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HomeMy WebLinkAboutMINUTES - 11281995 - C69 Contra TO: BOARD OF SUPERVISORS Costa County FROM: Harvey E. Bragdon C °" Director of Community Development DATE: November 28, 1995 SUBJECT: Sale of Bonds - Redevelopment Project Area (Bay Point) SPECIFIC REQUESTS) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. As the Board of Directors of the Contra Costa County Public Financing Authority, ADOPT resolution authorizing the issuance of revenue bonds to make a loan to the Contra Costa County Redevelopment Agency (Bay Point Redevelopment Project Area), and actions related thereto; and 2. As the Contra Costa County Redevelopment Agency, ADOPT a resolution authorizing the borrowing of funds from the Contra Costa County Public Financing Authority for the Bay Point Redevelopment Project Area; and 3. As the Board of Supervisors, ADOPT a resolution approving: (1) the issuance of bonds for the Bay Point Redevelopment Project Area by the Contra Costa County Public Financing Authority; and (2) the borrowing of bond proceeds for the Bay Point Redevelopment Project Area by the Contra Costa County Redevelopment ency. CONTINUED ON ATTACHMENT: XX YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR E OMMENDA ION OF A `7 NCY COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF AGENCY ON November 2 8 , 1995 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A 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. Contact: Jim Kennedy 646-4076 ATTESTED November 28 , 1995 cc:_ Community Development PHIL BATCHELOR, CLERK OF t. Redevelopment Agency THE BOARD OF SUPERVISORS County Administrator ANDCO NTYADMINISTRATOR County Counsel Auditor-Controller BY , DEPUTY via Redevelopment Jones Hall Hill & White Stone & Youngberg JKAh sra2ftpbond2.bos c FISCAL IMPACT The bonds to be issued will be secured by a pledge of redevelopment tax increments from the Bay Point Redevelopment Project Area. No General Funds are pledged to secure bonds. Sufficient annual tax increment to cover administrative costs of the Agency has been reserved. BACKGROUND/REASONS FOR RECOMMENDATIONS A. Prior Actions On April 7, 1992, the Board of Supervisors and the Redevelopment Agency approved the formation of the Contra Costa County Public Financing Authority for the purpose of issuing bonds for four of the Redevelopment Agency's project areas - Pleasant Hill BART, North Richmond, Bay Point (West Pittsburg) and Oakley. B. Sources and Uses of Funds Based on available tax increment, the Authority would expect to raise approximately $3.2 million in funds with this sale of bonds. The primary anticipated uses of bond proceeds are for infrastructure improvements in the Bay Point Redevelopment Project Area, including circulation, drainage and utility, and housing projects. Bay Point Redevelopment Project Area Northtown Revitalization Program" $2,500,000 BRIDGE Multi-Family Financial Assistance 700,000 TOTAL $3,200,000 *Could include road, drainage, utility and related infrastructure improvements in the North Broadway, Poinsettia, Solano Avenue area of Bay Point. On June 6, 1995 the Board approved the issuance of bonds in the amount of$2.5 million. The bonds were to be issued through an ABAG Finance Authority pooled financing with Capital Guaranty as the bond insurer. Unfortunately Capital Guaranty declined to include Bay Point under their insurance program, citing concentration of ownership of properties contributing property tax increment to the Agency. Two property owners - Criterion Catalyst and Dexter Hysol -comprise approximately 25% of the Bay Point Tax Increment. After considerable due diligence by County staff and the underwriter, we have concluded that a sale'of bonds on an unrated basis is appropriate. Staff and our financial advisors met with the plant managers for each of the facilities and have concluded that the pledged revenues securing the bonds are secure. RESOLUTION NO. 9 5/5 9 9 A RESOLUTION OF THE COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF REVENUE BONDS TO MAKE A LOAN TO THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY IN CONNECTION WITH ITS BAY POINT REDEVELOPMENT PROJECT, AUTHORIZING AND DIRECTING EXECUTION OF RELATED INDENTURE OF TRUST AND FIRST SUPPLEMENT TO LOAN AGREEMENT,AUTHORIZING SALE OF BONDS AND AUTHORIZING OFFICIAL ACTIONS WHEREAS, the County of Contra Costa (the "County") and the Contra Costa County Redevelopment Agency (the "Agency") have heretofore entered into a Joint Exercise of Powers Agreement establishing the County of Contra Costa Public Financing Authority (the "Authority") for the purpose, among others, of issuing its bonds to be used to provide financial assistance to the Agency;and WHEREAS, the Agency has determined to assist.the redevelopment of its Bay Point Redevelopment Project (the "Redevelopment Project"), and has requested that the Authority lend it funds to provide financing for the Redevelopment Project;and WHEREAS, for the purpose of raising funds necessary to provide such financial assistance to the Agency, the Authority proposes to authorize the issuance of its revenue bonds (the'Bonds"Y under the provisions of Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), to be designated a's the County of Contra Costa Public Financing Authority 1995 Tax Allocation Revenue Bonds,Series B (Bay Point Redevelopment Project Area);and WHEREAS, the proceeds of the Bonds will be applied to make a loan (the "Loan") to the Agency pursuant to a Loan Agreement, dated as of May 1, 1992, as supplemented by a First Supplement thereto,dated as of December 1, 1995 (the"First Supplement"); and WHEREAS,Stone&Youngberg(the"Underwriter")has proposed to purchase the Bonds and has presented to the Authority a form of Purchase Contract for the Bonds, to.be entered into among the Authority,the Agency and the Underwriter(the"Purchase Agreement")and has presented the Authority with a proposed form of official statement (the "Official Statement") describing the Bonds, to be used in connection with the marketing thereof by the Underwriter; and WHEREAS, the Board of Directors (the 'Board") of the Authority has duly considered such transactions and wishes at this time to approve said transactions in the public interests of the Authority. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the County of Contra Costa Public Financing Authority as follows: Section 1. Findings and Determinations. Pursuant to the Act, the Board hereby finds and determines that the issuance of the Bonds will result in savings in effective interest rates, bond underwriting costs and bond issuance costs and thereby result in significant public benefits to its members within the contemplation of Section 6586 of the Act. Section 2. Issuance of Bonds; Approval of Indenture. The Board hereby authorizes the issuance of the Bonds, provided that the maximum aggregate principal,amount of the Bonds shall not exceed $4,000,000. The Bonds shall be issued pursuant to an Indenture of Trust dated as of December 1, 1995, by and between the Authority and Bank of America National Trust and Savings Association,as trustee(the"Indenture"). The Board hereby approves the Indenture in the form on file with the Secretary. The Chair, Executive Director, Assistant Executive Director, and'Deputy Executive Director (the "Designated Officers"), each acting alone, are hereby authorized and directed to execute,and the Secretary is hereby authorized and directed to attest and affix the seal of the Authority to, the Indenture in such form, together with such additions thereto and changes therein as the Deputy Executive Director of the Authority shall deem necessary, desirable or appropriate, the execution of which by the Authority shall be conclusive evidence of the approval of any such additions and changes. The Board hereby authorizes the delivery and performance of the Indenture. Section 3. Approval of Loan to Agency;First Supplement. The Board hereby authorizes and approves the loan of the Bond proceeds by the Authority to the Agency pursuant to and in accordance with the provisions of the First Supplement. The Board hereby approves the First Supplement in the form on file with the Secretary. The Designated Officers, each acting alone, are hereby authorized and directed to execute, and the Secretary is hereby authorized and directed to attest and affix the seal of the Authority to, the First Supplement in such form, together with such additions thereto and changes therein as the Deputy Executive Director of the Authority shall deem necessary, desirable or appropriate, the execution of which by the Authority shall be conclusive evidence of the approval of any such additions and changes. The Authority hereby authorizes the delivery and performance of the First Supplement. Section 4. Sale of Bonds. The Board hereby approves the sale of the Bonds by the Authority by jbegotiation with the Underwriter,pursuant to the Purchase Agreement in the form on file with the Secretary. The Designated Officers, each acting alone, are hereby authorized and directe&l'to execute the Purchase Agreement in such form, together with such additions thereto and changes therein as the Deputy Executive Director of the Authority shall deem necessary,desirable or appropriate, (the execution of which by the Authority shall be conclusive evidence of the approval of any ), upon the submission of an offer by the Underwrtier to purchase the Bonds, which offer is acceptable to the Deputy Executive Director of the Authority an'd consistent with the requirements of this Resolution. The amount of purchaser's discount for the Bonds shall be not more than three percent (3%) of the par amount thereof(not taking into account any original issue discount on the sale thereof) and the net effective rate of interest to be'represented by the Bonds shall not exceed nine percent (9%) per annum. Section 5. Official Statement. The Board hereby approves the preparation of, and hereby authorizes the Designated Officers, each acting alone, to deem final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934 except for permitted omissions, a preliminary' form of the Official Statement describing the Bonds. Distribution of such preliminary,,Official Statements by the Underwriter is hereby approved. The Designated Officers, each acting alone, are hereby authorized to execute the final form of the Official Statement,including as it may be modified by such additions thereto and changes therein as the Deputy Executive Director of the Authority shall deem necessary,desirable or appropriate,and the execution of the final Official Statement by the Authority shall be conclusive evidence of the approval of any such additions and changes. The Board hereby authorizes the distribution of the final Official Statement by the Underwriter. The final Official Statement shall be executed in the name and on behalf of the Authority by a Designated Officer. Section 6. Official Actions. The Chair, the Executive Director, the Assistant Executive Director, the Deputy Executive Director, the Secretary and any and all other officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, 2 'y i 7 instruments of:conveyance, warrants and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and sale of the Bonds and the consummation of the transactions as described herein. I Section 7. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED this 2 8 tlday of November__, 1995 by the following vote; AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson and Bishop NOES: None ABSENT: None ABSTAIN: None I HEREBY CERTIFY that the foregoing resolution was duly and regularly passed and adopted by the County of Contra Costa Public Financing Authority at a regular meeting thereof held on the28thday of November , 1995 and that the foregoing is a full, true and correct copy of said'Resolution. Phil Batchelor, Secretary of the County of Contra Costa Public Financing Authority a By: All Deputy 3 95/599 RESOLUTION NO. 9 5/5 9 8 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA APPROVING THE ISSUANCE OF BONDS BY THE COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY,AND APPROVING THE BORROWING OF BOND PROCEEDS BY THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY WHEREAS, the County of Contra Costa (the "County") and the Contra Costa County Redevelopment Agency (the"Agency") have heretofore entered into a Joint Exercise of Powers Agreement establishing the County of Contra Costa Public Financing Authority (the "Authority");for the purpose, among others, of issuing its bonds to be used to provide financial assistance to'the Agency;and WHEREAS, the Agency has determined to assist the redevelopment of its Bay Point Redevelopment Project (the 'Redevelopment Project'), and has requested the Authority to assist the Agency in providing financing for the Redevelopment Project;and WHEREAS, for the purpose of raising funds necessary to provide such financial assistance to,the Agency, the Authority proposes to authorize the issuance of its revenue bonds (the'Bonds") under the provisions of Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, designated as the County of Contra Costa Public Financing Authority 1995 Tax Allocation Revenue Bonds,Series B Bay Point"Redevelopment Project Area);and WHEREAS, the proceeds of the Bonds will be applied to make a loan (the "Loan") to the Agencypursuant to a Loan Agreement, dated as of May 1, 1992, as amended by a First Supplement,thereto, dated as of December 1, 1995 (the"First Supplement'); and WHEREAS, the Board of Supervisors of the County approves of said transaction as being in the public interest of the County,the Agency and the Authority. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the Board of Supervisors of the County, as follows: (1) the issuance of the Bonds by the Authority, the entering into of the First Supplement by the Agency and the Loan made to the Agency pursuant thereto,be and are hereby approved, and (2) this Resolution shall take effect from and after the date of its passage and adoption. 1• I hereby certify that the foregoing Resolution was duly adopted by the Board of Supervisors of Contra Costa County,California, ata regularly scheduled meeting thereof,held on the 28thday of November-, 1995,by the following vote of the Board: AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson and Bishop NOES: None ABSENT: None ATTEST: Phil Batchelor, Clerk of the Board of Supervisors and County Administrator By:-(L,o v 13043-0 J I M Deputy :� 11/47/45 2 95/598 Ms. Rita J.Rowell Deputy Secretary of State State of California Personnel Department 1500 11th Street Sacramento, California 95814 Dear Ms. Rowell: In accordance with the Uniform Facsimile Signatures of Public Officials Act (Government Code §5500 et sea .) we hereby file with you the manual signatures of the Chair and Secretary,respectively, of the County of Contra Costa Public Financing Authority, certified by us under oath. Please acknowledge receipt of this filing on the enclosed copy and return it in the self- addressed envelope provided. MANUAL SIGNATURE A0t4-,-0 &44�0 NAME Gayle Bishop TITLE OF OFFICE Chair MANUAL SIGNATURE NAME Phil Batchelor TITLE OF OFFICE Secretary ADDRESS County of Contra Costa Public Financing Authority County Administration Building 651 Pine Street,4th Floor,North Wing Martinez,California 94553