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ORDINANCE: O-2002-24
SUBJECT: AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF LAKEWOOD, COLORADO $6,000,000 DEVELOPMENT REVENUE BONDS (CARMEL OAKS PROJECT), SERIES 2002, THE EXECUTION AND DELIVERY BY THE CITY OF A TRUST INDENTURE, A LOAN AGREEMENT WITH CARMEL OAKS OF LAKEWOOD, AND THE BONDS, APPROVING A NOTE, MORTGAGE AND CLOSING DOCUMENTS RELATED TO THE BONDS, AND AUTHORIZING OFFICIALS OF THE CITY TO DO ALL OTHER THINGS NECESSARY OR ADVISABLE WITH RESPECT TO THE ISSUANCE OF THE BONDS
ADDRESS: 6263 West Jewell Avenue, Lakewood, Colorado
RECOMMENDATION: Staff recommends approval of the Ordinance as drafted. Phase
I of the project, as described, meets the public purpose of providing high quality
independent, affordable housing to low-moderate income senior residents of the
City of Lakewood. The applicant has met all requirements of the City's Private
Activity Bond Policy and the provisions of the County and Municipality Development
Revenue Bonds Act set forth in C.R.S. Section 29-3-101, et seq, as amended.
FUNDING SOURCE: N/A
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Essex Corporation, headquartered in Omaha, Nebraska, develops, builds, and manages a number of senior living communities throughout the Midwest, and they are actively targeting markets to develop senior independent housing in the western region. Carmel Oaks of Lakewood was created as a non-profit corporation, to provide residential facilities for the elderly. The Project - Phase I - is planned to be a 60 unit, independent, affordable senior housing community, which is currently planned for construction at 6263 West Jewell Avenue in the White Fence Farm subdivision.
The City of Lakewood has determined there is a public need in the City for independent, affordable senior housing. Carmel Oaks of Lakewood has agreed to set aside four of the sixty units in Phase I for households earning eighty percent or less than the area median income, and an additional two units, which will be set aside for households earning sixty percent or less than area median income - for a total of six units to be set aside for low-to-moderate income, independent seniors.
In February 2002, the City Council approved a Resolution recognizing the intent to issue the proposed bonds. With the approval of the Resolution, Essex Corporation completed the due diligence and planning phases, and are now prepared to begin the construction phase of the project resulting in the need for funding. The attached Ordinance authorizes the issuance of $6,000,000 in Development Revenue Bonds. Under agreement with the City, Carmel Oaks of Lakewood will be the borrower of the proceeds from the sale of the bonds and will be responsible for payment of all principal and interest thereon. The Project, revenues generated from unit sales, and fees are pledged as collateral for the outstanding bonds.
IT IS IMPORTANT TO NOTE THAT THE BONDS ARE PAYABLE SOLELY FROM MONIES RECEIVED FROM PAYMENTS UNDER THE LOAN AGREEMENT, AS SECURED BY A MORTGAGE AND AN INDENTURE, AND ARE NOT A DEBT OR INDEBTEDNESS, OR A MULTIPLE-FISCAL YEAR DIRECT OR INDIRECT DEBT, OR ANY OTHER FINANCIAL OBLIGATION WHATSOEVER OF THE CITY.
The bond documents will be on file in the Office of the City Clerk for public review.
DATE OF FIRST READING: July 8, 2002
ORIGINATED BY: Larry Dorr, Financial Analyst, Finance Department
STAFF PERSON RESPONSIBLE: Larry Dorr, Financial Analyst, Finance Department, 303-987-7668
DOCUMENTS ATTACHED: Ordinance O-2002-24
SUBMITTED BY:
Jacque Wedding-Scott, Finance Director
REVIEWED BY:
Joni Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager
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