HomeMy WebLinkAboutRS02-Redevelopment Agency
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AGENDA ITEM INFORMATION SUMMARY
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ONAL DATA FORWARDED TO CITY DEPARTMENTs/COUNCIL OFFICES:
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Council Ward
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By
Date
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Department
Department
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COMMENTS/CONCERNS: Include pertinent comments and concerns of offices and persons clearing the
summary, such as controversial Issues, time constraints and funding compllcetlons. Indicate dates when
action must be taken.
RDA -174
eS-:2.
REV. 6-29-89
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Redevelopment Agency · City of San Bernardino
300 Ncrth "D" SIIeel, Pounh Floor . Sill Bernardino, CoIifamia 92418
(714) 384-5081 FAX (714) 888.9413
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Ste_ H. Dulcett
ExllClllive Director
AUGUST 17. 1989
ADOPTION OF VARIOUS RESOLUTIONS OF THE MAYOR AND COMMON COUNCIL, THE
COMMUNITY DEVELOPMENT COMMISSION AND THE JOINT POWERS FINANCING
AUTHORITY AUTHORIZING THE CREATION OF THE JOINT POWERS FINANCING
AUTHORITY. AUTHORIZING THE BORROWING OF FUNDS FROM THE JOINT POWERS
FINANCING AUTHORITY AND AUTHORIZING THE ISSUANCE OF TAX ALLOCATION
BONDS, THE ISSUANCE OF PUBLIC FACILITIES LEASE REVENUE BONDS AND THE
ISSUANCE OF TAXABLE COLLATERALIZED MORTGAGE BONDS.
Synopsis of Previous Commission/Council/Committee Action:
08-07-89 The Community Development Commission held a workshop for the review
of the formation of the Joint Powers Authority, the refinancing of
the Mortgage Revenue Bonds Issues of 1979 and 1989, the refunding of
the City's Fire Station and Library Bonds and the refunding of the
State College Project Area Bonds.
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Recommended Motion:
(MAYOR AND COMMON COUNCIL)
a) Adopt a RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, AUTHORIZING THE FORMATION OF THE SAN BERNARDINO
JOINT POWERS FINANCING AUTHORITY, APPROVING THE FORM OF THAT CERTAIN
JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF SAN BERNARDINO
AND AUTHORIZING AND DIRECTING THE EXECUTION THEREOF.
(continued on pages 2 and 3)
Supporting data attached: Yes
Funding requirements: None
Commission Notes:
Ward: All
Project: SC, CCN. CCP
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Agenda of: Auqust 21 1989
Item No.
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(COMMUNITY DEVELOPMENT COMMISSION)
b) Adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, AUTHORIZING THE FORMATION OF THE SAN
BERNARDINO JOINT POWERS FINANCING AUTHORITY, APPROVING THE FORM OF
THAT CERTAIN JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND THE CITY OF
SAN BERNARDINO AND AUTHORIZING AND DIRECTING THE EXECUTION THEREOF.
(MAYOR AND COMMON COUNCIL)
c) Adopt a RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, AUTHORIZING THE BORROWING OF FUNDS FROM THE SAN
BERNARDINO JOINT POWERS FINANCING AUTHORITY IN THE AMOUNT OF NOT TO
EXCEED $40,OOO,OOO,AUTHORIZING AND DIRECTING EXECUTION OF RELATED
LOAN AGREEMENT, AMENDED AND RESTATED LOAN SERVICING AGREEMENT,
ESCROW AGREEMENT AND CLOSING DOCUMENTS, AS REQUIRED (TAXABLE
COLLATERALIZED MORTGAGE BONDS, 1989 SERIES A).
(COMMUNITY DEVELOPMENT COMMISSION)
Adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, AUTHORIZING THE BORROWING OF THE FUNDS FROM
THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN THE AMOUNT OF
NOT TO EXCEED $40,000,000 RELATING TO SAN BERNARDINO REDEVELOPMENT
PROJECTS, AUTHORIZING AND DIRECTING EXECUTION OF RELATED LOAN
AGREEMENT, AMENDED AND RESTATED LOAN SERVICING AGREEMENT, ESCROW
AGREEMENT AND CLOSING DOCUMENTS, AS REQUIRED (TAXABLE COLLATERALIZED
MORTGAGE BONDS, 1989 SERIES A).
d)
(JOINT POWERS FINANCING AUTHORITY)
e) Adopt a RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $40,000,000
PRINCIPAL AMOUNT OF TAXABLE COLLATERALIZED MORTGAGE BONDS (SERIES
1989-A), AUTHORIZING AND DIRECTING EXECUTION OF RELATED INDENTURE OF
TRUST, LOAN AGREEMENT, AMENDED AND RESTATED LOAN SERVICING
AGREEMENT AND PURCHASE CONTRACT AUTHORIZING SALE OF BONDS, APPROVING
PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT AND
AUTHORIZING OFFICIAL ACTION.
(MAYOR AND COMMON COUNCIL)
f) Adopt a RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE LEASE OF CERTAIN PREMISES FROM THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND AUTHORIZING
AND DIRECTING EXECUTION OF RELATED LEASE AGREEMENT [PUBLIC
FACILITIES LEASE REVENUE BONDS, 1989 SERIES A (CENTRAL CITY LIBRARY
AND FIRE STATION)].
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(COMMUNITY DEVELOPMENT COMMISSION)
g) Adopt as RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO. AUTHORIZING THE BORROWING OF FUNDS FROM THE
SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN THE AMOUNT OF NOT
TO EXCEED $12,500,000, AUTHORIZING AND DIRECTING EXECUTION OF
RELATED LOAN AGREEMENT, LEASE AGREEMENT, ESCROW AGREEMENT AND
CLOSING DOCUMENTS, AS REQUIRED [PUBLIC FACILITIES LEASE REVENUE
BONDS. 1989 SERIES A (CENTRAL CITY LIBRARY AND FIRE STATION
REFUNDI NGS) ) .
(JOINT POWERS FINANCING AUTHORITY)
Adopt a RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $12,500,000
PRINCIPAL AMOUNT OF PUBLIC FACILITIES LEASE REVENUE BONOS, 1989
SERIES A (CENTRAL CITY LIBRARY AND FIRE STATION REFUNDINGS),
AUTHORIZING AND DIRECTING EXECUTION OF RELATED INDENTURE OR TRUST.
LOAN AGREEMENT AND PURCHASE CONTRACT, AUTHORIZING SALE OF BONDS,
APPROVING PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT AND
RELATED CLOSING DOCUMENTS AND AUTHORIZING OFFICIAL ACTION.
h)
(COMMUNITY DEVELOPMENT COMMISSION)
Adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, AUTHORIZING, ON BEHALF OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO, THE BORROWING OF FUNDS FROM
THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY IN THE AMOUNT OF
NOT TO EXCEED $17,000,000 RELATING TO SAN BERNARDINO REDEVELOPMENT
PROJECTS, AUTHORIZING AND DIRECTING EXECUTION OF RELATED LOAN
AGREEMENT, ESCROW AGREEMENT AND CLOSING DOCUMENTS, AS REQUIRED [TAX
ALLOCATION BONDS, 1989 SERIES A (STATE COLLEGE PROJECT REFUNDINGS)).
(JOINT POWERS FINANCING AUTHORITY)
j) Adopt a RESOLUTION OF THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $17,000,000
PRINCIPAL AMOUNT OF TAX ALLOCATION BONDS, 1989 SERIES A (STATE
COLLEGE PROJECT REFUNDINGS), AUTHORIZING AND DIRECTING EXECUTION OF
RELATED INDENTURE OF TRUST. LOAN AGREEMENT AND PURCHASE CONTRACT.
AUTHORIZING SALE OF BONDS. APPROVING PR~LIMINARY OFFICIAL STATEMENT
AND OFFICIAL STATEMENT AND RELATED CLOSING DOCUMENTS AND AUTHORIZING
OFFICIAL ACTION.
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S T A F F R E P 0 R T
This Is to request that the Mayor and Common Council and the Community
Development Commission authorize the formation of the San Bernardino Joint
Powers Financing Authority; that the Joint Powers FinancIng Authority
authorize the I ssuance of Tax Allocation Bonds, the issuance of Publi c
Facilities Lease Revenue Bonds and the Issuance of Taxable Collateralized
Mortgage Bonds; and that the City and Redevelopment Agency authorize the
borrowing of funds from the Joint Powers Financing Authority.
BACKGROUND
On June 19, 1989. the City and the Agency entered I nto an agreement with
Miller & Schroeder Financial, Inc. to provide Investment banking services.
The proposals recommended In this report were developed by Miller & Schroeder
In accordance with that agreement.
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The creation of the Joint Powers Financing Authority will provide the City and
the Agency with broader financing powers. With the formation of this new
entity and given the favorable interest rates currently available In the
market, It Is recommended that the City and the Redevelopment Agency take
advantage of the favorable interest rates and Implement the financial
transactions lIsted below.
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In January 1979 Redevelopment Agency Mortgage Revenue Bonds, Series A, In the
amount of $34,765,000 were Issued and In June 1980 City Wide Mortgage Revenue
Bonds, Series B, In the amount of $41,280,000 were Issued. It is proposed
that the City and the Redevelopment Agency form a Joint Powers Financing
Authority and consolidate these two mortgage Issues. New bonds will be Issued
by the Joint Powers Financing Authority to refinance the two Mortgage Revenue
Bonds, providing approximately $3,500,000 to the City and to the Agency on
October 3, 1989 for Immediate use. Due to time constraints, the financial
terms of this specific Miller & Schroeder recommended transaction has not been
reviewed by an independent financial analyst.
In January 1982 Public Facilities Lease Revenue Fire Station Bonds In the
amount of $3,200,000 were Issued at a 12% rate, and in October 1983 Public
Facilities Lease Revenue Bonds In the amount of $6.790.000 were Issued at
variable rates ranging from 9% to 10%. It Is proposed that these two bond
Issues be refunded and restructured Into one new Issue for present value
savings of approximately $450,000.
In January 1981 State College Tax Allocation Bonds, Series A, In the amount of
$5,100.000 were Issued with rates ranging form 9% to 9.75%. In July 1983
State College Tax Allocation Bonds, Series B. in the amount of $6,520,000 were
Issued with rates ranging from 8.9% to 11.5%, and In May 1985 Golf Course
Certificates of Participation In the amount of $3,800,000 were Issued with a
variable rate. It Is proposed that these three Redevelopment Agency Issues be
refunded and restructured Into one new issue for present value savings of
approximately $850,000.
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RECOMMENDATION
The above proposals which were recommended by Miller and Schroeder, have been
reviewed and approved by the City Administrator. Finance Director and City
Treasurer. All of the attached legal documents were prepared by Hawkins,
Delafield and Wood, bond counsel and have been reviewed and approved as to
form and legal content by the City Attorney and Agency Counsel.
To implement the above proposals. It Is requested that the Mayor and Common
Council, the Community Development Commission and the Joint Powers Financing
Authority approve the attached Resolutions.
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