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Home My WebLink AboutMINUTES - 12192000 - C103 TO: Board of Supervisors Contra FROM: Phil Batchelor, County Administrator Costa TE: December 19, 2000 �� Uounty SUBJECT: Subordination of revenues for City of San Pablo RECOMMENDATIONS: APPROVE agreement subordinating revenues due to the County, Library and Flood Control District for tax allocation bonds, pursuant to the 1987 agreement with the San Pablo Redevelopment Agency. AUTHORIZE execution of Agreement by Board Chair, BACKGROILND., On September 8, 1087, the County approved a redevelopment pass through agreement with the San Pablo 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 band adequate funds to pay back bond holders, thereby minimizing the real risk that subordination would be necessary. The County approved a prior subordination agreement with the agency in 1990 and in 1999� The agency has provided documents to staff which demonstrate that adequate revenue e commitment has been met. Therefore, it is appropriate to agree to the subordination as called for in the 987 agreement. 66NVtkb—:Q-W.4 AT f ACV...EN : P YES SIGNATURE: a� RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD 1(',O ?v1ITTE APPROVE OTHER N f sus c ACTION OF SOAR.IIbl December 13. 2000 APPROVED AS RECOMMENDED X OT:IER 'OTE OF SUPERVISORS I HERESY CERTIFY THAT r 8 "S A TRUEAND CORRECT COP`;'OF AN A'CTI*N TAKE ANT;ENTERED ON MINUTES O;� X UNIANIMOUS(ASSENT -N-one THE BOARD OF SUPERVISORS N THE DkrE SHOWN. kYES: 'NOES: ASSENT: Contact Tany Ensa(5-1094) *(Distri t Y seat is vacant) / Cv: Cwmty 4ta�E{sl6t o' ATTESTED °!m "i a y,Redavelcpmsit PHIL SAT HELD ,CERk bF -§E OARDFSU?5tkv So- S pity�Sats Pablo s7 DEPUTY �F' FIRST AMENDED SUBORDINATION AGREEMENT This First Amended Subordination Agreement, dated as of December 1, 2000 (this "Subordination Agreement"), is entered into by and among the Redevelopment Agency of the City of San Pablo (the "Agency„) and the County of Contra Costa(including the Library), the Contra Costa County Flood Control and Water Conservation.District and. the Contra Costa County Fire Protection .District (collectively referred to herein as the "Taxing Agencies"). RECITALS The.Agency and the Taxing Agencies previously entered into a subordination agreement, dated Jure 1, 1999 (the "Subordination.Agreement"), regarding the subordination of the Taxing Agencies rights to tax increment revenue in order for the Agency to pledge such tax increment revenue in one or more series frown time to time, in an aggregate principal amount not to exceed $21,000,000. In furtherance of the Redevelopment Plans, as :modified by the Merger Plan Amendments (as respectively defined in the Agreement), the Agency has previously caused to be issued its Tenth Township, Redevelopment Project Subordinate Tax Allocation fonds, Series 1999A (the"Series 1999 Bonds') in the amount of$9,850,000. The Agency now intends to issue its Tenth Township Redevelopment Project Tax Allocation fonds, Series 2000(the"Series 2000 Tenth Township fords") for the purpose of refunding all of the outstanding Merger Area Redevelopment Project Tax Allocation Refunding Bonds, Series 1990 and to finance the Tenth Township Redevelopment Project and secure municipal bond insurance for the Series 2000 Tenth Township Fonds for a total aggregate principal amount not to exceed $13;000,000. The Agency has formed. its Legacy Redevelopment Project pursuant to a redevelopment plan duly adopted by the Agency on March 3, 1997 (the "Legacy Project"). The Agency does not have any existing bonded indebtedness for the Legacy.Project, but intends to incur an initial series of bonds to be known as the Redevelopment Agency of the City of San Pablo Legacy Redevelopment Project Tax Allocation Bonds, Series 2000 in the aggregate principal amount of not to exceed$2,000,000(the"Series 2000 Legacy fonds"). Pursuant to Health and Safety Code Section 33607.5, the Agency is required to pay certain amounts to the Taxing Agencies from: tax increment revenues received from the Legacy Project (the"Statutory Pass-Th:oughs"). Pursuant to Health and Safety Code Section 33607.5(e), the Agency has requested the Taxing.Agencies to allow the Agency to subordinate the Statutory Pass-Throughs to the payment of debt service or. the Series 2000 Legacy Bonds and the Taxing Agencies have agreed to this subordination based on the report discussed below. The.Agency has requested that the Taxing Agencies agree to amend the Subordination Agreement to provide for the subordination of additional tax increment revenue payments under the Agreement and the Statutory Pass-Throughs in order for the Agency to DOCSLA1-364885.5 40138-15 CRP pledge such tax increment revenue to the Series 2000 Tenth Township Bonds and the Series 2000 Legacy Bonds. The Agency has provided the Taxing Agencies with a report, which includes revenue forecasts and a debt service schedule relating to all of the Agency's currently outstanding bonds with respect to the,Tenth Township Redevelopment Pro]ect, the Series 2000 Tenth Township Bonds and the Series 2000 Legacy Bonds (the "Report"), showing that the Agency's anticipated ability to repay such bonds can be made without demand being made on the aforementioned payments due to the Taxing Agencies under the Agreement and without impairing the Agency's ability to pay the Statutory Pass-Throughs. The Deport shows that the aggregate ofthe tax increment revenue payments to be subordinated are contemplated to be used In the cash-flaw relating to such bonds only for additional security(debt service coverage) and that the Agency's tax incremental revenues will be adequate, over the term of such bonds, to pay one hundred percent(100%) of the actual debt service thereon and to pay the Agency's obligations under the Agreement and.the Statutory Pass-Througs, and any other obligations of the Agency, whether statutory or contractual, which are or would be superior to the Agency's obligations under the Agreement or the Statutory Pass-Throughs. AGREEMENT The parties hereto agree to amend the Subordination Agreement as follows: _. The term "Bond"under the Subordination Agreement is hereby redefined to mean. Series 1999A Bonds in the aggregate principal amount of$9,850,000 and the Series 2000 Tenth Township Bondi in the aggregate principal amount not to exceed 13,000,000, 2. Additionally, the Taxing Agencies approve the subordination of the Statutory Pass-Throughs to the payment of debt service on the Series 2040 Legacy Bonds in the aggregate principal amount not to exceed $2,000,400,pursuant to Section 33607.5(e)(3)of the Health & Safety Code. 3. All other terms and conditions of the Subordination Agreement, not inconsistent with.Paragraphs ' and 2 above,remain unchanged and in full force and effect. [Remainder of page intentionally left blank.] DOCSLA#:36 3885.5 40138-15 ERP 2 COUNTY: AGENCY: COUNTY OF CONTRA COSTA REDEVELOPMENT AGENCY OF THE CITY OF SAN PABLO Contra Costa County (including the Library) Contra Costa County Flood Control and Nater Conservation By: District Executive Director Contra Costa County Fire Protection District By: Chairperson Board of Sunervisors Attest: PHIL BATCHELOR CLERK OF THE BOARD OF SUPERVISORS AND COUNT T'I"ADMINISTRATOR B Deputy Clerk t Approved as to form: VIC'T'OR J. WESTMAN COUNTY COI.,N SEI., Deputy DOCSLA::36-4895.5 40138-15 FIRP 3