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HomeMy WebLinkAbout102103-RDA_CCv0001.pdf MINUTES nforegular meeting ofthe Board ofDirectors ofthe RedevelopmentAgency of the City VfRedlands held inthe City Council Chambers, Civic Center, 35Cajon Street, at 5:28 P.M. on October 21, 2003. PRESENT Karl N. (Kanev) Haws, Chairman Susan Peppier, Vice Chairman Pat Gilbreath, Member Gary George, Member Jon Harrison, Member ABSENT None STAFF John Davidson, Executive Director; Daniel J. McHugh, Agency Attorney; Jeffrey L. Ghavv. Community Development Director; James R. 0uegrmann, Police Chief; and Beatrice Sanchez, Acting Agency Secretary. The minutes of the regular meeting of October 7. 2003. were unanimously approved as submitted on motion of Mrs. Gilbreath, seconded by Mrs. Peppier. JOINT MEETING - REDEVELOPMENT AGENCY, REDLANDS FINANCING AUTHORITY AND CITY COUNCIL From the audience, Finance Director KundiQ introduced K4ornha| Linn. President, Urban Futures, Inc.; Robert FzVrr, Sr. Vice President, {]'Connor Southwest Securities; and John F|ottenhaefer Bond Finance Director . � Kundig then explained that the purpose of the Redevelopment Agency Tax Allocation bond issue in to take advantage of the |ovv rates available in today's financial market and to allow the Agency to generate funds for needed capital improvements in the Project Area; maximize proceeds to meet anticipated expenditures in connection with the Redevelopment Plan; and generate proceeds to meet anticipated expenses for projects associated with low and moderate income housing needs. |norder tosell the Redevelopment Agency's proposed Tax Allocation Bonds Series 2003A on o negotiated boeis, it will be necessary for the Redlands Financing Authority topurchase the bonds from the Redevelopment Agency. The Redlands Financing Authority will immediately ae|| the bonds tothe underwriter, O'Connor Southwest Securities, Inc. Based on Fiaoo| Year 2003-04 Son Bernardino County Tax Roll and projections of anticipated growth within the Project Area, the Redevelopment Agency COU|d issue $18.895.000 of Tax Allocation Bpnde, with on underwriter's discount of not more than 1.5 p8[C8Dt of the principal 8mOOUDt of bonds. The Agency will have immediate ooneso to approximately $5.1 million of the proceeds for non- housing related projects. Approximately 8DOthO[ $2.1 n0i||iOD will be placed in on escrow account which will be released over the next two years, as the assessed valuation iOthe Project A[e8iDCng@S8S. Additionally, the Agency will have immediate access toapproximately $7.8 million in proceeds that can be used for low and moderate-income housing-related purposes. The Tax Allocation Bonds Series 2003A will be issued on a parity basis with the Agency 1998 Tax Allocation Bond |SSUS and will have GO 6qU@| right tOtax inCPgD18OtS Redevelopment Agency October 21. 2803 Page generated in the Project Area. By escrowing a small portion of the bonds' proceeds, the Agency will achieve significant cost savings by not paying additional cost of issuance for a near-term new-money issuance in the future. With long and short-term bond rates at a 25-year low, the Agency can access the market place and expect to pay between 4.80 percent and 5.15 percent on its term bonds. Mrs. Gilbreath inquired if there are any projects in mind for the issuance of the bonds. City Manager Davidson listed a parking structure, hotel and the expansion of infrastructure. Mrs. Gilbreath expressed concern that the City does not have a definite plan but we are incurring debt. Chairman Haws stated that if funding is in place we are better able to make plans for the area. Mr. Harrison moved to approved Resolution No. 366, a resolution of the Board of Directors of the Redevelopment Agency approving the issuance of Redlands Redevelopment Project Tax Allocation Bonds, Series 2003A, by the Redevelopment Agency, approving a first supplement to indenture, an official statement, a bond purchase agreement setting the maximum final terms of the sale of bonds, and making certain determinations related thereto. Motion seconded by Mr. George and carried with Mrs. Gilbreath voting NO. (Also see Redlands Financing Authority and City Council minutes dated October 21, 2003.) Chairman Haws called for a recess at 5:43 PM. The meeting reconvened at 5:49 PM NEW BUSINESS Public Parking Facility in the Core Block - Community Development Director Shaw reported the Redevelopment Agency adopted a Five-Year Implementation Plan identifying future programs and expenditures that implement the Agency's goals and objectives. The parking structure project was included in the Plan and this project was reaffirmed during our mid-term review at the Redevelopment Agency meeting of September 16, 2003. The Redevelopment Agency also previously approved a development strategy and planning project in cooperation with the Redlands Chamber of Commerce for the core block -- generally bounded by Pearl Avenue, Orange Street, Redlands Boulevard and Eureka Street -- in downtown Redlands. The Economic Development Advisor and staff are recommending that the current work on the Core Block be immediately expanded to include predevelopment planning and engineering for a new public parking garage. This work would be performed under the auspices of the Redlands Chamber of Commerce's Core Block project. Staff is also proposing that the cost of this work -- estimated to be approximately $40,000.00 be funded by the Redevelopment Agency. Other stakeholders in the Core Block, such as Krikorian Theatres, may be willing to participate in this planning and engineering effort that could reduce the Agency's financial commitment. Agency members then had a discussion on pedestrian traffic between the movie theatre and State Street. On motion of Mrs. Gilbreath, seconded by Mrs. Peppler, the Agency unanimously authorized the Executive Director to amend the Agency's Core Block Development Strategy Agreement with the Redlands Chamber of Commerce to include Redevelopment Agency October 21, 2003 Page 2 m0dplanning and engineering for @new public parking facility to be constructed in conjunction with CO[8 Block development. On [DObOD of Mrs. Gilbreath, seconded by Mrs. Peppier, the Agency unanimously appropriated up to $40.000.00 in funding for the p[8dev8|OpOO8Dt p|@DOiDg and 8OgiO8e[iDQ for the parking garage project. PUBLIC COMMENTS None forthcoming. ADJOURNMENT There being no further business, the Board of Directors' rnemiinQ of the Redevelopment Agency adjourned a18:29 P.M. The next regular meeting will beheld onNovember 4. 2O03. Acting Secretary Redevelopment Agency October 21. 2803 Page