FOR THE COUNCIL MEETING OF APRIL 19, 2022
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Finance
SUBJECT: TAX AND EQUITY FISCAL RESPONSIBILITY ACT (TEFRA)
REGARDING CENTENNIAL SQUARE APARTMENTS
RECOMMENDATION:
That the City Council:
1. Conduct a public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and
2. Adopt a Resolution approving the issuance of Revenue Bonds by the California Statewide Communities Development Authority to provide financing for the acquisition, construction, and development of a 184 -unit multi -family rental housing project generally known as Centennial Square Apartments.
BACKGROUND:
Centennial Square Apartments, LP (the "Borrower") has requested that the California Statewide Communities Development Authority ("CSCDA") serve as the municipal issuer of tax-exempt, multi -family housing revenue bonds in an aggregate principal amount not to exceed $60,000,000 (the "Bonds").
The proceeds of the Bonds will be used for the purpose of making a loan to the Borrower to enable the Borrower to finance the acquisition, construction, and development of a 184 -unit affordable multi -family housing rental project located at the southwest corner of Miller Street and Plaza Drive, Santa Maria, California (the "Project"), which will be owned by the Borrower.
DISCUSSION:
For all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Maria ("City") must conduct a public hearing (the "TEFRA Hearing") providing the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Adoption of the Resolution is solely for the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA), the Internal Revenue Code, and the California Government Code Section 6500 (and following). Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an "applicable
elected representative" of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project. A public notice was published on April 8, 2022 (Attachment A).
California Statewide Communities Development Authority
The California Statewide Communities Development Authority (CSCDA) is a joint powers authority founded and sponsored by the League of California Cities ("League") and the California State Association of Counties ("CSAC"). CSCDA was created by the League and CSAC in 1988 to enable local government and eligible private entities access to low- cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth, and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 members, including the City of Santa Maria. CSCDA has issued more than $65 billion through 1,600 plus financings since 1988, and consistently ranks in the top 10 of more than 3,000 nationwide public issuers of tax-exempt debt, as measured by annual issuance amount.
Alternatives
The City Council may decide not to approve the issuance of the Bonds, and the valuable, scarce, affordable housing bond allocation awarded by the State (through CSCDA) would be lost and the project would not move forward.
Fiscal Considerations:
There is no fiscal impact to the City. The Bonds will be issued as limited obligations of CSCDA, payable solely from revenues and receipts derived from a loan to be made by CSCDA to the Borrower with the Bond proceeds. The City bears no liability with respect to the issuance of the Bonds. Further, the City is not a party to any of the financing documents related to the Bond issuance and is not named in any of the disclosure documents describing the Bonds or the proposed financing.
Impact to the Community:
Approving the issuance of the multi -family housing revenue bonds benefits the community by creating new affordable housing and providing a safe, healthy environment for the City's residents.
MARY HARVEY
Director of Finance
Attachment A: Public Notice
L
CITY OF SANTA MARIA
PUBLIC HEARING NOTICE
CENTENNIAL SQUARE APARTMENTS
NOTICE IS HEREBY GIVEN that, at 5:30 p.m., or as soon thereafter as the matter can be heard, on Tuesday, April 19, 2022, at the City Hall Council Chambers, 110 East Cook Street, Santa Maria, California, the City Council of the City of Santa Maria (the "City") will conduct a public hearing as required by Section 147(0 of the Internal Revenue Code of 1986 (the "Code"), at which it will hear and consider information concerning a proposed plan of financing providing for the issuance by the California Statewide Communities Development Authority of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Code in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $60,000,000 in outstanding aggregate principal amount, to finance or refinance the acquisition, construction and development of a multifamily rental housing project located at the southwest corner of Miller Street and Plaza Drive, Santa Maria, California. The facilities are to be owned by Centennial Square Apartments, LP (the "Borrower") or a partnership of which Dawson Holdings, Inc. (the "Developer") or a related person to the Developer is the general partner (the "Project").
Those wishing to comment on the proposed financing or refinancing and the nature and location of the Project may either appear in person at the public hearing or submit written comments, which must be received by the City prior to the hearing. Written comments should be sent to City of Santa Maria City Clerk's at (mailing address) 110 East Cook Street, Santa Maria, California 93454, or via email by 2:00 p.m. the day of the meeting to [email protected]. See the on-line agenda at City's meetings portal https://citvofsantamaria.civicweb.net/portal/ for information on participating via Zoom.
Copies of the agenda reports regarding this item will be available in the City Clerk's Office at (temporary location) 421 South McClelland Street, inside the Santa Maria Public Library Lobby, and on the City's website meetings portal beginning April 15, 2022.
To receive reasonable accommodation under the Americans with Disabilities Act during the meeting, please notify the City Clerk's Office of your needs during business hours at least 48 hours in advance of the meeting. To allow the City to coordinate and request a Spanish translator from the volunteer corps, call (805) 925-0951 ext. 2306 by 1:00 p.m. on Monday before the meeting. Para permitir a la Ciudad el poder coordinar y solicitar a un traductor para espanol del cuerpo de voluntarios, Ilame al (805) 925-0951 ext. 2307 a la 1:00 de la tarde el lunes antes de la junta.
Dated: April 4, 2022
Publish One Time
Santa Maria Times
Friday, April 8, 2022
By: /s/ Rhonda M. White
RHONDA M. WHITE, CMC
Chief Deputy City Clerk
City of Santa Maria, CA
***Proof of Publication ***
Proof of Publication
(2015.5 C.C.P)
State of California
SANTA MARIA TIMES
ORRICK, HERRINGTON & SUTCLIFFE
JUSTIN S COOPER ESQ
405 HOWARD ST
SAN FRANCISCO CA 94105
USA
ORDER NUMBER 73722
I am the principal clerk of the printer of the
Santa Maria Times, newspaper of general
circulation, printed and published in the city of
Santa Maria, County -of Santa Barbara, and which
newspaper has been adjudged a newspaper of
general circulation by the superior court of the
County of Santa Barbara, State of California
adjudication #463687.
That the notice of which the annexed is a printed
copy (set in type not smaller than nonpareil),
has been published in each regular and entire
issue of said newspaper and not in any supplement
thereof on the following dates, to wit:
I certify (or declare) under penalty of perjury
that the foregoing is true and correct.
Section: Legals
Category: 986 Legals
PUBLISHED ON: 04/08/2022
TOTAL AD COST: 190.50
FILED ON: 04/08/2022
Dated at Santa Maria, CA
This
day of Apr; L
Signature
'2o22
• CITY OF SANTA MARIA
PUBLIC HEARING NOTICE
CENTENNIAL SOUARE '
APARTMENTS
NOTICE IS HEREBY GIVEN that,
at 5.30 p.m., or as soon thereafter
es the matter can be hoard, on
Tuesday, April 19, 2022, et the City
Hall Council Chambers. 110 East
Cook Street. Santa Marla,
California, the City Council of the
City of Santa Maria (the 'City') wit'
conduct a pudic hearing as required
bySection of 986I (he
'Cod+'), al which It will hear and
consider information mncerNrrqq a
proposed plan of IInendng pprovdng
or the issuance by tlw Celllomia
, Statewide Communities
Develdpmem Authority of exempt
facility bonds for a qualified
r residential rental project pursuant to
Section 142(a)(7) of the Code In one
or more series Issued Iron time t0
limn including• bonds issued to
refund such exempt facility bonds In
one or more series from time to
time. and at no time to exceed
580,000,000 h outstanding
aggragato pilndpal amount, b
8rum or reiwnce110 scent of n,
constmutt:l uctbn and development nt a a
mcat a at rental housing project
. located at the southwest comer of
Plaza Miller Street and Plata Drive, Sane
Maria, Ceedo,Na. The fealties are
to be owned by Centennial Square
Apartments. L (fine 'Borrower) or
a partnership of which Dawson
metedHadrespersan to the Developer is
Inc. (the 'Developer') or e
the general partner (the •Projea•),
Those
aewishi g to comment on the
and the nature andd okcat r nit the
Project may either appear in person
at the public hearing or submit
written comments, which must be
received by the City prior b the
bebesonntt too City of Santa Maria Citify
Clerk's at (maI1 no address) 110
East Cook Street, Santa Marla,
California 93454, or via email by
2:00 p.m. the day of the meeting to
£Md, ocitvgtjante
See e on_ne soothe et pCilily's
t�for i for anon i n
o m arms on
Pais ung hie Zoomggee reports
rep ding tes his Item agenda
bo available
in the City Clark's Office at
(en ry location) 421 South
McClelland Street, Inside the Santa
Marla Pudic Library Lobby, and on
the Cnys webers meetings portal
beglnnkg April 15, 2022.
To receive reasonable
accommodation under the
Americans with Disabilities Acl
during the meeting, please notify the
CityClerk's Office a your needs
during business hours at least 48
hours In advance of the meeting. To
allow the City 10 coordinate and
request 8 Spanish translator from
the 1 ext. er corps, ca0 (805) 925-
0951 ed. 2306 by 1:00 p.m. on
Monday before tho meeting. Para
permitir e 18 Ciudad a ppopldaer�
coordner y saldtar a un treductor
pare espariol dal cuepo do
voluntaries.arvoluntaries.Same el 8055) 9'25-0951
oxt. 2307 ate 1:00 de la tarde el
tunes *Posit
((nyybs deeryl. junta. M
RHONDA M.Chiel Deputy WRI , Cif.
City of Santa Marta, CA
Publish One Time
Santa Marla Times
Friday. Apol8, 2022
Legal 073722
Pub date: April 8,2022
White
RESOLUTION NO. 2022-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,
CALIFORNIA, APPROVING THE ISSUANCE OF REVENUE BONDS BY THE
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO
PROVIDE FINANCING FOR THE ACQUISITION, CONSTRUCTION, AND DEVELOPMENT OF A 184 -UNIT MULTI -FAMILY RENTAL HOUSING PROJECT
GENERALLY KNOWN AS CENTENNIAL SQUARE APARTMENTS
WHEREAS, the California Statewide Communities Development Authority (the "Authority") is authorized pursuant to the provisions of Califomia Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the "Agreement"), among certain local agencies throughout the State of California, including the City of Santa Maria (the "City"), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the Califomia Health and Safety Code for the purpose of financing multi -family rental housing projects; and WHEREAS, Centennial Square Apartments, LP or a partnership of which Dawson Holdings, Inc. (the "Developer") or a related person to the Developer is the general partner, has requested that the Authority adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the "Code") in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $60,000,000 in outstanding aggregate principal amount (the "Bonds"), to finance or refinance the acquisition, construction, and development of a multi -family rental housing project located at the southwest corner of Miller Street and Plaza Drive, Santa Maria, California (the "Project"); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, the Bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a govemmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the City Council (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, a public hearing notice has been published by the Developer, at least seven days prior to the date hereof, in a newspaper of general circulation within the City; and
WHEREAS, such public hearing was conducted on April 19, 2022, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and
WHEREAS, the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed the Project (the "Refunding Bonds"), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and
WHEREAS, it is intended that this Resolution shall constitute the approval of the issuance of the Bonds required by Section 147(0 of the Code and Section 9 of the Agreement.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1. The above recitals are true and correct;
2. The City Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority. It is the purpose and intent of the City Council that this Resolution constitute approval of the Bonds for the purposes of (a) Section 147(0 of the Code and (b) Section 9 of the Agreement;
3. The officers of the City, including by way of example and not as a limitation, the Mayor, the City Manager, the Finance Director, and the City Clerk, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing approved hereby;
4. This Resolution shall take effect immediately upon its passage; and
5. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held on the 19th day of April 2022.
ATTEST:
Mayor
Chief Deputy City Clerk
City Attorney
APPROVED AS TO CONTENT:
Department Diyector
C. Manager