HomeMy WebLinkAboutMINUTES - 12111990 - 1.97 1-097 M
TO: BOARD OF SUPERVISORS aE;SE,;L--oma
Contra
FROM: Phil Batchelor, County Administrator G`OS+a
n1 s L
ot
County
DATE: December 11 1990
cOrT-9 cau—' GP
SUBJECT: SUBORDINATION OF REDEVELOPMENT PASS THROUGH FOR CITY OF
CLAYTON
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION•
Approve subordination of revenues due to the County, Library,
Fire District and Flood Control District, to Series 1990 .issue 00
tax allocation bonds, pursuant to July 14, 1986 agreement with
the Clayton Redevelopment Agency.
FINANCIAL IMPLICATIONS:
It is expected that pass through of revenues will continue as
originally agreed. The subordination agreement merely provides
the Redevelopment Agency with added assurances for bond holders
that agency debt will be repaid.
BACKGROUND:
On July 14, 1986, the County approved a redevelopment pass
through agreement with the Clayton Redevelopment Agency. The
terms of the agreement were very favorable to County government
agencies.
Included in the agreement is a subordination clause which
essentially allows the agency to put debt owed to the County
lower in priority than debt owed to bond holders, as added
assurance to bond holders that their investment will be returned.
The County agreed to this provision based upon the commitment
that the agency would have on hand 1250 of the necessary funds to
pay back bond holders, thereby minimizing the real risk that
subordination would be necessary. The agency has informed the
County that in order to secure an investment grade bond rating or
municipal bond issuance on the proposed Series 1990 issue of tax
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
-
SIGNATURE(S):
ACTION OF BOARD ON LIE C 11 1-990 APPROVED AS RECOMMENDED OTHER x
The Chair is AUTHORIZED to EXECUTE the aforementioned agreement
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
DEC 11 1990
Cc: Jim Kennedy, Community Development ATTESTED
City of Clayton PHIL BATCHELOR,CLERK OF THE BOARD OF
File SUPERVISORS AND COUNTY ADMINISTRATOR
BY ,DEPUTY
M382 (10/88)
-2-
allocation bonds, it must require the County to subordinate its
interest in certain tax increment revenues. The agency has
provided documents to staff which demonstrate that the 125%
commitment has been met. Therefore, it is appropriate to agree
to the subordination as called for in the 1986 agreement.