HomeMy WebLinkAboutMINUTES - 12071994 - 1.143 . I L13
TO BOARD OF SUPERVISORS
FROM: Phil Batchelor, County Administrator Cwtra
Costa
DATE: ,
December 7, 1993 Co r vV�lt I`!/
SUBJECT:
SUBORDINATION OF REDEVELOPMENT PASS THROUGH
FOR CITY OF CLAYTON
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND Alm JUSTIFICATION
RECOMMENDATION(S):
APPROVE Agreement subordinating revenues due to the County, Library, Fire District
and Flood Control District for tax allocation bonds, pursuant to the 1986 agreement with
the Clayton Redevelopment Agency. AUTHORIZE execution of Agreement by Board
Chair.
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 replaced.
BACKGROUND/REASON(S) FOR RECOMMENDATION(S):
On July 14, 1986, the County approved a redevelopment pass through agreement with
the Clayton Redevelopment Agency. 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 adequate 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 1993 issue of tax allocation bonds,
it must require the County to subordinate its interest in certain tax increment revenues.
The County approved a prior subordination agreemet with the Agency in December,
1990. The Agency has provided documents to staff which demonstrate that adequate
revenue commitment has been met. Therefore, it is appropriate to agree to the
subordination as called for in the 1986 agreement.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
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.
CC: County Administrator ATTESTED 7 /�
Jim Kennedy, Redevelopment PHIL BATCHELOR, CLERK OF THE BOARD OF
City of Clayton
County Counsel SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-83 BY ,DEPUTY
AGREEMENT AUTHORIZING THE
SUBORDINATION OF REVENUES
RELATED TO TAX ALLOCATION BONDS
Effective December 7, 1993
NOW, THEREFORE, the parties agree as follows:
1. Contra Costa County .(which includes the Library District), Consolidated Fire
Protection District and Contra Costa County Flood Control, pursuant to Section
1 of the fiscal Agreement, hereby subordinate their rights to receive tax increment
revenue payments, in order to allow the Agency to pledge such tax increment
revenue to the proposed long term indebtedness to be incurred by the Agency.
This agreement to subordinate relates to the following proposed indebtedness of the
Agency, as more particularly set forth in the report submitted to the County:
a) The principal amount of the bonds to be sold shall not exceed $5,000,000.
b) The Agency shall issue the bonds by not later than December 31, 1993.
2. In accordance with Section 2 of the Agreement, in the event that payments to the
County and Consolidated Fire, Library and Flood Control Districts are reduced
below the amount otherwise payable to them pursuant to the Agreement as a
result of such subordination, then such reduction shall be treated as an advance
by the County, Consolidated Fire, Library and Flood Control Districts and repaid
by the Agency in accordance with the Agreement.
3. The Agency agrees to expend the proceeds of the bonded indebtedness in
furtherance of its redevelopment plan for the Project Area.
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COUNTY: AGENCY:
COUNTY OF CONTRA COSTA REDEVELOPMENT AGENCY OF
CONTRA COSTA COUNTY THE CITY OF CLAYTON
LIBRARY DISTRICT
CONSOLIDATED FIRE DISTRICT
FLOOD CONTROL DISTRICT By:
E cutive Director
Chair, Board of Supervisors
ATTEST:
PHIL BATCHELOR
CLERK OF THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
By: (2 0 w4,,(q
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County Counsel