| REDEVELOPMENT AGENCY AGENDA ITEM NO.
Meeting Date: January 28, 2003
Subject/Title: Approve a Resolution approving Indebtedness of the Redevelopment Agency in an Amount Not to Exceed $7,000,000 for the Purpose of Financing and/or Refinancing Redevelopment Activities and Approving Related Actions
Submitted by: Gina Rozenski, Redevelopment Analyst
Approved by: John Stevenson, Executive Director
Approve a resolution approving indebtedness of the Redevelopment Agency in an amount not to exceed $7,000,000 for the purpose of financing and/or refinancing redevelopment activities and approving related actions.
The staff recommends that the City and the Redevelopment Agency adopt resolutions in order to approve not to exceed $7,000,000 in tax allocation bonds for the Redevelopment Agency. The Agency anticipates that it will have capacity to issue these bonds between now and the end of Fiscal Year 2003-04, but due to state budget considerations, there may be a moratorium or other limitation on the ability to issue tax increment indebtedness in the future. It is possible that such a moratorium or limit, if enacted, would nevertheless allow the issuance of debt that had already been authorized. While there is no guarantee that this is the case, there is also no cost or disadvantage in authorizing the debt now. Prior to final issuance and delivery of these bonds, the Agency Board would have to approve the method of sale and the official statement for the bonds, so this is not the final action the Agency or Council would take if the Agency goes forward with the financing.
None at this time.
Sources and Uses
RESOLUTION NO. RA-____
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD AUTHORIZING AND APPROVING THE ISSUANCE OF NOT TO EXCEED $7,000,000 OF INDEBTEDNESS IN THE FORM OF TAX ALLOCATION BONDS FOR THE PURPOSE OF FINANCING AND/OR REFINANCING REDEVELOPMENT ACTIVITIES, AND APPROVING RELATED ACTIONS
WHEREAS, the Redevelopment Agency of the City of Brentwood (the “Agency) is a redevelopment agency, a public body, corporate and politic, duly created, established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California (the “Law”), including the power to issue bonds for any of its corporate purposes; and
WHEREAS, the Agency desires to incur indebtedness in an amount not to exceed $7,000,000 by issuing its Redevelopment Agency of the City of Brentwood Tax Allocation Bonds, Series 2003A (the “Series 2003A Bonds”) for the purpose of financing certain public capital improvements within the Agency’s Merged Project Area pursuant to Part 1 Division 24 of the Health and Safety Code and to pay costs of issuance relating to the Series 2003A Bonds.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Brentwood, as follows:
Section 1. The Agency hereby approves the issuance of the Series 2003A Bonds, in an aggregate principal amount not to exceed $7,000,000; provided, that the true interest cost of the Series 2003A Bonds shall not exceed eight percent (8.00%).
Section 2. The Series 2003A Bonds shall be issued pursuant to a supplemental indenture (the “Supplemental Indenture”) pursuant to the terms of that certain Indenture, dated as of October 1, 2001 (the “Indenture”), by and between the Agency and U. S. Bank Trust, National Association, as trustee (the “Trustee”). The Series 2003A Bonds and the Supplemental Indenture shall be in compliance with all the requirements of Indenture. The Executive Director or Treasurer of the Agency is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver to the Trustee the Supplemental Indenture. The date, maturity dates, interest rate or rates, interest payment dates, denominations, forms, registration privileges, manner of execution, place or places of payment, terms of redemption and other terms of the Bonds and provisions relating to bond insurance, if any, shall be as provided in said Supplemental Indenture, as finally executed.
Section 3. The manner of sale of the Series 2003A Bonds shall be determined by a resolution of the Agency at a later date.
Section 4. The Agency hereby authorizes and directs the officers of the Agency to cause the preparation of an official statement with respect to the Series 2003A Bonds for submission to the Agency for approval.
Section 5. The officers of the Agency are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to consummate the issuance, sale and delivery of the Series 2003A Bonds, including a letter of representations regarding book-entry provisions of the Series 2003A Bonds and a tax certificate, and the execution of an agreement or undertaking to comply with the requirements of Securities and Exchange Commission Rule 15c2-12, and otherwise to effectuate the purposes of this Resolution and the transactions contemplated hereby.
Section 6. This resolution shall take effect from and after its passage and approval.
PASSED, APPROVED AND ADOPTED this 28th day of January, 2003, by the following vote:
Karen Diaz, City Clerk