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HomeMy WebLinkAboutRS04-Economic Development Agency . . . . . DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERl'IARDINO REOUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Executive Director Subject: CITY HALL REFINANCING Date: January 28, 1992 SvnoDsis of Previous Commission/Council/Committee Action(s): On October 7, 1991, the Community Development Commission directed the Agency's underwriter and counsel to prepare legal documents and initiate procedures to accomplish the refinancing of City Hall. ------------------------------------------------------------------------------- Recommended Motion(s): (Mavor and Common Council) MOTION RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AUTHORIZING CERTAIN ACTIONS BY THE CITY OF SAN BERNARDINO IN PREPARATION FOR THE REFINANCING CITY HALL. \b Administrator KENNETH J. RENDE SON Executive Director ------------------------------------------------------------------------------- Contact Person(s): Ken Henderson Phone: 5081 Project Area(s): Central Citv (CC) Ward(s): One (1) Supporting Data Attached: Staff Reoort FUNDING REQUIREMENTS: Amount: $12.000.000 New Bond Issue Source: Budget Authority: Bein2 Sought Commission/Council Notes: KJH::lag:05l6E COMMISSION MEETING AGENDA Meeting Date: 2/3/1992 Agenda Item Number: j,S-t-/ . . . . . DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO STAFF REPORT City Hall Refinancina The Mayor and Common Council and Community Development Commission have previously discussed and taken certain actions in connection with the refinancing of City Hall. The attached memorandum from Rhonda Connolly of Miller and Schroeder Financial, Inc., to Timothy C. Steinhaus, Administrator, Economic Development Agency, details the structure of the proposed financing. Based upon the attached and previous actions taken by the Commission and Council, staff recommends adoption of the attached resolution. Director KJH: :lag:0516E COMMISSION MEETING AGENDA Meeting Date: 2/3/1992 Agenda Item Number: e5- LJ . . . . . .._'~ Miller & Schroeder Fmancial, Inc. ______,.......__.._..._n__ ... _... ._u._."._".._... li..1l Free C.lilr,...~i;,. (ROO) S4l-6288 'ThU Fre.c (),hC'r StZIN!. (~) :z.2J~))1 10' Llm:.Ol Santa Ft~ nrivr-. Suitt! 100. p.o. AUk 4M6. Suh.l1a ~h. CalikRTti\'l 9207'-(1)19. (619) 481.5894 MEMORANDUM DATE: Jlnulry 30, 1992 TO: Tt. Steinhlus FROM: Rhondl M, Connolly REI City 11111 lef1nanci1l1 This IlIHonnd.. w111 s_riza the proposed bond hsu. strllcture for the City H.ll Fin~in9' Attached I.... debt sen1ce schedules for the 'll,OOO,OOO note t ssue. The RedeveloplWllt Agency .nl tssue. fhe year tnt.....st onll note for $12,000,000 with I Letter of Credit f~ Suaito.o Trust. This will enable the City to f1nlnce It I vlrilbl. rite of under 4.001 today which includes the costs of the Lett.r of Credit. A Swap of the vlriabl. rite note could lock in I rate of 4.001 to the City thlt would requi.... the eitl ~ pay .pproxl..tely $480,000 per year. Thl $12.000,000 note produces over It,2oo,ooo for the City Ifter rettring the 1972 bonds and paying III casts of tssulnce. The Oisting City Hill refund1ng band issue WIS hsuld b, the Chic: Center Authority tn 1972 Ind hIS Ipprax1Mtely $2,880,000 of the $6,200,000 inltbl principal UIOunt outstanding IS of today. The t1t1 is obltglted to 1IlI1ce PIYIlltftt through 1997 of $5li5,OOO per year. The note will be structured to Illow the City to prep., anI pr1ncipal alllOUllt on III)' quarterly intlrest Pl,YIIIIlt date at no pn.t.. duri, the first five years of the note. After yelr five the Issue Is reaarketed nto I 25 year fully _nized bond issue for the balance of the principll not preplid. Atlthlt tl.. the Letter of Credit MY be renlWd, after review by the bank, and new interest rites will be set, accordIng to the ..rtet at thlt tiMe. by r the R....mtlng Agent. 011. ce the hsue has been _rtized, optlonll clll " protection will be set with I descending p~i... _4 ~_"""""'.t...u__. f\raN'.h,-)Ikft,::tI'-I'Iach,(~"".~.I"aul,M~.""""". ..-.a..en.~~.4.::aU:..... ~"""_""""'.""_I.._- ~~J./ ....., . . . . . REDEVELOPMEBT AGENCY OF THE CITY OF SAN BEJllIIARDINO (CITY MALL LEASE) SOURCES AND USES Dated 02/01/1992 Delivery 02/01/1992 Per Amount of Bonds Transfers from Prior Issue OSR funds $12,000,000.00 $ 645,763.00 $12,645,763.00 $ 210,000.00 $ 80,000.00 $ 240,000.00 $ 2,880,000.00 $ 9,235,763.00 $12,645,763.00 Total Sources Total Underwriter's Discount (1.750%) Costs of Issuance Deposit to Debt Service Reserve Fund (DSRF) Deposit to Escrow Funds Contingency Total Uses Miller & Schroeder Financial, Inc. Public Finance Department FILE - SBCITYM2 1/30/1992 3:22 p.m. es..- t-J . . . . . REDEVELOPMENT AGENCY OF THE CITY OF SAN BERI'lARDINO (CITY HALL LEASE) DEBT SERVICE SCHEDULE DATE INTEREST DEBT SERVICE PRINCIPAL COUPON 2/01/1992 2/01/1993 2/01/1994 2/01/1995 2/01/1996 2/01/1997 4.00000% 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 12,000,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 12,480,000.00 TOTAL 12,000,000.00 2,400,000.00 14,400,000.00 Miller & Schroeder Financial, Inc. Public Finance Department FILE = SBCITYM2 1/30/1992 3:22 p.m. YIELD STATISTICS Accrued Interest from 02/01/1992 to 02/01/1992 Average Life Bond Years Average Coupon Net Interest Cost (NIC) Bond Yield for Arbitrage Purposes True Interest Cost (TIC) Effective Interest Cost (EIC) 5.000 Years 60,000.00 4.0000000% 4.3500000% 4.5772191% 4.3930664% 5.1320154% trq . . . JAN 36 '92 61;: 18PM SABO & GREEN . . P.2 MAYOR AND C<>>CIIOlII COCJICn. CXU OF SAlf BDKARDXIIO, CALDOBNIA AGBIID.I. January 31, 1193 Ita 1 USO:L1JTXOK OF 'l'BB MAYOR AlII) COJII(OK COUNCIL OJ' '1'IIZ CITY 01' SU IIBIlIJARDDO, AO'1'JlIOlUZDfG CBR'l'Ulf ACTI01f8 IIY 'l'BB erry 01' IWf amutAltDIJIO nr PaDARATIOK :rem 'l'BB exu BALL RDIDIfCDlG ACtion to l:Ie Taken 1 Adopt ...olution. certified copy of Retlolutign to be retume4 to Ballo " Gr...., A Prof...ional corporatign. ~ ~m . . . JFt! 3B '92 f1I5.42PM SAIIO & GREEN P.2 . . USOLtJ'1'IOIl' JfO. ltBlOUl'nmr OJ' '1'BB KAYOIt UD ('<III"'. COtlll'ClIL OJ' TIIJl CIft OJ' BAIl' BBIlKAm:lIIrO, AUTBOlUZING ClBR!l'U. ACTICKS BY 'l'D ClITY 01' BAIl' Jl8RKARDIHO nt PIlBP.A1UI.'1'ZOJI l'OJt TIll ClITY BALL lUII'DWrClIHO WImRBU, the city ot Ian BvnardiDo (the -c;lty-) i. . charter city duly arvei.eel and _18t1n9 un4er and pura~ t:o the provia:lorw ot the Ccmatitution and la_ ot the state of CAlirorniaJ and .....IAS, the bdevelopunt Apnay ot the City ot Ian Bernardino (the -Agency-), a redevelopaent agency (a public bod,., corporate an4 politic) duly or.ated and _bUng' purauant b the c-.mlty lt8developaant Law (P-n 1 of Diviaion 24, ~inlJ w:lt.h .ection 33000) of the Sealth and Safaty CocIe of the state ot Califo:mia (the -cOlIIIIUnity RadavaloplleDt Law-) I and WRDIU, in 1870 and 11172 the Ian 8emarcSino chic Center AUthority (the -Authority-) iaaueel banda to finance and refinanae the oorwtruct:ion ot the City Hall aDd convention center, and ~, the City d_ U deairel. to reat:rac1:ure the tinancJ.nq ot the City Hall by "lc1ft9 advantave ot ra4ucalS intanat rata. un4er current aarke1: con4.1. tiona, all in the .at intaraat:a of the C1 t:y and the publio; aDd - 1 - B-L/ . . . J~ :3B '92 BS' 43P11 5ABO & GREEN P.3 I . . 1fBDDS, tJua Aqengy ia ~owvecl to a..iat tJua Cit.y with the retinaDcll11J 01' the City Ball pur-m: to the ~....It.y ~cpment. Lawl and _1F1'tIIA8, it i. prcpoHd that the Aqency prcwide for t:be cleUvvy of oertltiaaua of putic1s-Uon (the -certific:atu-) to ...t.t tJua City with t:ba ntiMMiIIv ot City RaU, and ~, the Aqency would c:aUe t:be del1vvy of t:be Cert.itiaat:a. to ..~ in thirty (30) year. in th. ~eqau principal lUICNIJt not to exaMcl e12,500,000. '!'he cert:1flaate. would Mar intereat at a variele rate of intere.t, iDter..t emly would be S-yabl. on ..ch intere.t pa~t date IIDd prinaipal _y be prepaid at the option 01' t:be City for t:ba firat five (5) year., and ~ter the inter.at rate ..y be acmvert.ed to . fixed rate of ini:ereat per &Nl\lJl at the option of the CitYI lUld WIIDIAS, the City de.... it lIe.lrable at tbi. tiM to talCe certain aotio:na to -"ftCle pnparat.ion for the deUvvy 01' the certificate. and tberelJy d... it cl"UDle to dil'act tha AlltbGrity to pradlle tor the lIef...anaa of t:be Civic center "acil.l.U_ Ref\md.i1llJ Revemae Bonda, I..ue af 1'72, and to provide for the l'e1'inanc:iiDlJ of the City BallI and 1IJIDBU, the City d.... it turtber lIe.uele to AqUe" that t:be Agency enter into tinanaiQlJ doouunta ancl take .tep. neo4'."Z'Y to prepare tar the deUftZ'Y of the Certificaua, - 2 - es - t.j . . . .]~ 30'92 B5'43PM SAIlO & GREEN P.4 . . ftUlaly, preparation of appropria" ruolut:iou and !land docIuIenu. lIOW, TJIERII'OR!:, TJIB IlAYOIt &lID Cl('OI"'\)JI COURCIL or '1'HE Cr.rY or au BIlUfAlU)IIfO DO lIB1tBBy RUOLW, IiAUiNludt UJ) ORI)ER AS POLLOWaI "m:i_ J.. The city henby fiDU that the ncU:ala aontaibed. bereinabove are true and oou'eat: and are inoorpora1:ecl IlKeift .. t:hcnMJh tully aft ~or1:h. &-m,iol'l 2. TIle reUnanc.in9 o~ the Cit:y Hall ia d..irable t:o t:be City and 1n ale :beat intKaau ot the publ10 and i. IlKabY' a\lthorbed aub:laot: t:o tinel approval o~ all t1naacin9 c!ocNIlenta ily t:I1e byor and &laon CO\mcll at a a\llNlaq\WDt: ...tin9. &am.iMl !. The Kayar, the city C1Kk aDCI auob ot:ber City ottiCK. and aployeea .. are appropda" ara authoriled and d1rectecl t:o requa.t that tile Aualority pnpu-e tor tba reUnano1q o~ ale cit:y .all &DC! to requa.t: that tha Aqanoy take all aat:iona ~aaary to oauae ala del1vuy ~ the Cart:iticat..., inclWUIl/J, but not: Haited to, the preparation of, aDCI uecut10ft of, !xmd. doCUllaftta, and pnparatiOft ot a title report: and nrvay to ~a that tile c1ty Ball _y be flJUUl.Ced ily t:I1e Cart:ine.tea. - 3 - e~4 . . . .TAN 3121 '92 es.44PI'I 9UIO & GREEN P.5 . . SacdDft 6. '1'Iw st.tt ot the City, I&Ilo I GrMD, . Prof...icmal COZ'por.~iOD .. SptlGial C-'....l and Killer , 8clbz'a..~~ P1Danaial, Inc. , .. Undazwritar are Ilar_ ~ .u\:horiaad an4 dlr8C~ ~o -.nca pr.paration of 1:ha _cuRry laval and fiDanoial dac:uaaDU and to 1D11:1ata auab Dtbllr action and acmau11:atiOM, lnclUdiDg di.cual0D8 .0 .. to iJlplUlaftt: 1:ha ~1nanclbIJ of City Ball. - 4 - ({6-~ . . . JH'l 3il'~ lif)' 44PM 5ABO & GREEN P.6 . . USOLll'l'IOR 0' TRB DYOR JUrI) COIOIOliJ comrCJ:L 0' TRB CITY or SAll BIRJrAJlDDl'O, AtI'1'BOR!ZIJIQ CDTAIB AC'1'I:0Jf8 BY 'l'HB C:I'l'Y or SAM IlIRJrARDXRO I:M PRUARA'1!IOJf 1'0. T.D CITY BALL 1tI1':E1fUCJ:Hc; s.m:imt A. '!'hi. nRluticm RaIl tate eUe= fzoOJl AnlS ~t:8z0 t:be dab af it. pa..ave aDd ....~~t1an. I IhnIRWY CD!l'IPJ' 1:ba1o i:he fare;oiDIJ baoluUoft .... duly Ildopte4 by t:be ..:yen: and C -xl COUncil of t:be city ~ San 8U'nudino a10 . -.UIllJ tb.zoeot, be14 on tile "-y of UU, by the following ~1oe, ~ vita , AYJ!g! ~.l1 -"'''-r. MY. r U.1ltT . City Clerk '1'be fOZ'lllJo:lDg r..olution i. hereby .pprov.ct thia day of , 1.,2. Mayozo at t:be City of 81m 8~ino ApprOftd. .. to fOZ'll a1\4 laval OODtem: I JADS .,. PBNJQJI city At~ Brr _1-" - 5 - i?-~ . . . JFri 30 . 92 B5' 44PI'I SRBO & GREEN P.'? . . snT. 01' c:AUlOIUaA ) COOH'1'Y OF M1I BDlfARDIBO) .. CI'1'Y 01' au 8DJIUDDO ) I, City Clwlc of the Cit:y of San Bernardino, IX) 1I...._y ~II'Y that: the forefJoinl &Del attecb.ed copy of Kayor UId C'CIIIl.oD Councll of the City of Ian 8erJIU'dino Ruolut1oil .0. ie . full, t:1'ue &Del OO~ oopy of that -- aD tU. .f.D fbl. offloa. D WITHl:SB IIJIBIUIOI', I ba". Iwreunto Nt: ~ hand and affixed the Official ...1 of tha Ka)'Or end CDD<m colUlCil of th. City of .an BunardiDo 1:1118 day at , 1I.a. C1ty Clwk city of .an 3enuIzodino 6-4 . . . "'tl s:: . . l:: Q: 0' CD " ..... 5' l2" III ::l en C'l CD 0 0 :T CD ..... "0 0 III ::+ CD 3 a. . . . 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