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HomeMy WebLinkAboutAGENDA REPORT 2001 1117 CC SPC ITEM 04BMOORPARK REDEVELOPMENT AGENDA REPORT ITEM 4 /3• CITY OF MOORPARK, CALIFORNIA Redevelopment Agency Meeting of I I - .9 3 - f' fy I ACTION: AGENC TO: Honorable Chair and Agency Board Members FROM: Hugh R. Riley, Assistant Executive Director DATE: November 7, 2001 (Special MRA Meeting of 11/13/01) SUBJECT: Consider Adoption of Resolution No. 2001 Authorizing the Issuance and Sale of 2001 Tax Allocation Revenue Bonds of the Redevelopment Agency of the City of Moorpark and Approving Related Documents and Actions BACKGROUND In March of 2000 the City completed a space needs study to determine the City's future civic facilities requirements. Included in the report was a discussion related to development costs, site selection and financing options. DISCUSSION One of the key elements of the financing section of the report was a discussion in regards to the Redevelopment Agency issuing tax allocation bonds in an amount sufficient to contribute approximately $10,000,000 of net proceeds for the construction of a Police Service Center and Public Works /Parks Corporation Yard. Staff and its financing consultants and legal counsel have prepared those documents necessary to issue Bonds in the necessary amount to net approximately $10,000,000 after paying for issuance costs, bond insurance and the funding of the debt service reserve fund. Honorable Agency Board of Directors November 7, 2001 Page 2 The proposed 2001 Bonds will be issued under an Indenture of Trust dated as of May 1, 1999, as supplemented by a First Supplemental Indenture of Trust dated December 1, 2001. The proposed2001 Bonds are special obligations of the Agency and are payable solely from and secured by a pledge of tax increments only, and are not a debt of the City of Moorpark. The Agency has issued similar debt in the past as evidenced by its $10,000,000 19993 issue and its $9,860,000 1999 refunding bonds. While the Agency has the funding capacity to issue additional Bonds by pledging that share of the tax increments attributable to the Low and Moderate Income Housing Fund, staff is recommending that only that portion of the tax increment that can be used for projects be pledged. The Bonds are 30 -year obligations and will be rated AAA by Standard and Poor's upon receipt of a bond insurance policy which most likely will be Ambac. It is anticipated that the long -term rate on the Bonds will be in the range of 5.10 percent or lower. It is expected that funds will be available by mid - December. STAFF RECOMMENDATION Adopt Resolution No. 2001 - Authorizing the Issuance and Sale of 2001 Tax Allocation Bonds and Approving Related Documents and Actions. Attachment: Resolution No. 2001 - Tax Allocation Bond Documents (In separate Binder) RESOLUTION NO. 2001- A RESOLUTION OF THE MOORPARK REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE ISSUANCE AND SALE OF 2001 TAX ALLOCATION BONDS AND APPROVING RELATED DOCUMENTS AND ACTIONS WHEREAS, Part 1 of Division 24 Code of the State of California, authorizes redevelopment agencies to purpose of financing the redevelopme benefit to redevelopment project agencies; of the Health and Safety as amended (the "Law "), incur indebtedness for the nt activities within or of areas of redevelopment WHEREAS, the Redevelopment Agency of the City of Moorpark (the "Agency ") now desires to finance redevelopment activities within or of benefit to the Agency's Moorpark Redevelopment Project (the "Redevelopment Project "); WHEREAS, The Agency has determined at this time to issue its not to exceed $12,500,000 initial principal amount of revenue bonds (the "Bonds "), under the provisions of the Law to such activities, with the payment of the principal of and interest on the Bonds to be secured by a parity pledge of tax increment revenues received by the Agency from the Redevelopment Project with the pledge thereof to the payment of the Agency's Moorpark Redevelopment Project 1999 Tax Allocation Refunding Bonds; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the Bonds as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Law , and the Agency now desires to authorize the issuance of the Bonds, as provided herin NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Issuance of the Bonds; Approval of the First Supplement. The Agency hereby authorizes the issuance of the Bonds in the initial principal amount of not to exceed $12,500,000. The Bonds shall be issued pursuant to the Law and an indenture of Trust, dated as of May 1, 1999 (the "Original i �0C'`:0 Resolution No. 2001 - Page 2 indenture "), by and between the Agency and BNY Western Trust Company, as trustee (the Trustee ") , as supplemented by a First Supplemental Indenture of Trust, dated as of December 1, 2001 (the "First Supplement ") , between the Agency and the Trustee. The Agency hereby approves the First Supplement in form on file with the Secretary, together with such additions thereto and changes therein as the Executive Director shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute, and the Secretary is hereby authorized and directed to attest the final form of the First Supplement for and in the name and on behalf of the Agency. The Agency hereby authorizes the delivery and performance of the First Supplement as so executed, and hereby ratifies and confirms the provisions of the Original Indenture. SECTION 2. Sale of the Bonds. The Agency hereby approves the bond purchase agreement (the "Bond Purchase Agreement "), by and among the Moorpark Public Financing Authority (the "Authority "), U.S. Bancorp Piper Jaffray, as underwriter (the "Underwriter ") and the Agency, in the form on file with the Secretary, together with such additions thereto and changes therein as the Executive Director shall deem necessary, desirable or appropriate, and the execution thereof by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Executive Director is hereby authorized and directed to execute and deliver the final form of the Bond Purchase Agreement for and in the name and on behalf of the Agency. The Agency hereby approves the sale of the Bonds to the Authority, and the resale by the Authority of the Bonds to the Underwriter, pursuant to the Bond Purchase Agreement, so long as the Underwriter's discount, excluding original issue discount which does not constitute compensation to the Underwriter, with respect to the Bonds does not exceed 1.350 %, the net interest cost of the Bonds does not exceed 7.000 %, and the principal amount of the Bonds is not in excess of $12,500,000. The Agency finds and determines that the issuance of the Bonds and the purchases and sale thereof by the Authority, as contemplated by the Bond Purchase Agreement, will result in savings in effective interest rates, bond underwriting costs and Resolution No. 2001 - Page 3 bond issuance costs and thereby result in significant public benefits to the Agency within the contemplation of Section 6586 of the California Government Code. SECTION 3. Official Statement. The Agency hereby authorizes the Executive Director to approve and deem final within the meaning of Rule 15c2 -12 of the Securities Exchange Act of 1934, except for permitted omissions, a form of Official Statement describing the Bonds in the preliminary form on file with the Secretary, together with such changes thereto as the Executive Director may approve, including changes necessary to reflect the proper terms of the Bonds. Distribution of such preliminary Official Statement by the Underwriter to prospective purchasers of the Bonds is hereby approved. The Executive Director is hereby authorized to deem the Preliminary Official Statement final for purposes of the federal securities laws, and to so deem final and to execute the final form of the Official Statement, including as it may be modified by such additions thereto and changes therein as the Executive Director shall deem necessary, desirable or appropriate, and the execution of the final Official Statement by the Executive Director shall be conclusive evidence of the approval of any such additions and changes. The Agency hereby authorizes the distribution of the final Official Statement by the Underwriter. The final Official Statement shall be executed in the name and on behalf of the Agency by the Executive Director. SECTION 4. Delivery of the Bonds. The Bonds, when executed, shall be delivered to the Trustee for authentication. The Trustee is hereby requested and directed to authenticate the Bonds by executing the Trustee's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to upon the instruction of the Authority in accordance with written instructions executed on behalf of the Agency by the Executive Director, which instructions such officer is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver to the Trustee. Such instructions shall provide for the delivery of the Bonds to the Authority or as otherwise directed by the Authority in accordance with the Bond Purchase Agreement upon payment of the purchase price therefor. Resolution No. 2001 - Page 4 SECTION 5. Continuing Disclosure Certificate. The Continuing Disclosure Certificate, in the form on file with the Secretary, is hereby approved. The Executive Director is hereby authorized and directed, for and in the name of and on behalf of the Agency, to execute and deliver the Continuing Disclosure Certificate in said form, with such additions thereto or changes therein as are deemed necessary, desirable or appropriate by the Executive Director, the approval of such changes to be conclusively evidenced by the execution and delivery by the Executive Director of the Continuing Disclosure Certificate. SECTION 6. Financial Advisor. The firm of Urban Futures Incorporated is hereby designated as Financial Advisor to the Agency with respect to the Bonds. SECTION 7. Bond Counsel and Disclosure Counsel. The firm of Quint & Thimmig LLP is hereby designated as Bond Counsel and as Disclosure Counsel to the Agency with respect to the Bonds. The Executive Director is hereby authorized and directed to execute an agreement with said firm for its services related to the Bonds, in the form on file with the Secretary. SECTION 8. Official Actions. The Chairman, the Executive Director, the Treasurer and the Secretary of the Agency, and any and all other officers of the Agency, are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and sale of the Bonds. Whenever in this resolution any officer of the Agency is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. Resolution No. 2001 - Page 5 SECTION 9 The Agency Secretary shall certify to the adoption of this resolution, which shall take effect immediately upon its adoption, and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this day of , Patrick Hunter, Chair ATTEST: Deborah S. Traffenstedt, Agency Secretary