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HomeMy WebLinkAboutRESOLUTIONS - 01012003 - 2003-411 RESOLUTION No.IM1 I'411 , A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA MAKING FINDINGS WITH RESPECT TO AND APPROVING THE ISSUANCE OF BONDS BY THE COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY,AND APPROVING THE BORROWING OF BOND PROCEEDS BY THS 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 is undertaking to assist the redevelopment of its Pleasant Hill, North Richmond, Bay Point and Rodeo Redevelopment Projects (collectively, the "Redevelopment Projects"),and the Agency has previously entered into a loan agreement with respect to its Pleasant Hill Redevelopment Project (the "Prior Pleasant Hill Loan A with the Authority pursuant to which the Authority has made a loan to the Agency Tthe "Prior Pleasant Hill Loan") from the proceeds of revenue bonds issued by the Authority for such purpose(the "Prior Bonds");and WHEREAS, the Agency has determined that due to prevailing financial market conditions it is in the best interests of the Agency to realize interest rate savings by refunding the portion of the Prior Pleasant Hill Loan that is outstanding at this time, and the Agency has requested the Authority to lend it funds in an amount sufficient for such purpose and also to provide additional financing for improvements (the "Improvements") to be located in the County and within or of benefit to the Redevelopment Projects, including certain low and moderate income housing programs of the Agency, and other redevelopment activities of the Agency;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 three series of its revenue bonds (collectively, the "Bonds") under the provisions of Article 4 (commenting with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Code"), designated as the "Series A Bonds," the "Series A-T Bonds" and the "Series B Bonds"in the Indenture identified below;and WHEREAS, the proceeds of the Bonds will be applied to make loans (collectively, the "Loans") to the Agency pursuant to supplements to the Prior Pleasant Hill Loan Agreement and other existing loan agreements with respect to the North Richmond, Rodeo and Bay Point Project Areas (collectively, the "Loan Agreements" and the "Supplements," respectively), as applicable,each between the Agency and the Authority;and WHEREAS, the County has on this date held a duly noticed public hearing on the financing of the Improvements with the proceeds of the Bonds,as required by Section 6586.5(a) of the Code; and WHEREAS, the Board of Supervisors of the County now desires to make a finding of significant public benefit, pursuant to Section 6586.5(a)(2) of the Code, and to approve of the financing of he Improvements and the transactions contemplated by the Bonds and the Loans. 2003/411 NOW, THEREFORE,BE IT RESOLVED, DETERMINED AND ORDERED b the Board of Supervisors of the County, as follows: (1) the County hereby' finds that siwcant public benefits will arise from the financing of the Improvements with the proceeds of the Bonds and the Loans, in accordance with Section 6586 of the Code, in that the financing will result in demonstrable savings in effective interest rates,bond preparation, bond underwriting and bond issuance,(2)the County hereby approves the financing of the Improvements with the proceeds of the Bonds and the Loans;(3) the issuance of the Bonds by the Authority, the erste ' gg into of the Supplements by the Agency and the Loans made to the Agency pursuant to the Loan Agreements as amended by the Supplements, and the application of a portion of the proceeds of such Loans to repay the Prior Pleasant Hill Loan, to refund the Prior Bonds and to fund redevelopment activities of the Agency(as well as to repay a prior loan by the Authority to the Agency related to the Agency's Bay Point Redevelopment Project and related bonds, if determined cost effective by the County's Deputy Director-Redevelopment, be and are hereby approved; and (4) this Resolution shall take effect from and after the date of its passage and adoption. I hereby certify that the foregoing Resolution was duly adopted by the Board of Supervisors of Contra Costa County, California, at a regularly scheduled meeting thereof, held on the 24'day of June,2003,by the following vote of the Board: AYES: Supervisors Gioia, Uilkema, Glover and DeSaulnier NOES: None ABSENT: None District III Seat is Vacant ATTEST: June 24, 2003 Clerk of the Board of Supervisors and County Administrator By: Deputy 03012,02:J6786 6/16/03 2 TO: REDEVELOPMENT AGENCYIBOARD OF SUPERVISORS FROM: John Sweeten, Executive Director Dennis M. Barry, AICP, Director of Community Development DATE: June 24, 2003 SUBJECT: Redevelopment Agency Tax Allocation Bonds SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATICN15 1) As the Board of Supervisors, HOLD Public Hearing as rewired by Section 6586.5(x)(2)of the California Government Code with respect to the public benefit of financing improvements using proposed revenue bond proceeds; 2) As the Board of Supervisors,ADOPT a resolution making findings of public benefit with respect to,and approving the Issuance of bonds by the Contra Costa County Public Financing Authority, and approving the borrowing of bond proceeds by the Contra Costa County Redevelopment Agency; 3) As the Governing Board of the Contra Costa Public Financing Authority, ADOPT a resolution authorizing the issuance of revenue bonds to make loans to the Contra Costa County Redevelopment Agency for Pleasant Hili BART, North Richmond, Bay Point and Rodeo Redevelopment Project Area's: and 4) As the Governing Board of the Contra Costa Redevelopment Agency, ADOPT a resolution authorizing the borrowing of funds from the Contra Costa County Public Financing Authority related to the Pleasant Hill BART, North Richmond, Bay Point and Rodeo Redevelopment Projects and approving actions related thereto. FISCAL IMPACT None. All bonds are secured by a pledge by Redevelopment Agency Tax Increments. BACKGR UN I,Rg6SONS FOR RECOMMENDATIONS CONTINUED ON ATTACHMENT: X YES SIGNATURE: �® RECOMMENDATION OF EXECUTIVE DIRECTORCOMMS ATION OF A NCY COMMITTEE APPROVE OTHER SIGNATURE(S): 7 ACTION OF AGENCY/ON .0 24, 2o3 APPROVED AS RECOMMENDED x OTHER SUPERVISORS VOTE OF COMMISSION ERSISUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT } TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTA11147 MINUTES OF THE BOARD OF District III Seat Vacant SUPERVISORS/AGENCY ON THE Contact: Jim Kennedy DATE SHOWN. 5-1255 orig: Redevelopment Agency cc: County Administrator ATTESTED J'= 24, Zoos County Counsel Community Development JOHN SWEETEN, CLERK OF via: Redevelopment THE BOARD OF SUPERVISORS/ Quint & Thimmig AGENCY SECRETARY Goldfarb & Lipman Jones Hall BY � -- , DEPUTY Stone & Youngberg Ws\Personal\BoardOrders\BOARD.RDA.6.03:rda.tax.alloeation BACKQROUND/REASONS FOR RECOMMENDATIONS 1, OV�VIEW In 1992, 1995, and 1999 the Contra Costa County Public Financing Authority issued revenue bonds to make loans to the Redevelopment Agency, the repayment of which was secured by a pledge of Redevelopment Agency Tax Increment revenues. The proceeds of these bonds were loaned to the Redevelopment Agency to undertake Its redevelopment activities. The purpose of the Public Financing Authority,which is a joint powers authority between the County of Contra Costa and the Redevelopment Agency, is to allow for the issuance of bonds secured by multiple sources of revenue. This pooling of project area resources permits the Redevelopment Agency to realize efficiencies in the issuance process. All bonds are secured solely by a pledge of Redevelopment Agency Tax Increments. To date,bonded Indebtedness has been incurred for the Pleasant Hili BART Station Project Area,the North Richmond Project Area,the Bay Point Project Area,and the Rodeo Project Area. Bonded indebtedness also exists for the Oakley Project Area,which has since been transferred to the City.. The proposed and recommended financing will refinance existing Bonds and generate additional bond proceeds for each of the aforementioned project areas, except Oakley. This financing has been recommended by all existing Redevelopment Project Area committees or MAC's. Based on current estimates of Tax Increments, current tax-exempt bond rates,and current assumptions regarding project needs,the amount of the financing would be approximately $52million as shown in the table below: EstIme1q of Contran Public Finan-cing AuthortI v nBgnds Amount of Refunding Bonds New Bond Proceeds Total Prosect Area ($000,000) ($000,000) ($000,000) Pleasant Hili BART 7.7 37.1* 44.8 North Richmond - 3.9 3.9 Bay Point 2.9 4.7 7.6 Rodeo - 4.3 4.3 (Subject to Change) * Includes approximately $22 million in escrowed proceeds, which will be released upon Plan Amendment Increasing caps on total tax increment,and bonded indebtedness--estimate December, 2003. The resolutions of the County Board of Supervisors, the Governing Board of the Redevelopment Agency, and the Governing Board of the Contra Costa County Public Financing Authority link together. The resolution of the Public Financing Authority authorizes the issuance of the bonds and the making of loans to the Contra Costa County Redevelopment Agency, and the resolution of the Redevelopment Agency authorizes the borrowing of funds from the Public Financing Authority. The expected issuance of these bonds, Is to occur In late early April, dependent on market conditions. 2. PROPOSED IMPR VEMENTS The following is a listing of various improvements that are being considered for financing with a portion of the proceeds of the above-mentioned bonds. The improvements are not listed in any particular order of priority. No decisions have been made as to the specific improvements to be funded with bond proceeds, which improvements actually will be constructed, or the expected construction schedule. These funds will be explicitly programmed during the Agency's budgeting process. W»\Personal\BoardOrders\BOARD.RDA.6.03.rda.tax.allocation Pleasant,Hill BARI Candidate Pr to ects Capital Pr l ects 1. BART Replacement Parking Garage 2. Project infrastructure-Streets, Utilities, Drainage 3. Placemaking improvements-Parks, Plazas, Public Art, etc. 4. Public f=acilities-Civic Use, Business Conference Center, etc. Housing Protects 1. Residential New Construction Assistance North Richmond Candidate Protects Capital Protects 1. Employment Area Infrastructure (roads, drainage, utilities) 2. Pedestrian Overcrossing 3. Small Business Incubator Establishment 4. Gertrude Avenue Extension 5. Giant Highway Extension Housing Protects 1. Land Assemblage 2. Housing Rehabilitation Bay Paint Candidate Protects Capital Prolects 1. BART Area Public Improvements 2. Willow Pass Road Improvements 3. N. Broadway Area Infrastructure 4. Marina/Waterfront Infrastructure 5. Light Industrial Area Infrastructure 5. Area Drainage Housing Protects 1. Bay View Housing 2. BART Area Land Assemblage 3. Housing Rehabilitation Rodeo Candidate Protects Capital Protects 1. Waterfront Land Acquisition or Infrastructure 2. Water/Sewer Upgrades 3. Pacific Avenue Bridge 4. Parker Avenue Improvements Housing Protects 1. Live/Work Housing Development 2. Housing Rehabilitation 3. STATE BUQOgT Sizing of the proposed bond issuance could be affected by the outcome of the current discussions of the State Legislature regarding the State's Budget. The sizing assumes that the Agency will incur an additional one-year(FY 03/04)of revenue diversion to the Education Revenue Augmentation Fund(ERAF)at an amount equal to FY 02/03. The mechanism for providing worst-case coverage would be funding Agency administration from alternative funds borrowed from County non-general fund sources. w:\Personal\Boardorders\BOARD.RDA.6.03.rda.tax.allocation