HomeMy WebLinkAboutMINUTES - 12071994 - 1.144 TO BOARD OF SUPERVISORS
FROM: Phil Batchelor, County Administrator COCItra
Costa
DATE: December 7, 1993 C;o^
SUBJECT:
SUBORDINATION OF REDEVELOPMENT PASS THROUGH
FOR THE CITY OF SAN PABLO
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, and 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:
The City of San Pablo is requesting that the County approve an agreement subordinating
revenues due to the County, Library, Fire and Flood Control District for tax allocation
bonds. The city is seeking to refinance $29 million in outstanding debt and issue $11
million in new debt because of the current low interest rate costs. The Agency has
informed the County that in order to secure an investment grade bond rating or municipal
bond issuance, it must require the County to subordinate its interest in certain tax
increment revenues.
An agreement with the city dated September 8, 1987 did not specifically allow for
subordination, although the language appears to contemplate some form of
subordination. The staff has reviewed the Agency documents which demonstrate that
an adequate revenue commitment has been met. Therefore, it is appropriate, as in the
case of Pittsburg, Clayton and other cities, to agree to the subordination request.
CONTINUED ON ATTACHMENT: YES SIGNATURE: 2 y
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 � � `y /c
Jim Kennedy, Redevelopment PHIL BATCHELOR, CLERK OF THE BOARD OF
Countyy Counsel
City San Pablo 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), West County Fire
Protection District and Contra Costa County Flood Control and Water
Conservation District, 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
$40,000,000.
b) The Agency shall issue the bonds by not later than December 31, 1993.
2. In the event that payments to the County and West County 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, West County 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.
COUNTY: AGENCY:
COUNTY OF CONTRA COSTA REDEVELOPMENT AGENCY OF
CONTRA COSTA COUNTY THE CITY OF SAN PABLO
LIBRARY DISTRICT
WEST COUNTY FIRE DISTRICT
FLOOD CONTROL DISTRICT By:
_W2.
_ Executive Director
By:_
Chair, Board of Supervisors
ATTEST:
PHIL BATCHELOR
CLERK OF THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
By:
D ` uty gerk
Approved as to Form:
Victor J. Westman
_Czujoty Counsel
puty,
CITY OF SAN PAPLO
One Alvarado Square, San Pablo, CA 94806
(510)215-3012 Fax#(510)235-7059
Office of the City Manager
January 4, 1994
Mr. Tony Enea, Senior Deputy
County Administrator
651 Pine Street, 11th Floor
Martinez, CA 94553-1229
SUBJECT: Subordination of Revenues Related to
San Pablo Redevelopment Agency Tax Allocation Bonds
Dear Mr. Enea:
Attached is an executed original Agreement on the above noted subject for your
records.
Thank you for your assistance on this matter.
Sincerely,
v Linda D. Armstro
Sr. Administrative cretary
Enclosure
CONTRA COSTA COUNTY
RECEIVED
6 tong
COUNTY ADMINISTRATOR
Recycled Paper