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HomeMy WebLinkAboutMIN 1999 0303 RDA REG MINUTES OF THE REDEVELOPMENT AGENCY Moorpark, California March 3 , 1999 A Regular Meeting of the Redevelopment Agency of the City of Moorpark was held on March 3 , 1999 in the Community Center of said City located at 799 Moorpark Avenue, Moorpark, California. 1 . CALL TO ORDER: Chairman Hunter called the meeting to order at 7 : 12 p .m. 2 . ROLL CALL: Present : Agency Members Evans, Harper, Rodgers, Wozniak and Chairman Hunter. Staff Present : Steven Kueny, Executive Director; John Nowak, Agency Treasurer; and Deborah Traffenstedt, Agency Secretary. 3 . PUBLIC COMMENT: None . 4 . PUBLIC HEARINGS : None . 5 . PRESENTATION/ACTION/DISCUSSION: A. Consider Refunding of the 1993 Tax Allocation Bonds with a New Money Component . (Continued from February 17 , 1999) Staff Recommendation: 1) Direct staff and the financing team to proceed with the preparation of financing documents and to submit said documents to both Standard & Poor and to various bond insurers; 2) Price the bonds after formal approval of the financing documents by both the Agency and the City Council at a meeting to be held in March; 3 ) Instruct the financing team that the "new money" portion is to be at least $1, 950 , 000 prior to pricing the bond issue; 4) Enter into an Agreement with the law firm of Quint & Thimmig to serve as Bond Counsel subject to approval of the Executive Director and Legal Counsel, and authorize the Executive Director to sign Minutes of the Redevelopment Agency Moorpark, California Page 2 March 3 , 1999 said agreement; and 5) Enter into an Agreement with the firm of Miller & Schroeder Financial , Inc . to serve as Underwriter subject to approval of the Executive Director and Legal Counsel , and authorize the Executive Director to sign said Agreement . Mr. Nowak introduced Marshall Linn of Urban Futures, who gave the staff report . In response to Agency Member Rodgers, Mr. Linn said that in 1993 when the Tax Allocation Bonds were issued, the Redevelopment Agency could only obtain a minus A rating because the Agency was newly formed. He said that now, because the Agency is older and more established, a bond rating of AAA would be possible . In response to Agency Member Evans, Mr. Linn recapped that the advantages to the Agency of refunding with a new money component were a present value savings of $144 , 000 overall , a AAA bond rating and $2 million to spend now on new projects . He also agreed that the Agency would have to pay interest expense to obtain the $2 million . Diane Galvin, 11997 Bubbling Brook, addressed the Agency. She wanted to know what the inflation rate was being used to arrive at the present value savings of $144 , 000 . She said that Agency would be able to get a AAA rating from a simple refunding of the Tax Allocation Bonds . She also said the Agency should consider whether or not there is a project in the Redevelopment Agency Area that requires $2 million. Mr. Nowak said that the report the Agency has been provided identifies $2 . 5 million of projects needed in the project area . Mr. Linn said that there are two options : 1) refund the bonds, obtaining a modest savings and a AAA rating, or 2) raise an additional $2 million at a lower interest rate, extending the length of the debt service and have the $2 million to do projects now. In response to Agency Member Harper, Mr . Linn said that you cannot put the 1993 bonds in a junior lien Minutes of the Redevelopment Agency Moorpark, California Page 3 March 3 , 1999 position by leaving them at a minus A rating and taking out additional new bonds at a AAA rating. Agency Member Evans said that he thought that the additional $2 million would cost an added $5 million in debt . He said he needed clearer information to understand the bond financing . He said he also needed to know that the projects proposed for the $2 million would generate tax revenue . He said that if $144 , 000 could be saved by a simple refunding of the bonds, that should be considered. He suggested a workshop for the Agency to clarify these issues . Agency Member Harper concurred with Agency Member Evans' request above . He asked that additional information including charts and/or diagrams be provided to the Agency Board. CONSENSUS : By consensus, the Council determined to continue this item to March 17 . B. Consider a Development Loan for the Westgate Plaza Development Project . Staff Recommendation: Direct staff as deemed appropriate . Mr . Nowak gave the staff report . He said that the Council Budget and Finance Committee reviewed the request and the proposed project and is recommending that if the Agency is interested in issuing such a loan, the following conditions apply: (1) The loan shall be available solely for the purpose of bringing an urgent care medical facility to the development and no other purpose . A guarantee of medical tenant would be required prior to the loan documents being executed. (2) The annual interest charged on the loan be either the then current LAIF investment rate (currently 5 . 35%) , LAIF plus some amount, or eight percent (8%) simple interest . (3 ) The interest be deferred and due and payable as indicated below. Minutes of the Redevelopment Agency Moorpark, California Page 4 March 3 , 1999 (4) The full principal and accrued interest be due and payable in full when the developer obtains permanent financing. (5) The Agency obtains some secure interest in the property. (6) Prior to execution of any agreement by the Agency, some form of assurance be provided that permanent financing will be available for the development which includes full repayment of the loan principal and interest . Mr. Nowak said that if the Agency Board concurs with this action, it is requested to designate the rate of interest to be charged and staff will prepare the appropriate agreement and loan documents for presentation and action by the Agency. I A. DeeWayne Jones, 1054 Marine View, Moorpark, addressed the Agency as the applicant . In response to Agency Member Harper, he said the proposed hours of operation will be Monday through Friday, 8 : 00 a.m. to 8 : 00 p.m. ; Saturday and Sunday, 9 : 00 a.m. to 5 : 00 p .m. In response to Agency Member Harper, he said that relative to medical care, residents don' t have access to specialists or extended hours in the City. He said the urgent care facilitywould provide both. 9 In response to Agency Member Rodgers, Mr. Jones said that this loan would help his cash flow during construction. He said that $6 . 8 million is the construction funding needed which includes the $400 , 000 request from the Agency. In response to Agency Member Harper, Mr. Jones said that a medical doctor would always staff the urgent care center. In response to Agency Member Harper, Mr. Jones said that he felt the details of a guarantee that the City will be repaid its money could be worked out during the negotiations for the permanent financing . Minutes of the Redevelopment Agency Moorpark, California Page 5 March 3 , 1999 In response to Agency Member Evans, Mr. Jones said that the bank would probably loan the money even if the City doesn' t . Agency Member Evans said he wanted to know what the security for the City' s money is going to be . He said he needed more specifics on the financing. He said he supported going forward with the concept but needed more details on why this is a good proposition for the City. Mr. Kueny suggested that the Dr. Jones come back with the specifics on the proposal for construction financing. Agency Member Evans said he can support the concept but he is not ready to give his commitment to the project . Agency Member Harper said he was willing to proceed in concept but wanted more details on a secured interest relative to the loan and information on the operation of the facility. Agency Member Rodgers said she concurred with Agency Members Harper and Evans that there were many more details necessary before she could support a loan but that the staff could proceed in discussions with Dr. Jones . CONSENSUS : By consensus , the Council determined to direct staff to work with the applicant on the issues raised this evening and then to reschedule for Agency review when further direction was needed from the Agency Board. 6 . CONSENT CALENDAR: A. Consider Approval of Minutes of the February 17, 1999 Regular Redevelopment Agency Meeting. Staff Recommendation: Approve the minutes as processed. Mayor Hunter requested that the minutes be corrected on page 4 , the vote on item 6 .A. , to read "4-0 , Agency Member Harper abstaining. " Minutes of the Redevelopment Agency Moorpark, California Page 6 March 3 , 1999 MOTION: Chairman Hunter moved and Agency member Harper seconded a motion to approve the minutes as corrected by Mayor Hunter above . The motion carried by unanimous voice vote . AT THIS POINT in the meeting a recess was declared. The time was 8 : 35 p .m. The Agency reconvened at 11 : 15 p.m. 7 . CLOSED SESSION: None was held. 8 . ADJOURNMENT : Chairman Hunter adjourned the meeting at 11 : 35 p.m. AP dflit 0i0 V42._> `atrick Hu er, Chairman ATTEST: \,pP M ENr.1C cam. W � Deborah S . Traffenstedt ESTABLISHED — Agency Secretary * MARCH 18, 1987 ,* O C'�4FOReP,yeQPQ� 0?YOF MAP