City of Simi Valley
Staff Report
M
ay 11, 2026
T
o: City Council
Fr
om: Office of the City Manager,
Luis Garibay, Assistant City Manager
S
ubject: 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
S
ubsequent to the preparation of the staff report, staff identified an error in the Discussion section referencing the “Tapo Street Apartments” project. This reference was included in error and should instead refer to the Enso Verde project.
A
dditionally, the Suggested Motion has been updated to replace the reference to “elderly” with “seniors” for consistency with the staff report.
T
hese corrections do not impact the substance of the staff report, the recommended action, or the proposed resolution. A corrected version of the staff report has been attached for the record.
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repared by: Angel Sierra, Assistant to the City Manager Supplemental
Agenda Item No.
5A
City of Simi Valley
Staff Report
May 11, 2026
To: City Council
From: Office of the City Manager
Luis Garibay, Assistant City Manager
Subject: 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
Staff Recommendation
It is recommended that the City Council:
1. Conduct the public hearing under the requirements of the Tax Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended;
2. Adopt 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. Authorize the City Manager, or her designee, to take such additional, related action that may be needed to complete the TEFRA process.
Background
On 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.
Subsequently, “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
2 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.
Discussion
Enso 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.
Enso 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 Enso Verde project.
The 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.
Pursuant 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 3 opportunity for all interested persons to speak or submit written comments concerning the proposal to issue tax -exempt bonds for the financing of the Project and the nature or location of the facility to be financed.
The 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.
Financial Impact
There 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.
City Council Priority
This item supports the City Council’s Pillar of Excellence of promoting Economic Vitality by facilitating infrastructure, financing and supporting responsible development.
Suggested 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 elderlyseniors project.
Summary
Enso 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.
Prepared by: Angel Sierra, Assistant to the City Manager 4