TITLE
Recommendation to adopt resolution authorizing the City's intent to issue Tax-Exempt Multifamily Mortgage Revenue Bonds in the amount of $2.5 million for additional financing for the acquisition and construction of the Jamboree West Gateway Apartments; and
Authorize City Manager to execute all documents necessary to complete this transaction as indicated in the resolution. (District 1)
DISCUSSION
On November 16, 2004, the City Council adopted a Resolution authorizing the
issuance, sale and delivery of Multifamily Mortgage Revenue Bonds for the Jamboree
West Gateway Apartments in the amount of $1 1,000,000. Subsequent to City Council
action, bonds were issued on December 13, 2004. A copy of the City Council letter is
attached for your information (Attachment A).
At the time the bonds were issued, the construction budget was based on 50%
complete construction drawings and on the ability to convey the site to the developer so
that construction could begin by March 15, 2005. The site has not been conveyed to
the developer due to delays with acquisition, tenant relocation, and the relocation of a
historic home from the site. Due to rising construction costs during this time, and higher
construction bids based on 100% complete construction drawings, construction costs
have risen and it is necessary to increase financing for the project by $2.5 million.
To proceed with the additional bond issuance, it is necessary for the City Council to
adopt the attached Resolution indicating the City’s intent to issue Tax-Exempt
Multifamily Mortgage Revenue Bonds for additional financing in the amount of $2.5
million for the acquisition and construction of the Jamboree West Gateway Apartments.
Pursuant to current City policy and state law, on July 12, 2005, a TEFRA Hearing was
conducted in the office of the City Treasurer regarding the potential issuance by the City
of $2.5 million in Multifamily Mortgage Revenue Bonds to provide additional financing
for the project.
Th...
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