SR 05:219 - Laserfiche WebLink

}> California Housing Finance Agency (CalHFA) - The City was awarded a $1.S million low interest loan for the project from CalHF A as part of its Housing Enabled by Local Partnership (HELP) program. The City will loan this money to the project with principal and interest being paid from project revenues. }> Citibank N.A. (Citibank) - Citibank will issue a letter of credit securing the repayment of the COP's during the construction period. }> Newman Capital, LLC, a Delaware limited liability company (Newman Capital) - Newman will arrange for the purchase of the COP's after the completion of project construction as a means of providing permanent financing. Project Documents There are a significant number of documents related to the ownership, operation and financing of this project. For purposes of clarity, staff has divided them into two categories: City Documents and Financing Documents. The City Documents relate to the City loans, Ground Lease and project operations/affordability (Regulatory Agreement). Due to the large volume of documents involved with the project, staff has placed the majority of them on a DVD that has been distributed to the City Council. Attached to this report is a copy of the Ground Lease, Regulatory Agreement and Declaration of Restrictive Covenants, Loan Agreement and Promissory note for the City Loan and Loan Agreement and the draft HELP Loan Agreement and authorizing resolution. Staff has attached these documents since they most directly impact the City. Many of the other documents involve agreements between the lenders or between BLP and the lenders. Since the City documents are of primary concern to the City, staff has provided a brief summary of key provisions. The Financing Documents are not discussed in detail but staff has provided a summary of project financing under the section titled Financing Documents. In addition, Bond Counsel will be at the meeting to answer any questions regarding the Certificates of Deposit Participation. The DVD also contains a financial pro-forma for the project. City Documents Listed below is a summary of key provisions of the City Documents. In addition to staff review, these documents have been reviewed by Joe Litten, a consultant with Public Financial Management, Inc., (PFM) whose services were secured by the City for this purpose. PFM Group also reviewed the primary financing documents, the financial proforma and the property management agreement between BLP and Eskaton. Documents were also reviewed by Paul Thimmig of Quint & Thimmig LLP, who serves as the bond counsel for the project. Finally, the documents were reviewed by the City Attorney and based on his review, and the collective opinion of other reviewers, the documents have been prepared to minimize the City's risk and to assure its interest is protected to the fullest extent possible in view of all parties involved with the project. SR:05:219 Page 5