AgdaPkt 2003-07-28 - Laserfiche WebLink

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Factors Affecting Economic Performance and Value of Commerdal Properties. The economic performance and value of properties within the District will be affected by a number of factors, including national economic conditions, regional economic conditions (which may be adversely effected by plant closings, indurtty slow - down:; and other factors), local real estate conditions such as an oversupply of commercial (i.e., office and retail) space or a reduction in the demand for commercial space in the area, the attractiveness of the commercial space to tenants, competition from other commercial centers, the quality of maintenance, the cost of insurance and management services, and increased operating costs. Other factors which may adversely affect the economic performance and value of properties within the District include changes In government regulations and other laws, Hiles and regulations governing real estate, zoning or taxes, increases in interest rates, the availability of financing and potential liability under environmental and other laws. Due to these factors and other risks, there can be no assurance that the developments within the District will remain economically viable throughout the term of the Bonds, or that the owners of the Taxable Parcels will continue to have the ability throughout the term of the Bonds to pay the Special Taxes which will be levied on their property. The Bonds do not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Fiscal Agent Agreement. Pursuant to the Fiscal Agent Agreement, a Bondholder is given the right for the equal benefit and protection of all Bondholders similarly situated to pursue certain remedies (see "APPENDIX D - Summary of the Fiscal Agent Agreement" herein). So long as the Bonds are in book-entry form. DTC is expected to be the sole Bondholder and will be entitled to exercise all rights and remedies of Bondholders. Loss of Tax Exemption As discussed under the caption "LEGAL MATTERS - Tax Exemption," interest on the Bonds might become includable in gross income for purposes of federal income taxation retroactive to the date the Bonds were issued as a result of future acts or omissions of the District in violation of its covenants in the Fiscal Agent Agreement. The Fiscal Agent Agreement does not contain a special redemption feature triggered by the occurrence of an event of taxability. As a result, if interest on the Bonds were to be includable in gross income for purposes of federal income taxation, the Bonds would continue to remain outstanding until maturity unless earlier redeemed p ursuan t to optional or mandatory redemption or redemption upon prepayment of the Special Tax. See "THE BONDS - Redemption." Limited Obligation Of the District to Pay Debt Service The District has no obligation to pay principal of and interest on the Bonds in the event Special Tax collections are delinquent, other than from amounts, if any, on deposit in the Reserve Account or funds derived from the tax sale or foreclosure and sale of parcels on which levies of the Special Tax are delinquent, nor is the District obligated to advance funds to pay such debt service on the Bonds. Proposition 218 Under the California Constitution, the power of initiative is reserved to the voters for the purpose of enacting statutes and constitutional amendments. Over the past 25 years, the voters have exercised this power through the adoption of Proposition 13 and similar measures, including Proposition 218 which was approved in the general election held on November 5, 1996. Any such initiative may affect the collection of fees, taxes and other types of revenue by local agencies such as the City. Subject to overriding federal constitutional principles, such collection may be -34-