HomeMy WebLinkAboutDOC000-3_CCv0001.pdf mw MINUTES of a special meeting of the Governing Board of the Redlands Financing
Authority of the City of Redlands held in the City Council Chambers, Civic
Center, 35 Cajon Street, at 5:28 P.M. on October 21, 2003.
PRESENT Karl N. (Kasey) Haws, Chairman
Susan Peppler, Vice Chairman
Pat Gilbreath, Member
Gary George, Member
Jon Harrison, Member
ABSENT None
STAFF John Davidson, Executive Director; Daniel J. McHugh, Attorney; Michael
Reynolds, Treasurer; Tina Kundig, Controller; and Beatrice Sanchez, Acting
Secretary.
The minutes of the special meeting of June 3, 2003, were unanimously
approved as submitted on motion of Mrs. Gilbreath, seconded by Mrs. Peppler.
JOINT MEETING - REDLANDS FINANCING AUTHORITY, REDEVELOPMENT AGENCY,
AND CITY COUNCIL
Controller Tina Kundig introduced John Rottschaefer, Bond Counsel; Marshal
Linn, President, Urban Futures, Inc.; and Robert Porr, Sr. Vice President,
O'Connor Southwest Securities. Controller Director Kundig then explained that
psthe purpose of the Redevelopment Agency Tax Allocation bond issue is to take
advantage of the low 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. In order to
sell the Redevelopment Agency's proposed Tax Allocation Bonds Series
2003A on a negotiated basis, it will be necessary for the Redlands Financing
Authority to purchase the bonds from the Redevelopment Agency. The
Redlands Financing Authority will immediately sell the bonds to the
underwriter, O'Connor Southwest Securities, Inc. Based on Fiscal Year 2003-
04 San Bernardino County Tax Roll and projections of anticipated growth
within the Project Area, the Redevelopment Agency could issue $16,895,000
of Tax Allocation Bonds, with an underwriter's discount of not more than 1.5
percent of the principal amount of bonds. The Agency will have immediate
access to approximately $5.1 million of the proceeds for non-housing related
projects. Approximately another $2.1 million will be placed in an escrow
account which will be released over the next two years, as the assessed
valuation in the Project Area increases. Additionally, the Agency will have
immediate access to approximately $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 Issue and will have an equal right to tax increments generated
Affil
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Redlands Financing Authority
October 21,2003
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A-10m, in the Project Area. By escrowing a small portion of the bonds' proceeds, the
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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 approve Resolution No. 2003-05, a resolution of the
Redlands Financing Authority approving the issuance of Redlands
Redevelopment Project Tax Allocation Bonds, Series 2003A, by the
Redevelopment Agency, approving a form of purchase contract and approving
certain other matters relating thereto. Motion seconded by Mr. George and
carried with Mrs. Gilbreath voting NO. (Also see City Council and
Redevelopment Agency minutes dated October 21, 2003.)
ADJOURNMENT
There being no further business, the Governing Board's meeting of the
Redlands Financing Authority adjourned at 5:43 P.M.
Acting Secretary
Redlands Financing Authority
October 21,2003
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