[External Email]
[External Email]
Comment - City Council Meeting November 8, Agenda 3.4, File # 22-1621 wayneok
Mon 11/7/2022 10:35 AM
To:City Clerk <[email protected]>
You don't often get email from Learn why this is important
Agenda 3.4, File # 22-1621
Subject: Issuance of Tax-Exempt Mul family Revenue Bonds to Finance the 2350 S. Bascom Affordable Housing Development
I would like to submit a comment on this item concerning approving bonds for the Bascom Avenue project to be brought up at the council mee ng.
The memorandum states: On October 18, 2022, the City Council adopted a resolu on authorizing the issuance of bonds by CMFA as the alternate issuer for the Development under Sec on I.C of the Policy for special circumstances. At that me, the Development had all sources in place, was no longer seeking City loan financing and applied for a $48,000,000 bond alloca on from the California Debt Limit Alloca on Commi ee (CDLAC) on March 16, 2022. On June 15, 2022, the 2350 S. Bascom development was awarded $34,409,000 of the 2021 State Ceiling on Qualified Private Ac vity Bonds for use by the applicant to issue bonds by December 12, 2022.
Now the developer is asking for $65,000,000 which is
$17 Million dollars more (35% more) than originally applied ($48MM) $30 Million more (88% more) than originally awarded ($34,4MM)
If the project is no longer financially feasible at the original projec on, there are op ons maybe the project should not proceed
build it somewhere else where the cost could be less
change the scope, size, scale of the development
get private investors
….and I am sure there are other…
The developer purchased the land with a risk/reward scenario in mind and “ had all the financial sources in place”.
This message is from outside the City email system. Do not open links or attachments from untrusted sources.
This message is from outside the City email system. Do not open links or attachments from untrusted sources.
Some mes things work out and some mes they don’t.
Why is it up to taxpayers to be on the hook to ensure the developer makes a profit?
Thank you
Wayne Firsty