HomeMy WebLinkAboutR13-Economic Development Agency
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IlCXK1aC IZVBIDPMENr IG!H:lC
c:rrr '" S1lN BERtWU>DO
RIlnIIRA'I' JOB. <XI!MISSIatfcx:mt::IL llCTICB
Fran: TIH:1IHY C. STEINHAUS
1qercy Administrator
SUbject: DlI>>lD VM.LD lEVEIDPMEm'
IG!H:lC ~
Date: May 30, 1991
Syncpsis of Previous Oc::mIIissiOJl/OClImcil/Oc::mIIittee Action:
None.
B6 - ._._.~ Jlation:
t"""""m4ty IW1Al..__._..t t'i"wrIII"ssion)
'!hat the Cammmity Devel~Jt Chmli ....;dcn awrcve in cOb''''''1'L the issuarx:le of tax
allocation bends to finance the Inland Valley Devel"'l-"""'lt Aqercj (IVDA) admini- .
sb:ative expenses am redevel"'l-"""'Jt activities am authorize staff to ~..........d with
- - of all___- ...._~v-~
TDIJ'DlY C. 8'1'EDlIDW8, ll&lh,i strater
Ba:m- ..io DlMIlClpll8Dt llq8IIcy
Olntact Fersal:
T.im Steinhaus
IVDA Proiect Area
H1ale:
5081
1 thralah 7
Project Area (s) :
Ward(s) :
~ Data Attached:
:ruNDING ~:
staff Recort: saba am Green -"""""nm11ll
AmcAmt: $ N/A
Source:
N/A
&x3get Authority:
A-omli ssiOJl/<>>V1C'i1 Notes:
TCS:~:lab:4379
<XI!MISSICtI MBE'l'Dn
II8etiDq Date: 06/03/1991
llqe:m. 11:811 Ib: I 3
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BCXH1aC IEVBIDPIIE:Nr ~
f1J!AW ~.
Inland Val1ev DlIve1",..-.lt llaencv JPi.........i11a
'!he COJnty of san Bernardino ("County") has requested that the Inland Valley Deve-
l''''II.uauL}q!rcj ("IVDA") d:ltain its own fI.ntin;J sc:uroes far the 1991/1992 fiscal
year '" ....-ncin;J as of JUly 1, 1991. In additioo, the COJnty has requested the
repayment of of an 8IIIC'-lJlt equal to ~tely two millioo dollars ($2,000,000)
that would probably be due ani owin;J to the COJnty thraJgh June 30, 1991, for
mnies advanced by the COJnty for Nortat redeve1~lt and reuse activities since
prior to the formatioo of the IVDA. Mr. Jjm IverscI'l of Miller and Sc:hrceder
Financial, Inc., has explored the possibility of issuin;J tax allocatiCX'l J:xms by
the IVDA for the p.IlpOSe of rei~in;J both the COJnty and the City of san Ber-
nardino ("City") for prior lIdministrative and ClalSUltant expenses paid by both the
COJnty and the City 00 behalf of the IVDA. 'ItIe expenses include the Redeve1~,t
Plan adqItioo process, office expenses and salllrles, litigatiCX'l expel ,., Lockheed
lease negatiatiCX'lS, aviatioo studies, preparatioo of pl.anniDJ """"""""1ts and the
Base Reuse Plan.
'ItIe attached l~'t prepared by Babe and Green, Ecollanic Devel~lt 'Iqerr::y (EM)
special CXlUI'ISel., describes in saue detail the manner in Wicb the administrative
expenses and redeve1~ activities of the IVDA my be financed with tax alloca-
tioo notes issued by the R1;ldevel""iA'...it 1tqerr::y (Devel~lt Department) withmt
pledqin;J tax :1rotemeilt generated by a:rrj of the 1tqerr::y's Redeve1~.t Project.
Areas.
'ItIe reo ....-rK3atioo is for the }q!rcj to issue the J:xms and release lIa1ies 00 an
"as-needed" basis to the IVDA for orgoin;J expenses and to repay the COJnty in a
dollar 8IlD.D1t yet to be deteJ:mined. Arrj patential financia1 expcsure of the
Aqerr::j will be lJmited by the fact that umer the loan o".._lL with the IVDA and
the Aqerr::j, not all the I:x:ni ~.~ will be tumed over to the IVDA upon
issuance. '!he}q!rcj will essentially <XIIIJbx>l dishn'EIements by the IVDA thrcu;Jh
lJmitin;J the lllIrAJI'It of I:x:ni pl'iOO"eds and the nature of the ~. '!"-'liled expen:titures
to be paid by the IVDA with the I:x:ni ~'"
adcptioo of the fOJ:1ll m;,tioo.
tor
TCS:RJ.K:1ab:4379
CXIIIIISSrCII MEIlTDIJ
MeetiDq Date: 06/03/\11
I'f'lY 30 '91 03: 32FM 5AOO & GREEN
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FROII.
DA'1'I'
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'1'u.othy C. 8'talnhaue
IIl!Io . Green, a Pz'~..aional Corporation
May 30, un
I..\IaJlCII of Tax Allooation Wot.. 1:0 J"un4 ,..1n18t:rat:ive
BxpeNl.. and bdevelOpamtt Act:hlU.. of t:be Inland
Vaney Dev.lopment &vency
.'
'the County of Ian Bemardino (.County.) ba. requetited
t:ha1: 1:h. Inland Valley Developaent: Agency (.XVJ)A.) obta1h it. own
fundinq .CRII:'O" for the ltSl1-n fboal year o.....noinv a. of
.7uly 1, U!t1. In a44ition, 1:h. Coul1t.y a. ~tacl the repayment
of an UlOUIIt. eql2al to approx1Mt.ely fa .Ulion that WOUld probably
be due IIDd owinq to 1:h. county through JIme 30, 1111, tor .oner.
adYllnoed by the OOWlty for Horton I'eelev.lopunt alllS rn..
activiti.. .1noe prior to the fOrIMtion of tile XVDA. 1Il'. Jill
Iver.on of Killer II SClaroecler J'iDanoial, IDe., baa explored the
pO..1bility of b.uincJ 1:ax allooation bcmd. :by the IVDA for the
purpo.. of r.i~ih9 both the Cow\ty ud the city of
84m hrDard,ino (the "City") for prior ..inbt.l'atiYII and. COD8ultant.
axptIrIIIaa paid :by both tile County &ad the City on MhIllt of the
%VD.A.. '1'b. axpana.. illcl\lde the Ited..,.lopaent. Plan adoption
proo..., offica expan... and "lari.., lit:1vatioll aXII_",
LoaIcb.ad 1.... JI8901:1atiONl, aviation Rudi.., praparat.ion. ot
planninv dOOUMllt. and the Ba.a bWl. Pl.n. .
The JIroject Ar.. !t1t/1I0 Ba.. r.ar value ba. now been
verltll14 by tile Count.y AIl....or at .1,SU,124,U5. '1'Ile current
ittO/1l -....eel YII1Wl ba. .dditionally baen deteninecS .n<<
indicat... en approxlaat.ely f.., 3ll' , 4.54 .....1Iacl value inor.... for
the currant year.
my 28 '~1 01:31PM 5AOO & GREEN
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page 2
It the 1991/82 .....1Ied value wer. w inor.... by a
dallar _OIUlt .. ..- experienead Ulthe ti.r.t year, the potential
1991/U tax incr..ent revenue. to the IVDA would be .. _et: forth on
the fOllowinq chartl
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~'( 28 ' 91 01 : 32PM 5ABO & GREEN
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'lb. aboWI ...\DIII. that (i) t:b. n.t tAlC Incraent revenu..
to th. IVDA 1e 53.lIit of tIl. 1t well.rd property tax; (11) .oboola
oOllpri.. approxlaately 74t ot ~. net. tax inaruent revenu.., UJd
(i11) tile IVDA r.oeive. .pproxilllltely an 80 overrlc1e rat..
'1'b. preaent: Utiption a. filed by the City of Iledland.
lAk.. it b>>o..i~l. at tIli. ti.. to Wldartalta a tax allocation bond
ia.WUKl. dir.~IY by the IVDA for th. purpo... at repaying the
County and the City. provi4iq operating- tun4II far: tJ1. nDl for a
two-y.u period and provi4~ tuncIa to Wldart:alt. redevelopment
activit1... McUtionally, 1t 1. unlikely that ~. County Auditar:-
COntroll.. WOUld 1'.1.... tax iDc:ll'ellltnt nv.Jluq to tJ1. nDl 1n
ROY~, 1'U, if th. Re41anda' lav.ult ruaina unra.olv.! by the
Dote that th. tint tax inanaent revenq.. coullS ba". bun
4i.trlb1lted to the %VDA. .uab tax inarellallt r.venuq would
prol:lably be bald br the county AUditor-COntroller in a .¶t.
i:ru8t aooount pendillg' . auoc...ful reaolution of tba JtedlancS.'
lavauit: in favor ot th. IVDA.
A PO.dble .olution to thi. probl" of Obtaining tunding
for the 1VW. tar: the 111'1-'2 fieeal year would be to be.. the
Redevel~ A9anor ot the city ot Ban Bernardino ("S.B. Apncy")
i..u. bonda for vblC1h no apecitlc t_ incl:-.nt revenue. troll any
d..lgnate4 I.B. AqenG:r redavalop..nt projeot ar.a would be pledlJed
for npayaent. !'ha ftet bond prooeec'la would be loanalS to the IVDA
on an a.-II..CI.IS ba.ia uncs.. a Loan ~nt. SUch Ixmd. WOuld
n&yartbel... be an obl",.1:1on ot the 8.8. Aqengy. A .truct.ur.
GOuld ba developed. wbenin th. otb. red....lopaent: agenai.. of the
ciU.. that: OOIIpd.. tha IVDA (1..., Colton and Loaa LlDda) could
in ......e. guarallty . proportionate &bu. at th. bolld ie.u.
repayment iD accordanc. vltb a fonula baaed upon .1tbar ......ed
valli. GOntrlb1atad to tbe IVDA or Ulticipated t.x 1nw:eaaDt revenue.
to !Ie oontr1bu'tad to the IVDA.
A 14,585,000 thr.. (3) YMr in'tarut only nota !a.ue at
an inter..t ~.ta of 45.5' c:lOulll prOVide the tollowilllJ t\md. to the
IVDAI
U,IOO,OOO
"5,000
1.110.000
2 YMr.' operatilllJ axpenae . $'OO,OOO/yr
3 y.u.' fUnded 1n~.t (n.t of int...t
earninga) .
:aecs.velopaent I'Un4
J)l~t and Coate ot I..u.noe
a,ooo,oOO
$4,'85,000
my 28 '91 B1:::ePM SABO & GREDl
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'l'b. annual debt; euvloe on a 25 yr., ,,/ ",000,000 ~ ball. to
~ the OdgUlaI thr.. (3) year not. un. VCNld lie .470,000 per
year. On the baai. of tb fOllovln, ......ed value an&lyai., the
percant.g. fivur.. att;rlbutul. to .aCh of the thr.a (3) olty
red.valopaent agenole. would be .. follova r
aa.e Y.ar . of 3- Shar. of
A..v. City ~al. ftAhto SVt! IYr.
.an a.rnardi.bo '1,323,741,305 t2.on t43a,77IJyr.
Colton 40,733,087 3.0n 14,382Jyr.
LClIIIa Linda S'.IIIt5..71 '.alit 22.""Jyr..
$1,32',011,3&7 100.00. t470,OOOJyr.
(Mote. TIlt. QOIUCS.. $232,112,77' of a... Yur ,......ad Value in
t:h. County unillCO&'porated area. wbleb aor..... the total la.. Y.ar
Aa...-.d value to .1,561,124,145).
_.lIlt upon the Itto-n current 1'e&r AI....ed Valu., th.
fOllr a411ber8 of the tvDA ClOntrlbute percentag.. of AI....ad Value
.. fOllova.
to-n Parcantag.
A.V. n. 'l'ebtl
San aarnU'lt1no tl,283,923,07' 77.37t
COlton 43,525,25& 3.12'
Lema Linda 75,335,1S05 4.5et
County 2SS.'3t.75, 15.(7'
$1,n',1S23,,,, 100.00'
'l'he l"eClCDlllendat:1on t. few the 19enay ~ i..u. th Ixmda
and 1'.1.... IIOney. on an ..-n.eded baab ~ the IVJ)A for ongoing
expen... and 1:0 rep.y the County in a dollar UOIlJlt yet 1:0 be
deteralnH. Any potential financial exposure of the Agenay w111 be
U..1t:ed by the fact that und.r the Loan _e~ with th. IV>>A, and
i;be Ageno)o, DOt. .11 the JiloncI proceeda w111 be turned over ~"the
ZVDA upon i..wma.. Th. Agency will ...enUally ClOllUol
dia1Nr~. by the IVDA tbroqb l1alting the &IIOUbt: of Ilcmd
prOOUd. ad the nature of th. prOPO.ed expenditur.. to, lie pald by
the IVUA with the boIlcI proo.ad..
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REDEVELOPMENT AGENCY OF TNE CITY OF SAN BERNARDINO
(INLAND VALLEY DEVELOPMENT AUYHORITY)
ISSUE OF 1991
SOURCES AND USES
Doted 6/Dl/I991
Del Ivery 6/Dl/I991
Por Amount of Bonds...............................
Totol Source.
14,615,000.00
14,615,000.00
Totol underwriter'. DI.count (1.9001).............
Costl of J..U8nc.......~..........................
Deposit to Cepltollled InterOlt Fund (CIF)........
Deposit to Generol Purpose Fund...................
Deposit to Loon DrlBlnotlon Fund..................
Contingency...... .................................
Totol UOOl
187,685.00
75,000.00
799 ,216.35
1,650,000.00
2,000,000.00
3,D9Il.65
14,615,000.00
Miller & Schroeder Flnonelol, lne.
underwriting Deportment
5/20/1991
2:22 PM
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNAROlNO
(INLANO VALLEY OEVELOPMENT AUTHORITY)
ISSUE OF 1991
OEBT SERVICE SCHEDULE
OATE PRINCIPAL COUPON INTEREST OEBT SERVICE
6/0111991 . - . .
6/01/1992 - . 299,975.00 299,975.00
6/01/1993 . - 299,975.00 299,975.00
6/01/1994 4,615,000.00 6.50OX 299,975.00 4,914,975.00
TOTAL 4,615,000.00 . 899,925.00 5,514,925.00
Miller & Schroeder Flnanciel, Inc.
Underwritine Oeportnent
5/2011991
2:22 PM
YlELO STATISTICS
Accrued Interest from 06/01/1991 to 06/01/1991...
Average L if.......................................
lond Yeerl...... .~.................................
AverlBe C_.................... .,...............
Net Interest Cost (NIC)...........................
Bond Yield for Arbftrl" Purposos.................
True Intlrest Cost (TiC)..........................
Effective Interest Cost (EIC).....................
3.000 YEARS
813,845.00
6.5000000x
7. 1333333X
6.5000000x
7.2156672X
7.8414542X
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REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
(INLAND VALLEY DEVELOPMENT AUTHORITY)
I SSUE OF 1991
OPERATION OF CAPITALIZED INTEREST FUND
DATE BEG. BALANCE YIELD INTEREST NET DRAW END. BALANCE
6/01/1991 799,216.35 - - . 799,216.35
12/01/1991 799,216.35 7.0001 27,972.57 (149,987.50) 6n,201.42
6/01/1992 6n,201.42 7.000x 23,702.05 (149,987.50) 550,915.97
~2l01/1992 550~915.97 7.000x ~282.06 (~4~.50) 420~
1I!!!Iii.lllllllllN--"" B- ---- = --- "...!!!!!
12/01/1993 284,930.40 7.000x 9,972.56 (149,987.50) 144,915.46
6/01/1994 144,915.46 7.000x 5,072.04 (149,987.50) .
TOTAL . . 100,708.65 (1199,925.00) .
Miller & Schroeder Finonciel, Inc.
Underwriting DepertlllOnt
5/20/1991
2:22 PM