HomeMy WebLinkAbout1987-05-19; Housing & Redevelopment Commission; 82; Redevelopment Tax Allocation & Bond ProgramHOUSING AND --:
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LB# 082 TITLE: SELECTION OF INVESTMENT -R AND flTG. 5119187 BOND COUNSEL FOR REDEVELOPMENT TAX
BEPT. RED ALLOCATION BOND PROGRAM
RECOMMENDED ACTION:
DEPT. HD. IT-+ CITY Ad&
CITY MGR.~
If>Commission concurs, your action is to adopt Resolution No. 085 selecting Stone and Youngberg as Investment Bankers for the Redevelopment Tax Allocation Bond Program and approve Resolution No. 086 selecting Stradling, Yocca, Carlson and Rauth as Bond Counsel for the Program.
FISCAL IMPACT
The process of structuring a Redevelopment Tax Allocation Bond Program requires the services of an independent Investment Banker (financial advisor/underwriter) and special bond counsel. Redevelopment bonds are paid by the property taxes generated in the Redevelopment Area.
Staff has conducted interviews of several firms and is recommendins the firm of Stone and Younsbers be selected as investment banker. Additionally, staff recommends retaininq Stradlins, Yocca, Carlson and Rauth as bond counsel for the- Redevelopment Proqram. The bond counsel selection is based on the City's previous satisfactory experience with the firm.
In the near future, staff will be forwarding a Capital Improvement Program to the Redevelopment Commission. Specific projects will be considered for funding at that time.
The estimated time frame for the bond program is 90-120 days.
FISCALIMPACT
Investment banker and bond counsel will be paid out of bond proceeds. The Investment banker fee is $20,000 for the tax allocation bond program. Redevelopment Commission will incur no financial liability no matter what the disposition of the bonds.
EXHIBITS
l- Memo from Community Redevelopment Manager dated May 1, 1987.
2- Resolution No. 085 selecting Investment Banker
3- Resolution No. 086 selecting Bond Counsel
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MAY 1, 1987
TO: CITY MANAGER
FROM: Community Redevelopment Manager VIA: Community Development Director
SELFCTION OF REDEVF,LoPMENT AGENCY INVESTMFNT BANKER
This report outlines the evaluation process used by the City in selecting an investment banking firm for the Redevelopment Agency. The firm would perform Financial Advisor/Underwriter duties for upcoming Redevelopment financing.
BACKGROUND
The Redevelopment staff has compiled a list of Capital Improvement Projects. Several of these projects have been built or are under design by the Agency and city staff. The Redevelopment Commission has recommended that a Redevelopment Tax Allocation Bond Issue or some other similar financing mechanism would be appropriate to fund these projects.
In order to begin the process of debt financing, the Commission must hire an investment banker to structure the bond issue.
THE PROCESS
On Tuesday, April 28, 1987, six firms were interviewed for the investment banker position for the upcoming Tax Allocation Bond Issue.
Interviewers: Assistant City Manager/Ray Patchett Community Development Director, Marty Orenyak Finance Director, Jim Elliott Comm. Redevelopment Mgr., Chris Salomone
FIRMS INTERVIEWED:
Drexel Rurnham Lambert Dean Whitter-Reynolds Stone and Youngberg Chilton and O'Connor E.F. Hutton Sutro and Co. Inc.
Each firm was evaluated by the members of the interviewing team based on: 1) Experience, 2) Service, 3) Cost/Approach, 4) Knowledge of local area, 5) Creativity, and 6) Accessibility/workload.
Selection of Redevelopment Investment Banker May 1, 1987 PAGE 2
INTERVIEW RESULTS AND RECOMMENDATION:
Interviewers felt that all firms could adequately provide the requested services. All firms demonstrated sufficient expertise or experience in the field of Tax Exempt Redevelopment Financing. It is the consensus of the interviewers that the firm of Stone and Youngberg can best serve the Redevelopment Commission as investment banker (Financial Advisor and/or Underwriter) for any upcoming tax allocation Redevelopment Bond Issue.
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RESOLUTION NO. 085
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE RETENTION OF THE FIRM OF STONE AND YOUNGBERG AS INVESTMENT BANKER FOR THE CITY'S REDEVELOPMENT AGENCY
WHEREAS, the City of Carlsbad Housing and Redevelopment
Commission desires to retain an investment banker for the
City's Redevelopment Agency;and
WHEREAS, proposals have been solicited from several
firms, and
WHEREAS, the firm of Stone and Youngberg, has submitted
a proposal for the provision of services, which is on file in
the Redevelopment Office.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Commission of the City of Carlsbad, California
that:
11 The above referenced facts are true and correct, and
21 That the Housing and Redevelopment Commission hereby authorizes the retention of Stone and Youngberg, as Investment Banker.
31 That the Housing and Redevelopment Commission of the City of Carlsbad hereby authorizes and directs staff to execute agreement.
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PASSED, APPROVED AND ADOPTED, at a regular meeting of
the Housing and Redevelopment Commission of the City of
Carlsbad, held on the 19th day of May, 1987, by the following
vote, to wit:
AYES : Commissioners Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSTAIN: None
ATTEST:
(S==)
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1 RESOLUTION NO. 086
2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE
3 RETENTION OF THE FIRM OF STRADLING, YOCCA, CARLSON AND RAUTH, ATTORNEYS AT LAW, AS BOND COUNSEL FOR THE CITY'S
4 TAX ALLOCATION BOND PROGRAM
5 WHEREAS, the Housing and Redevelopment Commission of the
6 I City of Carlsbad desires to retain bond counsel for the
7 City's Tax Allocation Bond Program; and
8 WHEREAS, the firm of Stradling, Yocca, Carlson, and
9 Rauth, Attorneys at Law, submitted a proposal for such
10 services, which is on file in the Redevelopment Office.
11 NOW, THEREFORE, BE IT RESOLVED by the Housing and
12 Redevelopment Commission of the City of Carlsbad, that:
13 ll The above referenced facts are true and correct; and
The Housing and Redevelopment Commission authorizes the
retention of Stradling, Yocca, Carlson and Rauth as Bond
Counsel for the City's Tax Allocation Bond Program.
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19 IN PASS APPROVED AND ADOPTED, at a regular meeting of the
20 1 Housing and Redevelopment Commission of the City of Carlsbad,
21 California, held on the 19th day of May, 1987, by the
22 following vote, to wit:
231 AYES : Commissioners Lewis, Kulchin, Pettine, Mamaux and Larson
24 NOES: None
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ABSENT: None
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27/i ATTEST:
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