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HomeMy WebLinkAboutMINUTES - 11281995 - C82 Contra Costa TO: REDEVELOPMENT AGENCY Chu / FROM: Phil Batchelor ' ` ul`& J Executive Director DATE: November 28, 1995 SUBJECT: Sale of Bonds - Redevelopment Project Area (Bay Point) SPECIFIC REQUEST(S) 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 Agency. CONTINUED ON ATTACHMENT: XX YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR MMEND ION OF ENCY COMMITTEE APPROVE OTHER 7 SIGNATURE(S): ACTION OF AGENCY ON November 28 , 1995 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS 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 REDEVELOPMENT AGENCY ON THE DATE SHOWN. Contact: Jim Kennedy 646-4076 ATTESTED November 28 , 1995 cc: Community Development PHIL BATCHELOR Redevelopment Agency AGENCY SECRETARY County Administrator County Counsel Auditor-Controller BY , DEPUTY via Redevelopment Jones Hall Hill & White Stone & Youngberg JK:Ih sra2ftpbond.bos 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. r t RESOLUTION NO. RA 9 5-7 A RESOLUTION OF THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY AUTHORIZING THE BORROWING OF FUNDS FROM THE COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY RELATING TO THE AGENCY'S BAY POINT REDEVELOPMENT PROJECT,AUTHORIZING AND DIRECTING EXECUTION OF A RELATED FIRST SUPPLEMENT TO LOAN AGREEMENT,APPROVING SALE OF BONDS BY THE AUTHORITY 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") 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"), 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 Agency pursuant to a Loan Agreement, dated as of May 1, 1992,as supplemented by a first supplement thereto (the"Loan Agreement");and WHEREAS,Stone&Youngberg (the"Underwriter")proposes to purchase the Bonds and has presented to the Agency 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 Agency with a proposed form of official statement (the "Official Statement") describing the Bonds, to be used in connection with the marketing of the Bonds by the Underwriter;and WHEREAS, the Agency has duly considered such transactions and wishes at this time v to approve said transactions in the public interests of the Agency. NOW, THEREFORE, BE IT RESOLVED, by the Contra Costa County Redevelopment Agency as follows: Section 1. Findings and Determinations. Pursuant to the Act,the Agency 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 the members of the Authority within the contemplation of Section 6586 of the Act. .Y Section 2. Approval of Loans from Authority;First Supplements. The Agency hereby authorizes and approves the borrowing by the Agency from the Authority of the proceeds of the Bonds pursuant to and in accordance with the provisions of the Loan Agreement, as supplemented by the first supplement thereto (the "First Supplement"); provided that the ` aggregate principal amount of the Loan does not exceed $4,000,000. The Agency hereby approves the First Supplement in the form on file with the Secretary. The Chair, Executive Director, Assistant Executive Director, Deputy Executive Director and Deputy Director - Redevelopment (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 Agency to, the First Supplement in such form together with such additions thereto and changes therein as the Deputy Director - Redevelopment Agency shall deem necessary, desirable or appropriate, the execution of which by the Agency shall be conclusive evidence of the approval of any such additions and changes. The Agency hereby authorizes the delivery and performance of the First Supplement. Section 3. Sale of Bonds. The Agency hereby approves the sale of the Bonds by the Authority by negotiation 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 directed to execute the Purchase Agreement in such form, together with such additions thereto and changes therein as the Deputy Director - Redevelopment Agency shall deem necessary, desirable or appropriate (the execution of which by the Agency shall be conclusive evidence of the approval of such additions and changes), upon the submission of an offer by the Underwriter to purchase the Bonds, which offer is acceptable to the Deputy Director - Redevelopment and 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 4. Official Statement. The Agency 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, the preliminary form of the Official Statement describing the Bonds. Distribution of such preliminary Official Statement 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 Director - Redevelopment shall deem necessary, desirable or appropriate, and the execution of the final Official Statement by the Agency shall be conclusive evidence of the approval of any such additions and changes. The Agency 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 Agency by a Designated Officer. Section S. Official Actions. The Chair, the Executive Director, the Assistant Executive Director, the Deputy Executive Director, the Deputy Director - Redevelopment, the Secretary and any and all other officers of the Agency are hereby authorized and directed,for and in the name and on behalf of the Agency, 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,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 making of the Loan as described herein. 2 Resolution No.RA-9 5—7 Section 6. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED onNc)vPmhPr 28 , 1995 by the following vote: Resolution No. RA-_25_-7 AYES: Supervisors Rogers , Smith, DeSaulnier, Torlakson and Bishop NOES: None ABSENT: None ABSTAIN: None ATTEST: Phil Batchelor,Agency Secretary C�A iAJ By: Deputy 13093-03:J1990 11/07/95 3 Resolution No.RA- 9 5-7