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HomeMy WebLinkAbout08/23/1993 ,B A K E.R-$ F I E L D Kevin McDermott, Chair Patricia J. DeMond Randy Rowles Staff: John W. Stinson (Ed Schulz for John) AGENDA BUDGET AND FINANCE COMMITTEE . Monday, August 23, 1993 12:00 noon City Manager's Conference Room 1. Request by Valley Communities to Release Deposit Monies (Ed Schulz) 2. *CDBG Amendment (Jake Wager) (Senior Center project/Section 108 Application) 3. Bond Financing (Gregory Klimko) ' 4.- Set NeXt Meeting *Due to time constraints and that CDBG Amendments are routinely referred to the Budget and Finance .Committee, we have placed this item on the ~Budget and Finance Committee Agenda for today as the COmmittee may nofmeet again in time to meet the time deadlines for getting this item back to Council; this is an exception as this item is on the Consent Calendar of the City Council Agenda of August 25 to be referred to the Budget and Finance Committee. MEMORANDUM August 23, 1993 TO: Jake Wager, Economic Development Director FROM: George Gonzales, Community Development Coordinator ~ II SUBJECT: Amendment to the Final CDBG Application for FY 92 an~FY 93 In order to comply with the U.S. Department of Housing and Urban Development (HUD) guidelines, whenever the scope, funding level or a new CDBG project is added, public notification must be made. The following are those proposed activities to be undertaken as part of this Amendment of the CDBG program: 1. Bakersfield Senior Center Acquisition (BSCA) (Phase III) - 530 Fourth Street, Ward 1 -- Project scope is being changed from construction of a 1,200 sq. ft. building on the existing facility to the acquisition of two buildings totalling 2,246 sq. ft. on approximatelly 21,940 sq. ft. parcel located at 624 Fourth Street, adjacent to the BSCA site. The funds available for the construction project will be transferred to acquisition. No additional funds will be programmed to complete this project. Owner of the facility will be Bakersfield Senior Center. Staff Recommends transfer $115,000. 2. Lot Clean-up Pro.qram Public Services -- Removal of debris, fire hazards and neighborhood cleanup campaign on private property by the California Conservation Corp. This activity will utilized in CDBG targeted areas. CDBG funds will be used to cover only the costs for supervising the lot clean-up by Corp members. Staff Recommends transferrinq $10,000. 3. Code Enforcement Pro.qram -- During the FY 93 application process, Code Enforcement Activity Designation was not included in the application submitted to HUD. Funding was allocated with current staff to undertake this activity. This activity will be utilized in CDBG targeted areas. (No additional funds are needed for this activity.) Staff Recommends transfer $15,000. Page 2 Wager Memo 8/23/93 4. Direct Economic Development Assistance to a Private For-Profit Business - Bakersfield Convention Center Hotel Project Assistance (BCCH), 801 Truxtun Avenue Ward 2 -- Provide financial assistance for predevelopment and eligible Fixture, Furniture and Equipment Cost (FF & E) for the BCCH. With this assistance, the developer will be able to complete the construction and operate the 257 room, and 189,00 sq. ft. hotel facility on 5 acres. Financial assistance proposed is $2.5 million. Total cost of the project is approximately $18 million. Over 200 permanent jobs will be created, of which over 51% will be held by Iow and moderate income individuals. To fund this activity the City proposes to submit to the HUD a Section 108 Loan Guarantee. The City will repay $2.5 million from future CDBG entitlements. The repayment of the principal and interest of approximately $375,000 will be made annually for the next 10 years (at 8% interest rate) from the CDBG program. Staff Recommends submitting an aoDlication to U.S. Department of Housin.q and Urban Development for $2.5 million Section 108 Loan Guarantee Fund. Im:GG9A-IOTEL1 .MEM TENTATIVE AMENDMENT TIMELINE August 23 Budget and Finance Committee Meeting August 24 Deadline to publish Notice for August 27 August 27 Notice to appear in Newspaper September 6 Deadline for public comments September 8 City Council Meeting - Authorization to submit to HUD September 9 HUD - Review and approval Im:O(~AMEND A Presen~fion of UNITED coMMUNITY AND HOUSING ... : · DEVELOPMENT CORPORATION THE HALLMARK AT BAKERSFIELD August 1993 UNITED COMMIfNI~ AND HOUSING DEVELOP1WENT CORPORATION INTRODUCTION ? The purpose of this Booklet is to provide information in. connection with the refinancing of the City of Bakersfield (the "City") Certificates of Participation consisting of the 1991 Series A Certificates of Participation, ("Series A Certificates"), originally issued to finance The Hallmark at Bakersfield Assisted Living. Center (the "Project"). The Certificates were issued pursuant to a Trust Agreement dated January 1, 1991 (the "Agreement") between, the City, United Community and Housing Development Corporation ("UCHDC" also known as the '"Company") and First Interstate Bank of Denver, N.A. (the "Trustee"). The net proceeds of the refinancing together with other available .funds, are being used to pay the originally issued Certificates, establish various reserves and pay costs of issuance. The refinancing request is more fully described in Section IV. The Certificates were issued for the benefit of United Community and Housing' Development Corporation. UCHDC is a not-for-profit public-benefit charitable purpose corporation based in Los Angeles, California. Since 1974, UCHDC has' developed and operated new housing for low and moderate income families and the elderly. UCHDC expanded its mission to include providing a full range of elderly care as well as housing. The Company recently refinanced the certificates it issued to develope a 46 unit licensed residential care facility for the elderly in Palm Springs, California. UCHDC employs approximately 100 full- ,. time employees and has an operating budget of over $6,200,000. A detailed ~ description of UCHDC is included in Section III. Si~e Location The 1.08 acre site is located at 2001 Akers Road, which is at the intersection of Akers Road and Ardmore Avenue in the City of Bakersfield, California. The site is' further described in Section IL Introduction (continued) The Bakersfield Assisted Living Center ("The Project") contains 51 assisted living units comprised of 6 'deluxe studio units and 45 studio units. The common areas of the Project includes a formal lobby and reception area, a central kitchen and dirfing room,, a living room and lounge area, a multi-purpose activities and craft area, a beauty and barber shop, a therapy room, a Sundry store, an exercise area, a planting area, an employee lounge, central laundry and administrative offices. The two-stow wood frame and stucco structure was designed with a traditional California exterior motif and extensive landscaping. The Project's size, including common'areas, is approximately 31,200 square feet. The Project offers a full range of amenities and services to its residents and will be licensed by the State of 'California Department of Social Services Community Care Licensing Division as a Residential Care Facility for the Elderly CRCFE").' The Project is aimed primarily towards Bakersfield residents, 62 years of age and older, who require assistance with the needs of daily living and desire to live in a private pay surrounding. The Project is further described in Section II. PROJECT DESCRIPTION THE HALLMARK AT BAKERSFIELD, (the "Hallmark")is a Licensed Residential Care Facility for the Elderly containing 51 units in the City of Bakersfield, Kern County, California. The Hallmark is located on a 1.08 acre site at 2001 Akers Road, which is at the intersection of Akers Road and Ardmore Avenue. The Hallmark is owned by United Community and Housing Development Corporation, a California based not-for-profit corporation, and is being managed by Professional Community Management ("PCM"). The Hallmark opened during the month of March, 1992. The Hallmark is aimed towards Bakersfield residents, 62 years of age and older, who require assistance with the needs of daily living. In addition to the 51 living units, the Hallmark contains the following common areas,' used by the Hallmark's residents: A formal entry way; A living room/loUnge area; - A centrally-located dining room; · - A multi-purpose activities and craft area; -. A barber and beauty shop; - A therapY room; - A Sundry store; An exercise area; and A planting area. The common areas include a fully equipped central kitchen and recreation areas. The dining room located on ~he first floor is designed to accommodate., all'59 residents plus guests in a single seating. In addition, during non-dining hours the dining room is used for recreational activities. A large living room located on the first floor is provided for watching television, conversation and reading. A beauty and barber shop is also provided. There are central laundry facilities in which the Hallmark staff do the residents' personal laundry, as well as linen, at no additional charge. Facilities are available to those residents who wish to do their own laundry. Project Description (continued) The adm.~nistrative area includes an administrator's office, work space for the resident care attendants and.activities director, a locked medication area. and storage space. While each of the Hallmark's living units are equipped with individual bathing facilities, the Hallmark is also equipped with central bathing facilities which allow sit-down bathing with the help of a trained staff member. The groUnds have level non-slip walkwaYs which allow the residents 'to take full advantage of the landscaped gardens. The site contains adequate parking for use by residents, guests, and staff. The Hallmark is accessed off of Akers Road by means of a circular drive. The Hallmark has 36 studio units containing approximately 325 square feet of living space which have a monthly service fee of $1,700, 4 deluxe studio units containing approximately 400 square feet of living space with a monthly service fee of $1,825 and 2 deluxe studio units with'a monthly service fee of $2,000. The facility has a current occupancy rate. of 80%. Each of the living units contain: - Furnishings, at no additional cost, and at the option of each resident as part of the monthly service fee; - Wall-to-wall carpeting; Non-slip floor covering in the non-carpeted areas; Special Sound insulation; Window Coverings; - Electrical outlets and switches placed at levels which are convenient for the elderly; - .Cable television outlets; - Pre-wiring for personal telephone; - A food service area containing a refrigerator, sink, preparation space, and storage cabinets; ' Smoke detectors and heat-activated sprinklers; - Large closets; Project DescriPtion (continued) - Full private bathrooms with a vanity, sit-down shower and special safety features; and - A 24-hour emergency call system installed at two locations in the unit. The Hallmark is licensed by the State of California Department of Social Services Community Care Licensing Division as a Residential Care Facility for the Elderly CRCFE"). The License permits the facility staff to provide assistance to the residents with activities of daily living and with medication. Relicensing takes place annually with periodic inspections by the State during the year. RCFE's are also known as assisted living, sheltered care or personal care facilities. Most licensing requirements pertain to safety, service and quality of life for the residents. The requirements are met by providing a comprehensive management syste, m. Residenfi~! Care The Hallmark has been designed to meet the needs of frail elderly residents who require assistance with the routine activities of daily living, including: - Bathing; - Dressing; - Grooming; and - Assistance with medication: The Hallmark accepts residents who 'require the use of canes, walkers and wheelchairs. The Hallmark does not accept residents who are bedfast. Resident Services and Staff The admi~nistrative Staff includes an approved administrator and full-time activities director. The administrator has direct responsibility over the. on-going activities of the Hallmark, and is responsible for the marketing of the Hallmark. Project Description (continued) The kitchen staff includes a head cook and adequate staff to provide and serve three meals, seven days per week, plus snacks. A part-time maintenance person is employed to ensure the safe and attractive operation of the Hallmark's physical plant. The Hallmark centrally stores, as well as monitors, each resident's medications, both prescription and "over the counter". The staff monitors the physical and mental w, ell-being of the residents and makes arrangements for routine medical and dental care, as well as emergency medical services. The Hallmark prOvides a full activities program that is designed to maximize each resident's quality of life by enhancing both their physical and mental capabiliti, es. A vital element of the Hallmark's program is to ensure each resident's ability to worship as they choose. This will include arranging for transportation to local churches and a non-denominational bible study within the Hallmark. Special events include holiday and birthday celebrations. Local community resources are utilized in all aspects of the Hallmark's activities program. The services provided to each resident of the Hallmark include: Assistance, as needed, with the routine activities of daily living; - Daffy housekeeping; - Weekly bed/bath linen and personal laundry services; Three meals per day, plus nutritious snacks; A comprehensive activities program; - Individually controlled air conditioning and heating; - Electricity and water; TraSh removal and building janitorial and maintenance services; - Scheduled transportation for . shopping, physician appointments, cultural activities and religious services; . ~24 hour attendant supervision; Project Description (continued) - Visiting pharmacist; and On-site banking. Each of the Hallmark's residents are encourage to maintain the maximum level of independence of which they are capable, with assistance available as needed. A full-time activities director is provided to develop and operate a full activity program to promote the social and physical well being of the residents. The Hallmark is staffed 24-hours a day with trained resident assistants. All of the staff members are pre-screened as to their prior employment and are trained to best serve the needs of the. frail elderly. The Hallmark' provides an on-going~ staff development program. Dining Program The dining program is perhaps the most visible, if not the most important, component of the Hallmark's services. The monthly service fee includes three meals per day plus nutritious snacks.' The menus are designed to be both nutritionally balanced and to meet the individual tastes of the residents. The dining program' includes physician ordered special diets. Resident Agreement _ The Company enters into a Resident Agreement with each resident prior to admission to the Hallmark. Each Resident Agreement is for a one-year period and automatically renews, unless cancelled by the resident or the Company. The State of California routinely requires certain provisions be included in resident agreements, although such requirements may be waived by the State. These, include a provision that the resident may terminate the agreement with 30 days notice. In the event the resident dies or is permanently transferred to a more intense level of care, the agreement can be terminated at such time as all of the resident's personal property has been removed from the unit. The Hallmark requires that each resident provide a physician's report prior to admission. COMMERCIAL C6MMERCiAL RETAIL RETAIL PROFESSIONAL  ~ MULTi FAMILY ~uC~ DENTIST ~ HOUSINg HOUSING . MULTI FAMILY HOU~'ING ~ SINGLE FAMI L Y FAMILY. FAMILY FAMILY HOUSING 1~ HOUSING ~ HOUSING ' B~S~E~ ~SlS~D ~NG C~U~ ~nd Use Map A PROFILE OF UNITED COMMUNITY AND HOUSING DEVELOPMENT CORPORATION Introduction ,,U~nited Community and Housing Development corPoration ("UCHDC" or th~ :- Company") is a not-for-profit public-benefit charitable purpose corporation base~ in Los Angeles, California. UCHDC's activities are focused upon and limited to "' accomplishing charitable purposes, as defined under section 501(c)(3) of the Internal Revenue Service Code. Section 501(c)(3) of the Code provides for the exemption of federal income tax of organizations which are organized and -- operated exclusively for charitable purposes.' Profile and ~ Since its inception in the early 1970's, UCHDC has functioned as a multi-program, non-sectarian, community-based organization focused upon serving the varying needs of elderly citizens and low and moderate income i' families. UCHDC's activities, in support of its mission, have included: Operation of an On-The-Job Training Program through the use of funds from the United States Department of Labor's Job Training .Partnership Act; ? - Provision of housing repairs for elderly and handicapped home '- owners and security devices for elderly apartment dwellers, funded by Community Development Block Grants; - Neighborhood and commercial revitalization assistance, utilizing funds provided through the Department of ~ Commercia1 Economic Development Agency; and Development and operation of new multi-family housing for families 'and the elderly. A Profile of United Community and Housing Development Corporation (continued), Housing for the Elderly Living Units specifically for the elderly represent a majority of the total number of apartment units contained in UCHDC's eleven multi-family projects. Based upon the dramatically growing need for additional quality housing for the elderly, and UCHDC's 20 years of operational expertise, the Company's housing development activities for the past seven years have been focused primarily upon the development of new housing units for the elderly. Financing for' these new housing units has' been effected through the use of either programs sponsored by the United States Department of Housing and Urban Development or' tax-exempt bond financing, issued through the California Housing Finance Agency and the County of Los Angeles. The following' projects, which provide housing accommodations for the elderly, have been developed and are owned by UCHDC and related entities. Name of Project/ Type of Facility/ Loe~_fion Number of Units ,Financing North Hollywood, MagnOlia Towers (1) Elderly Housing California 200 units (State of California . HUD 202, Section 8) West Hollywood, Fairfax Towers (1) Elderly Housing California 150 units ' (State of California HUD 202, Section 8) Gardena, South Park Elderly Housing California 126 units (HUD 202, Section 8) Los Angeles, Cherokee and Whitley (2) Elderly Housing California 75 units (HUD 202, Section 8) Hollywood, Montecito Apartments (3) Elderly/Handicapped California 118 units ' Housing (HODAG~and California Housing Finance Agency Bond , Funding) Note: (1) Facility developed by UCHDC; managed by independent manager. (2) HUD Grant awarded September, 1989; under development. (3) 32 units receive rent subsidies; the remaining 86 units are rented at market rates to moderate income tenants. A Profile .of United Community and Housing Development Corporation (continued) Other multi-family projects, not restricted to residency by the elderly, which UCHDC and its related entities developed include: N~me of Project/ Type of Fa~illty/ Location Number of Units Financing Azusa, Foothill Gardens (2) Multi-Family Low- California 112 units Moderate Income (HODAG/Los Angeles County Bond Funding- no rent subsidies) North Hollywood, · Hamlin Estates Multi-Family Low- California 30 units Moderate Income (Los Angeles City Community Re-development Grant) Los Angeles, Grandview Estates (1) Multi-Family Low- California 28 units Moderate Income (HUD 221[d][4]) Los Angeles, Panorama City I & II , Multi-Family Low- California 27 units Moderate Income (HUD 221[d][4]) Los Angeles, Canoga Park (3) .Multi-F~mily Low- California 14 units Moderate Income (HUD 221[d][4]) Note: (1) Facility developed by UCHDC; not presently owned by UCHDC or affiliates. (2) Owned by a limited partnership of which either the Company's Executive Director ' of its Consulting General Contractor is a general partner. (3) Facility developed, and owned by the Company or entities controlled by the Company. Based upon their experience in the succeSsful operation of independent living apartments for the elderly, UCHDC has become acutely aware that the elderly are. highly susceptible to forms of distressl and have special needs because of their advanced age. In response to their recognition of. these special needs of the elderly, UCHDC has amended the Company's articles of incorporation to expand their mission to include the provision of housing and related services to the elderly. A Profile of United Community and Housing Development Corporation (continued) In this regard, UCHDC has secured a private letter ruling from tlhe Internal Revenue Service permitting the expansion of its purpose while at the same time retaining the organization's exemption from income taxes under Section 501(c)(3) and 50 l(a) of the Internal Revenue Code of 1986. In accordance with its charitable purpose and mission, UCHDC will continue, to the extent possible consistent 'with its obligation to maintain rate covenants, to provide services .to those residents who, over a period of time, may become indigent or unable to pay the full amount of prevailing monthly service fees and assist low and moderate income residents by subsidizing ..their monthly service fees. Major emphasis. is placed by UCHDC upon obtaining ownership in quality full- service rental retirement housing facilities which offer the elderly resident quality housing, supportive services, assistance as needed in the activities of daily living and access to long-term care. Opportunities are currently being evaluated to' effect sponsorship for both existing and to-be-developed full-service retirement communities and assisted living facilities in market areas which have been determined' 'to contain significant numbers of elderly households in need of supportive housing. Sponsorship of additional elderly housing facilities, determined by independent outside consultants to be market justified° and economically viable, will enable UCHDC to support and expand its mission of providing services to the elderly. From 1990 tba;ough 1992, UCHDC financed and developed the following retirement communities and assisted living facilities. Name of Project/ Type of Facility/ Loc~fion Nnmber of Units Financing Lincolnwood, Regency Park at Lincolnwood Retirement Housing, Illinois 229 units/beds Assisted Living and Nursing Care (Illinois Development Finance Authority) COlorado Springs, Liberty Heights at Northgate Retirement Housing, Colorado 219 units · Assisted Living and Nursing Care (Colorado Health Facilities Authority) Palm Springs, The Hallmark at Assisted Living (City of California Palm .Springs Palm Springs) 46 units/beds A .Profile of United Community and Housing Development Corporation (continued) Nsme of Project/ Type of Facility/ ~on Number of Units Fin~ucing Bakersfield, The Hallmark at Assisted Living (City of California Bakersfield Bakersfield) 51 units/beds Glen Cove, The Regency at Glen Cove Assisted Living (Glen New York 96 units/105 beds Cove Industrial · Development Agency) Organizational Structure of UCHDC UCHDC is governed by a Board of Directors. The members of the Board of Directors have the responsibility to oVersee and manage the affairs of the Company. They are also responsible to appoint the officers of the Company and to elect succesSor directors. · Presently, the Board is comprised of nine Directors. They are: As of July 1993 Name Office Occupation Howard Winkler Chairman of the Board Business Executive Steven Saltzman Vice Chairman Financial Consultant Martin Fishman Secretary Insurance Broker Ira Handelman Land Planning. Consultant J. J. Kaplan Executive Assistant to California State Senator David Roberti .-. Judah Gottleib Attorney Bernard Weisel Attorney ~ . Stanley Treitel (1) President/Executive Director Note: (1) Not a Director t. A Profile of United Community and Housing Development Corporation (continued) UCHDC has a staff of approximately 100 full-time 'employees. The staff support the various program activities currently in' operation. 'UCHDC's projected budget for the operation of programs currently in place for the fiscal year ending June 30, 1992 (not incl~,,ding housing projects) is estimated to be approximately $6,200,000. The following individuals play a key role in management of the day-to~day affairs of the organization: Stanley Treitel President/Executive Director As the President/Executive Director of UCHDC, Mr. Treitel is responsible for all aspects of the Company's day-to-day operations. He has been the Executive Director of the Company for the past 15 years, since its original incorporation in 1974. Prior to his affiliation with UCHDC, he 'held various financial positions with public accounting firms and as a Controller of a not-for-profit health plan dOing business in the Los Angeles area. He received a Bachelor of Science degree from Woodbury University in 1970. Consulting General Contractor ' Mr. Rubin is a California licensed B-1 contractor and is the sole shareholder of Los Angeles Builders, Inc., a California corporation, which was incorporated in 1975. Since 1977~ Mr. Rubin, through his company, has acted as consulting general contractor to UCHDC. In that capacity, he has overseen various elements of UCHDC's relationships .with suppliers and contractors. In addition, he has been responsible for construction of the projects constructed by UCHDC, and has served as Project Manager for three of the projects developed by UCHDC. He is currently acting as UCHDC's Project Manager for the two retirement communities it is building and the~two assisted living facilities it is developing. Mr. Rubin has been licensed in California as a general contractor since 1961. Program Management Consultant Mr. Contreras is responsible for the financial operations of the Company. He has been employed by UCHDC since 1982. Prior to that time, he worked as an accountant for various city and state agencies in the Los Angeles area evaluating and auditing various social welfare and education programs. Mr. Contreras received a Bachelor of Science degree from the University of California, Los Angeles in 1979. Hie also received a degree as an accountant from Universidad de Estado, located in Antofagasta, Chile, in 1969. REFINANCING REQUEST Est~im~ted Sources and Uses of Funds Sourc~ 1998 Series A Certificates: $ 7,340,000 Existing Projects Funds: 850.000 TOTAL SOURCES: $ 7,690,000 U~es of Fund~ Refund 1991 Series A Certificates: $ 6,660,000 (1) Working Capital: 284,000 Indigency Fund: 25,000 Debt Service Reserve Fund: 562,000 Cost of Issuance: 159.000 (2) TOTAL USES: $ 7,690,000 (1) Original Amount Original Principal Prepayment · Escrow Principal Funded Offering Amount Penalty Requirement Amount Discount Outstanding to Retire Debt 1991 Series A · Serial Certificates $ 810,000 $ 750,307 $ 59,693 $ 760,000 n.~ $ 931~239 · ~ 1991 Series A _Term Certificates $3,520,000 $3,095,020 $424,980 $3,520,000 $105,600 $4,557,479 1991 Series A Deferred Interest ~ Certificates $ 365,562 . $ 365,562 0 $ 484,080 n~ $1,130,068 , Trustee Fees n~. n.~ n~ · n~ n~ $ 41,305 ~ TOTAL $4,695,562 $4,210,889 $484,673 $4,764,050 $105,600 $6,660,091 (2) The underwriters have elected not to charge a refinancing fee. The City of Bakersfield will be paid a fee equaling $10,000 plus two tenths of one percent of the funds over the original 1991 offering, or a total fee of: $12,658. Reftoaucing Beques~: (continued) Debt Service Compark~m 1991 Series A Certificates 1993 Series A Certificates Payments Principal Interest Total Principal Interest Total Through Amount Amount July 1 1991 $ 0.00 $;,'05,675.00 $205,675.00 0 0 0 1992 25,000.00 411,350.00 436,350.00 0 0 0 1993 25~000.~)0 408,975.00 433,975.00 0 0 0 1994 30,000.00 406,600.00 ~ 436,600.00 $245,817.65 $273,618.05 $519,435.70 1995 30,000.00 403,750.00 433,750.00 257,555.10 284,108A0 541 663.50 1996 35,650.00 400,900.00 435,900.00 260,852.85, 292,593.15 553 446.00 1997 90,000.00 397,575.00 487,575.00 259,150.60 299,343.60 558 494~20. 1998 100,000.00 389,025.00 489,025.00 269,008.65 305,111.85 574 120.50 1999 110,000.00 379,525.00 489,525.00 263,866.70 308,893.60 572 760.30 2000 175,000.00 369,075.00 544,075.00 259,504.90 311,8032~.0 571 308.10 2001 190,000.00 352,450.00 542,450.00 260,923.25 313,935.'15 574 859.00 2002 225,000.00 334,400.00 559,400.00 258,12L75 315,180.~ 573 301.75 2003 250,000.00 313,025.00 563,025.00 260,320.25 315,172.00 · 575 492.25 2004 270,000.00 289,275.00 559,275.00 258,298.90 314,401.50 572 100.40 2005 300,000.00 263,625.00 563,625.00 262,057.70 312,916.60 574 974.30 2006 325,000.00 235,125.00 560,125.00 265,8i6.50' 309,941.00 575 157.50 2007 355,000.00 204,250.00 559,250.00 265,355.45~ 306,592.00 571 947.45 2008 390~000.00 170,525.00 560,525.00 269,894.40 302,009.10 571 903.50 2009 425,000.00 133,475.00 558,475.00 274,433.35 295,788.40 570 221.75 2010 470,000.00 93,100.00 - 563,100.00 , 284,752.45 289,497.45 574 249.90 2011 510,650.00 48,450.00 558,450.00 290,35L70. 283,246.20 574 D97.90 2012 60 018.00 539,982.00 600,000.00 296,950.95 275,607.65 572 558.00 2013 53 922.00 .546,078.00 600,000.00 308,650.20 266,457.50 574 ~7.70 2014 48 ~.~A.()0 ,551,556.00 600,000.00 319,149.45 255,386.125 574 535.70 2015 48 524.00 556,476.00 600,000.00 280,000.00 81,900.00 361 ~g)0.00 2016 39 108.00 ' 560,892.00 600,000.00 295,000~00 67,200.00 362 200.00 2017 35 136.00 564,864.00 600,000.00 310,000.00 51,712.50 361 712.50 2018 31 566.00 568,434.00 600,000.00 330,000.00 35,437.50 365 437.50 2019 28 362.00 571,638.00 600,000.00 345,650.00 18,112.50 363,112.50 2020 25.482.00 574.518.00 600.000.00 89.717.25 485.282.75 575.000~00 :TOTALS $4,695,562 Slip. A4,588 $15,940,150 $7,340,450 $6,971,24[7 $14,311,697. Total Principal and Interest 1991 Series A Certificates $15,940,150 Total Principal and Interest 1993 Series A Certificates $14,311,697 Refinancing Request (continued) Description of the Certificates: Original 1991 New 1993 Type ~ Seri¢~ A* Series A** Tax Status: Federal Tax Exempt Federal Tax Exempt California Tax 'Exempt California Tax Exempt Amount: $4,695,562 $7,340,000 Interest Rate: 9.50% to 11.00% 5% to 7% Denominations: $5,000 $5,000 ~Final Maturities: July 1, 2020 July 1, 2020 · Interest Payment Dates: January i January i - July 1 July 1 Interest Payment Commencement Dates: July 1, 1991 January 1, 1994 Taxability Call'i 108% '108% * Consisting of $810,000 9.50% serial Certificates due July 1, 1992-July 1, 2001; $3,520,000 9.50% Term Certificates due July 1, 2001; and $365,562 11.0% Term Deferred Interest Certificates due July 1, 2012-July 1, 2020. ** COnsisting of $1,130,000 5% Serial Certificates due July 1, 1994-July 1, 2003, $3,870,0,00 5.2~57~ T_e_rm ~ert_ificates due July 1, 2019 subject to sinking fund payments ana ~,~40,000 Term Deferred Interest Certificates due July 1, 2020 subject to sinking fund payments. Refinancing Request (continued) Questions and Answers Question: Why does United Community want to refinance The Hallmark? Answer: 'Interest rates have significantly decreased since the original Certificates of Participation were issued. The 1991 Series A Certificates have a rate of 9.5% to 11%. The new Certificates will have a rate of 5% to 7%. The lower monthly payments provide for a more viable facility. ~ Question: Why is there a need to raise more funds to pay off ex~ting debt? Answer; The refinancing will raise approximately $7,340,000 of which $6,660,000 will be used to pay off existing debt. The balance of the funds will be used, along with currently held funds, to fund the Working Capital Fund, Indigency Fund, to · increase the Debt Service Reserve Fund and pay for the cost of issuing the new Certificates. Please. refer to the "Sources and Uses of Funds" section contained herein for a complete analysis. Question: Is there a financial risk to the City if the bonds are ever defaulted on? ·'Answer: Given the nature of the financing utilized, the City bears no financial risk. O_uestion: The "Sources and Uses of Funds" footnotes indicate that the Underwriter is not charging a fee to refinance the Certificates; why not? Answer: When the original financing took place, the Underwriter purchased all of the Series A Bonds. They have held these bonds and would, in essence, be paying themselves a fee by refinancing the project, sinCe they hold the majority of the debt. Upon completing the refinancing, ,the Underwriter intends to sell the Series A Certificates. Refinancing P~que~t (continued) Question; How does the refinancing help the facility cash flow? Answer: Although some Trustee held funds are being increased and the cost; of issuance financed, the significantly reduced' interest rates provide for a lower monthly payment without extending the terms of .the Certificates. Please refer to the attached "Description of the. Certificates" comparison for a more detailed explanation. Question: Is the facility current with its debt service payments on the original issue? If they are not, why? Answer; Yes. Question: Will the FacilitY have the capacity to service the new Certificates? .. Answer: Yes. ~uestion: ~ What's the current occupancy rate of the facility? Answer: Forty-two of the fifty-one units are occupied for an occupancy rate of 82;%.