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Home My WebLink AboutMINUTES - 06061995 - 1.92 Contra Costa TO: REDEVELOPMENT AGENCY Co ' t FROM: Phil Batchelor aCounty Executive Director ' CO"� DATE: June 6, 1995 SUBJECT: Sale of Bonds - Contra Costa County Redevelopment Project Areas. (North Richmond & 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 two loans to the Contra Costa County Redevelopment Agency (North Richmond and Bay Point Project Areas) , 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 North Richmond and Bay Point Project Areas; and 3 . As the Board of Supervisors, adopt a resolution approving 1) the issuance of bonds for the North Richmond and Bay Point Project Areas by the Contra Costa County Public Financing Authority; and 2) the borrowing of bond proceeds for the North Richmond and Bay Point Project Areas by the Contra Costa County Redevelopment Agency. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMEN T ON OF AGENCY COMMIE APPROVE OTHER SIGNATURE(S).: ACTION OF AGENCY ON June 6 , 1995 APPROVED AS RECOMMENDED x OTHER As -in recommendation 2 , IT IS BY THE AGENCY ORDERED that Resolution RA 95-5 is ADOPTED. 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. Source: Jim Kennedy - 646-4076 cc: Community Development Redevelopment Agency ATTESTED June 6 , 1995 CAO PHIL BATCHELOR, County Counsel AG CY SE RETARY Auditor-Controller Via Redevelopment BY , DEPUTY Jones Hall Hill & White Stone & Youngberg JK3/jb/NRBPbnd.bos FISCAL IMPACT The bonds to be issued will be secured by a pledge of redevelopment tax increments from the North Richmond and Bay Point Redevelopment Project Areas. No General Funds are pledged to secure bonds. Sufficient annual tax increment to cover administrative costs of the Agency has been reserved, or provided for from other sources. The bonds will be sold as part of an Association of Bay Area Government's (ABAG) Finance Authority pooled financing. Combining the two Contra Costa County redevelopment project areas with five other redevelopment areas elsewhere in California via the ABAG program into one issuance of bonds through the ABAG Finance Authority will result in a more efficient financing. BACKGROUND/REASONS FOR RECOMMENDATIONS A. Prior Actions On April 7, 1992 the Board of Supervisors and the Redevelopment Agency approved the formation. of the County of Contra Costa Public Financing Authority for the purpose of issuing bonds for four of the Redevelopment Agency's project areas - Pleasant Hill BART, North Richmond, West Pittsburg and Oakley. B. Sources and Uses of Funds Based on available and expected tax increment, the Authority would expect to issue approximately $4 . 0 million in bonds. The total amount of funds available for program purposes would be over $3 . 6 million as follows: Project Area Program Proceeds North Richmond $1, 100, 000 Bay Point $2 , 500, 000 The primary anticipated uses of bond proceeds are for infra- structure improvements in the Project Areas, including circulation, drainage and utility projects. North Richmond Brookside Drive $ 300, 000 Pittsburg Avenue 690, 000 Total $ 990, 000 Bay Point North Broadway* $2, 500, 000 Revitalization Program Total $2,500, 000 *Could include road, drainage, utility and related infrastructure improvements in the North Broadway area of Bay Point. Y RESOLUTION NO. RA 95-5 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 NORTH RICHMOND AND BAY POINT REDEVELOPMENT PROJECTS,AUTHORIZING AND DIRECTING EXECUTION OF RELATED FIRST SUPPLEMENTS TO LOAN AGREEMENTS,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 is undertaking to assist the redevelopment of its North Richmond and Bay Point Redevelopment Projects (collectively, the "Redevelopment Projects"), and has requested the Authority to lend it funds to provide financing for the Redevelopment Projects; 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 A(North Richmond and Bay Point Redevelopment Project Areas);and WHEREAS, the proceeds of the Bonds will be applied to make two loans (collectively the "Loans") to the Agency pursuant to two separate Loan Agreements, each dated as of May 1, 1992, each as supplemented by a first supplement thereto (collectively, the "Loan Agreements");and WHEREAS, the Association of Bay Area Governments ("ABAG") proposed to purchase the Bonds and has presented to the Agency a form of Purchase Agreement for the Bonds,to be entered into among the Authority,the Agency and the ABAG (the"Purchase Agreement");and --. -.---------------WHEREAS, the Agency has duly considered such transactions and wishes at this time ------- 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. 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 Agreements, each as supplemented by the respective first supplement thereto (collectively, the"First Supplements"); provided that the aggregate principal amount of the Loans does not exceed $5,000,000. The Agency hereby approves the First Supplements in the form of the First Supplements on file with the Secretary,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 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 final form of each of the First Supplements for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the First Supplements. Section 3. Sale of Bonds. The Agency hereby approves the sale of the Bonds by the Authority by negotiation with ABAG,pursuant to the Purchase Agreement in substantially the form on file with the Secretary,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. The Designated Officers,each acting alone,are hereby authorized and directed to execute the final form of the Purchase Agreement for and in the name and on behalf of the Agency upon the submission of an offer by ABAG 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 seven percent(7%)per annum. Section 4. 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, escrow agreements 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, the making of the Loans and the redemption of the Notes as described herein. -2- Resolution No.RA- 9 5-5 Section S. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED on June 6 ,_ 1995 by the following vote: Resolution No. RA- 9 5-5 AYES: Commissioners Rogers , Smith, DeSaulnier, Torlakson and Bi-ffmp NOES: None ABSENT: None ABSTAIN: None ATTEST: Phil Batchelor,Agency Secretary By: JAIJ 00' Deputy 13093-02:JI780 05/23/95 -3- Resolution No.RA-9 5-5