HomeMy WebLinkAboutReso 150-03 FairwyRnchLoanComit RESOLUTION NO. 150 - 03
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING TWO LOAN COMMITMENTS FOR
DUBLIN RANCH SENIOR HOUSING PROJECT AND
DUBLIN RANCH FAMILY HOUSING PROJECT
(FAIRWAY RANCH)
WHEREAS, the City Council finds that there is a severe shortage of housing affordable to lower-
income households in the City of Dublin; and
WHEREAS, the development of affordable housing in the City of Dublin will serve a public
purpose; and
WHEREAS, the Fairway Ranch projects will provide 162 affordable units in excess of the
affordable units required for the site; and
WHEREAS, the Fairway Ranch development will now be applying for tax-exempt bond
allocations for the Senior Housing Project (which may be referred to by the project developer as the
"Dublin RanCh Senior Housing Project") and for the Family Housing Project (which may be referred to
by the project developer as the "Dublin Ranch Family Housing Project"); and
WHEREAS, the developer's application to the California Debt Limit Allocation Committee will
receive more favorable consideration if the Committee knows that the City of Dublin will be contributing
financially toward this project; and
WHEREAS, the City of Dublin is willing and able to provide a loan of up to $2,250,000 for the
Fairway Ranch Senior Housing Project from the Inclusionary Housing In Lieu Fund; and
WHEREAS, the City of Dublin is willing and able to provide a loan of up to $2,250,000 for the
Fairway Ranch Family Housing Project from the Inclusionary Housing In Lieu Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin, a
Municipal Corporation, approves the Loan Commitment letter for the Fairway Ranch Senior Housing
Project; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin,
Municipal Corporation, approves the Loan Commitment letter for the Fairway Ranch Family Housing
Project.
FURTHER RESOLVED, that the City Council authorizes and directs the Mayor to sign both of
these letters substantially in the form, attached hereto as Exhibit A1 and A2 and to undertake such
further action as may be necessary and desirable to carry out the intent of this resolution.
PASSED, APPROVED, AND ADOPTED this 1st day of July 2003.
AYES: Councilmembers McCormick, Oravetz and Sbranti, and Mayor Lockhart
NOES: None
ABSENT: Councilmember Zika
ATTEST: ~~.klb,~~~-~ Deputy City Clerk
K2/G/7- 1-03/reso-loancommitmt.doc (Item 8.6)
CITY OF DUBLIN
100 Civic Plaza, Dublin, California 94568
Website: http://www.cLdublin.ca.us
July 1,2003
Ms. Laurie Weir, Executive Director
California Debt Limit Allocation Committee
915 Capitol Mall, Room 308
Sacramento, CA. 95814
Re: City of Dublin Support
Fairway Senior Housing Project, Dublin, CA
Dear Ms. Weir:
To help maximize the number of affordable units in the Fairway Senior Housing Project, the City of
Dublin has agreed to provide financial assistance to the Project by (a) providing a loan to support the
development of the Project; and (b) waiving a future commercial linkage fee on Dublin Ranch
commercial development. These forms of assistance will enable this much needed Project to provide
50% of its units to very low and low income tenants, and 30% of its units to moderate income tenants.
The terms of the City loan and the commercial linkage fee waiver are summarized below.
City Loan
As documented in the Loan Commitment Letter executed by the Developer and the City of Dublin, the
City has agreed to provide financial assistance in the form of a loan from the City's Inclusionary Zoning
In-Lieu Fee Fund in the principal amount of $2,225,000 to support the development of the Project and
increase and improve the supply of housing available in the community to very low, low and moderate
income households. The loan will be funded at construction loan closing and remain in place during the
projected construction, lease-up and attainment of stabilized operations and permanent loan funding
phases ofthe project. A below-market rate of three percent simple interest will accrue on the
outstanding principal balance. The entire outstanding principal balance and accrued interest are payable
in full at maturity.
ATTACHMENT lA
Commercial Linkage Fee Waiver
As documented in the Development Agreement executed by the Developer and approved by the City of
Dublin, because the Developer is providing affordable units substantially in excess of those required
under the City's Inclusionary Zoning Ordinance, the City of Dublin has agreed to exempt commercial
development in Dublin Ranch from the payment of any commercial linkage fee or similar fee that the
City may adopt which requires payment of a housing fee in connection with the development of such
property for commercial use. This waiver is contingent upon the completion of the Project and
compliance with the affordability and other requirements set forth in the Development Agreement. The
City's financial consultant, CSG Advisors, has estimated the value of this future fee waiver to be
approximately $1,000,000.
The City of Dublin strongly supports this important project. Please feel free to call me with any
questions you may have regarding this matter.
Sincerely,
Mayor
City of Dublin
Area Code (925) . City Manager 833-6650' City Council 833-6650 . Personnel 833-6605 . Economic Development 833-6650
Finance 833-6640 . Public Works/Engineering 833-6630 . Parks & Community Services 833-6645' Police 833-6670
Planning/Housing/Code Enforcement 833-6610 . Building Inspection 833-6620 . Fire Prevention Bureau 833-6606
CITY OF DUBLIN
100 Civic Plaza, Dublin, California 94568
Website: http://www.cLdublin.ca.us
July 15, 2003
Ms. Laurie Weir, Executive Director
California Debt Limit Allocation Committee
915 Capitol Mall, Room 308
Sacramento, CA. 95814
Re: City of Dublin Support
Fairway Family Housing Project, Dublin, CA
Dear Ms. Weir:
To help maximize the number of affordable units in the Fairway Family Housing Project, the City of
Dublin has agreed to provide financial assistance to the Project by (a) providing a loan to support the
development ofthe Project; and (b) waiving a future commercial linkage fee on Dublin Ranch
commercial development. These forms of assistance will enable this much needed Project to provide
50% of its units to very low and low income tenants, and 30% of its units to moderate income tenants.
The terms of the City loan and the commercial linkage fee waiver are summarized below.
City Loan
As documented in the Loan Commitment Letter executed by the Developer and the City of Dublin, the
City has agreed to provide financial assistance.in the form of a loan from the City's Inclusionary Zoning
In-Lieu Fee Fund in the principal amount of $2,225,000 to support the development of the Project and
increase and improve the supply of housing available in the community to very low, low and moderate
income households. The loan will be funded at construction loan closing and remain in place during the
projected construction, lease-up and attainment of stabilized operations and permanent loan funding
phases ofthe project. A below-market rate of three percent simple interest will accrue on the
outstanding principal balance. The entire outstanding principal balance and accrued interest are payable
in full at maturity.
ATTACHMENT IB
Commercial Linkage Fee Waiver
As documented in the Development Agreement executed by the Developer and approved by the City of
Dublin, because the Developer is providing affordable units substantially in excess of those required
under the City's Inclusionary Zoning Ordinance, the City of Dublin has agreed to exempt commercial
development in Dublin Ranch from the payment of any commercial linkage fee or similar fee that the
City may adopt which requires payment of a housing fee in connection with the development of such
property for commercial use. This waiver is contingent upon the completion of the Project and
compliance with the affordability and other requirements set forth in the Development Agreement. The
City's financial consultant, CSG Advisors, has estimated the value of this future fee waiver to be
approximately $1,000,000.
The City of Dublin strongly supports this important project. Please feel free to call me with any
questions you may have regarding this matter.
Sincerely,
Mayor
City of Dublin
Area Code (925) . City Manager 833-6650 . City Council 833-6650 . Personnel 833-6605 . Economic Development 833-6650
Finance 833-6640' Public Works/Engineering 833-6630' Parks & Community Services 833-6645' Police 833-6670
Planning/Housing/Code Enforcement 833-6610' Building Inspection 833-6620 . Fire Prevention Bureau 833-6606