HomeMy WebLinkAboutAG RPTS 1999 0303 RDA REG' _( ESTABLISHED
* i 11. iftr
57i OF
MOORPARK REDEVELOPMENT AGENCY
REGULAR MEETING AGENDA
WEDNESDAY, MARCH 3, 1999
7:00 P.M.
Resolution No. 99 -79
Moorpark Community Center 799 Moorpark Avenue
1. CALL TO ORDER:
2. ROLL CALL:
3. PUBLIC COMMENT:
4. PUBLIC HEARINGS:
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 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.
B. Consider a Development Loan for the Westgate Plaza Development
Project. Staff Recommendation: Direct staff as deemed
appropriate.
6. CONSENT CALENDAR:
Redevelopment Agency Agenda
March 3, 1999
Page 2
A. Consider Approval of Minutes of the February 17, 1999 Regular_
Redevelopment Agency Meeting.
Staff Recommendation: Approve the minutes as processed.
7. CLOSED SESSION:
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Subdivision (b)
of Section 54956.9 of the Government Code: (Number of cases to
be discussed - 4)
8. ADJOURNMENT:
----------------------------------------------------------------------------------------------
Any member of the public may address the Agency during the Public Comments portion of
the Agenda, unless it is a Public Hearing or a Presentation /Action /Discussion item.
Speakers who wish to address the Agency concerning a Public Hearing or
Presentations /Action /Discussion item must do so during the Public Hearing or
Presentations /Action /Discussion portion of the Agenda for that item. Speaker cards
must be received by the City Clerk for Public Comment prior to the beginning of the
Public Comments portion of the meeting and for Presentation /Action /Discussion items
prior to the beginning of the first item of the Presentation /Action /Discussion portion
of the Agenda. Speaker Cards for a Public Hearing must be received prior to the
beginning of the Public Hearing. A limitation of three minutes shall be imposed upon
each Public Comment and Presentation /Action /Discussion item speaker. Written Statement
Cards may be submitted in lieu of speaking orally for open Public Hearings and
Presentation /Action /Discussion items. Copies of each item of business on the agenda
are on file in the office of the City Clerk and are available for public review. Any
questions concerning any agenda item may be directed to the City Clerk at 529 -6864.
In compliance with the Americans with Disabilities Act, if you need assistance to
participate in this meeting, please contact the City Clerk's Department at (805) 529-
6864. Notification 48 hours prior to the meeting will enable the City to make
reasonable arrangements to ensure accessibility to this meeting (CFR 35.102 - 35.104 ADA
Title II).
STATE OF CALIFORNIA )
COUNTY OF VENTURA ) ss
CITY OF MOORPARK )
AFFIDAVIT OF POSTING
I, Deborah S. Traffenstedt, declare as follows:
That I am the City Clerk of the City of Moorpark and that an agenda for a Regular meeting of the
Moorpark Redevelopment Agency to be held March 3, 1999, at 7:00 p.m. in the Council Chambers
of the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California, was posted on
February 26, 1999, at a conspicuous place at the Moorpark Community Center, 799 Moorpark
Avenue, Moorpark, California.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on March 1, 1999.
S.
Deborah S. Traffenstedt, City Clerk
f1s }" �C°z •''rte i� }1
ITEM
S*A*
CITN- OF'00ORPARR, CALIFORNIA
Redevelopment Agenc - Meeting
of _ 3 3 ---019
ACTION: Cbyj+.nued -to T3/1-7 oiG(
ro e C16v. f
MOORPARK REDEVELOPMENT AGENT �l baton
AGENDA REPORT BY: �! yA� fir, &
TO: Honorable Board of Directors
FROM: John E. Nowak, Assistant Executive Director
Prepared by Urban Futures, Inc.
DATE: February 24, 1999 (Agency Meeting of 3 -3 -99)
SUBJECT: Consider Refunding of the 1993 Tax Allocation Bonds
with a New Money Component
SUMMARY
With interest rates at a 20 -year low the Redevelopment Agency of
the City of Moorpark has a unique opportunity to issue refunding
bonds relative to the Redevelopment Agency of the City of
Moorpark Redevelopment Project 1993 Tax Allocation Bonds (the
"Bonds ") $10,000,000.00. By taking advantage of the lowest tax -
exempt rates since the adoption of the Redevelopment Project
area in 1989, the Agency can raise approximately $2,000,000 of
new project money without significantly increasing the Agency's
current annual debt service. In addition, by refunding and
restructuring its existing debt the Agency will accomplish the
following:
1. The new Agency Bonds will be rated AAA as opposed to
the A minus rating on the current bonds. This rating
upgrade will greatly assist the Agency in the
marketing of additional debt in the future, as new
debt would be issued on a parity basis at the highest
rating as opposed to the Agency's current rating.
2. The restructured and refunded debt would be issued at
an interest rate of 5.06% to 5.10% given current
market conditions. While the savings on the existing
debt is not significant, the new bond's AAA rating, as
stated above will permit the Agency, in the future, to
issue AAA parity bonds which will result in
00060.
significant future savings to the Agency over the
remaining life of the project area.
BACKGROUND
In June of 1993 the Redevelopment Agency of the City of Moorpark
issued its Moorpark Redevelopment Project 1993 Tax Allocation
Bonds in the amount of $10,000,000. The Bonds are an
indebtedness of the Agency and are secured solely by tax
increments generated by increases in the assessed valuation of
property within the Moorpark Redevelopment Project (the "Project
Area ") which was approved by Ordinance No. 100 adopted by the
City Council on July 5, 1989. The Project Area consists of
approximately 1,217 acres and is primarily comprised of
commercial and industrial land uses.
DISCUSSION
The Agency, at the present time, is financially unable to issue
significant amounts of new debt to raise money for either
projects or any other lawful acti-�ri.ties without restructuring
its existing debt and extending maturities. With interest rates
at historical lows, it is the ideal time to raise new capital at
interest rates in the low 5% range.
Our analysis has shown that issuing additional parity debt at
the Agency's current standards Poor A- rating, would necessitate
an annual 25 basis point increase on the interest rate the
Agency would have to pay. In addition, the Agency at the A-
level would have to pay approximately $150,000 of debt service
on an annual basis for 30 years to raise a net amount of
$2,000,000.
By restructuring
the Agency will
existing bonds of
More importantly,
essentially level
up unobligated
activities.
its existing debt and achieving an AAA. rating,
achieve a Net Present value saving on its
$144,344 using a NPV factor of 5.32%.
the Agency's annual debt service will remain
to which now exists, thus continuing to free
tax increments for operations and other
1. In order fo-r Moorpark's Bonds to be rated AAA, a
refunding and restructuring of the existing bond issue
is necessary. The Agency cannot issue any additional
new bonds, which would place the repayment obligation
on the existing debt in a junior lien position. In
00000;:
order to avoid a potential additional interest expense
to the Agency, all of the bonds should carry the same
rating. As we are confident in the Agency's ability
to achieve an AAA rating it is obvious that the Agency
should take all these actions necessary to achieve
that goal.
Staff is recommending that the Agency engage the law firm of
Quint & Thimmig to serve as Bond Counsel. Staff is also
recommending that the Agency engage the underwriting firm of
Miller & Schroeder Financial Incorporated to serve as
underwriter. Quint & Thimmig provided bond counsel services for
the City's last public offering, a Community Facilities District
bond issue, and did a highly professional job. Miller &
Schroeder Financial was the Agency's underwriter for the 1993
Tax Allocation Bonds and also served as underwriter on the
Community Facilities District bond issue.
STAFF RECOMMENDATION
Staff recommends the Board of Directors (Roll Call Vote):
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 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.
00(1003
neW "1(n2
ITEM
5.6.
CITY OF'00ORPA.RK, CALIFORNIA
Redevelopment Agencv v[eeting
of 3-3_GJ
ACTION-_D rec�ed s�u ell +-D work
W' a P,Ican+ on issues �ai d
MOORPARK REDEVELOPMENT AGEN Se heGi u (e
AGENDA REPORT
TO: Honorable Board of Directors
FROM: John E. Nowak, Assistant Executive Director G7�iU
DATE: 22 February 1999 (Council Meeting of 03- 03 -99)
SUBJECT: Consider a Development Loan for the Westgate
Plaza Development Project.
BACKGROUND: Dr. DeeWayne Jones is proposing a commercial
development on Los Angeles Avenue west of the Mission Bell
Plaza referred to as Westgate Plaza. He has requested
financial assistance from the City of Moorpark and the
Moorpark Redevelopment Agency. A combination of deferral
of certain development fees and a short -term loan are
presented for the Council's and Agency's consideration.
DISCUSSION: Dr. DeeWayne Jones is proposing to develop the
Westgate Plaza on Los Angeles Avenue. It is an
approximately 50,0000 square foot commercial development
containing a health club, offices, two restaurants and a
medical urgent care facility. Dr. Jones submitted a
request for the City of Moorpark to provide financial
assistance for the project. The Council's Budget and
Finance Committee has reviewed the request and is proposing
for consideration that a combination of deferral of
development fees and a short -term loan be used. The loan
request is presented for the Agency's consideration with
the fee deferral being presented to the Council for
consideration.
One of the elements of the proposed Westgate Plaza project
is to bring a medical urgent care provider to the City of
Moorpark. The developer has represented that financial
000004
Loan Request
Meeting of 03 March 1999
Page 02
assistance would be necessary to bring such a provider to
this project at an estimated cost of up to $400,000. The
Council Budget and Finance Committee has reviewed the
request and the proposed project and is recommending that
if the Agency Board 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.
(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.
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.
RECOMMENDATION: Direct staff as deemed appropriate.
® U() 5