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Home My WebLink AboutMINUTES - 12111984 - 1.61 BOARD OF SUPERVISORS l Anthony . Dehaesus ' Con`ra FROM* y . ' Director of Planning Costa DATE. December 4, 1984 County SUBJECT: . Request by the Redevelopment Agency of the City of San Pablo to .Transfer a Portion of the County's 1984 Private Activity Bond Special Reserve Allocation SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION Adopt a resolution approving the transfer of a portion of the County's 1984 Private Activity Bond Special Reserve Allocation to the Redevelopment Agency of the City of San Pablo in an amount not to exceed $6,000,000, in order to issue bonds for the renovation and expansion of the El Portal Shopping Center, subject to the condition that a linkage between employers in said center and the Private Industry Council job programs be established; and authorize the Director of Planning to submit the required notification of said transfer to the California Debt Limit Allocation Committee. BACKGROUND A. Private Activity Bond Limits and Allocations On July 18, 1984, President Reagan signed into law the Tax Reform Act of 1984, which imposed a $150 per capita state ceiling on "private activity bonds," i.e., industrial development bonds (not including multi-family housing), and student loan bonds. This volume cap does not apply to any private activity bond issued prior to December 31, 1984, provided that an "inducement resolution" was approved before June 19, 1984. On July 19, Governor Deukmejian signed an executive Proclamation which established a system for allocating the State volume ceiling of $3,776,100,000 among state and local agencies. The basic allocation scheme contained in the Governor's Proclamation is as follows: (a) Fifty percent of the State Ceiling is allocated to State Agencies. The further allocation of this amount (called the "State Bond Limit") is delegated to the Committee. (b) 35% of the State Ceiling is allocated to cities and counties (for their unincorporated areas) on a per capita basis. (c) 15% of the State Ceiling is allocated directly to counties, based upon their entire population. Based on the January 1, 1984 population estimates published by the Department of Finance, the 1984 private activity bond allocations to the County and its political subdivisions is as follows: CONTINU ON ATTACHMENT: XXX _ YES SIGNATURE: MMENDATION OF COUNTY ADMINISTRATOR R OICIMEDATIO OF BOARD MMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER o� VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC: San Pablo Redevelopment Agency ATTESTED Jones, Hal 1 , Hill & White PHIL BATCHELOR, CLERK OF THE BOARD OF California Debt Limit Allocation Comm. SUPERVISORS AND COUNTY ADMINISTRATOR County .Administrator County Counsel M3e2/7-e9 BY DEPUTY City/Unincorporated Private Activity Bond Area Allocation Antioch $ 2,421 ,000 Brentwood 268,000 Clayton 233,000 Concord 5,460,000 Danville 1,433,000 El Cerrito 19209,000 Hercules 380,000 Lafayette 1, 173,000 Martinez 1,316,000 Moraga 772,000 Pinole 757,000 Pittsburg 2,007,000 Pleasant Hill 1,422,000 Richmond 3,999,000 San Pablo 1, 102,000 Walnut Creek 2,980,000 Unincorporated 2 9,142,000 Subtotal $ 36,074,000 Contra Costa County $ 15,460,000 TOTAL $ 51,534,000 1City of San Ramon figures have evidently been lumped in with the unincorporated County. 2Amount reflects the allocation to the County based on its unincorporated population. 3Amount reflects the allocation to the County based on its entire population. Under the Governor's Proclamation each political jurisdiction can issue private activity bonds up to their allocation limit without any approvals by any other governmental entity. If a city or the unincorporated County allocation is insufficient to issue bonds, it is the intent of the Governor's Proclamation that the 15% special allocation made to the counties, based on their entire population, would be used as a reserve to resolve allocation problems within counties by transferring to local agencies within the County. B. Request by Redevelopment Agency of the City of San Pablo The Redevelopment Agency of the City of San Pablo has submitted a request for approximately $6 milion of the County's $15.46 million special reserve allocation (attachment). The City has a direct allocation of $1,102,000. The Redevelopment Agency is preparing to isue bonds to finance the revitalization of the El Portal Shopping Center. A developer, Pacific Real Estate Investment Trust, proposes to construct 130,000 square feet of new retail area, refacia the existing stores, improve and expand parking, and improve the landscaping. The Redevelopment Agency passed an induce- ment resolution for the project on November 19, 1984, and is proceeding to issue approximately $7,100,000 in bonds prior to the end of the year. Given that the City has a direct allocation of $1,102,000, it is requesting the County to transfer approximately $6,000,000 from its special reserve allocation. Community benefits include additional sales tax dollars estimated at $250,000 annually; additional property tax increments for the Redevelopment Agency estimated at $50,000 annually, revitalization and modernization of an older shopping center, and the generation of approximately 250 net new jobs. The Agency, and the owner have indicated a willingness to utilize Private Industry Council programs to recruit for new employees in order to assure maximum benefits accrue to the unemployed and disadvantaged. 1G 00 131 _ 2 _ 1 . Private activity bond spec reserve allocation 2 . San Pablo Redv agency transfer apprvd �t RESOLUTION NO. 84/745 RESOLUTION OF THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY TRANSFERRING 1984 RESERVE PRIVATE ACTIVITY BOND LIMIT TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN PABLO WHEREAS, pursuant to Section 103(n) of the Internal Revenue Code of 1954, as amended, there are authorized to be issued within the State of California in any calendar year an amount of Private Activity Bonds (as defined in said Section 103(n)) not exceeding in aggregate principal amount the statewide limit, determined as set forth in 'said Section 103(n) ; and WHEREAS, the Governor of the State of California on June 19, 1984, issued a Proclamation (the "Proclamation") implementing the provisions of said Section 103(n) , pursuant to which a portion of said statewide limit is allocated to each county based on the estimated population of such county, and WHEREAS, Contra Costa County the ("County") has determined that the portion of said statewide limit allocated to the County as a "reserve" for the current calendar year is $15,460,00 (the "1984 Reserve Private Activity Bond Limit") ; and WHEREAS, the Proclamation permits the County to assign to another local agency located within the County all or a portion of its 1984 Reserve Private Activity Bond Limit by resolution adopted by the Board of Supervisors, and the Redevelopment Agency of the City of San Pablo has requested the County _ to assign to it the amount of $6,00,000 for the purpose of completing the El Portal Shopping Center Project financing; NOW, THEREFORE BE IT RESOLVED by the Board of Supervisors of Contra Costa County, as follows: Section 1 . Transfer of 1984 Reserve Private Activity Bond Limit. The amount of $6,000,000, representing a portion of the County' s 1984 Reserve Private Activity Bond Limit, is hereby transferred to the Redevelopment Agency of the City of San Pablo for the E1 Portal Shopping Center Project financing. Such transfer shall be irrevocable upon the adoption of this Resolution. Section 2. Official Action. The Director of Planning is hereby authorized and directed to notify the California Debt Limit Allocation Committee (the "Committee") established by the Proclamation, of the assignment made pursuant to Section 1 , within fifteen (15) days of the adoption of this Resolution. PASSED AND ADOPTED this /1.6t day of 1984, by the following vote: AYES: Supervisors Powers, Fanden, Schroder, McPeak and Torlakson NOES: None ABSENT:None Chairman Attest: Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By Deputy le cc: San Pablo Redevelopment Agency Q 2 Jones, Hall , Hill & White California Debt Limit Allocation Comm. County Administrator County Counsel Director of Planning RESOLUTION NO. 84/745 1 . Private activity bond allocation Res 84/745 I 2 . San Pablo Redv agency transfer app.rvd ! 3 . El Portal shopping center proj refinancing 4 . Same as 1 above I