HomeMy WebLinkAboutR11- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: Barbara J. Lindseth Subject: INLAND PLAZA INDUSTRIAL
Acting Director DEVELOPMENT BOND REFINANCING
Date: March 15, 1995
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Synopsis of Previous Commission/Council/Committee Action(s):
On February 24, 1994, the Redevelopment Committee recommended that
staff pursue, with Miller and Schroeder, Financial, Inc. , the
refinancing of the Inland Plaza IDB without an Agency guarantee.
(Synopsis Continued on Page 2)
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Recommended Motion(s):
(Mayor and Common Council)
MOTION: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING AND AUTHORIZING THE
EXTENSION OF MATURITY OF ITS "INDUSTRIAL DEVELOPMENT REVENUE
BONDS SERIES 1983A (INLAND PLAZA PROJECT), AUTHORIZING THE
ISSUANCE OF NOT TO EXCEED $225,000 TAXABLE INDUSTRIAL
DEVELOPMENT REVENUE BONDS, SERIES 1995A" AND APPROVING THE
EXECUTION OF DOCUMENTS IN CONNECTION THEREWITH.
Administrator Barbara J. Lindseth
Acting Director
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Contact Person(s) : Tim Steinhaus/John Wood Phone: 5081
Project Area(s) : Central City Projects Ward(s) : Third
Supporting Data Attached: Staff Report; Resolution
Funding Requirements: Amount: N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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BJL:2045A COMMISSION MEETING AGENDA
Meeting Date: 3/20/1995
Agenda Item Number: AC
Synopsis of Previous Commission/Council/Committee Action(s) Continued
On March 7, 1994, the Mayor and Common Council held a public hearing to
approve an IDB extension for Inland Plaza from October 15, 1993 to
October 15, 1994; the Community Development Commission considered a
$2.2 million dollar loan guarantee request, but deferred action until
Inland Plaza could raise the occupancy rate of the subject property to
85%.
On April 18, 1994, the Mayor and Common Council held a public hearing
to approve an IDB extension for Inland Plaza from October 15, 1994 to
April 15, 1995.
On August 25, 1994, the Redevelopment Committee recommended that the
Community Development Commission approve a loan guarantee to Inland
Plaza to facilitate the refinancing of its $2.2 million dollar IDB
On September 5, 1994, the Community Development Commission granted
conceptual approval of a $2.2 million standby loan agreement to assist
with the refinancing of Inland Plaza, subject to a review by staff of
updated financial documentation.
On September 29, 1994, the Redevelopment Committee recommended that the
Community Development Commission approve a $2.35 million standby loan
agreement to assist with the refunding of the Inland Plaza IDB.
On October 3, 1994, the Community Development Commission approved a
$2.35 million standby loan agreement for Inland Plaza.
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BJL:2045A COMMISSION MEETING AGENDA
Meeting Date: 3/20/1995
i
Agenda Item Number:
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
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Inland Plaza Industrial Development Bond Refinancing
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.
The Note came due on October 15, 1993. However, the sole Bondholder,
Bank of California, N.A. , agreed to an extension until April, 1995, in
order to allow Inland Plaza additional time to obtain financing to pay
the Note.
At its September 5, 1994 meeting, the Community Development Commission
conceptually approved a bond issue to refinance the Project and
authorized staff and counsel to formulate the structure of the
transaction and begin preparation of the requisite documents. Staff,
counsel and the underwriter, Miller & Schroeder Financial, Inc. , have
determined that the refinancing shall be in the form of a ten-year
extension of the Note and Bonds to provide for the remarketing of the
Bonds. In order to cover the costs of remarketing and the extension,
the City must issue taxable bonds in an amount not to exceed $225,000.
The Commission has previously approved the Standby Loan Agreement for
the refinancing of the 1983 Bonds. The Standby Loan Agreement
essentially serves as the credit enhancement for the refinancing Bonds
to make said Bonds saleable in the current municipal bond market.
The Project performs well, and as of December, 1994, had a 27% vacancy
rate on its retail spaces. Tenants of the Project include: Chuck E.
Cheese Pizza Time Theater; Mens' Warehouse; Subway; and, Supercuts,
among others.
Based upon the foregoing, staff recommends adoption of the form motion.
Barbara J. Lindseth, Acting Director
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BJL:2045A COMMISSION MEETING AGENDA
Meeting Date: 3/20/1995
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Agenda Item Number: