Report to Successor Agency
Tuesday, October 04, 2016
Consent
SUBJECT:
Title
CONSIDER REFUNDING SERIES 2009 TAX ALLOCATION BONDS AND SERIES 2009 LEASE REVENUE BONDS (SUCCESSOR AGENCY)
Body
I. SUMMARY
Staff seeks direction from the Board regarding whether the Successor Agency shall move forward with refunding two series of bonds to derive debt service savings, potentially improve flexibility in development of the former Carson Market Place site, and release the City's General Fund obligation for the 2009 Lease Revenue Bonds.
The decision made tonight does not constitute approval of bond documents. The Successor Agency Board's decision would allow the Successor Agency to expend funds to update the bond documents that were already drafted earlier in the year, and move forward with other preparations for a refunding of both issues. Approval of the bond documents would be presented to the Successor Agency at a later date.
II. RECOMMENDATION
Recommendation
DIRECT Staff to move forward with preparations for refunding the Series 2009 Tax Allocation Bonds and Series 2009 Lease Revenue Bonds on a taxable basis.
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III. ALTERNATIVES
1. DIRECT Staff to wait until the Successor Agency receives approval from the DOF to refund the LRBs before preparing for both bond series.
2. DIRECT Staff to move forward with refunding as tax exempt bonds.
3. TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
The former Redevelopment Agency and Public Financing Authority issued two series of bonds on a tax-exempt basis to help fund remediation of a former landfill on a 157-acre site.
* Series 2009 Tax Allocation Bonds (TABs) $22,810,000 (balance of $20,400,000 at June 30, 2016).
* Series 2009 Lease Revenue Bonds (LRBs) $12,165,000 (balance of $11,350,000 at June 30, 2016).
Debt service for the bonds is paid from tax increment money, referred to as Redevelopment Property Tax Trust Fund (RPTTF) after redevelopment dissolution in 2012. However, the C...
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