AgdaPkt 2003-09-08 - Laserfiche WebLink

Browse Search

q.A -2 underneath the Project for approximately 580 public parking spaces, along with other public improvements. In January 2003 the City loaned the Agency $20 million to begin work on the Project and to begin assembling the land necessary for the Project. At the July 14, 2003 budget study session, staff presented to the Agency Board a conceptual plan to finance these projects. This plan calls for the Agency issuing bonds in an amount sufficient to generate approximately $31 million in net proceeds and for the City /Public Financing Authority to refinance existing bonds in an amount to generate approximately $4.4 million in net proceeds which the City would then loan to the Agency. Finanding Summery Agency projects will be financed from a variety of sources, including Agency prior fiscal year appropriations and available unappropriated FY 2002/03 fund balances, developer payments for air rights over the parking facility, tax allocation bond proceeds, and a loan from the City. The City loan to the Agency will be funded via a refinancing of the City 1991 Public Financing Authority ( "PFA ") lease revenue bonds. See "Utility Users' Tax Loan" below for details. Sources and uses of bond proceeds are included in this package for your review (Attachment ll). Bond Documents A description of the bond documents can be found in Attachment III. The first and second amendments to the Indenture of Trust, the continuing disclosure certificate, and the bond contract are available in the City Clerk's Department for your review. The preliminary official statement is included in this package for your review (Attachment IV). Application of Proceeds The 2003 Bonds will, along with other funding sources identified below, be used to repay the $20 million loan made by the City to the Agency in January 2003 and to fund the various projects to be undertaken by the Agency. The 2003 Bonds will be repaid solely with tax increment that is allocated to the Agency for the purpose of financing economic development in the Agency's redevelopment project area. The 2003 Bonds are not a debt of the City, but are a debt of the Agency, which is a separate legal entity. The 2003 Bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither the members of the Agency nor the City, nor any persons executing the bonds, are liable personally for payment of principal and interest of the 2003 Bonds by reason of their issuance. The Agency expects to issue bonds that will result in the Agency receiving approximately $31 million in net proceeds with which to finance the downtown revitalization projects. These bonds will be paid off in FY 2032. In 1997, the Agency issued bonds for the purpose of refinancing its 1991 bonds to take advantage of lower interest rates. The 1991 bonds were issued to finance various downtown improvements (such as the downtown entry features, Broadway sidewalks) and to repay other loans. The annual debt service payments on the 1997 bonds are $1.6 million (excluding the amounts paid from the Agency's housing fund). These bonds will be paid off in FY 2011/12. 2