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Home My WebLink AboutMINUTES - 08062002 - C117 TO:- BOARD OF SUPERVISORSLCONTRA - = COSTA FROM: JOHN SWEETEN d,l#11, COUNTY COUNTY ADMINISTRATOR iJ 7 DATE: August 6, 2002 SUBJECT: SUBORDINATION OF REVENUES FOR CITY OF PLEASANT HILL SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION Recommendation: APPROVE agreement subordinating revenues due to the County, Library, Fire and Flood Control District for tax allocation bonds. Authorize execution of Agreement by Board Chair. Background: The attached subordination agreement would assist the Pleasant Hill Redevelopment Agency to refinance up to $23.3 million in existing bond debt service at a lower cost. The agreement allows the agency to put debt owed to the County, Library, and Flood Control and Fire Districts, lower in priority than debt owed to bond holders, as added assurance to bond holders that their investment will be returned. The agency has provided documents to the County which demonstrate that an adequate revenue commitment will be maintained to reasonable assure continued property tax increment payments to County agencies. The Agency does not intend to raise the principal or extend the term of the financing. CONTINUED ON ATTACHMENT: X YES SIGNATURE: id RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE a--'APPROVE OTHER SIGNATURElS} ACTION OF BO. ON 3 w ;°? x ' APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT r -«- '` ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. AlContact:Tony Enea d' Cc:Bob Stewart,Pleasant Hill Redevelopment ATTESTED Jim Kennedy,County Redevelopment John Sweeter<kLERK OF THE BGXRD OF CAO, SUPER)OSORS AND COUNTY ADMINISTRATOR County Counsel BY a , 6; ' DEPUTY SUBORDINATION AGREEMENT This Subordination Agreement,dated as of August 6,2002, is entered into by and among the Pleasant Hill Redevelopment Agency (the "Agency") the County of Contra Costa which includes the Contra Costa Library District(the"County"),the Contra Costa County Flood Control and Water Conservation District(the"Flood Control District"), and the Contra Costa Consolidated Fire District (the "Fire District"). RECITALS The parties have entered into an agreement, dated as of July 6, 1992(the"Agreement"),providing,among other matters, for the allocation and payment of certain tax increment revenues from the Agency's Commons/Commons 1A Redevelopment Project Area ("Project Area")to the County, the Flood Control District, and the Fire District (collectively, the "Taxing Agencies"). The Agreement further provides that the Taxing Agencies' rights to such tax increment revenue payments are subordinate to the Agency Priority Obligation to pay debt service on its 1991 Bond Issue, in accordance with the maximum allowable annual and total amounts shown on Exhibit A to the Agreement, which is attached hereto and made a part hereof. In furtherance of the redevelopment plan for the Project Area, the Agency desires to refinance its 1991 Bond Issue,without increasing the term or principal amount of the outstanding bonds,and solely for the purpose of reducing interest rates, and has requested that the Taxing Agencies subordinate their rights to receive tax increment revenue payments under the Agreement, in order for the Agency to be able to pledge such tax increment revenue to such refinancing. NOW, THEREFORE, the parties agree as follows: 1. The County, the Flood Control District,and the Fire District, pursuant to Section 2 of the Agreement, hereby subordinate their rights to receive tax increment revenue payments under the Agreement,in order to allow the Agency to pledge such tax increment revenue to the proposed refinancing (and any refunding obligations hereafter issued to refund such indebtedness), and agree that the proposed refinancing is a Priority Obligation under the Agreement. This agreement to subordinate relates to the following proposed indebtedness of the Agency (and any refunding obligations hereafter issued to refund such indebtedness): a) The principal amount of the bonds to be sold shall not exceed $8,640,000. b) Debt service on the refinanced bonds shall not exceed the annual and total amounts set forth in Exhibit A hereto. 2. The Agency agrees to expend the proceeds of the bonded indebtedness to refund certain outstanding bonds issued in furtherance of its redevelopment plan for the Project Area. 3. The Agreement shall continue to remain in full force and effect. TAXING AGENCIES: AGENCY: COUNTY OF CONTRA COSTA PLEASANT HILL REDEVELOPMENT AGENCY CONTRA COSTA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT CONTRA COSTA COUNTY C( SOL€ TED FOE DISTRICT ra By: By . ChaVerson, Board of Supervisors Executiv L Director ATTEST: ATTEST: John Sweeten, Diane Kearns, Clerk of the Board of Supervisors Secretary, Pleasant Hill Redevelopment Agency and Co my Administrator Deputy Clerk Secretary, Pleasant Hill"Redevelopment Agency Approved as to Form: Approved as to Form: Silvano B. Marchesi P,0yI0, /)309r T. Brent Hawkins unty Co el Agency Special Counsel B Deputy County Counsel Agen pecial Counsel ww � SUBORDINATION AGREEMENT This Subordination Agreement,dated as of August 6,2002, is entered into by and among the Pleasant Hill Redevelopment Agency (the "Agency"), the County of Contra Costa which includes the Contra Costa Library District(therr Countyn),the Contra Costa County Flood Control and Water Conservation District(the"Flood Control District"), and the Contra Costa Consolidated Fire District (the "Fire District"). RECITALS The parties have entered into an agreement,dated as of July 6, 1992(the"Agreement"), providing,among other matters, for the allocation and payment of certain tax increment revenues from the Agency's Commons/Commons 1 A Redevelopment Project Area ("Project Area")to the County, the Flood Control District, and the Fire District (collectively, the „Taxing Agencies"). The Agreement further provides that the Taxing Agencies' rights to such tax increment revenue payments are subordinate to the Agency Priority Obligation to pay debt service on its 1991 Bond Issue, in accordance with the maximum allowable annual and total amounts shown on Exhibit A to the Agreement, which is attached hereto and made a part hereof. In furtherance of the redevelopment plan for the Project Area, the Agency desires to refinance its 1991 Bond Issue,without increasing the term or principal amount of the outstanding bonds, and solely for the purpose of reducing interest rates, and has requested that the Taxing Agencies subordinate their rights to receive tax increment revenue payments under the Agreement, in order for the Agency to be able to pledge such tax increment revenue to such refinancing. NOW, THEREFORE, the parties agree as follows: 1. The County,the Flood Control District,and the Fire District,pursuant to Section 2 of the Agreement, hereby subordinate their rights to receive tax increment revenue payments under the Agreement,in order to allow the Agency to pledge such tax increment revenue to the proposed refinancing (and any refunding obligations hereafter issued to refund such indebtedness), and agree that the proposed refinancing is a Priority Obligation under the Agreement. This agreement to subordinate relates to the following proposed indebtedness of the Agency (and any refunding obligations hereafter issued to refund such indebtedness): a) The principal amount of the bonds to be sold shall not exceed $8,640,000. b) Debt service on the refinanced bonds shall not exceed the annual and total amounts set forth in Exhibit A hereto. 2. The Agency agrees to expend the proceeds of the bonded indebtedness to refund certain outstanding bonds issued in furtherance of its redevelopment plan for the Project Area, 3. The Agreement shall continue to remain in full force and effect. TAXING AGENCIES: AGENCY: COUNTY OF CONTRA COSTA PLEASANT HILL REDEVELOPMENT AGENCY CONTRA COSTA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT CONTRA COSTA COUNTY COMISOLI TED F E DISTRICT k By. By: Cha erson, Board of Supervisors Executive Director ATTEST: ATTEST: John Sweeten, Diane Kearns, Clerk of the Board of Supervisors Secretary, Pleasant Hill Redevelopment Agency and Co,•my Administrator By: �.. Deputy Clerk Secretary, Pleasant Hill Redevelopment Agency Approved as to Form: Approved as to Form: Silvano B. Marches€ David F. Beatty unty Co el Agency Special Counsel B C . av Deputy County Counsel Agency Special Counsel EXHIBIT A AGENCY BOND ISSUE DEBT SERVICE PAYMENTS Fiscal Year Bond Debt Ending Service 1991 $ 0 1992 780,000 1993 779,000 1994 778,000 1995 776,000 1996 778,000 1997 780,000 1998 781,000 1999 781,000 2000 775,000 2001 779,000 2002 776,000 2003 778,000 2004 778,000 2005 777,000 2006 780,000 2007 776,000 2008 777,000 2009 776,000 2010 778,000 2011 779,000 2012 778,000 2013 776,000 2014 776,000 2015 780,000 2016 776,000 2017 775,000 2018 772,000 2019 776,000 2020 777,000 2021 780,000 2022 0 2023 0 2024 0 2025 0 2026 0 2027 0 2028 0 2029 0 2030 0 Total $23,327,000