City of Simi Valley
Staff Report
May
11, 2026
To: Cit
y Council
Fr
om: Office of the City Manager
Luis Garibay, Assistant City Manager
Subj
ect: A Public Hearing to consider adoption of a resolution approving the issuance of tax-exempt revenue bonds by the California Public Finance Authority to finance or refinance the acquisition, construction, improvement, and equipping of a residential care facility project for seniors located at the southwest corner of Tapo Canyon and Guardian Street, Simi Valley, California Sta
ff Recommendation
I
t is recommended that the City Council:
1. C
onduct the public hearing under the requirements of the Tax Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended;
2. A
dopt Resolution No. 2026-12 approving the issuance of one or more series of revenue b onds by the C alifornia Public F inance Authority (CalPFA) in an aggregate amount not to exceed $450 ,000,000 for the benefit of Enso Verde, formerly known as Kendal at Ventura, a California nonprofit public benefit corporation, to provide for the financing or refinance of the acquisition, development, construction, improvement and equipping of a residential care facility for seniors project generally to be known as Enso Verd e, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following);
3. A
uthorize the City Manager, or her designee, to take such additional, related action that may be needed to complete the TEFRA process.
Ba
ckground
O
n September 21, 2020, the City Council approved a Conditional Use Permit, a General Plan and Specific Plan Amendment, Zone change, and Tentative Parcel Map for the property owner, Peppertree Business Park, to construct and operate a 357- unit Residential Care Facility for seniors on a 20.7-acre project site located at the southwest corner of Tapo Canyon Road and Guardian Street. The facility is designated for persons 62 years of age or older and will be licensed by the State of California.
S
ubsequently, “Kendal at Ventura,” now known as Enso Verde, expressed interest in acquiring the property and submitted a Preliminary Review application to allow City staff to evaluate the project design and identify early Planning, Public Works, and Fire Agenda Item No.
5A
considerations, and requested that a TEFRA Hearing be held by the City, authorizing the issuance of revenue bonds by the California Public Finance Authority.
On
January 23, 2023, the City Council adopted Resolution No. 20 23-03, authorizing the City of Simi Valley to join the CalPFA as a non-charter additional member and approving the issuance of one or more series of revenue bonds in an aggregate amount not to exceed $450,000,000 by the California Public Finance Authority, on behalf of “Kendal at Ventura,” a non-profit corporation, to provide for the financing of a residential care facility (Enso Verde) for seniors located at the southwest corner of Tapo Canyon Road and Guardian Street. Subsequently, on August 28, 2023, the City received a Conditional Use Permit application (CUP -S-2023-0010) requesting a modification to the previously approved 357-unit project to reduce the total number of units to 297 and to modify the approved site plan.
Di
scussion
E
nso Verde is returning to the City Council to request a new TEFRA hearing due to the expiration of the prior approval under federal tax regulations. Following the City’s initial TEFRA approval on January 23, 2023, the CalPFA issued $29 million in total principal amount of revenue bonds to fund pre-construction costs for the Enso Verde project, with the expectation that additional bonds would be issued within one to two years to support construction. However, due to unforeseen delays and increased project costs, the second phase of financing was postponed until greater certainty on construction timing could be achieved. As a result, the original TEFRA approval expired on February 23, 2026.
Additionally, due to the borrower’s name change from Kendal at Ventura to Enso Verde, a new TEFRA hearing is required to proceed with the next phase of bond financing.
E
nso Verde requested that C alPFA serve as the municipal issuer of the b onds in an aggregate principal amount not to exceed $ 450,000,000 of tax -exempt revenue bonds.
The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement, and equipping of the Tapo Street Apartments project.
T
he bonds issued by CalPFA for any project, including the Enso Verde project, are the sole responsibility of the borrowers, and the City will have no financial, legal, or moral obligation, liability, or responsibility for the project or the repayment of the bonds issued for the project. All financing documents relating to the issuance of the Bonds will contain clear disclaimers stating that the Bonds are not obligations of the City or the State of California and are to be paid solely from funds provided by the Borrower.
P
ursuant to Section 147(f) of the Internal Revenue Code, in order for the bonds to qualify as tax-exempt bonds, the issuance of bonds by CalPFA must be approved by the public entity at a public hearing following reasonable notice. The Borrower , En so Verde, requested that the City conduct the public hearing. The City published a Notice of Public Hearing in the Ventura County Star on April 30, 2026, and the public hearing provides the opportunity for all interested persons to speak or submit written comments concerning the 2 proposal to issue tax -exempt bonds for the financing of the Project and the nature or location of the facility to be financed.
T
he action before the City Council is solely to authorize the issuance of bonds for the Enso Verde project. This action does not constitute approval of the project and it must still go through the City’s existing review and approval processes.
Fin
ancial Impact
T
here is no cost to the City , nor will City be responsible for repayment of any bonds issued, and any costs incurred during formation or participation will be reimbursed by the project developer.
C
ity Council Priority
T
his item supports the City Council’s Pillar of Excellence of promoting Economic Vitality by facilitating infrastructure, financing and supporting responsible development.
S
uggested Motion
I
move that the City Council adopt Resolution No. 202 6-12 approving the issuance of revenue bonds by the California Public Finance Authority in an aggregate principal amount not to exceed $450 ,000,000 for the benefit of Enso Verde, formerly known as Kendal at Ventura, a California nonprofit public benefit corporation, to provide for the financing or refinance of the acquisition, construction, improvement, and equipping of the Enso Verde residential care facility for the elderly project.
Su
mmary
E
nso Verde is seeking tax -exempt financing through the California Public Finance Authority to support the Enso Verde project, a senior residential care facility project located at the southwest corner of Tapo Canyon Road and Guardian Street, and is returning to the City Council to request a new TEFRA hearing due to the expiration of the prior approval and a change in the borrower’s name. Following the City’s initial TEFRA approval on January 23, 2023, CalPFA issued bonds to fund pre-construction costs, with additional financing anticipated within one to two years. However, unforeseen delays and increased project costs postponed the next phase, and the original TEFRA approval expired on February 23, 2026. A TEFRA public hearing must be held to consider approval of CalPFA’s issuance of up to $450 million in tax-exempt revenue bonds for the project.
This action fulfills the requirements of Section 147(f) of the Internal Revenue Code so the bonds may qualify as tax -exempt. The City will not bear any financial, legal, or moral obligation for the repayment of the bonds or the project itself; all responsibilities rest solely with the borrower. Approval of the bond issuance does not constitute approval of the development, which must still undergo the City’s standard planning and entitlement processes.
P
repared by: Angel Sierra, Assistant to the City Manager 3 Attachments
A
ttachment A – Public Hearing Procedure
Attachment B – Resolution No. 2026-12
4 P
UBLIC HEARING PROCEDURE
HE
ARING DATE: May 11, 2026
1. CI
TY CLERK: This is the time and place set for a public hearing to consider adoption of a resolution approving the issuance of revenue bonds by the California Municipal Finance Authority to finance or refinance the acquisition, construction, improvement, and equipping of a a residential care facility project for seniors located at southwest corner of Tapo Canyon and Guardian Street, Simi Valley, California (Read by City Clerk including reading of Resolution AND/OR Ordinance if applicable)
2. M
AYOR: Before we begin, are there any ex parte communications to report?
3. A
NY COUNCIL
MEMBER: (Report)
4. M
AYOR: Staff may begin with the oral report on this matter.
5. S
TAFF: (Report)
6. M
AYOR: Any questions of staff from City Council Members? (Questions of staff and staff response)
7. M
AYOR: At this time I would like to open the hearing for anyone in the City Council Chambers wishing to be heard on this matter?
8. A
UDIENCE: Public Testimony and Comments
9. M
AYOR: Does Staff desire to respond to any comments or issues raised?
10. S
TAFF: (Response to comments and additional City Council questions)
11. M
AYOR: The hearing is now closed.
12. M
AYOR: I will now entertain a motion.
13. A
NY COUNCIL
MEMBER : NOTE: PICK THE APPLICABLE ACTION(S) & CHANGE ITEM NUMBER(S) OF ACTION(S) AS NEEDED:
C
ity Council Actions (by motion of any Council Member):
1) A
dopt, modify, or not adopt Resolution No. 2026-06
approving the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal
amount not to exceed $60,000,000 for the benefit of Simi 5 Attachment A
V
alley Pacific Associates II, LP, to provide for the financing or refinancing of the acquisition, construction,
improvement, and equipping of the Tapo Street
Apartments (requires a second and a vote; requires
reading of resolution).
*A
ny action to refer the matter back to staff or to continue the matter requires a second and a vote.
14. A
NY COUNCIL
MEMBER : Second
15. M
AYOR: (Call for vote)
16. M
AYOR: Proceed to the next item.
6 RESOLUTION NO. 2026-12
RESOLUTION APPROVING THE ISSUANCE OF REVENUE BONDS FOR
A RESIDENTIAL CARE FACILITY FOR SENIORS PROJECT BY THE
AUTHORITY FOR THE PURPOSE OF FINANCING AND REFINANCING
THE ACQUISITION, DEVELOPMENT, CONSTRUCTION,
IMPROVEMENT AND EQUIPPING OF CERTAIN FACILITIES FOR THE
BENEFIT OF ENSO VERDE
The City Council of the City of Simi Valley resolves as follows:
S
ECTION 1: The City Council finds and declare as follows:
A. The California Public Finance Authority (the “Authority”) is authorized pursuant to Government Code §§ 6500, et seq. and the terms of a Joint Exercise of Powers Agreement, dated January 1, 2004 (the “Agreement”), among certain local agencies throughout the State of California, to issue revenue bonds for the purpose of promoting economic development in the state of California.
B. Enso Verde, formerly known as Kendal at Ventura, a California nonprofit public benefit corporation (the “Corporation”), has requested that the California Public Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of revenue bonds, notes and bond anticipation notes in one or more series issued from time to time, including bonds and other obligations issued to refund such bonds, notes and bond anticipation notes in one or more series from time to time, and at no time to exceed $460,000,000 in outstanding aggregate principal amount (the “Bonds”), to finance and refinance the acquisition, development, construction, improvement and equipping of a residential care facility for seniors project generally to be known as “Enso Verde,” located in the City of Simi Valley, California (the “Project”).
C. T
he Bonds or a portion thereof will be “private activity bonds” for purposes of the Internal Revenue Code of 1986, as amended (the “Code”). Pursuant to Section 147(f) of the Code, before their issuance, private activity 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 governmental 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;
D. T
he members of this City Council (“Council”) are the applicable elected representatives of the City;
E. N
otice of this public hearing was published in a newspaper of general circulation regarding the Bonds at least 14 days before the public hearing. Such public hearing was conducted on such date, at which time an opportunity was 7 Attachment B
provided to interested parties to present arguments both for and against the issuance of the Bonds;
F. It is intended that this Resolution constitutes the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 4 of the Agreement.
G. T he Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the construction, acquisition and rehabilitation of capital projects.
Section 2. The Council approves the issuance of the Bonds by the Authority. It is the purpose and intent of the Council that this resolution constitutes approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 4 of the Agreement.
Section 3. The officers of the City are 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.
Section 4. The issuance of the Bonds is subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City has no responsibility or liability whatsoever with respect to the Bonds.
Section 5. The adoption of this Resolution does not obligate the City to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.
Section 6. The executing officers(s), the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.
Section 7. The City Clerk must forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel:
Section 8. This Resolution takes effect immediately upon its passage.
PASSED AND ADOPTED this 11th day of May 2026
8 Res. No. 2026-12
________________________________
Dee Dee Cavanaugh, Mayor of the City
of Simi Valley
Attest:
___________________________________
Lucy Blanco, City Clerk
Approved as to Form:
___________________________________
Algeria R. Ford, City Attorney
Approved as to Content:
___________________________________
Samantha C. Argabrite, City Manager
9 Res. No. 2026-12