AgdaPkt 2012-12-03 - Laserfiche WebLink

Browse Search

8.B. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er December 3, 2012 SUBJECT Sale of bonds pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Act), to refund the outstanding City of Redwood City Community Facilities District No. 99-1 (Redwood Shores Transportation Project) Special Tax Bonds, Series 2001A and Series 2003B (collectively, Prior Bonds) (Council is acting as the legislative body of the Community Facilities District) RECOMMENDATION 1) Approve, by resolution, authorization for the issuance and sale of Special Tax Refunding Bonds for and on behalf of the City of Redwood City Community Facilities District No. 99-1 (Redwood Shores Transportation Project) and approval of all documents and agreements, including the Preliminary Official Statement, necessary to issue such bonds. 2) Adopt, by resolution, approval of the escrow instructions and other related documents and actions by the Mello-Roos special tax district. BACKGROUND In April 1999 the City Council established a Mello-Roos special tax district (District) and authorized the levy of a special tax and the issuance of bonds by the District for the purpose of financing various traffic improvements in and adjacent to the Redwood Shores area of the City. Property owners in the District affirmed the creation of the District, the levy of the special tax, and the sale of bonds for these traffic improvements in July of 1999 with a 92% majority vote. Bonds were issued in 2001 in the amount of $5,045,000 to fund traffic circulation improvements and in 2003 in the amount of $7,505,000 to fund improvements to the Ralston Ave./Marine Parkway freeway interchange and additional incidental traffic circulation improvements. $10,315,000 of the Prior Bonds remain outstanding The District includes 56 parcels subject to the levy of special taxes located in the commercial area of Redwood Shores. The parcels have 25 separate owners and have been improved with a total of approximately 4,339,611 square feet of commercial structures. The debt service on the Prior Bonds (and if issued, the refunding bonds) is the sole responsibility of the property owners. The Prior Bonds are secured by a lien on the real property within the District and are paid through a special tax levied on the properties within the District. The City's only obligation in the event that one of the property owners defaults on the payment of its special tax is to advance funds from the debt