AgdaPkt 2003-09-08 - Laserfiche WebLink

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REPORT 9 10 -1 To the Honorable Mayor and Cky Coundl From the City Maria pr September 8, 2003 t Subject Approval of the Redevelopment Agency's issuance of tax allocation bonds (the "2003 Bonds "). Recommendation Approve a resolution approving the financing and refinancing of various projects in the Redevelopment Project Area No. 2 by the Redevelopment Agency of the City of Redwood City. Background In December 2002 the City's Redevelopment Agency (the "Agency") entered into a disposition and development agreement with BHV Innisfree Ventures to develop a cinema and retail project (the "Project") on the Way -To -Go and adjacent parcels in downtown Redwood City. As part of this agreement, the Agency agreed to finance parking 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. In addition to the Project, the Agency has identified other public projects deemed necessary or desirable at this time to promote the revitalization of the downtown area. They include renovation of the former County courthouse as well as the new Courthouse plaza and various downtown streetscape improvements. (See the staff report prepared for the Agency for more information on the proposed sale of bonds.) Reason for Ctty Council Action The City Council is required by State law to approve the Agency's sale of bonds. Fiscal Impact It is recommended that the Agency issue sufficient bonds to generate approximately $31 million in net proceeds to finance the downtown revitalization projects. These bonds will be paid off in FY 2032. The proposed bonds are not a debt of the City and are payable solely from tax to the Agency's property tax increment revenues. A portion of property tax increment revenues allocated to the Agency is used to reimburse the City's general fund for administrative expenses incurred on the Agency's behalf. A reduction in tax increment revenues or the growth of the Agency's assessed valuation at an annual rate of less than 2% would reduce the amount of tax increment revenues available to reimburse the City for the Agency's administrative expenses. However, it should be noted that the Agency valuation grew by 5.91% over the last ten years and 7.95% over the last six years. If necessary, the Agency will have the option