HomeMy WebLinkAboutMINUTES - 11141989 - 1.42 TO: BOARD OF SUPERVISORS
FROM: Harvey E. Bragdon ' Contra
Director of Community Development Costa
DATE: Novemberl4.-, 1989 County
SUBJECT: Designation of Underwriters for Upcoming Issuance of
Multi-Family Bonds
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Designate BT Securities Corporation & I .C. Rideau Securities, Inc.
as senior and co-manager respectively, which meets the County' s
minority and Women Business Enterprise Contract Compliance Program,
for the issuance of multi-family mortgage revenue refunding bonds
for the Runaway Bay Apartments, Antioch.
FISCAL IMPACT
None. County costs associated with the issuance will be paid by
the developer from costs of issuance.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1985 the County issued multi-family mortgage revenue bonds to
finance a 280 unit development in Antioch referred to as Runaway
Bay. In order to take advantage of current low rates in the tax
exempt market, thereby improving the financial condition of the
project, a refunding (or refinancing) of those 1985 bonds is
proposed. The proposed refunding bonds are to be secured by a
letter of credit issued by Bankers Trust Company. BT Securities
Corporation, the investment banking arm of Bankers Trust, must be
used to manage the underwriting of bonds secured by their letter of
credit. BT Securities Corporation is a quality firm.
CONTINUED ON ATTACHMENT YES SIGNATURE
RECONIlKENDATION OF COUNTY ADMINISTRATOR RECONPNEEENDATION OF BO COMMITT E
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON NOV 14 1989 APPROVED AS RECOMMENDED X_ OTHER
VOTE OF SUPERVISORS
' I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT ) TRUE AND,. CORRECT COPY OF AN
AYES: NOES: ACTION `TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES. OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development ATTESTED NOV 14 7989
PHIL BATCHELOR, CLERK OF
THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
BY � j� , DEPUTY
JK:cg
m5/mltifam.bo
By Board policy the County designates two investment bankers for
multi-family bond transactions. Staff is recommending the
retention of a minority and women owned firm, I .C. Rideau
Securities, Inc. . The firm has worked as a co-manager on single
and multi-family housing bond transactions, as well as other types
of transactions. A check of references by staff showed positive
results.
Should the Board wish to consider other firms as co-manager, a list
of firms submitting proposals in response to a 1988 County request
for proposal is attached.
ATPACFIlEENT A
Investment Banking Proposals
Morgan Stanley
Paine Weber Incorporated
Grigsby, Brandford and Company*
Charles A. Bell and Company*
Drexel, Burnham, Lambert
Kidder, Peabody and Company
Shearson, Lehman, Hutton
Prudential Bache Capital Funding
Bear Sterns
Pacific Securities Incorporated
Chilton and O' Conner, Inc.
First Boston
Ziegler Securities
Bancroft, Garcia and Lavell*
Donaldson, Lufkin and Jenerette
Security Pacific Merchant Bank
Newman Associates
Smith Barney
Citicorp Securities Markets, Inc.
*MBE/WBE Firms
JK:cg
m5/mltifam.bo