HomeMy WebLinkAboutMINUTES - 12021997 - C133 C. �33
TO: BOARD OF SUPERVISORS sE
.. Contra
FROM: G ;.
Phil Batchelor, County Administrator ' Costa
9, County
DATE:
December 2, 1997
SUBJECT:
SUBORDINATION OF REVENUES FOR CITY OF EL CERRITO
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
1. APPROVE agreement subordinating revenues due to the County, Library, and
Flood Control District for tax allocation bonds, pursuant to a 1993 agreement with
the EI Cerrito Redevelopment Agency. AUTHORIZE execution of Agreement by
Board Chair.
BACKGROUND/REASONS(S) FOR RECOMMENDATION:
On December 14, 1993, the County approved a redevelopment pass through agreement
with the EI Cerrito 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.
This request would assist the Agency to refinance $9.3 million in existing bonds at a lower
cost. 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 1993 agreement.
In recent years, the County has approved similar agreements with Redevelopment
Agencies in Pittsburg, San Ramon, San Pablo and Clayton.
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
r
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_ 9 ._1917!
Jim Kennedy, Redevelopment PHIL BATCHELOR,CLERK OF THE' OARDOF
City of El Cerrito SUPERVISORS AND COUNTY ADMINISTRATOR
County Counsel
BY JYA I APO Ij 0 0 LL DEPUTY