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Home My WebLink About07- Development Department CEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY REQUEST FOR COMMISSION/COUNCIL ACTION I FROM: KENNETH J.HENDERSON SUBJECT: INLAND PLAZA- Executive Director INDUSTRIAL DEVELOPMENT BOND REFINANCING DATE: August 30, 1994 ------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): i On February 24, 1994,the Redevelopment Committee recommended staff pursue with Miller&Schroeder,Financial, Inc.,the refeinancing of the Inland Plaza IDB without an Agency guarantee. On March 7, 1994,the Mayor and Common Council conducted a public hearing and took action extending from October 15, 1993 to October 15, 1994. On August 25, 1994,the Redevelopment Committee recommended the Community Development Commission approve a loan guarantee to Inland Plaza to facilitate the refinancing of its$2.2 million IDB. ------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission approve the refinancing of the existing Industrial Development Bond relating to Inland Plaza,with the Agency's guarantee to be used as credit enhancement for the proposed bond refinancing. Administrator KENNET11 J.HEND I RSON Executive Director ------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kenneth J.Henderson Phone: 5081 Project Area(s): Ward(s): Supporting Data Attached: Staff Report; FUNDING REQUIREMENTS: Amount: $2.2 million Source: Loan Guarantee Budget Authority: Requested ------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------ KJH:lag:09-01-03.cdc: COMMISSION MEETING AGENDA MEETING DATE: 09/06/1994 Agenda Item Number: rl DE 34LOPMENT DEPARTML—, T ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Inland Plaza- Industrial Development Bond Refinancing I In 1983, the City of San Bernardino (the "City") issued its $2,200,000 City of San Bernardino, California, Industrial Development Revenue Bonds, Series 1983A(Inland Plaza Project)to finance a shopping center(the "Project") on behalf of the Inland Plaza partnership ("Inland Plaza"). The Bonds were secured by a 10-year note(the "Note") executed by Inland Plaza for the benefit of the City. I The Note came due on October 15, 1993; however, the sole Bondholder, Bank of California, E agreed to a one-year extension of the Note, and then subsequently agreed to an additional extension until April, 1995, in order to allow Inland Plaza additional time to obtain financing to pay the Note. In or about April, 1994, the City executed an extension agreement with Bank of California and Inland Plaza in order to provide additional time for Inland Plaza to refinance the Project. To date, Inland Plaza has been unable to obtain such financing. It has been determined that the only feasible means for Inland Plaza to obtain financing for the Project is through a Redevelopment Agency bond issue secured by a Redevelopment Agency standby loan agreement in case of default by Inland Plaza. The structure of the bond issue would provide for a tax-exempt portion(approximately $1,975,000)which would pay the majority of the outstanding amount owed on the Note and a taxable portion(approximately$150,000)to pay the costs of issuance, including a Redevelopment Agency fee of approximately 1.5%. Bonds would be payable over 25 years. The bond issue would require a TEFRA hearing and approval by the City and the Redevelopment Agency. If the Redevelopment Agency determines to undertake the financing, Agency staff will then obtain personal guarantees from the partners of Inland Plaza. Staff recommends adoption of the form motion. ly lut�* KENNETH J. hENDERSON,Executive Director Development Department ----------------------------------------------------------------------------------------------------------- KJH:1ag:09-01-03.cdc: COMMISSION MEETING AGENDA MEETING DATE: 09/06/1994 Agenda Item Number: FROM MILLER & SCHROEDER (WED) 08. 24' 94 12: 11 SST. 12: 10/NO. 3560670644 P 2 loll x'=kouv)).�L-bzw 505 r omas Sanra f� Drive■Suire 100■P_(a Bcm W R Sot9na Plegch.t7aiifcrr ja 92075.0946■(6I9)48I-59% MEMORANDUM DATE: Augu9t 24, 1994 TO- Nir_ Timothy C_ Steinhaus FkOM: Victor. P. Dhooge� 1�1f 'f 52,000,000 Tax-tx mptf$150,000 Taxable City of SILO Bernardino Industrial DlVelapMeot.ReVe0iue Refunding Bonds 01aland 71=a Project) Series 19'94 Attached, please find the prelinunary Source ud Use'swcnx m surd Debt Service Schedule for the above-referenced issue_ I have included a ly%administration fee($32,500) payable to the,Agency from the Cost of lssa> n�o Account. I have structured the taxable tail as,a"super sinker", whereby no sintdng fund payments will be utilized to amortize the tax-exempt campQneat until such time as the taxable component (taxable trail)is fully redeemed_ Bocm=the Agency will'be Prang a awdby guar=y, we will eliminate the creed for aDebt Service Reserve Fund (the"DSR'). By incorporating the"super 6Wz -,W'and elirnirtating the DSR, the overall debt service obligation will be greatly.mitigated. Please contact me if you have'any questions. CC.- Tim Sabo,Esquire Aetr. Imo Hatter WWI bffioes San Diego Area•San Franc Aran•Im Wic,A &- t.pma ara KCn1bW--NeUaal Anrgclee of •3z Psul-Cle+rc]aad Columbus•ScmJc-Or6nau Member of the 4�oD off&�wrffsee Ih�len Ina J $euy{de•Irrvear Rverdon Cayosadm ] FROM MILLER & SCHROEDER (WED) 08. 24' 94 12: 1'SST. 12: 100. 3560670844 P 3 CITY Of SAN BERNARDINO I INDUSTRIAL DEVELOPMENT REVENM REFUNnENG SotIDS INLW PLAZA PROJECT SERIES 1494 SOURCES AND USES Dated 10/0111994 Delivery 10/07/1494 Per Amount of Bands............................... 52,150,000.00 Total Sources $2,150,000.00 TptaL Linderwriter's Discount $45,000.00 Costa of Issuance..- 105,000.00 Deposit to Escrow Fund. 2,000,000.00 TotsL Uses #2,150,000.00 MiLtsr & Schroeder Finaneiet, Inc. FILE = 58108 Public Finance 8124:/1994 10.28 AM FROM MILLER & SCHROEDER (WED) 08. 24' 94 12: 1 MT. 12: 1 NO. 3560670644 P 4 CITY OF SAM-BERNARD[NO INO11STRIAL DEVELOPMENT REVENUE REFUNDING BONDS INLAND PLAZA PROJECT SER)E5 1994 DEBT SERVICE SCHEDULE DATE PRINCIPAL COUFp1 INTEREST DEBT SMICE 10/01/1994 - 10/01/1495 35,000.00 9.00000% 158,500.00 193,500.00 10/0171996 35,000.00 9.00000% 155,350.00 190,350.00 10701/1997 35 000.00 9.00000% 152,790.00 187,200,00 faynfit°199$.. 4xymo-1 ,> .9,poi :. „.10,Z03to . .', ¢t7 ,�a5f;Ito 10/01/1999 45,000.00 7,25000% 145,000.00 190,000.00 10/01/2000 f65,000.00 7.25000% 141,737.50 186,737.50 10/01/2001 50,000.00 7.25000% 138,475.00 188,475.00 1100100112,,0,,0,2 .l 555,000,y00�.x�,0�00y +7f.250�0y01% .11�3pL 8�550,..�0!0 %1b84q,..a55.00 �0.,t0 1v71i1f 003- I$$"OM lV '4,2300 ; ! � , 134" F.�J� lorot/zo04 6o,ppo.00 7.25000% 126,875.00 166,875.00 1041/2005 65,000.00 7,25()00% 122,525.00 187,525.00 10/111!2006 70,000.00 7.250007 117,812.50 1$7,812.50 110;109 2007 X75,000.00 7.2255,0,, 7 c% 112,737.50 187,737.50 187,773i�7..1540 10/01/2009 65,000.00 7.2506()% 101,500.00 186,500,0[1 10/01/'010 95,000.00 7,25000' 95,337.50 190,337.50 10/01/2+011 100,000.00 7.2SQ00% 88,450.00 18$,450.00 10/01/8012 110 000.00 7.25000% 81,200,00 191,200.00 70�117i12i11� 94Sw0U�6'_OO•' ..:.t: � ..,,;'.`�'3z�:�'.., .•3a1�'s�5.:o0 10/01/2+014 125,000.00 7.25000Y. 64,887.50 189,887.50 10/01/2015 135,000.00 7,25000% 55,825.00 190,825,00 10/01/2016 140,000.00 7.25000% 46,037.50 196,037.50 10/01/2017 155,000.00 7.25000'X 35 887.50 190,887.50 "Ma 495AW—v(I • ,n25� % - 24,60-.60" . 32ii',bzCM 10/01/2019 175,000.00 7..25MO% 12,687.50 197,687.50 TOTAL 2,150,000,00 - 2.572,952.50 4,722,962.50 Mfttev 8 Schroeder Ffnancfet, Inc. FILE fiBID6 Public finance 8/24/1994 10:21 AM YIELD STATISTICS Accrued Interest from 10/01/1994 to 10/01/1994.,, Average L*fe................. -..••,•••............ 16.40 YEARS BardYesr4t...,.................................... 35,395.00 Average Coupon..............•..................... 7.2692&6% Form E036 weighted MIC................ ....,,,..... 7.3966190% FOM 8038 Weighted Average Maturity.............• 16,463 YEARS Net interest Cost (NIC).._......- ,, 1.3464190% Bond Yield for Arbicrege Purposes................. 7.Z8T3004X True Interest Cost (TIC).......................... 7.5197565% Effective [ncerwt Cost (EIC)..................... 8.1091392% I FROM MILLER & SCHROEDER (PEED) 08. 24' 94 12: 1','/0'7. 12: 10/NO. 3560670644 P 5 Taxable Component 1 11 CiTT OF SAN BERNARDINO INDUSTRIAL DE I-OPTIENT REVENUE REn"ING RMS INtAID PLAZA PROJECT SERIES 1994 DENT SERVICE SCHEDULE DATE PRINCIPAL. COUPOM INTEREST DEBT SERVICE 10/01/1"4 - - 10/01/1995 35.400.00 9.000002 13,500.00 48,5130.00 10/01/1996 35,000.00 9.000002 1(1,350.00 45,350.00 10/01/1997 3!3,000.013 0X 9.0000 7„2.00,00 4z,z00.00 't0YOWl"6, sh�o_ TOTAL 150,0x0.00 - 35,100.00 185,100.00 Hitter L Schroeder FinanciaL, Inc. FILE - SBIOg Puhtfe Ffname, $124/1994 10:22 AM TIELD STATISTICS Accrued Interest from 10101/1994 to 10/01/1994... - Averege Life..........I............. ............1 2.600 TEA42 Bond Years- 390.00 Average Lai'Ion.............................P...... 4.00000001 Farm 8038 Wishted NIe..... c0.5384615Z ForV 8036 Ueighted Average Maturity............... 2.600 YEARS i Net Interest Cost CHIC)......................... . 24.5384615% Bond Yietd for Arbitrage Purposes................. 9.4000000X True Interest Cost (TIC).......................... 26.476U75% �y FROM MILLER SCHROEDER (WED) 08. 24' 94 12: 1 YST. 12: 10//x0. 3660670644 P 6 Tag-Exempt Component CITY OF SAN BERNARDINO INDUSTRIAL DEVELCMNT REVENUE REFUNDING 00"D5 INLAND PLAZA PROJECT SERIES 1994 DEBT SERVICE SGMEDULE DATE PRINCIPAL CWPON INTEREST DEBT SERVICE 10/01/1994 - - - 10/01/1945 - - 165,000.00 185.000_00 10181/1996 - - 145,000,00 145,000,00 10/0111997 - 143 000,00 145,000 00 10/01/19.99 45,DD0_oa 7.25000% 145,000.00 190,000.00 10/0112000 1-5,000.00 7125000% 141,737,50 186,737.50 10/0112001 50,000.00 7.25000% 138,475.00 18$,475.00 10/01(2002 95,000.00 7.25000% 134,850.00 189,650.00 111 WOO , S5AM'10 ' X50*, 1 AZA 185�,$a 5rk 10101/200x+ 60,000.00 7.25000% 126,875.00 186,875.00 10/01/2005 65,000.00 7.25000% 122,525.00 187,525.00 10/01/2006 70,000.00 7.25000% 117,012.50 187,812.50 10101/2007 75,000.00 7.250005 112,737.50 187 737.50 101011009 85,000.00 7.25000% " 101,500.00 %6,50D_00 10/01/2410 95,D0a.00 7.25000% 95,337,50 190,337.50 1010112011 100,000.00 7.25000% 86,450.00 188,450.00 •1�0, 11v/e2a17- 710,000.00 T.25000% 81,200.00 191,,2000.000. 10/01/2014 M,000.00 7.25000% 64,887.50 1x9,887.50 10/01/2015 135,000.00 7.250001 55,825.00 190,825100 10/01/2016 140,000.00 7.250001: 46,037.50 186,037.50 (0 10101/2017 155.000.00 7.250001 35,887.50 140,887.50 1CifQ1'120111 165:4».10g' T obbX,> ,.,r: Ik',1f,911`-ko: , , 40,&w;W. 1010112-019 175,000.00 7.25000% 12,687,50 187.687,50 TOTAL 2,000,000.00 - 2,537,862.50 4,537,862.50 NOLter & Schroeder FinanciaL, Inc. FILE a S8106T%E P4bLic Finance W24/1994 10:24 AM YIELD STATISTICS Accrued Interest from 10/01/1994 to 10101/19%..• - Average. Life........................I............. 17.503 YEARS Bond rears.......................................................... . ... 35,005_00 Average coupon.................................... 7.2500000% FOrAk 8038 Weighted NIC............................ 7.3735531% Form WW Weighted Average Neturity............... 17.503 YEARS Net Interest Cost mc).- ..... 7,3785531% Oland YieLd for Arbitrage Purposes................. 712500000% True Interest Coat (TIC).......................... 7.4919654% Effecrive Interest Cost (ETC)..................... 6.0911263%