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HomeMy WebLinkAboutStaff Report - Special Meeting - August 31, 2010!PI �7 id ill A DATE: August 31, 2010 TO: Mayor and City Council Chairman and Agency Board Members STAFF REPORT Arcadia Redevelopment Agency FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director By: Jerry Schwartz, Economic Development Manager MS SUBJECT: ARA RESOLUTION NO. 237 AMENDING ARA RESOLUTION NO. 235 PROVIDING FOR THE ISSUANCE OF THE 2010 SUBORDINATE TAX ALLOCATION BONDS AND CITY COUNCIL RESOLUTION NO 6741 AMENDING RESOLUTION NO. 6724 APPROVING THE ISSUANCE OF THE 2010 SUBORDINATE TAX ALLOCATION BOND ISSUANCE BY THE REDEVELOPMENT GENCY Recommendation: Approve Resolution No. 237 and Resolution 6724 DISCUSSION At the June 15 City Council meeting, the Council and Agency Board approved and authorized the 2010 Subordinate Tax Allocation Bond Issuance by the Arcadia Redevelopment Agency. Based on the anticipated bond sizing, the approval was for a bond issue, including both refunding and new proceeds, of up to $19 million. At that time, based on projected proceeds as a reflection of the bond market, the $19 million limit appeared to be sufficient. As you are aware, the Agency sold its bonds on Wednesday, August 25, 2010. By that time, the Agency had received its 2010 -2011 tax roll data from Los Angeles County, which reflected in increase in tax increment above earlier projections from the prior year. Additionally, the bond market, which had not been favorable only one month before, was very strongly in our favor. The primary impact was net new proceeds for the Agency of $9.662 million to use for projects. One result of the favorable situation however, was that the Agency exceeded the $19 million authorization from the Council. The Agency and Council resolutions would amend the approvals from June 15 to incorporate the larger total sales amount. The bonds are scheduled to close on September 8, which is when the Agency would receive its proceeds. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The issuance of the 2010 Agency bonds is not considered a project under CEQA Section 15378, and thus is not subject to CEQA pursuant to Section 15060 (c) (3). FISCAL IMPACT The Agency will receive $9.662 million in proceeds. It will use $4,045,715 to pay back the low /mod housing fund and the remainder to pursue priority redevelopment projects and activities. The payment of the housing obligation will clear the existing HCD audit finding. RECOMMENDATION Approve ARA Resolution No. 237 and City Council Resolution No. 6741 approving the 2010 Agency Subordinate Bond Issuance in excess of $19 million. Approved by: De-Q_ -Pc.,vrr Donald Penman, City Manager /Executive Director August 31, 2010 2010 ARA Subordinate Bond Issue Page 2 of 2 RESOLUTION NO. ARA 237 A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. ARA 235 OF THE AGENCY PROVIDING FOR THE ISSUANCE OF SUBORDINATE TAX ALLOCATION BONDS WHEREAS, the Agency has previously adopted its Resolution No. ARA 235 (the "Resolution") providing for the issuance of up to $19,000,000 aggregate principal amount of tax allocation bonds to be designated "Arcadia Redevelopment Agency, Central Redevelopment Project, Subordinate Tax Allocation Bonds, Series 2010 (Taxable)" (the "2010 Bonds ") on a basis subject to federal income taxation pursuant to the provisions of the Law (as defined in the Resolution) and Government Code Section 5903 for the purpose of providing additional funds to finance and refinance the Central Redevelopment Project; and WHEREAS, existing market conditions permit 2010 Bonds to be sold in an amount of up to $19,830,000; and WHEREAS, the Agency desires to amend the Resolution to authorize the issuance and sale of the 2010 Bonds in the aggregate principal amount of not to exceed $19,830,000 (the "Adjusted Principal Amount "). NOW, THEREFORE, BE IT RESOLVED, by the Agency acting by and through its Governing Board (the `Board ") as follows: SECTION 1. Issuance of 2010 Bonds in the Adjusted Principal Amount. The Resolution is hereby amended to provide that, pursuant to the Indenture (as defined in the Resolution), the 2010 Bonds in an aggregate principal amount of not to exceed $19,830,000 are authorized to be issued. All capitalized terms used in this amending resolution (and not otherwise defined) shall have the meaning ascribed thereto in the Resolution. 1 SECTION 2. Official Actions. Each of the Authorized Officers, the Secretary, the General Counsel 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, documents (including execution and delivery of such Purchase Agreement consistent herewith) necessary or appropriate to facilitate the issuance of the 2010 Bonds in an amount up to the Adjusted Principal Amount in accordance with the Resolution as amended by this amending resolution, and any actions previously taken by any of such officers are hereby ratified and confirmed, including any necessary or appropriate revisions to the documents approved in the Resolution. SECTION 3. Except as expressly amended hereby, the Resolution shall remain in full force and effect, and all findings and determinations therein shall apply with equal force to the Bonds in an amount up to the Adjusted Principal Amount and this amending resolution as if set forth in full herein. SECTION 4. Effective Date. This amending resolution shall take effect from and after the date of its passage and adoption. SECTION 5. The Agency Secretary shall certify to the adoption of this Resolution. [SIGNATURES ON NEXT PAGE] 2 ATTEST: Passed, approved and adopted this day of , 2010. Agency Secretary APPROVED AS TO FORM: tephen P. Deitsch General Counsel P i cLurid 3 Chairman of the Arcadia Redevelopment Agency RESOLUTION NO. 6741 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA AMENDING ITS RESOLUTION NO. 6724, APPROVING THE ISSUANCE BY THE ARCADIA REDEVELOPMENT AGENCY OF ITS CENTRAL REDEVELOPMENT PROJECT SUBORDINATE TAX ALLOCATION BONDS, SERIES 2010 (TAXABLE) WHEREAS, the Arcadia Redevelopment Agency (the "Agency ") is a redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California) and the powers of the Agency include the power to issue bonds for any of its corporate purposes; and WHEREAS, the Agency has adopted its Resolution No. ARA 235 entitled: A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $19,000,000 PRINCIPAL AMOUNT SUBORDINATE TAX ALLOCATION BONDS ON CERTAIN TERMS AND CONDITIONS, APPROVING A CONTINUING DISCLOSURE CERTIFICATE, APPROVING THE FORM AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND FINANCING DOCUMENTS, AUTHORIZING CERTAIN OTHER OFFICIAL ACTIONS AND PROVIDING FOR OTHER MATTERS RELATING THERETO WHEREAS, under and pursuant to Agency Resolution No. ARA 235, the Agency has authorized the issuance of the Arcadia Redevelopment Agency, Central Redevelopment Project, Subordinate Tax Allocation Bonds, Series 2010 (Taxable) (the "Bonds ") to provide additional moneys to finance and refinance the Agency's undertakings under the Central Redevelopment Project pursuant to the Redevelopment Plan therefore in an amount up to $19,000,000, as further described in Agency Resolution No. ARA 235; and 1 WHEREAS, existing market conditions allow Bonds to be sold in a principal amount of up to $19,830,000 (the "Adjusted Principal Amount') and the Agency has by resolution authorized such issuance; and WHEREAS, the City Council has previously adopted its Resolution No. 6724 approving the issuance of the Bonds and deems it appropriate at this time to amend Resolution No. 6724 in order to authorize the issuance of the Bonds in an amount up to the Adjusted Principal Amount. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arcadia, as follows: SECTION 1. The City Council hereby amends Resolution No. 6724 to approve the issuance of the Bonds in an amount up to the Adjusted Principal Amount as if such amount were expressly provided therein. SECTION 2. All actions heretofore taken by the officers and agents of the City with respect to the issuance of the Bonds in the Adjusted Principal Amount are hereby approved, confirmed and ratified. The Mayor, the City Manager, the Finance Director, the City Clerk, the City Attorney and any and all other officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions which they, or any of them, may deem necessary or advisable in order to consummate the purchase of the Bonds by Stone & Youngberg LLC (the "Underwriter ") pursuant to a bond purchase contract between the Agency and the Underwriter. SECTION 3. Except as expressly amended hereby, Resolution No. 6724 shall remain in full force and effect, and all findings and determinations therein are hereby affirmed as applicable to any Bonds issued in accordance with this Resolution. 2 SECTION 4. This Resolution shall take effect from and after the date of its passage and adoption. SECTION 5. The City Clerk shall certify to the adoption of this Resolution. ATTEST: City Clerk APPROVED AS TO FORM: Passed, approved and adopted this Stephen P. Deitsch City Attorney P l otarki 3 day of ,2010. Mayor of the City of Arcadia