Item Coversheet
  COUNCIL COMMUNICATION
CC #: 3017
File #: 0200 & 0709
Title:Tax and Equity Fiscal Responsibility Act Hearing for Terracina at Westpark Apartments
Contact:

  Jeannine Thrash 916-774-5473 jthrash@roseville.ca.us

  Dennis Kauffman 916-774-5313 dkauffman@roseville.ca.us

 

Meeting Date: 11/1/2023

Item #: 9.2.

RECOMMENDATION TO COUNCIL

Staff recommends that the City Council take the following actions:

  • Conduct the public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”). 

  • Adopt the resolution approving the issuance of the Bonds by the California Municipal Finance Authority (the “CMFA”) for the benefit of Roseville 712, L.P., a California limited partnership, or an affiliate thereof (the “Borrower”), to finance the acquisition, construction, improvement and equipping of a multifamily rental housing project, plus ancillary and subordinate facilities located at 3440 Westbrook Blvd. and 1040 Lower Bank Drive, Roseville, California, to be known as Terracina at Westpark (the “Project”).


 
BACKGROUND

The Borrower has requested that the CMFA adopt a plan of financing providing for the issuance of multifamily housing revenue notes or bonds (the “Bonds”) in one or more series at no time to exceed $85,000,000 in outstanding aggregate principal amount, to finance the acquisition, construction, improvement and equipping of a multifamily rental housing project, plus ancillary and subordinate facilities located at 3440 Westbrook Blvd. and 1040 Lower Bank Drive, Roseville, California, to be known as Terracina at Westpark, which Project will be operated by the Borrower.

 

In order for all or a portion of the Bonds to qualify as tax-exempt Bonds, the City of Roseville must conduct a public hearing (the “TEFRA Hearing”) providing for 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. 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.  Construction of these units assists the City in meeting its Regional Housing Needs Allocation (RHNA) from the State of California and offers affordable housing opportunities to the local workforce and community.

California Municipal Finance Authority

 

The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California.  To date, over 350 municipalities, including the City of Roseville, have become members of CMFA.

 

The 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. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.

 

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project.  All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not Bonds of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

 

Participation by the City in the CMFA does not impact the City’s appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution, no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required.


 
FISCAL IMPACT

The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA.  Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Roseville, it is expected that 25% of the issuance fee, or approximately $20,000, will be granted by the CMFA to the General Fund of the City. Such grant may be used for any lawful purpose of the City. 

ENVIRONMENTAL REVIEW

Environmental review for the project is occurring independent of this particular action, which is solely regarding tax-exempt bond financing.  The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060 (c)(3) and §15378. Adoption of the resolution meets the above criteria and is not subject to CEQA. No additional environmental review is required. 
 

CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS

Goal A - Remain fiscally responsible in a changing world


 
Respectfully Submitted,

Jeannine Thrash, Management Analyst

Dennis Kauffman, Assistant City Manager/Chief Financial Officer 
 


_____________________________
Dominick Casey, City Manager


ATTACHMENTS:
Description
Resolution 23-424
Notice of public hearing