To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
Alexander Crossings Apartments TEFRA Hearing
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the issuance by the California Municipal Finance Authority of revenue bonds in an aggregate principal amount not to exceed $25,000,000 for the purpose of financing or refinancing the acquisition, construction, improvement, and equipping of Alexander Crossings Apartments, an existing 134 unit multifamily residential property located at 190 Silverado Trail.
Body
DISCUSSION:
Alexander Crossings Apartments is an existing 134 unit multifamily residential property, which includes 27 units restricted for occupancy by very-low income households, located at 190 Silverado Trail (the “Project”). The Project is owned by Alexander Napa, L.P., a California limited partnership (the “Borrower”) and the Borrower needs to amend and restate the regulatory agreement related to the original bond issuance which causes a technical refunding of the bond.
The Borrower is proposing to finance or refinance the acquisition, construction, improvement, and/or equipping of Alexander Crossings Apartments, through up to $25,000,000 in tax exempt bonds issued through California Municipal Finance Authority (“CMFA” or the “Authority”). The Authority is a joint powers authority created in 2004 to promote economic, cultural, and community development through the financing of economic development and charitable activities throughout California. CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. CMFA has more than 350 municipal members, including City of Napa.
The City needs to conduct a hearing in compliance with the Tax and Equity Fiscal Responsibility Act (“TEFRA”), to consider input from the public prior to authorizing the Authority to issue the bonds. The issuance of the bonds would be the responsibility of the Authority. The repayment of the bonds would be the sole responsibility of the Borrower. The City would have no financial, legal, moral obligation, liability, or responsibility for the Project or the repayment of the bonds. All financing documents with respect to the issuance of the bonds would contain clear disclaimers that the bonds are not obligations of the City or the State of California, but are to be paid solely by the Borrower.
In order for all or a portion of the bonds to qualify as tax-exempt, the City of Napa must conduct the TEFRA hearing giving community members an opportunity to speak in favor or against the use of tax-exempt bonds for the financing of the Project, provide reasonable notice to the members of the community prior to the meeting, and provide approval of the issuance of the bonds for the financing of the Project.
FINANCIAL IMPACTS:
There is no financial impact to the City for this item nor is the City a party to any of the financing documents related to the Bond issuance.
CEQA:
The City Manager has determined that the Recommended Action described in this Agenda Report is not subject to California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Alexander Crossings Apartments TEFRA Resolution
NOTIFICATION:
A legal notice of the public hearing was published on July 2, 2024 in the Napa Valley Register. Additionally, Alexander Napa, L.P., CMFA, and Orrick, bond counsel for CMFA, were all notified of the agenda item.