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HomeMy WebLinkAboutMIN 1999 0317 RDA REG MINUTES OF THE REDEVELOPMENT AGENCY Moorpark, California March 17 , 1999 A Regular Meeting of the Redevelopment Agency of the City of Moorpark was held on March 17, 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 9 : 50 p.m. 2 . ROLL CALL : Present : Agency Members Evans, Harper, Rogers, 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 March 3 , 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 (option 6 of the attached) ; 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 April ; 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 Minutes of the Redevelopment Agency Moorpark, California Page 2 March 17 , 1999 Director to sign 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 . (ROLL CALL VOTE REQUIRED) Mr. Nowak introduced Marshall Linn of Urban Futures, who gave the staff report . Mr. Linn reviewed the financing options available in regard to refunding/restructuring the existing 1993 Tax Allocation Bonds . Chairman Hunter said that in reviewing the list of proposed projects, he was unconvinced that an additional $2 million would be spent on sales tax generating projects . He said his preference is not to incur additional debt . Agency Member Evans said he concurred with Chairman Hunter and is uncomfortable incurring new debt because there is no compelling reason to do so. He said he preferred Option No. 3 in the Agenda Report Addendum, which is to refund/restructure the existing bonds into "AAA" rated securities with no new money component . Agency Member Harper said that he favors Option No. 3 and as a possible alternative to Option No. 5 . Option No. 5 is to refund/restructure the existing bonds with a new money component but no extension of maturities . He said if the Agency could identify a good investment (project) for the $2 million, he could support Option No. 5 . In response to Mr. Kueny, Mr. Linn said that the fees resulting from taking Option No. 3 would be approximately $245, 000 in professional fees of which the bond underwriter' s fee is the largest component, and approximately $136, 000 for the insurance premium. Agency Member Rodgers said she felt Option No. 3 was the most prudent action to take at the present time, and that by taking that option, it would preserve the opportunity to choose issuing taxable bonds in the future. She said taxable bonds would possibly allow for more economic investment . Minutes of the Redevelopment Agency Moorpark, California Page 3 March 17, 1999 Agency Member Wozniak said that he concurred with Agency Member Rodgers with regard to Option No. 3 and preserving the opportunity to issue taxable bonds in the future . MOTION: Chairman Hunter moved and Agency Member Rodgers seconded a motion to refund/restructure the existing bonds into "AAA" rated securities with no new money component; and to approve the staff recommendations regarding preparation of the necessary financing documents and the agreements with the law firm of Quint & Thimmig, to serve as Bond Counsel and the firm of Miller & Schroeder Financial , Inc . to serve as Underwriter, subject to language approval by the Executive Director and Legal Counsel . The motion carried by unanimous roll call vote . B. Consider Purchase of Mortgage Loan for Moorpark Playhouse . Staff Recommendation: Direct staff as deemed appropriate . Mr. Nowak gave the staff report . Agency Member Harper said he was concerned about the report of visual cracks in the building. In response to Agency Member Evans, Mr. Nowak said Ms . Bredemann has requested a six-month deferral on repayment of the proposed loan. Mary Ann Haney, 4765 Spring Road, said she holds the mortgage on the building on the corner of High Street and Moorpark Avenue and that Ms . Bredemann is four month in arrears on her payments on that property. She asked how Ms . Bredemann would make her payments on the theatre and whether other businesses on High Street would have the same opportunity for help from the City. Mr . Nowak said that the restructuring of the loan could reduce the monthly mortgage payments . Agency Member Harper said that the theatre is a unique business that brings economic benefit to High Street . He said the Agency would probably not extend this kind of help to other businesses on High Street and may not do so for the theatre . Minutes of the Redevelopment Agency Moorpark, California Page 4 March 17, 1999 Eloise Brown, 13193 Annette Street, asked the Agency Members to consider whether this is an investment they would make with their own money and if not, not to spend the taxpayer' s money. Linda Bredemann, 45 East High Street, said the theatre was a viable business for 12 years . She said the illness and death of her husband necessitated renting the theatre to someone else who had not been successful at operating the theatre . She said that the profitability of the theatre is coming back with her management . She said that the theatre does bring economic benefit to the restaurants and other businesses in Moorpark. Ms . Bredemann said that the cracks in the building are cosmetic not structural and were caused by a water leak. She said all she is asking for is time to reorganize . She said she has contacted several companies about obtaining grant money for which the theatre is eligible because of its non profit status . Agency Member Evans said that while the theatre is very unique, he felt that he could not make a decision based on the information provided. He said the Agency should have been provided a profit and loss statement, a cash flow analysis, a demographic review, and a market analysis . Agency Member Harper indicated that the Agency needs to know if the assessed value of $625 , 000 is correct for the building and to have a structural engineering report done. He said the Agency might need to bid on the building if it went into foreclosure . He said he knew the theatre could be viable and is willing to consider possible purchase of the property. He also said the Agency should try to obtain a better discount on the note from the bank. Agency Member Rodgers said that she was surprised that the bank had not offered a better discount on the note . She said the Agency might want to acquire the building in foreclosure . She said she is concerned with the real cost to the Agency of purchasing the mortgage loan which she said she estimates to be approximately $750 , 000 . Minutes of the Redevelopment Agency Moorpark, California Page 5 March 17, 1999 Chairman Hunter said that going forward with an appraisal should be contingent upon receiving a favorable structural engineering report . Agency Member Wozniak said he felt the theatre is important to the downtown but would need more information to make a decision. He requested that staff try to get an extension of time from the bank. Mr. Kueny said that if the bank agrees to give an extension of time to April 21 before moving forward on the foreclosure, then staff would go forward to get the structural report and appraisal . He suggested capping expenses at $5, 000 . He said staff would also ask for a greater discount of the mortgage loan from the bank. Agency Member Rodgers said that the information on the structural integrity of the building and the appraisal should be obtained whether or not the bank grants an extension of time . She said the Agency would need the information if it were to bid for the property in foreclosure . CONSENSUS : By consensus, the Agency determined to continue this matter to April 21, 1999 ; asking the bank to withhold further action until that time; a structural review and report is to be completed and contingent on the results, an appraisal may then be ordered to determine the value of the property; expenses to be capped at a cost not to exceed $5, 000 . Agency Member Evans said he wanted to go on record as not being able to support the action on this matter. 6 . CONSENT CALENDAR: MOTION: Agency Member Evans moved and Agency Member Harper seconded a motion to approve the Consent Calendar. The motion carried by unanimous roll call vote . A. Consider Notice of Completion for Alley Improvements Phase 2 . Staff Recommendation: Adopt Resolution No. 99-79 approving an amendment to the FY 1998/99 Budget by increasing the appropriation and budget for the subject project from $54 , 000 to $55 , 000 ($1, 000 increase) . (ROLL CALL VOTE REQUIRED) Minutes of the Redevelopment Agency Moorpark, California Page 6 March 17, 1999 7 . CLOSED SESSION: None . 8 . ADJOURNMENT : MOTION: Chairman Hunter moved and Agency Member Evans seconded a motion to adjourn. The time was 11 : 5 p.m. p ' Patrick Hu ter, Chairman ATTEST: /~Op MEiyT 0 �CF Deborah S . Traffenstedt ESTABLISHED - Agency Secretary � MARCH 18,1987 %!!!3.31!59 of