DATE: March 12, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Housing and Neighborhood Services Department
TITLE: APPROVAL OF THE ISSUANCE OF TAX-EXEMPT MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE BENEFIT OF 716 SEAGAZE AFFORDABLE, LP, AN AFFORDABLE HOUSING DEVELOPER
RECOMMENDATION
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Staff recommends that the City Council adopt a resolution approving a plan of finance including the issuance of revenue bonds by the California Municipal Finance Authority, in an aggregate principal amount not to exceed $65,000,000, to finance and refinance the acquisition, construction, development and equipping of a 179-unit qualified residential rental project to be located at 712 Seagaze Drive (the "Project") for the benefit of 716 Seagaze Affordable, L.P., a California Limited Partnership (or an affiliate), and certain other matters relating thereto.
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BACKGROUND AND ANALYSIS
On March 13, 2024, the Community Development Commission, on a 5-0 vote, approved a 179-unit mixed use project at 712 Seagaze Drive. The project was originally entitled in January 2022 as a 115-unit mixed use project that included 64-hotel rooms on the upper floors. Subsequent to the project's 2024 approval, the applicant committed to developing the project as 100% affordable.
The California Municipal Finance Authority ("CMFA"), a joint exercise of powers authority and public entity of the State of California, has received a request from 716 Seagaze Affordable, LP, a California limited partnership, or another ownership entity created by its managing general partner, Elsey Holdings, LLC, a Delaware limited liability company (such limited partnership or other entity being referred to herein as the "Borrower") to serve as the conduit bond issuer of tax exempt private activity bonds, in an aggregate amount not to exceed $65,000,000, (together with a like amount of refunding bonds) (the "Bonds"). The proceeds of the Bonds will be used to fin...
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