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'CITY OF SAN BERtRRDINO - REQUEST ~R COUNCIL ACTION
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Dept:
CRAIG A. GRAVES, City 1lIOIIi.....KlN. ifiJiect:
OFFICE OF THE CITY TRE~. -8 PM 2: 46
Advancement of funds for Julv
1989 Bond payment for Assessment
District #5861
Date: June 8, 1989
Synopsis of Previous Council action:
December 1987 - Mayor and Council authorize advancement of funds from
Assessment District Fund for January 1988 payment of interest on bonds
March 1988 - Mayor and Council authorize acquisition of 78 lots through
sale of County Treasurer/Tax Collector with Community Development
June 1988 - Mayor and Council authorize advancement of funds from the
General Fund for July 1988 payment of interest on bonds
November 1988 - Mayor and Council authorize agreement to purchase lots
from County of San Bernardino through Community Development.
December 1988 - Mayor and Council authorize advancement of funds from
Operating Contingency of General Fund for January 1989 payment of interest
March 1989 - Mayor and Council authorize RFP for the dve10pment of
lots through Community Development
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Recommended motion:
That the Director of Finance and
be authorized to advance $80,000
Assessment District #5861, to be
of the property transaction.
the Director of Community Development
to the Debt Service Account of
refunded to the City at the completion
cc: Andrew Green, Director of Finance
COlltact parson: Craig Graves - Ken Henderson
Supporting dati aURChed:
Yes
Phone: 5221
Ward: Sixth
or 5065
FUNDING REQUIREMENTS:
Qouncll Notel:
Amount: $80.000 Advance
Source: (ACCT. NO.) 121-544-57735
(ACCT. DESCRIPTION) CDBG Appropriated Reserve
Finance: 'pc:-.~d/'
~;/
~CITY OF SAN BBRNStDINO - REQUEST F9R COUNCIL ACTION
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STAFF REPORT
In July of 1989, another semi-annual payment of interest is due to be
paid the bondholders of Assessment District #5861. The City, through
its Community Development Department, is in the final stages of the
interview and selection process for a developer to develop the seventy-
seven lots. We received the property from the County in late January
and issued an RFP for the development of the lots in March.
Until a contract is signed with a developer, the City is responsible to
make semi-annual payments to the bondholders. In July of 1989 another
payment is due. This Office is seeking an authorized advance in order to
make timely payment to the bondholders and insure that the bonds
do not go into default. These advances are to be repaid at the
completion of the transaction of the properties.
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Assessment District #5861 is an assessment district formed to provide
off site improvements under the 1915/13 Act. The district was formed
in 1980 and there are presently 123 homes and 77 vacant lots in
the project. All of the vacant lots have delinquent payments.
In March of 1987, the Mayor and Council authorized the beginning of
foreclosure proceedings through the Superior Court. However, in March
of 1988, the City was notified that the parcels would be put up for
sale by the County of San Bernardino for delinquent property taxes.
The authorization was given to purchase the lots under Revenue and
Taxation Code Sections 3695 and 3791.3 through the Community
Development Department. The lots were deeded to the. City in January of
1989. The Council then authorized an RFP for the development of the
lots in March of 1989. The Community Development Department is now
in the final stages on the selection of a developer.
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75-0264