MEETING DATE:
FEBRUARY 24, 2015
SUBJECT:
Title
RESOLUTION NOS. 2015-8032, 2015-8033 & CMP 2015-12 - PALOMAR ESTATES MOBILEHOME PARK REFINANCING.
Body
Recommendation
Recommendation
ACCEPT public testimony and ADOPT resolutions and agreements needed for the proposed refinancing of the existing debt on the Palomar Estates East and West Mobilehome Park.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Not applicable
Relevant Department Goal
Not applicable
Introduction
On November 12, 2002, the City Council unanimously approved Resolution No. 2002-5994 and CMP Resolution No. 2002-9 approving the issuance of California Mobilehome Park Financing Authority (CMPFA) Mobile Home Park Revenue Bonds for the purpose of financing the acquisition of Palomar Estates East and West Mobilehome Parks (Parks) by Millennium Housing Corporation (Millennium). Millennium is a non-profit public benefit corporation located in Irvine which owns and operates nineteen mobile home parks throughout California. Three of the mobile home parks owned by Millennium are located in San Marcos; Palomar Estates East and West and Rancho Vallecitos Mobilehome Park. On March 12, 2013, the City Council also unanimously approved Resolution No. 2013-7759, 2013-7760 and CMP Resolution No. 2013-011 approving the refinancing of bonds used to purchase Rancho Vallecitos Mobilehome Park.
Discussion
The City Council is being asked to adopt resolutions which would approve the issuance of bonds in a not to exceed amount of $38,500,000 (Bonds) by the Independent Cities Finance Authority (Authority) for the purpose of refinancing the CMPFA Bonds that were used to purchase the two Parks in 2003. Millennium projects that with the interest rates as low as they currently are they can lower their net debt payment by approximately $250,000 a year and generate an additional $900,000 in Capital Improvement Funds for improvements in the Parks. The purp...
Click here for full text