AgdaPkt 2000-09-11 - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager September 11 , 2000 Subject Redwood Shores Apartments Refunding Recommendation It is recommended that the City Council take the following actions to enable Archstone Communities Trust to refinance the existing tax-exempt debt associated with the Redwood Shores Apartment complex: 1. Adopt a resolution for the City to become a member of the Association of Bay Area Governments (ABAG) Finance Authority for Non-Profit Corporations; 2. Approve the proposed Regulatory Agreement between ABAG and Archstone; and 3. Conduct a public hearing in accordance with Federal "Tax Equity and Fiscal Responsibility Act of 1982" (known as a TEFRA hearing). Issues At your meeting on August 28,2000, you directed staff to work further with Archstone to examine what the City would 'get', in the form of affordable units, for what the City 'gives' in the form of tax-exempt interest rates. The deal that was presented on August 28,2000 was in summary: . The City would agree to ABAG refunding the bonds, maturing in 2008-2010. . The developer would commit to keep 30 units (approximately 10% of the total) affordable to households at 80% of median and at rents not exceeding 30% of household income until 2006. The Council wished the owner to re-Iook at their numbers and determine if they would be willing to offer something additional - e.g. an extra year of afford ability, or perhaps additional units over the original 30. Archstone has responded that they cannot afford to add to the deal already offered unless the bond maturity can be extended to 2010. A memorandum from Peter Kelly, their financial consultant, is attached which explains their financial analysis. If the maturity can be extended to 2010, Mr. Kelly has indicated they will agree to extend the affordable period by one year, to 2007. However, at the time of writing this has not been confirmed. 1 r""--"'-"T'