GARDEN GROVE : City to Sell Bonds, Buy Trailer Parks

The City Council has agreed to sell $17.5 million in tax-exempt bonds to buy two mobile home parks.

In approving the bond sale unanimously last week, the council said public acquisition of the mobile home parks would help stabilize rent payments for tenants while also increasing the stock of affordable housing units in the city.

The council also said that the city stands to receive about $1 million in upfront money from the bond sale, chiefly because the bond issue will come to more than the asking price for the parks.

Mayor Frank Kessler said the infusion of cash into the financially strapped city is needed. Councilman Mark Leyes said the money will help prevent layoffs of police officers, firefighters and other key municipal employees.

One of the mobile home parks, Bahia Village, is at 13096 Blackbird St. and has 176 spaces. The other, Emerald Isle, at 13741 Clinton St., has 84 spaces.

The city’s Housing Authority, which assists in the acquisition of low- and moderate-income housing projects in the city, will sell the bonds to an underwriter.

The City Council also established a nonprofit public benefit corporation made up of city officials to oversee the administration and management of the mobile home parks. The nonprofit organization is expected to subcontract day-to-day management activities to a private firm.

The parks will be leased to the city. Space rents are expected to pay off the bond debts.