TITLE
Recommendation to adopt the attached resolution authorizing the issuance of Multifamily Mortgage Revenue Bonds in the amount of
$2,500,000 for the purpose of providing additional financing for the acquisition and construction of the Jamboree West Gateway Apartments; and approving other related documents and actions; 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 authorized the issuance of Multifamily Housing Revenue bonds in the amount of $11,000,000 to finance the acquisition and construction of the Jamboree West Gateway Apartments. Subsequent to the City Council action, bonds were issued on December 13, 2004. A copy of the City Council letter is attached for your information (Attachment A).
On July 12, 2005, the City Council adopted a Resolution expressing the City’s intent to issue Multifamily Housing Revenue bonds in the amount of $2,500,000 for the purpose of providing additional financing for the acquisition and construction of the Jamboree West Gateway Apartments. A copy of the City Council letter and Resolution are attached for your information (Attachment B).
At the time the $1 1,000,000 of bonds were issued, the estimated construction budget was based on 50 percent complete construction drawings, as well as on the ability to convey the site to the developer so that construction could begin by March 15, 2005.
Conveyance of the site to the developer was delayed due to delays with acquisition, tenant relocation and the relocation of a historic home from the site. Due to rising construction costs during that time, as well as higher construction bids based on final construction drawings, and as discussed in the July 12, 2005, Council letter construction costs have risen and it is necessary to increase financing for the project by up to $2,500,000.
The site was conveyed to the developer on September 9, 2005...
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