HomeMy WebLinkAbout1988-02-02; Housing & Redevelopment Commission; 94; Redevelopment Tax Allocation Bond ProgramHOUSING AND - EDEVELOPMENT COMMISS ‘... N - AGENDA @ :,:L&, +s l
AB# 94 TITLE: REDEVELOPMERT TAXALIXXATION
MTG. 212188 BOND PROGRAW
DEPT. RED
RECOMMENDED ACTION:
If Housing and Redevelopment Commission concurs your action is to adopt Resolution No. 99 authorizing the issuance and sale of tax allocation bonds, approving the forms of Notice of Intention to sell said bonds and directing the publication thereof and approving the Form of Indenture and Official Statement.
I ITEM EXPLANATION:
A Redevelopment Tax Allocation Bond Issue is proposed to produce funds for capital projects eligible under Redevelopment Law. These bonds are paid out of revenues produced by property taxes collected in the Redevelopment Area. There will be no impact on the general fund. Projects currently being considered for funding under this program are:
Senior Citizen's Center Parking Facilities Streetscape Improvements - Elm Avenue - Carlsbad Blvd. - Bluff top Walkway - Storm drains
$3.5 million 1.5 million
6.5 million
$11.5 million
Each capital project will be considered by the Housing and Redevelopment Commission under separate action with individual fiscal reports. The above are estimates only of the projects based on evidence available. True costs cannot be identified until further along in the process.
The Agency's financial consultant, Stone and Youngberg, has proposed two alternatives for financing:
Alternative I - Issue one maximum-sized Tax Allocation Bond
Alternative II - Issue a Tax Allocation Bond followed by a lease-purchase (Certificates of Participation) financing for public buildings or facilities such as the Center.
Staff and the consultant are recommending Alternative I. Such an issue could generate approximately $10.1 million in proceeds to be used for the projects. Bond Counsel has assured staff that these monies can also be used for any legitimate public project that meets Redevelopment requirements.
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AGENDA BILL NO. 94 PAGE 2
The portion of the proceeds to be used to finance the Senior Center would be supported by the 20% housing set-aside. (These funds are to be used for low-income housing or amenities).
Operating expenses for the agency would be deducted from the tax increment prior to obligating funds for this program.
A discussion of alternatives and their impact on the capital program will be provided by staff and financial consultant at this meeting.
FISCAL IMPACT:
The repayment of debt issued by the Redevelopment Agency in the form of tax allocation bonds is the responsibility of the agency. The City of Carlsbad will not guarantee or propose to supplement the repayment of this debt in any way. All the debt service payments will be made from the agency's tax increment revenue.
Projection of tax increment revenue show that the can agency successful support an issue of $10 million to $12 million depending on the cost of issuance and interest rates at the time bonds are sold. The Commission's action approving the issuance of debt not to exceed $14 million provides the agency with the flexibility to work with the market at time of sale. The agency should be able to support both debt service payments and operating costs from tax revenues.
The agency currently owes $4.1 million to the City for loans made in past years. Repayment of these loans will be deferred until the agency's tax increment revenue grows to a level sufficient to begin repayment.
EXHIBITS:
l- Housing and Redevelopment Commission Resolution No. 99
2- Stone and Youngberg Tax Increment Projections and Bonding Capacity, dated January 21, 1988 (Alternatives I and II)
SEE RED 3-RING BINDER.
RESOLUTION NO.99
RESOLUTION OF THE BOARD OF DIRECTORS OF TBE REDEVELx)PMENT AGENCY OF THE CITY OF CARLSBAD AUTBORIZING THE ISSUANCE AND SALE OF TAX ALLx)CATION BONDS IN THE APPROXIMATE PRINCIPAL AMOUNT OF NOT TO EXCEED FOURTEEN MILLION DOLIARS ($14,000,000) FOR THE VILLAGE REDEVELOPMENT PROJECT, APPROVING TBE FORM OF NOTICE OF INTENTION TO SELL SAID BONDS AND DIRECTING THE PUBLICATION THEREOF AND APPROVING THE FORM OF INDENTURE AND OFFICIAL STATEMENT
WHERFAS, the Redevelopment Agency of the City of
Carlsbad (herein referred to as the llAgencyll) is a
redevelopment agency (public body, corporate and politic)
duly created, established and authorized to transact business
and exercise its powers, all under and pursuant to the
Community Redevelopment Law (Part 1 of Division 24
(commencing with Section 33000) of the Health and Safety Code
of the State of California) and the powers of the Agency
include the power to issue bonds for any of its corporate
purposes; and
WHEREAS, the Agency wishes to sell at this time not more
than $14,000,000 in the aggregate principal amount of the Tax
Allocation Bonds to provide financing in connection with the
Village Redevelopment Project: and
WHEREAS, the Agency is required by law to sell the Bonds
at competitive bid following publication of notice of
intention to sell such securities;
NOW, THEREFORE, THE COMMISSION OF THE REDEVEIx)PMENT
AGENCY OF THE CITY OF CARLSBAD DOES HEREBY RESOLVE, DETERMINE
AND ORDER AS FOLLOWS:
SECTION 1. Sale Authorized. The sale of an aggregate principal amount of not to exceed Fourteen Million Dollars ($14,000,000) ( or such lesser amount as may be specified in the notice of sale as approved by the Executive Director) of the REDEVEMPMENT AGENCY OF THE CITY OF CARLSBAD, VILLAGE
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REDEVELOPMENT PROJECT AREA TAX ALLOCATION BONDS, SERIES A (herein sometimes referred to as the t8Bonds@1), in accordance with law, is hereby authorized. The final bond size shall be determined by the Executive Director to be the maximum size which, when adjusted for costs of issuance and reserve funds, will result in a net spendable amount to the Agency of not less than $9,500,000.
SECTION 2. Publication of Notice of Intention to Sell Securities. The Notice of Intention to Sell Securities attached hereto as Exhibit A is hereby approved subject to such changes as requested by Bond Council. The Executive Director shall cause said cause said Notice of Intention to Sell Securities (a) to be published in a newspaper published and of general circulation in the City of Carlsbad, California, by at least one (1) insertion at least ten (10) days prior to the day fixed for the receipt of bids; and (b) to be published in a financial publication generally circulated throughout the State, namely The Bond Buyer, by at least one(l) insertion at least fifteen (15) days prior to the day fixed for the receipt of bids.
SECTION 3. Furnishinq of Notice Invitina Bids and Official Statement.The Executive Director of the Agency and the Financial Consultant are hereby authorized and directed to cause to be prepared and furnished to prospective bidders a reasonable number of copies of the notice inviting bids (including the bid form) substantially in the form attached hereto as Exhibit B, with such changes thereto as my be approved by the Executive Director, together with a reasonable number of copies of the Official Statement.
SECTION 4. Approval of Official Statement.The form of Official Statement to be delivered to the purchaser of the bonds is hereby approved in substantially the form presented, with such changes therein as may be approved by the Chairman of the Agency upon the advise of bond counsel and the financial advisor, the Chairman's execution thereof to be conclusive evidence of approval of such changes.
SECTION 5. Apnroval of Indenture. The Trust Indenture and the form of bond contained therein is hereby approved in substantially the form presented, together with such changes thereto as shall be approved by the Chairman on the advice of bond council and the financial advisor, the Chairman's execution thereof to be conclusive evidence of such approval.
SECTION 6. AWARD OF BONDS. At the time and place shown in the Notice Inviting Bids for receipt of bids, the Executive Director of his designee shall open the bids and shall accept the responsible bid offering to purchase the Bonds at the lowest net interest cost, provided the net interest cost does not exceed 10% per annum and the discount does not exceed 2%, provided the Executive Director may reject all bids if in his judgement it is prudent to do so based on general financial considerations and the advice of the financial advisor.
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SECTION 7. Further Acts. The Chairman and Executive Director of the Agency and any other appropriate official of the Agency are hereby authorized and directed to take any and all necessary and desirable steps to accomplish the delivery of the bonds referenced above, including the execution of any and all required closing documents.
SECTION 8. Effective Date. This Resolution shall take effect upon adoption.
SECTION 9. The Agency Clerk shall certify to the adoption of this resolution and shall cause this resolution and his certification to be filed in the Office of the Agency Clerk.
PASSED, APPROVED AND ADOPTED at a special meeting of the
Housing and Redevelopment Commission of the City of Carlsbad,
California, on the 2nd day of February, 1988, by the
following vote, to wit:
AYES : Commissioners Lewis, Kulchin, Pettine, Mamaux and Larson
NOES : None
ABSENT: None
ABSTAIN: None
CEAbDE A. LEWIS, Chairperson ATTEST:
L).J@JTE@RANZ, City Clerk
REN R. KUNDTZ, Deputy City Clerk
(S=w
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EXHIBIT A
NOTICE OF INTENTION TO SELL SECURITIES
Notice is hereby given that on , 198-, at -.m., Pacific Time, or at such time on * 198 or 198 until bids are accepted, in the 0ffTces of Stone & GoungGerg, One California Street, Suite 2800, San Francisco, California 94111, the Redevelopment Agency of the City of Carlsbad will receive bids for the sale of its Village Redevelopment Project Area Tax Allocation Bonds, Series A, in the aggregate principal amount of Dollars ($ )* Copies of the Complete Notice Inviting Bids and other information concerning said bonds may be obtained from Stone & Youngberg, One California Street, Suite 2800, San Francisco, California 94111, (415) 981-1314.
Redevelopment Agency of the City'of Carlsbad
-5- 8326k/2410-01
EXHIBIT B
NOTICE INVITING BIDS
REDEVELOPMENT AGENCY OF THE
CITY OF CARLSBAD
VILLAGE REDEVELOPMENT PROJECT AREA
TAX ALLOCATION BONDS, SERIES A
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of Dollars ($ 1 aggregate principal amount of tax
allocation bonds (as designated herein) of the Redevelopment Agency of the City of Carl&ad (the "Agency") will be received by the Agency up to the time and at the place specified below:
Time: .M. (Pacific Time) -- I , 198-
Place: Stradling, Yocca, Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660
Railed Bids: Mailed bids should be addressed to:
Redevelopment Agency of the City of Carl&ad c/o Stradling, Yocca, Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660 Attn: Thomas P. Clark, Esq.
OPENING OF BIDS: The bids will be received at the above place, will be opened at the above time by the Financial Consultant and Bond Counsel and will be presented to the Agency for its consideration. If bids are not accepted by
the Agency on , 198-, the Bonds will be sold at the same time and
place on , 198-, or , 198-, until bids are accepted.
ISSUE: Dollars ($ 1, designated "Redevelopment Agency of the City of Carlsbad, Village Redevelopment Project Area Tax Allocation Bonds, Series A” (the "Bonds"), consisting of fully
registered Bonds, in denominations of five thousand dollars ($5,000) each or
any integral multiple thereof, initially &ted as of March 1, 1988, and
numbered consecutively upward in order of issuance.
MATURITY: v The Bonds will mature on September 1, 2012.
INTEREST: The Bonds will bear interest at a rate to be fixed upon the sale thereof but not to exceed twelve percent (12%) per annum, payable semiannually on March 1 and September 1 in each year, commencing on September
1, 1988.
PAYMENTS : The principal of, premium, if any, and interest on the Bonds
are payable in lawful money of the United States of America; interest being
payable by check or draft mailed to the registered Owner of the Bond at his
address as shown on the registration books of the Trustee on the 15th day
prior to any interest payment date, and principal being payable at the
corporate trust office of Security Pacific National Bank, Trustee for the
Agency. in Los Angeles, California.
TRANSFER AND EXCHANGE: Transfer of ownership of a Bond or Bonds will be
,made by exchanging the same for a new Bond or Bonds and transferring the
registration of such Bond or Bonds on the registration books of the Trustee.
CALL AND REDEMPTION: The outstanding Bonds, or any of them, may or will, as the case may be, be called before maturity and redeemed as follows:
(a) Optional Redemption. Bonds maturing on or before September 1, 1995 are not subject to call and redemption prior to their stated maturities. Bonds maturing on or after September 1, 1996 are subject, at the option of the Agency, to redemption of such maturity or maturities as may be designated by a written request of the Agency filed with the Fiscal Agent and otherwise in inverse order of maturity, and by lot within any one maturity, prior to their stated maturities as a whole on any interest payment date or in part on any interest payment date commencing September 1, 1996, upon payment from any source of funds available of the principal amount and accrued interest, plus
the following premium (expressed as a percentage of the principal amount so
redeemed) if redeemed on the following interest payment dates:
Redemption Date Premium
September 1, 1995 and March 1, 1996 2.0%
September 1, 1996 and March 1, 1997 1.0%
September 1, 1997 and March 1, 1998 0.5%
September 1, 1998 and March 1, 1999 0.0%
(b) Sinking Account Redemption. Bonds maturing September 1, 2015
(the "Term Bonds") are subject to mandatory redemption in part from sinking account installments on September 1, 2002, and on each September 1 thereafter up to and including September 1, 2011, at a redemption price equal to 100% of the principal amount htereof plus accrued interest, if any, to the redemption date without premium. The following sinking account installments are calculated to be sufficient to redeem the following principal amount of 2012
Term Bonds:
B-2 8325k/2410-01
Year Ending September 1) Principal Amount
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (maturity)
$
PURPOSE OF ISSUE: The Bonds are to be issued by the Agency under and pursuant to the -unity Redevelopment Law of the State of California (Part 1 of Division 24 of the Health and Safety Code) to aid in the financing of a redevelopment project in the City of Carl&ad, California, known as the
"Village Redevelopment Project", pursuant to a Trust Indenture to be entered
into between the Agency and Bank, providing for the issuance of the Bonds (the "Indenture"), to which reference is made for
further particulars.
SECURITY: The Bonds are payable, as to both principal and interest, solely from Tax Revenues (as defined in the Indenture). The Bonds are not a
debt of the City of Carlsbad, the State of California or any of its political
subdivisions.
TERMS OF SALE
Interest Rate: The rate or rates bid may not exceed twelve percent (12%) per annum, payable semiannually on March 1 and September 1 in each year, conxnencing on March 1, 1988. The rate bid must be a multiple of one-eighth of one percent (l/8%) or one-twentieth of one percent (1120%). All Bonds must bear the same interest rate. No Bond may bear more than one interest rate and each Bond must bear interest at the rate specified in the bid from its date to its fixed maturity date.
Sale of Bonds: The Bonds will be sold for cash only and all bids must be for not less than all of the Bonds hereby offered for sale. Each bid shall
state: (1) that the bidder offers accrued interest from the date of the Bonds
to the date of delivery; (2) the purchase price, which shall not be less than
ninety-eight percent (98%) of the principal amount thereof; and (3) the interest rate or rates, as the case may be, not to exceed that specified herein, at which the bidder offers to buy the Bonds. Each bidder shall state in its bid the total interest cost in dollars and the net interest rate
determined thereby, which will be considered informative only and not a part
of the bid.
B-3 8325k/2410-01
.
Successful Bidder; Bond Printing: The Bonds will be awarded to the
responsible bidder or bidders considering the interest rate specified and the
premium or discount offered, if any. The successful bid will be determined by
deducting the amount of the premium (if any) from, or adding the amount of the discount (if any) to, the total amount of interest which the Agency would be
required to pay from the date of the Bonds to the maturity date thereof at the
rate specified in the bid and the award will be made on the basis of the
lowest net interest cost to the Agency. If two or more bids provide the same
lowest net interest cost, the Agency will determine by lot which bid will be
accepted, and such determination will be final. The purchaser must pay accrued interest from the date of the Bonds to the date of delivery thereof computed on a 360-day year basis. The cost of printing the Bonds will be borne by the Agency. For the purposes *of determining interest cost, the Bonds
maturing on September 1, 2012 will be deemed to mature on September 1 in the
amounts and in the years as set forth above under the caption "Call and
Redemption".
Right of Rejection: The Agency reserves the right, in its discretion, to
reject any and all bids and, to the extent not prohibited by law, to waive any
irregularity or informality in any bid.
Award of Bonds: The Agency will take action awarding the Bonds or
rejecting all bids not later than twenty-six (26) hours after the time herein prescribed for the receipt of bids; provided that the award may be made after the expiration of such specified time if the bidder has not given to the Agency notice in writing of the withdrawal of such bid. Notice of the award will be given promptly to the successful bidder.
Form of Bid: Each bid, together with the bid check, must be in a sealed envelope addressed to the Agency, with the envelope and bid clearly marked "Bid for the purchase of $ Redevelopment Agency of the City of Carl&ad, Village Redevelopment Project Tax Allocation Bonds, Series A." Each bid must be unconditional and in accordance with the terms and conditions set forth or permitted herein and must be submitted on, or in substantial accordance with, the bid form provided by the Agency.
CUSIP: CUSIP identification numbers may be imprinted on the Bonds, but
such numbers will not constitute a part of the contract evidenced by the Bonds and no liability will attach to the Agency or any of the officers or agents
thereof because of or on account of said numbers. Any error or omission with
respect to said numbers will not constitute cause for refusal by the
successful bidder to accept delivery of and pay for the Bonds.
Delivery and Payment: Delivery of the Bonds will be made to the successful bidder at such place as may be agreed upon by the successful bidder and the officer of the Agency making delivery. Payment for the Bonds must be made in funds immediately available to the Agency in Los Angeles, California.
Form of Delivery; Cancellation for Fate Delivery: The Bonds.are scheduled to be delivered to the successful bidder within thirty (30) days following the sale thereof. If the Agency fails to execute the Bonds and
B-4 8325k/2410-01
tender them for delivery by twelve o'clock noon on the 60th day following the date of sale or the first business day thereafter if said 60th day is not a business day, the successful bidder may (subject to the conditions set forth below under the heading "Good Faith Check"), on that day or any time thereafter until delivery of the Bonds, withdraw its bid by serving notice of cancellation, in writing, on the undersigned, in which event the Agency will promptly return the good faith check. The Agency expects to deliver the Bonds in the form of definitive bonds, but reserves the right to make such delivery
in the form of temporary bonds, exchangeable for definitive bonds, at no cost
to the purchaser. Accrued interest to the date of delivery of the Bonds will
be paid by the purchaser at the time of delivery.
Good Faith Check: A certified or cashier's check drawn on a responsible
bank or trust company in the amount of fifty thousand dollars C$50.000) payable to the order of the Agency must accompany each bid as a guaranty that the bidder, if successful, will accept and pay for the Bonds in accordance with the terms of his bid. No interest will be allowed on such good faith checks, and good faith checks of unsuccessful bidders will be promptly returned to each bidder's representative by hand delivery or registered mail. The good faith check accompanying any accepted bid will be cashed and the proceeds thereof applied to the purchase price. If such bid is accepted but not performed, unless such failure or performance is caused by any act or omission of the Agency, the proceeds of the good faith check accompanying any accepted bid will be retained by the Agency.
Change in Tax Exempt Status: At any time before the Bonds are tendered
for delivery, the successful bidder may disaffirm and withdraw the bid if the
interest on bonds of the same type and character as the Bonds are declared to
be taxable under present federal income tax laws, either by a ruling of the
Internal Revenue Service or by a decision of any federal court, or are
declared taxable by the terms of any federal income tax law enacted subsequent
to the date of this notice.
Legal Opinion: The opinion of the Bond Counsel firm of Stradling, Yocca,
Carlson & Rauth, A Professional Corporation, Newport Beach, California,
approving the validity of the Bonds and stating that, under existing statutes, regulations, rulings and court decisions, interest on the Bonds is excluded from gross income for federal income tax purposes and from present State of California personal income taxes, will be furnished to the successful bidder at the time of delivery of the Bonds at the expense of the Agency. A copy of such opinion, certified by an officer of the Agency by his facsimile signature, will be printed on the back of each Bond. No charge will be made to the purchaser for such opinion, printing or certification.
Closing Documents: In addition to the opinion of Bond Counsel referred
to above, at the time of payment for the delivery of the Bonds, the Agency will furnish the successful bidder the following documents, all to be dated as of the date of delivery:
B-5 8325k/2410-01
1.
2.
3.
4.
5.
Arbitrage Certificate -- A certificate of an appropriate officer of
the Agency certifying that, on the basis of facts, estimates and circumstances in effect at the time of delivery of the Bonds, it is not expected that the proceeds of the Bonds will be used in a manner that will cause the Bonds to be arbitrage bonds.
No Litigation Certificate -- A certificate of an appropriate officer of the Agency certifying that there is no litigation pending or, to the best of such officer's knowledge, threatened against the Agency affecting the validity of the Bonds.
Signature Certificate -- A certificate of appropriate officers of
the Agency indicating that they have signed the Bonds by manual or facsimile signature and that they were duly authorized to execute the
Same.
Trustee’s and Treasurer’s Receipts -- The receipts of the Trustee and the Treasurer of the Agency showing that the purchase price of the Bonds, including accrued interest to the date of delivery, if any, has been received by the Agency and the Trustee, respectively.
Certificate Concerning Official Statement -- A certificate of an
appropriate officer of the Agency, acting in such person's official
and not personal capacity, to the effect that at the time of the sale of the Bonds and at all times subsequent thereto up to and including the time of delivery of the Bonds, the Official Statement relating to
the Bonds did not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made,
not misleading.
Official Statement: The Agency will furnish to the successful bidder, at
no charge, such number of copies of the Official Statement as said bidder may
reasonably request (but not to exceed 250) for use in connection with any
resale of the Bonds.
INFORMATION AVAILABLE: Requests for copies of the Official Statement
pertaining to the Bonds, the Official Bid Form, or for other information
concerning the Agency, should be addressed to Stone & Youngberg, One California Street, Suite 2800, San Francisco, California 94111, telephone (415) 981-1314.
GIVEN by resolution of the Agency adopted on , 198-.
Executive Director of the Redevelopment Agency
of the City of Carl&ad .
8325k/2410-01
B-6
OFFICIAL BID FORM
REDEVELOPMENT AGENCY OF THE
CITY OF CARLSBAD
VILLAGE REDEVELOPMENT PROJECT AREA
TAX ALLOCATION BONDS, SERIES A
, 1988
Redevelopment Agency of the City of Carl&ad Carl&ad, California
On behalf of a group which we have formed consisting of
and pursuant to the Notice Inviting Bids, we offer to purchase
Dollars ($ 1 principal amount, all or none, of the Bonds designated as "Redevelopment Agency of the City of Carlsbad, Village Redevelopment Project Area Tax Allocation Bonds, Series A," particularly described in the Notice Inviting Bids, at the interest rate of % and to pay therefore the aggregate sum of $ *, plus accrued interest on such Bonds to the date of delivery thereof.
This bid is subject to all of the terms and conditions of the Notice Inviting Bids, all of which terms and conditions are hereby accepted by us and are made a part hereof as though set forth fully in this bid.
Except as otherwise specified in the Notice Inviting Bids, this bid is subject to acceptance not later than twenty-six (26) hours after the expiration of the time for the receipt of bids, and the opinion of the Bond Counsel firm of Stradling, Yocca, Carlson & Rauth, A Professional Corporation, Newport Beach, California, approving the validity of the Bonds, being furnished us (if we are the successful bidder) at the time of delivery of the Bonds at the expense of the Agency.
“$ plus premium or less discount, if any (discount not to-exceed 2%).
B-7 8325k/2410-01
There is enclosed herewith a * check in the amount of
Dollars ($ 1, payable to the order of the Redevelopment Agency of the City of Carlsbad.
There is submitted herewith a "Memorandum of Interest Cost" (which shall _
not constitute a part of this bid), stating the total interest cost in dollars on the Bonds during the life of the issue under this bid and the net interest rate determined thereby.
Respectfully submitted,
Name :
(Account Manager)
By:
Address: City: State: Telephone:
MEMORANDUM OF INTEREST COST
The total interest cost on the Bonds during the life of the issue under
the above bid is $ I and the net interest rate determined thereby is %.
Please provide the name, address and telephone number of the person to
whom the good faith check should be returned in the event of an unsuccessful
bid.
Address: City: State: Telephone:
Zip:
* Insert "certified" or "cashier's"
B-8
8325k/2410-01
,
CIRLSI%D REDEVELOPMENT AGEMCY OPTIDN A: TAB FDR fiLL PRDJECTS, NO CDP ISSUE
TAX INCREHENT PROJECTIONS AND BOWDIN CAPACITY HUUSING FUNDS INCLUDED AS ISSUE PRDCEEDs, USED TOWARDS SENIOR CEHTER PRDJECT ================================================ =============================================:==:===========:===============
kxhnptians ---e-------
1987/M Tax Increment $938,000
TA Bond Coverage Factor 120.0x
Katz Hollis Tax Revenue Projections Ml
Tax Allocation Rand (Cl ------^---------------
Sources
'88 Bonds ~11,600,000
@per. Bgt. Growth Rate 5.0% Use5
Existing Funds Balance t150,OOO (Bl Cash Proceeds 4,395,230
Agency Int. Earn. Rate 7.25% 118 MD. Treasuries) Housing Funds 3,500,000
Funded Interest 0
TAB Interest Rate B.OOX 20 Yr Terr Reserve Fund 957,970
Issuance C05t5 346,800
TFIB Delivery Date: Ol-Rpr-fla Escrow Fund 2,400,OOO
Construction Total: %,544,551 (Dl
Projections Proceeds far Sr. Ctr $3,500,000 (El --------m-- Fiscal Year
19aa 1989 1990 1991 1992 1993 1994 1995 1996 1997 ----- ------ ---- -- ----- ------ -- ---- ----we ---me- ------ --m-e-
6ross Tax Revenue 18) $938,000 31,178,OOO $1,425,000 tl,59!&000 $1,679,000 $1,750,000 $1,821,000 U,894,000 31,969,000 $2,045,000
TAB Debt Service (Cl I736,OOO) (957,970) (957,970) (957,970) 1957,970) (957,970) 1957,970) (957,970) (957,970)
TM Escron Draw-Dam D/S 0 4218,668) (250,679) (250,679) (250,679) (250,679) (250,679) (250,679) (250,679)
TA8 Funds' Int. Earn (Fl 517,559 240,424 07,627 %7,627 87,627 07,627 87,627 01,627 87,627
------..- ------- -------- -------- ----*- m------- -------- -------- -------- --------
Net Revenue 938,000 959,559 488,785 476,978 557,978 628,978 699,978 772,978 047,978 923,978
Net Housing Set-kideM ~187,600) 0 0 0 0 0 0 0 0 (7,434)
Excess _
Interest Earnings 1H)
Operating Exp.
Surplus/KhortfalI)
------- -------- -------- -m----- -------
750,400 959,559 488,785 476,978 557,978
-------- -------
628,978 699,978
-----w--
772,978
----m---
047,978 916,545
Cumulative Surplus
TAB Coverage Ratio:
TAB Escrow draw-down:
TIlB Escron Balance:
Reserve Requirement:
Het Escrow Proceeds:
Notes: --m--m
3,625 10,875 10,875 10,875 10,875
1425,000) 1446,250) 1468,563) (491,991) ~516,590~ -------- -------- ----L--m -------- --------
52,263 329,025 524,164 31,098
329,025 053,209 884,307
1.60 1.21
2,100,000 300,000
2,400,OOO 300,000 0
957,970 1,176,638 1,208,649
i 881 7-2 1 IJJ 267,909
(1,137)
080,169
1.32
932,433 1,029,866 1,171,179 1,357,015 1,587,950 1,856,055
1.39
0
0
1,208,649
0
0
0
1,208,649 1,208,649 1,208,649 1,208,649 1,208,649 1,208,649
0 0 0 0 0 0
10,875 10,875 10,875 10,875
(542,420) (569,541) (598,018) (627,919) ------- -------- -------- --------
97,434 141,313 185,836 230,935
10,875
(659,314)
268,105
1.45 1.51 1.57 1.63 1.69
0
0
0 0
0 0
0
0
0
0
ICI) Tax increaent figures based an Katz-HoIlis Ietter of October 30, 1987.
(31 Estimate of the average amount of cash available in the Agency's Fund balance.
(C) Resumes Issuance in March, 1988 with interest only payments in the first year. Priocipal payments follow beginning Rarch, 1930.
10) Net cash proceeds and net escrow proceeds available for construction of kgency Projects. _
(El Capitalized Housing Fund Set-&side froceeds are utilized for the development of the Senior Center. Construction is assumed
to begin in July, 1988 and cover an 18 kanth period.
IF) Interest earnings on the TAB construction fund over the construction period and on the Reserve.
(G) The Net Housing Set-bside represmts 20% of 6ross Tax Revenue after payment of the Senior Center portion of Debt Service.
iH) Interest earnings represent interest on the Agency’s available funds.
CFlRLTAB5
Stone h Youngberg 25-Jan-38
. .
CRRLSPAD REDEVELDPHENT MEMCY
TAX INCRENENT PROJECTIONS MD BONDIN CBPdCITY ------------------------------------------------ ----------------_-------------------------------
OPTION B: TAB FOR AGENCY PROJECTS, COP FOR SENIOR CENTER
HOUSIWG FUNDS INCLUDED AS COP ISSUE PROCEEDS, USED TOWRRDS SENIOR CENTER FROJECT ========================================================~==========~=============
Awmpt ions -----------
1987188 Tax Increment t93a,o01)
TA Bond Coverage Factor lZO.K!
Katz Hollis Tax Revenue Projections IA)
Oper. Bgt. Gronth Rate 5.9%
Existing Funds Balance 3150,900 ai
Agency Int. Earn. Rate 7.25%
TAB Interest Rate 8.99% 29
COP Interest Rate: 7.80X 20
TAB Delivery Date: Ol-Apr-88
COP Delivery Date: Ol-Jill-88
Projections ----------- 1988 1989 e----e ------
Gross Tax Revenue IA) $938,000 11,178,000 31
Lease Pats. (E) 1181,2001
COP Capitalired Interest 181,200
COP Funds' Int. Earn, (6) 160,689 -----..-- --------
Net Revenue 939,000 1,338,619 1,507,400 1,364,217 1,23&J&5 1,307,865 1,378,865 1,451,865 1,526,865 1,602,865
Net Housing Set-Aside(H) (187,600) (235,600) l285,OOOl 0 0 0 0 0 0 0 -------- -------- -------- _------- -__---- -------- -------- -------- -------- ---_----
Avail for TABS 750,400 1,103,089 1,222,4OO 1,164,217 1,236,865 1,307,865 1,378,865 1,451,865 1,526,865 1,602,865
TBB Debt Service (Cl (605,200) (787,700) (787,7001 (787,700) (787,700)
TM Funds' Int. Earn. (1) 473,373 57,100 57,100 57,100 57,100 -------- -----se- -------- -------- --------
Excess 750,400 971,262 649,265 721,265 796,265 872,265
(787,700) (787,700) (787,700) (787,700)
181,836 57,100 57,100 57,100 em------ -------- -------- --------
616,536 433,617 506,265 577,265
10,875 10,875 10,875 10,975
(468,563) (491,991) 1516,590) (542,420) ------me ------em a------- --m-----
Tax Allocation Bond (Cl ----------------_-----
Source5
'88 Bands $7,565,000
Use5
Cash Proceeds 6,551,100
Housing Funds 9
Funded Interest 0
Yr Tern Reserve Fund 787,700
Yr Terr Issuance Cost5 226,200
Certificates of Participation (El -_----------____----------------
Sources
‘89 Certificate5 4,645,OOO
Use5
Cash Proceeds 3,516,OOO
Capitalized Interest 513,273
Reserve Fund 476,700
Issuance Costs 139,400
Construction Total: Sb,551,100 (D) Construction Total: 3,516,OOO II
Fiscal Year
1990 1991 1992 19?3 1994 1995 1996 1997 -em--- ------ ----es ------ ---e-w ------ ------ ---me-
,425,OOO 11,598,OOO $1,679,000 t1,750,000 $1,821,000 S1,!394,000 $1,969,000 32,045,OOO
(362,300) (476,735) 1476,735) 6476,735) (476,735) (476,735) (476,735) (476,735)
362,300 6,352
82,400 31,600 34,600 34,600 34,600 34,600 34,600 34,600 -------- _------- -------- -------- ---____- -----__ -------- --------
Interest Earnings (J) 3,625 10,875 Operating Exp. (425,000) (446,250) -------m ------me
SurplWGhortfall) 329,025 535,887
Cumulative Surplui
TAB Coverage Ratio:
329,025
Notes:
864,912
1.56
158,849 147,498) 550 45,720
10,875 10,875 10,875 10,875
(569,541) (598,018) (627,919) 1659,314) -----m-m -------- -------- --------
39,599 134,122 179,222 223,826
1,1)23,761 976,262 976,812 1,022,533 1,112,132 1,246,255 1,425,476 1,649,392
1.45 1.62 1.71 1.79 1.85 1.92 2.00 2.08
ICI) IBI
ICI
ID)
1E)
IF)
(6) Interest earnings an the COP construction fund aver the construction period and an the COPS' Reserve Account
IH) The Wet Housing Set-Aside represents 20% of Grass Tax Revenue after payment of the COPS Lease Payments. (1) Interest earnings on the TCIB construction fund over the construction period and an the TABS' Reserve Account.
IllI Interest earnings include interest an the Agency’s available funds.
Tax increment figures based on Katz-Hallis letter of October 30, 1987. Estimate of the average amount of cash available in the bgency's Fund bplance.
CIssuaes TRBs Iwance in Harch, 1987 nith a September, 1988 interest payment. Principal payments failan beginning March, 1990.
Cash proceeds for construction of Agency Projects including Parking and the Eln h Carlshad Streetscape and storm drain impravenents.
Assunes COPS issuance in July, 1988 with interest payments beginning January, 1989 and principal paysents an July, 1990.
Cash proceeds will be utilized far the constructuian of the Senior Center. The construction schedule is ar;sumed to last 19
months beginning July, 1988.
Stone L Youngberg
CARLTABL 25-Jan-88