HomeMy WebLinkAboutMINUTES - 04261994 - 1.184 r �. Ig2_I
+ TO: BOARD OF SUPERVISORS Contra
CostaFROM: _
Phil Batchelor, County Administrator r' s
a'.,.
County
DATE: April 26, 1994 osrq�oiN �_
SUBJECT: SUBORDINATION OF REVENUES FOR CITY OF SAN RAMON
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Approve agreement subordinating revenues due to the County, Library, and Flood
Control District for tax allocation bonds, pursuant to December 16, 1986 agreement with
the San Ramon Redevelopment Agency. Authorize execution of Agreement by Board
Chair.
FINANCIAL IMPLICATIONS:
It is expected that pass through of revenues will continue as originally agreed. The
subordination agreement merely provides the Redevelopment Agency with added
assurances for bond holders that agency debt will be replaced.
BACKGROUND/REASON(S) FOR RECOMMENDATION(S):
On December 16, 1986, the County approved a redevelopment pass through agreement
with the San Ramon 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.
CONTINUED ON ATTACHMENT: -YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON April 26 , 1994 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X 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.
ATTESTED April 26 , 1994
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
Cc: County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
Jim Kennedy, -Redevelopment
City of Sant-RamQj.
County Counsel
BY ,DEPUTY
1
Page 2
The County approved a prior subordination agreement with the agency in May, 1990.
This request would assist the Agency to refinance $8.5 million in existing bonds at a
lower cost and increase the borrowing to a maximum of $17 million. 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
1986 agreement.
AGREEMENT AUTHORIZING THE
SUBORDINATION OF REVENUES
RELATED TO TAX ALLOCATION BONDS
Effective April 26, 1994
NOW, THEREFORE, the parties agree as follows:
1. Contra Costa County (which includes the Library District) and Contra Costa
County Flood Control and Water Conservation District, pursuant to Section 2 of the fiscal
agreement, hereby subordinate their rights to receive tax increment revenue payments
in order to allow the Agency to pledge such tax increment revenue to the proposed long
term indebtedness to be incurred by the Agency.
This agreement to subordinate relates to the following proposed indebtedness of
the Agency, as more particularly set forth in the report submitted to the County:
(a) The principal amount of the bonds to be sold shall not exceed
$17,000,000.
(b) The Agency shall issue the bonds by not later than December 31,
1994.
2. In accordance with Section 2 of the Agreement, in the event that payments
to the County, Library and Flood control Districts are reduced below the amount otherwise
payable to them pursuant to the Agreement as a result of such subordination, then such
reduction shall be treated as an advance by the County, Library and Flood Control
Districts and repaid by the Agency in accordance with the Agreement.
3. The Agency agrees to expend the proceeds of the bonded indebtedness in
furtherance of its redevelopment plan for the Project Area.
COUNTY: AGENCY:
COUNTY OF CONTRA COSTA REDEVELOPMENT AGENCY OF
CONTRA COSTA COUNTY THE CITY OF SAN RAMON
LIBRARY-DISTRICT
FLOOD CONTROL DISTRICT
By 1- I a
rVL-�j7 0,,,,1,�' Executive Dire r
By
Chair, Board of Supervisors
ATTEST:
PHIL BATCHELOR
CLERK OF THE BOARD OF SUPERVISORS
ND UNTY DMINISTRATOR
By �
eputy Clerk
Approved as to Form:
Victor J. Westman
aunt Couns
By-
epU hUlesubordlrm
) : IN
zIMMERMAN LAW CUFFIr_.ES 5106340781 P. 02
Law Offices of
i.il
SCOTT ESI1MERRMA .
Attorneys at Law
Post Office Box 1120 '.
" II 612 Fir6t Street - Suite 'OA
Brentwood, California'
94513-,1120
§cott K. Zimmerman
Barbara E. Scremstad Telephone: (510) 634-3571
Maureen M. Bryan, Paralegal Facsimile: (510) 634-0781
i
ry FACSIMILE AND V.S. MAIL
(510) 646-1059 �(
Monday, April 18, 1994 t �,
Administrative Offices of the a i
Contra Costa County Board of Supervisors
County of Contra Costa
651 Pine Street, Room 106
Martinez, CA 94553
Attn. Anne
:{ RE.- CASA DEL RIO, ANTIOCH - FAILURE OF TH3 CONTRA COUNTY HOUSING
AUTHORITY TO PAY THE DEVELOPER'S FEE ?'OR THE PROJECT.
I
hear 'A.nne:
At the direction of my client, Mr. Nino Frulmenti, I hereby request
that the above matter be continued on th". Board of Supervisors
calendar from tomorrow, April 19, 1994 to SuesdaY. April 26 1994 .
Should there be any problem with this cont':,nuance, please contact
me at the above numbers immediately.
I thank ycu for your continued courtesy and cooperation in this
; I matter; should you have any questions, ple.'1se call.
l ours,
ff es`Of 'cott K. Zimmerman
)rj ""M
mn
Enclosures
cq: Client w\ nctosHousing AuthRichard Martinez
Honorab -ism Powers
FP1
County Counsel
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