
that would.otherwise be received by the City of Tustin. The supplemental regulatory ageement for the
Park Place Apartment acquisition;rehabilitation project will contain the following conditions:
For as long as the Park Place Apartments project is exempt from property tax levies, the owners of the
project shall make an in-house annual administrative fee payment to the City of Tustin in an amount
equal to the City's normal share of property taxes for the subject property. The fee for the first year
shall be the City of Tustin's 2001-2002 property tax share for the project commencing and due on
April 30, 2002. Each year thereafter on the anniversary of the first payment due date, the Park Place
Apartments ovmer shall pay to the City of Tustin an administrative fee equal to the prior year's
payment, plus an additional m'o percent (2%).
The fee shall be payable to the City of Tustin Finance Director at 300 Centennial Way, Tustin,
California 92780-1089, or at such other place or places as the City from time to time may. designate
by written notice to the Park Place Apartments owner. A ten percent (10%) default payment shall be
added to any late payment, together with interest from the date such payment was due at the rate of
seven percent (7%) per annum until paid.
The Park Place Apartments owner and California Statewide are of the opinion that tax-exempt
financing for the project would not constitute displacement that would require the provision of
relocation assistance. The owners of Park Place Apartments shall hold the City of Tustin harmless
from any relocation liability that might be possibly created by the residential uses contemplated in the
proposed financing and residential progam described in item 2 above.
Mr. John Bernard
Februaryl2, 2001
Page 3
We look forward to working with you on this project. If you have any questions, please contact me at
(714) 573-3121.
Sincerely,
`Jim Draughon
Senior Project Manager
cc. Christine Shingleton
Lois Jeffrey
Attachment No. 2
PARK PLACE APARTMENTS
Proposed Ronovation Schedule
Month
1 2 3 4 5 6 T 8 9 10 11 12 13 14 15
Exterior Renovation
X
x
Wrought iron repairs
x
x x
Carpentry repairs
x
x
Stucco repairs
x
x
Repair upstairs walkways
x
x
Upgrade dumpsters
x
x
Open front fence
x
x x
Exteriar lighting enhancements
x
x
Repair broken sidewalks
x
x .
Roof replacements
x
x x
Repair raingutters
x
x x
Exterior painting
x
x x x
Irrigation repairs
x
x
Tree trimming and removal
x
x
Plant removal and replacement
x
x x
Rfaybround improvements
x
x
Recreation center improvements
x
x x
New property signage
x
x
Resurface driveways
x
x
Interior Renovation
Paint interior complete
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace range 1 hood tan
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace dishwasher
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace garbage disposal
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace kitchen faucet
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Repair and paint kitchen cabinets
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace kitchen vinyl flooring
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Calor coat counters as needed
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace kitchen lighting
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Install Kitchen GFI
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace bathroom vinyl flooring
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Coat tubs and showers as needed
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Color coat counter tops as needed
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Repair and replace shower dorrs as needed
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Repair and paint Pullmans
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace bathroom faucets
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace bathroom hardware
x
X
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace toilet seat and plumbing
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
install bathroom GFI
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace bathroom lighting
x
x
x
x
x
x
x
x
x
x
k
x
x
x
x
Replace bathroom fans as needed
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Install hardwired smoke detectors in hallway
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Install battery smoke doctors In bedrooms
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace A/C unit
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Repairradiant heating unit
x
x
x
x
r.
x
x
x
x
x
x
x
x
x
x
Replace window coverings
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Replace carpet
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Estimated Interiors Completed
10
11
12
13
14
15
19
19
19
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19
19
19
19
19
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2
3
4
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6
s
9
10
11
12
13
14
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Resolution No. 01-21
Page 2
Section 3. The City Clerk shall forward a certified copy of this
Resolution to the following:
William W. Bothwell, Esq.
Orrick, Herrington & Sutcliffe, LLP
777 South Figueroa Street, Suite 3300
Los Angeles, CA 90017
PASSED AND ADOPTED at a regular meeting of the City Council held on the 19th day
of March 2001.
TRACY WI WORLEY, Mayor
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
~~~ ,,`
:: p ~,
PAMELA STOK
City Clerk ~,
I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of
Tustin, California, do hereby certify that the whole number of the members of the
City Council of the City of Tustin is five; that the above and foregoing Resolution
No. 01-21 was duly passed and adopted at a regular meeting of the Tustin City
Council, held on the 19th day of March 2001, by the following vote:
COUNCILMEMBER AYES: woxLEY, THOMAS, BONE, DOYLE, KAWASHIMA
COUNCILMEMER NOES: NONE
C~NCILMEMBER ABSTAINED: NONE
O NCILM~MB PXB~ENT: NONE
CITY CLERK
JD:\ccresos\01-21 Park Place TEFRA .doc
Attachment No. 1
Attachment No. 2