HomeMy WebLinkAbout25-Redevelopment Agency
J. 118
Jan. 1884
MEMORANDUM
REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
DATE
January 13, 1986
TO
Mayor and Common Council
FROM
Glenda Saul, Executive Director
SUBJECT
GENERAL OBLIGATION FUNDING
Introduction
Submitted for your consideration is a request to lend to the
Redevelopment Agency funds to accomplish numerous redevelopment project
objectives. It is proposed that these funds be lent from monies made
available to the City from a General Obligation Bond issue.
Background
As you are aware, redevelopment activities are accomplished by a
combination of public and private investment.
The usual development process is accomplished by private industry
developing on their own; requests for assistance; or the Agency
soliciting requests for development proposals. In order for financial
assistance to be given to a project up-front, the Agency must borrow the
funds from another source. The projected tax increment from the new
development is used to repay the debt.
Due primarily to the lack of up-front funding, the Agency is usually in
the reactive mode vs. the active mode.
In an effort to adjust this trend, staff has met on several occasions
with Councilwoman Estrada, Bond Counsel, Tim Sabo and Financial
Consultant, Jeff Kinsell. Councilwoman Estrada has lead research into
methods that could be used to plan, finance and implement redevelopment
activities. With such a method, the City/Agency could set goals for
planned development activities for present and future..years rather than
private industry dictate development trends within the City.
.2S-
Bond Counsel and Financial Consultant have confirmed that the City could
lend the funds needed to the Agency from monies made available through
the issuance of General Obligation Bonds (GO).
GO Issue Proposed - Validation
Various City departments have analyzed their needs for public
improvements. The "GO" funding could provide the City with the funds
they need now for these pending projects. The issue could be done in
series - one for general city public improvement projects and the other
(or several others) for redevelopment activities.
Mr. Sabo has explained that the sale of GO's for redevelopment activities
is provided for by a recent amendment to the California Constitution.
Because this financing method (for redevelopment purposes) has not yet
been used in California, a validation action would be necessary through
the courts. '
Tentative Action Schedule
GO Bonds must have voter approval. Time will not allow placement of this
issue on the City's upcoming election. As an alternative, Bond Counsel
has suggested placing the issue on the County's June 2, 1987 ballot. In
order to do so, the Council would need to adopt a resolution before
January 30th calling for the issuance, the validation action, and the
placement of the issue on the County's ballot.
By January 30, 1987, the City would need to deliver its Order of Election
and Specifications of the Election to the Superintendent and Registrar.
After the election, the exact method of funding (tax exempt versus
taxable) will be decided. The issue could be done in a series - a
portion for City public purposes and a portion for redevelopment purposes.
Staff (City & Agency) would be responsible for "selling" this concept to
the pub11c before 1t 1s placed on the ballot.
.t:
~ITY OF SAN BEp. 'ARDINO
- MEMORANDUI'{
To
Hon. Mayor and Common Council
From Raymond D. Schweitzer,
Ralph H. Prince
Subject
Impact on General Fund, RDA
Agenda Items of January 19, 1987
Date
January 16,1987
Approved
Date
We have carefully reviewed the agenda of the Community
Development Commission/Redevelopment Agency for January 19,
1987, as to its possible impact on the City's general fund,
and make the following report:
In connection therewith, please be advised that the Agency's
agenda for January 19, 1987, has no negative impact on the
City's general fund.
Respectfully submitted,
R~/fP~,
RALPH H. PRINCE
City Attorney
cc: Redevelopment Agency
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