City to Aid Developer on Apartment Units
Camarillo council members have agreed to lend the city’s backing to a development company that wants to buy and renovate a 337-unit housing project just down the street from City Hall.
The City Council agreed Wednesday to help issue $19.4 million worth of bonds for the Essex Camarillo Partnership, which plans to purchase and rehabilitate the apartments at 831 Paseo Camarillo.
The council decision means the company can issue tax-free bonds that are more attractive to potential investors, city Finance Director Anita Bingham said.
“If you don’t have to pay tax on the earnings, then its value is worth more,” she said. “It’s a big advantage to the investor.”
Mayor David M. Smith said the company agreed to set aside nearly 20% of the units for low-income housing once the renovations are completed.
“We believe these improvements will benefit the city,” he said.
Camarillo has participated in similar arrangements with other builders, Smith said, most notably when developers of Pleasant Valley Hospital applied to the city to issue tax-free municipal bonds for expansion projects.
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