Loading...
HomeMy WebLinkAbout04- Redevelopment Agency REticVELOPMENT AGENCY-Rb.QUEST FOR WMMISSION/COUNCIL ACTION f-nm: Glenda Saul , Executive Director Subject: BOND ISSUES - CENTRAL CITY NORTH �ept: Redevelopment Agency REFUNDING AND 1988 BOND ISSUES Date: February 12, 1988 Synopsis of Previous Commission/Council action: November 15, 1982 - Resolution 4413 authorizing the issuance of $6,300,000 Central City North Tax Allocation Bonds. March 23, 1987 - Adjourned to 3-30-87 to discuss financing Central City North and Southeast Industrial Park. March 30, 1987 - Resolution 87-105 authorized setting the public hearing to consider refunding of Central City North, 1982 Issue. March 30, 1987 - Resolution 5001 authorized preparation of documents for refunding Central City North 1982 Issue. (Synopsis of Previous Action Continued) fLicommended motion: (COMMUNITY DEVELOPMENT COMMISSION) MOVE TO ADOPT A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AWARDING $3,500,000 PRINCIPAL AMOUNT OF REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO BONDS FOR THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TO THE SUCCESSFUL BIDDER AND APPROVING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS. l7 Signature Contact person: Glenda Saul , Executive Director Phone: 383-5081 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: $ Project: CCN No adverse Impact on City: Date:_ February 18, 1988 icil Notes: Aapnda Item Nn SYNOPSIS OF PREVIOUS COMMISSION/COUNCIL ACTION CONTINUED: March 30, 1987 - Resolution 5003 provided for the sale of $3,500,000 Central City North Bonds. March 30, 1987 - Resolution 5005 authorized an agreement with Miller and Schroeder Municipals for Investment Banking Services, refunding Central City North 1982. March 30, 1987 - Resolution 5007 authorized an agreement with Miller and Schroeder Municipals for Financial Consultant Services, Central City North 1987. April 20, 1987 - Public hearing open and closed. Items continued at the call of the Chairman. December 2, 1987 - Bond financing workshop - Central City North and Southeast Industrial Park. February 1 , 1988 - Mayor and Common Council set public hearing on February 15, 1988 at 9:00 A.M. in connection with the issuance of Tax Allocation Refunding Bonds , Central City North Redevelopment Project Area, 1982, in the principal amount of approximately $7,400,000. February y 1988 - Resolution 5072 directed the publication of notices to sell Tax Allocation Bonds, not to exceed $3,500,000, Central City North Redevelopment Project Area, 1988. February 15, 1988 - Public hearing opened and closed by the Mayor and Common Council . February 15, 1988 - Resolution of the Mayor and Common Council approving the issuance, not to exceed $7,400,000, Central City North Tax Allocation Refunding Bonds 1988 Issue. February 15, 1988 - Resolution of the Mayor and Common Council approving the issuance of $3,500,000, Central City North, Tax Allocation Bonds, Issue of 1988. February 15, 1988 - Resolution of the Community Development Commission authorizing the issuance of not to exceed $7,400,000 Tax Allocation Refunding Bonds, Central City North. Synopsis of Previous Commission/Council Action Continued: SYNOPSIS OF PREVIOUS COMMISSION/COUNCIL ACTION CONTINUED: February 15, 1988 - Resolution of the Community Development Commission approving further amendments to the resolution authorizing the issuance of $7,400,000, Tax Allocation Refunding Bonds, Central City North. February 15, 1988 - Resolution of the Community Development Commission authorizing the issuance of not to exceed $3,500,000 Tax Allocation Bonds , Central City North, Issue of 1988. February 15, 1988 - Resolution of the Community Development Commission approving further amendments to the resolution authorizing the issuance of $3,500,000 Tax Allocation Bonds, Central City North, Issue of 1988. _ REDEVELOPMENT AGENCY-RUEST FOR COMMISSION/COUNCIL ACTION STAFF REPORT On March 30, 1987, Jeff Kinsell and Tim Sabo met with the Commission to discuss, in a workshop setting, the refinancing of our current Central City North (CCN) and Southeast Industrial Park (SEIP) bonds, as well as new money issues. The Commission adopted the appropriate resolutions, setting forth the necessary hearing for the issues and entered into an agreement with Miller and Schroeder Municipals for each of these issues. On April 20, 1987 (Public Hearing) , Mr. Jeff Kinsell reported to the full Commission that he could not advise the sale of the issues because of a drastic increase in the interest rates. The Commission continued the items at the call of the Chairman. On December 2, 1987, Mr. Jeff Kinsell presented to the full Commission, at a bond workshop, the analysis regarding the potential savings on refunding certain bond issues — principally Central City North and Southeast Industrial Park. At that Time, Mr. Kinsell informed the Commission that the interest rates were still high, but that the Commission should be prepared to act quickly if the interest rates decrease and, thus, make the bond issues feasible. Staff has recently been advised that the market is once again favorable and that we should proceed. Attached are copies of the Staff Reports for the March 30, 1987 and the April 20, 1987 meetings t summarizing the issues. According to the tentative action schedule, the bid opening for the bonds will be at Security Pacific National Bank on February 18, 1988 at 11 :00 A.M. and the Community Development Commission will meet on February 18, 1988 at 3:45 P.M. to award, to the successful bidder, the Tax Allocation Bonds for the Southeast Industrial Park and the Central City North Redevelopment Project Area, and to award the Notes, Taxable Series, for the Northwest Redevelopment Project Area. 0812A . REDEVELOPMENT AGENCY-REOMST FOR COIYSk MSM/COUNCIL ACTION , t STAFF REPORT On March 23, 1987 the Commission and Council adjourned to larch 30, 19870 to review financings of the Agency. BACKGROUND Mr. Jeff Kinsell of Killer 6 Schroeder Municipals and Mr. Tim Sabo of Sabo Deitsch will be present on March 30, 1987 to discuss with you in a workshop setting the following proposed bond issues. Refinancings - Due to the lower interest rates that are now achievable, financial consultant is recommending consideration of refunding our 1982 Central City North (CCN) bonds as well as our 1983 Southeast Industrial Park (SEIP) bonds. It is estimated that we could achieve a 1725,000 total debt service savings on CCN and 11,800,000 on SLIP. New Money Issues - Public Improvements - Recently, public improvement projects have come to light that we feel should be considered at this time.- Southeast Industrial Park - "E" Street Bridge - The Commerce Center area has grown from virtually undeveloped land seven years ago to the fastest growing area of our city. Over the past several years new development in this area has increased by 190 million and has created an estimated 3,600 new jobs. Twenty-six acreas still remain undeveloped. Other than by freeway, the main access to this ever-growing area is along "E" Street. The entry and exit to this area is by way of a 36-foot wide bridge across the Santa Ana River. The continual growth of the area, as well as the "E" Street corridor to the north of the bridge, is such that the existing facility will not service existing needs, let alone potential growth. A need exists for an additional bridge over the Santa Ana River. The Engineering Department is currently soliciting proposals for a traffic/signalization study for this area. It is feared that traffic congestion could become so great that it could discourage continual growth and enjoyment of the area. Our financial consultant recommends that we seek whatever additional money we can from this project area. Our tax increment projections appear to substantiate that we could sell an issue for approximately 13,500,000. Net proceeds could be used to finance the bridge. O100H/RMM 3/30/87 •R"YELORMEINT AGENCY-REQUEST FOR COMMISSION/COUNCIL ACTION STAFF REPORT Central City North - Streetscape - Recent discussions have been held to Initiate a Main Street Revitalization Program for downtown, We recommend that the Agency provide the streetscape public improvements for this project. Bond Council and Financial Consultant are recommending a not-to-exceed issuance of :3,500,000. This could be reddbed upon final analysis. Bond Council hAs prepared the appropriate resolutions for your adoption if at#' the conclusion of the workshop you have determined that staff should proceed. The resolutions before you are summarized below: Refundings -- Authorization by City to set the TEFRA hearing for April 20, 1987. -- Authorization by Commission appointing bond counsel and underwriter, authorizing preparation of the preliminary official statement and bond purchase agreement. — The Resolution of Issuance approving all the formal documents will be considered following the April 20, 1987, TEFRA hearing. Closing of the two refunding issues is anticipated for the end of April 1987. tNew Money Issues -- Resolutions of the Commission providing for the sale, authorizing the publication of Notice of Sale and offering documents. -- It is anticipated that the sale will be set for May 7, 1987s requiring the May 4, 1987, meeting to be adjourned to May 7. It is anticipated that this issue could close in mid-May. 0100H/RHM 3/30/87 REDEVELOPMENT AGENCY-REQUEST FOR COMMISSION/COUNCIL ACTION STAFF REPORT Staff is recommending the adoption of the attached resolutions Which will enable the the sale of 13,500,000 bonds for the Central City North Project Area. BACKGROUND On March 30, 1987, the Council and Commission met in a workshop setting to discuss the sale of "New Money" bonds for the the Central City North Project Area to provide for public improvement projects. Recent discussions have been held to initiate a Main Street Revitalization Program for downtown. We recommend that the Agency provide the streetscape public improvements for this project. The resolutions before you accomplish the following official actions: i. a. City approval of issuance by the Agency of the bonds. b. Agency authorization of the issuance. c. Agency approval and authorization to execute the following documents with amendments thereto prior to execution, upon approval of such amendments by Bond Counsel and Agency Counsel: Fiscal Agent Agreement between the Agency and Security Pacific National Bank. . Preliminary Official Statement prepared by Financial Consultant and Bond Counsel. The Notice Inviting Bids has been published. Bids are to be received by 11:00 a.m. in the office of the Bond Counsel on Thursday, May 14, 1987. The Commission meeting of May 11, 1987, will need to be adjourned to May 14, 1987, at 2:00 p.m. to award the bonds. It is anticipated that the issue will close the last week in May 1987. 0161H/SL/RMM 4/20/87 REDEVELOPMENT AGENCY-REQUEST FOR COMMISSION/COUNCIL ACTION STAFF REPORT Staff is recommending the adoption of the attached resolutions which will enable the refunding of the Central City North 1982 Bond Issue of $6,300,000. BACKGROUND On March 30, 1987, the Council and Commission met in a workshop setting to discuss various financing of the Agency. The Council authorized setting a public hearing to consider the refunding of the Central City North 1982 bonds in the amount of $6,300,000. Due to the lower interest rates that are now achievable, the financial consultant has estimated that. a $725,000 total debt service savings could be achived by refunidng the issue. The resolutions before you accomplish the following official actions: a. Approve the issuance by the Agency of $7,400,000 in bonds to refund the 1982 Issue. i b. Authorize the issuance. I c. Approve and authorize the execution of the following documents and provide for amendments thereto prior to execution, upon approval of Bond Counsel and Agen;y Counsel: . Fiscal Agent Agreement between the Agency and Security Pacific National Bank. Escrow Agreement between the Agency and Security Pacific as the Fiscal Agency and the Escrow Bank, Bond Purchase Agreement between the Agency and Miller and Schroeder Municipals wherein Miller and Schroeder promises to buy the bonds. Preliminary Official Statement prepared by the Underwriter and the Bond Counsel. Closing of this issue is anticipated for the end of April 1987, O100H/SL/RMM 4/20/87 SBE00089-312315S/gg 01/28/88 $3,500,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TAX ALLOCATION BONDS ISSUE OF 1988 Tentative Action Schedule Date Action March 30, 1987 Redevelopment ARencv of the Citv of San Bernardino meets and adopts: 1. Resolution of Sale (without Notice of Intention and Notice Inviting Bids and Bid Form). March 30, 1987 Bond Counsel notifies California Debt Advisory Committee. February 1, 1988 Redevelopment ARencv of the City of San-Bernardino meets and adopts: 1. Resolution directing the publication of certain notices. February 1, 1988 Notice of Intention to Sell Bonds published in The Bond Buver. February 2, 1988 Bond Counsel submits Bond Form to Jeffries Banknote. February 5, 1988 City Clerk publishes Notice of Intention in The Sun. February 15, 1988 Redevelopment Agency of the City of San Bernardino meets and adopts: 1. Resolution of Issuance. 2. Resolution Approving Further Amendments to Resolution of Issuance. - 1 - SBE00085-10/2301S/gg 01/28/88 $7,400,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TAX ALLOCATION REFUNDING BONDS ISSUE OF 1988 Tentative Action Schedule March 27, 1987 Bond Counsel notifies California Debt r. Advisory Committee. March 30, 1987 Mayor and Common Council Meet and Adopt: 1. Resolution Setting a Public Hearing March 30, 1987 Agency Meets and Adopts: 1. Resolution Appointing Bond Counsel and _ Underwriter, Authorizing Preparation of Bond Purchase Agreement and Preliminary Official Statement in Connection with the Issuance and Sale of Bonds April 3, 1987 Notice of Public Hearing published by City Clerk in The Sun. April 20, 1987 Mayor and Common Council hold TEFRA hearing in connection with issuance of Bonds (all items continued). February 1, 1988 Notice of Public Hearing published by City Clerk in The Sun. February 2, 1988 Bond Counsel submits Bond Form to printer. - February 15, 1988 Mayor and Common Council hold TEFRA hearing (upon motion) in connection with issuance of Bonds. February 15, 1988 Mayor and Common Council Meet and Adopt: 1. Resolution Making Certain Findings and Determinations. - 1 - February 15, 1988 Agency Meets and Adopts: 1. Resolution of Issuance 2. Resolution Authorizing Further Amendments to Resolution of Issuance, Authorizing Final Bond Purchase Agreement, Fiscal Agent Agreement and Escrow Agreement. February 16, 1988 Final OK to print Bonds. March 1, .1988 Agency executes Bond Purchase Agreement. March 1, 1988 Closing at Offices of Sabo & Deitsch. Delivery of definitive Bonds. /2301S February 15, 1988 Agency Meets and Adopts: 1. Resolution of Issuance 2. Resolution Authorizing Further Amendments to Resolution of Issuance, Authorizing Final Bond Purchase Agreement, Fiscal Agent Agreement and Escrow Agreement. February 16, 1988 Final OK to print Bonds. March 1, .1988 Agency executes Bond Purchase Agreement. March 1, 1988 Closing at Offices of Sabo & Deitsch. Delivery of definitive Bonds. /2301S - 2 - SBEO0089-7/24305/dc 01/25/88 RESOLUTION NO. A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AWARDING $3, 500, 000 PRINCIPAL AMOUNT OF REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO BONDS FOR THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TO THE SUCCESSFUL BIDDER AND APPROVING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS WHEREAS, at the time and place fixed for the opening of bids for the $3 , 500, 000 principal amount of Bonds of the Redevelopment Agency of the City of San Bernardino (the "Agency" ) , designated $3 , 500, 000 Redevelopment Agency of the City of San Bernardino, Central City North Redevelopment Project Area, Tax Allocation Bonds , Issue of 1.988 (the "Bonds" ) , the bid as hereinafter described was publicly opened, examined and read, and such bids together with the net interest cost thereof has been entered in the minutes; and WHEREAS, ( ) bids have been received by the Agency at the time and place as set forth in the Notice Inviting Bids, and said bids as received by the Agency are attached hereto as Exhibit "A" and are incorporated herein by reference and made a part hereof; and - 1 - WHEREAS, the bid of the bidder hereinafter named is the best bid made by a responsible bidder for the Bonds in full compliance with the Notice Inviting Bids as previously distributed to prospective bidders for the Bonds . NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1 . That the bid of offering $ , plus accrued interest to the date of delivery for said Bonds and bearing interest payable commencing on September 1, 1988, and semiannually on each March 1 and September 1 thereafter until the various serial and term maturity dates on the Bonds in the principal amount of $3, 500, 000 at the rates of interest per annum as set forth in said bid and at an initial discount of is hereby approved and accepted by the Commission on behalf of the Agency. The bid of is the best bid for the Bonds yielding the lowest net interest cost to the Commission on behalf of the Agency. Said bid is hereby accepted and the Bonds are hereby awarded to said bidder in accordance with the terms of the proposal, and any irregularity or informality in said bid is hereby waived by the Agency in accordance with said Notice Inviting Bids . - 2 - Section 2 . That purchase price on the Bonds is hereby f fixed at the price as stated in Section 1 hereof and the interest rates are hereby fixed at the rates as set forth in the bid of the successful bidder. Section 3 . That the Chairman of the Agency, the Executive Director, Agency Treasurer, appropriate Agency Staff or such other Agency official or officer as is appropriate under the circumstances, is hereby directed to deliver the Bonds to the successful bidder upon payment therefor together with accrued interest to the date of delivery. Section 4 . The Official Statement with respect to the Bonds as distributed to prospective bidders and as presented to the Agency is hereby approved together with the Notice Inviting Bids and the Bid Form, all as on file with the Secretary of the Agency. The Chairman, the Executive Director and Secretary of the Agency, or such other Agency officer or official as appropriate, are hereby authorized and directed to execute the Official Statement where and as indicated, and the Secretary of the Agency is hereby authorized and directed to deliver copies of the Official Statement to the Purchaser in such reasonable quantities as requested by the Purchaser. Section 5. The Chairman, the Executive Director, the Secretary, the appropriate Agency Staff or such other person who may act in their place, are hereby authorized and directed to execute - 3 - and deliver any and all of the closing documents and certificates in connection with the issuance, sale and delivery of the Bonds, including, but not limited to, the Resolution of Issuance with Security Pacific National Bank, as Fiscal Agent , the Fiscal Agent Agreement and the Bonds to the Purchaser . The Fiscal Agent shall pay the costs of issuance with the proceeds of the Bonds as invoices representing such costs of issuance are presented to the Agency Staff for payment, and such costs of issuance are hereby approved for payment by the Agency through the Fiscal Agent in accordance with bills or invoices presented to and approved by the Staff of the Agency. Section 6 . The Commission hereby specifically authorizes r and directs the Agency Executive Director and Agency Counsel, with the approval of Bond Counsel , to make any and all necessary and required changes, modifications or amendments to the Resolution of Issuance and the Resolution of Sale of the Commission as may be reasonably requested by any municipal bond insurer or any nationally recognized municipal bond rating agency proposing to insure or issue a rating on the Bonds, or any other such changes, modifications or amendments as deemed necessary by the Executive Director of the Agency, Agency Counsel and Bond Counsel . - 4 - Section 7. This Resolution shall take effect upon adoption. The foregoing resolution is hereby approved this day of 19—. By: Chairman of the • Community Development Commission of the City of San Bernardino 1. By: Secretary of the Community Development Commission of the City of San Bernardino Approved as to form and legal content : Sabo & Deitsch A Professional Corporation ( BY: Interim Agency Oounsdl - 5 - SECRETARY' S CERTIFICATE OF ADOPTION AND AUTHENTICATION I , GLENDA SAUL, Secretary of the Community Development Commission, DO HEREBY CERTIFY that the attached Resolution is a true and correct copy of Resolution No. adopted 19 , by the Community Development Commission of the City of San Bernardino, by the vote set forth below, and that said Resolution has not been amended or repealed. Check Appropriate Box COMMISSION MEMBERS YEAS NAYS ABSENT ABSTAIN ESTHER R. ESTRADA JACK REILLY JESS FLORES MICHAEL MAUDSLEY TOM MINOR VALERIE POPE—LUDLAM NORINE MILLER DATED: 1988 . Glenda Saul, Secretary of the Community Development Commission of the City of San Bernardino [SEAL] SBEO0089/2430S