HomeMy WebLinkAbout1974-0924 rda_CCv0001.pdf MINUTES of an adjourned regular meeting of the Redevel-
opment Agency of the City of Redlands held in the
Council Chambers, Safety Hall, 212 Brookside
Avenue, on September 24, 1974 at 2:30 P.M.
PRESENT Jack. B. Cummings, Chairman
Ellsworth E. Miller, Member
Charles G. DeMirjyn, Member
Chresten M. Knudsen, Member
Bertha Rose Grace, Member
W. C. Schindler, Community Development
Director
Bill Brunick, Deputy City Attorney
Alice G. Walls, Deputy Secretary
Erwin S. Hein, Redlands Daily Facts
Rosemary Hite, San Bernardino Sun
ABSENT None
This adjourned regular meeting of the Redevelop-
ment Agency was scheduled for the purpose of
considering bids for promissory notes for project
financing.
The following bid for $2,000,000 in promissory
n
notes was opened and publicly declared in the
office of the City Clerk at 10 :00 A.M. this date:
Crocker National Bank Premium: $25.00
Bid Redlands, California Notes : $100,000 x 5
Promissory 50,000 x 10
Notes 25,000 x 40
Interest: 6. 18%
This bid was referred to the City' s Financial
Consultants for study and recommendation.
At this time Mr. Ed Hyland summarized the bid,
stating that the interest rate of 6.18% caused a
complication. The terms of sale furnished to
prospective bidders stated that each rate bid
must be in multiples of 1/20 of 1%. The bidder
had missed that stipulation, and there is no way
the bid can be accepted, and the bid cannot be
negotiated either with this prospective purchaser
AIR
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or any other. The only way the notes can be sold
is by readvertising. If the Agency wishes to
readvertise it will be necessary to adopt a new
resolution, with some changes in wording.
Chairman Cummings questioned the possibility of
using the second bond issue at this time rather
than readvertising. Mr. Hyland explained the
difference in time required for a bond issue as
compared to promissory notes; preparation of the
documents for a bond issue would take approxi-
mately two months compared to two to three weeks
for the notes.
Redevelopment Coordinator Poer explained the
tight time schedule with reference to escrows
which are due to close at the end of this month
and the importance of financing in order to meet
our commitments.
After considerable general discussion by the
members, Dr. Miller asked Mr. Hyland to explain
con- the changes necessary to adopt a new resolution.
Mr. Hyland suggested the following changes:
Each reference to September 24, change to October
1.
Each reference to September 17, change to Septem-
ber 24.
Each reference to Resolution No. 137, change to
Resolution No. 138. Each reference to September
25, change to October 1. Each reference to March
25, change to April 1.
On page 4, Terms of Sale, change the section
"Award" to read as follows: "Bids may be for all
of any part of the notes, provided that no bid
for less than $500,000 principal amount of said
notes nor bids which are not a multiple of
$500,000 will be accepted. The notes shall be
sole for cash only. Each bid shall specify the
amount of notes for which the bid is offered and
and the denominations and shall state that the
bidder offers accrued interest to the date of
delivery, the purchase price which shall not be
less than 95°lam of par and the premium, if any,
and the interest rate or rates, not to exceed
eight percent (8%) per annum, at which the bidder
offers to buy the notes in accordance with the
terms of this Resolution. Each rate bid must be
a multiple of 1/20 of 1%. No note shall bear
more than one interest rate. "
Change the section "Highest Bidder" to read as
follows: "The notes will be awarded to the high-
est responsible bidder or bidders considering the
interest rate or rates specified and the premium
or discount offered, if any, provided that no dis-
count bid will be considered unless the Agency
receives no bids at par or better. Subject to
Resolution the foregoing conditions, the highest bid will
G Oak No. R-138
IW51/1 IB
Promissory be determined by deducting the amount of the
Notes premium bid (if any) from, or adding the discount
(if any) to the total amount of interest which
the Agency would be required to pay from the date
of the notes to the maturity date thereof at the
rate specified in the bid, and the award will be
made on the basis of the lowest net interest cost
to the Agency. The purchaser must pay accrued
interest from the date of the notes to the date
of delivery computed on a 360-day year basis. "
Member Miller then moved to adopt Resolution No.
138 with the above changes to Resolution No. 137,
and to authorize the Secretary to advertise for
bids. The motion was seconded by Member Grace
and carried unanimously.
There being no further business, the Redevelop-
ment Agency adjourned, on motion, to an adjourned
meeting to be held October 1, 1974 at 2 :30 P.M.
ATTEST:
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