HomeMy WebLinkAboutrda min 1981/07/14
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA
Tuesday, July 14,1981 - 7:00 p.m. Council Chambers - Public Services Building
ROLL CALL
MEMBERS PRESENT Chairman Hyde; Members McCandliss, Gillow, Cox
Members Absent Member Scott
STAFF PRESENT Executive Director Cole, Special Counsel Reed, Community
Development Director Desrochers
ALSO PRESENT Charles Adams, Sue Reville
ITEM NO.1 - RESOLUTION NO. 311 - SELLING $4,000,000 PRINCIPAL AMOUNT OF REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA FLOATING RATE
COI1'1ERCIAL DEVELOPMENT REVENUE BONDS (DAYS INN HOTEL
- BAYFRONT REDEVELOPMENT PROJECT) SERIES 1981, AND
AUTHORIZING THE EXECUTION OF AND APPROVING FINAL
OFFICIAL STATEMENT AND RELATED DOCUMENTS, AGREEMENTS,
AND TRANSACTIONS
Referring to his written report, Community Development Director Desrochers commented
on the $4,000,000 commercial revenue bonds issued for the development of a 118-unit
Days Inn Hotel on Bay Boulevard in the Bayfront project. He noted that since the
pricing of the bonds could not be accomplished any sooner than just before time of
sale that all pertinent data was now available and would be presented to the Agency
members by the representatiye of E. F. Hutton and the Agency Bond Counsel.
CHARLES ADAMS
JONES HALL HILL & WHITE
Four Embarcadero Center
Suite 1950
San Francisco, CA 94111
Mr, Adams, Agency Bond Counsel, requested that the Agency take all final actions with
respect to issuance of the bonds by adopting the resolution which will accomplish the
following: (1) authorize Indenture of Trust between the Agency and Security Pacific
National Bank, as Trustee; (2) Inducement Letter requesting that the Agency and E. F.
Hutton enter into the Bond Purchase Agreement; (3) Bond Purchase Agreement, imple-
menting the sale; (4) Loan Agreement between Security Pacific, on behalf of the
Agency, and Days Inn restricting the bonds for the specific purpose of development of
the Days Inn, as proposed; and (5) Official Statement of the Agency dated as of July I,
1981. He further stated that Council action will permit the staff to del iver the bonds
to E. F. Hutton on July 28,1981, as agreed.
Mr. Adams responded to Agency questions related to duties of the Trustee to proceed
to cure any default by Days Inn in the performance of the Loan Agreement; he com-
mented that there would be no liability, financial or otherwise, on the part of the
Agency.
7/14/81
Redevelopment Agency -
Adjourned Regular Meeting -2- July 14, 1981
SUE REVILLE
E. F. HUTTON
San Francisco, CA
Ms,. Reville presented detailed information regarding the sale of $4,000,000 bonds at
par, noting that the bonds went into the public market July 7 and that offers are
outstanding for the full $4 million at a floating interest rate. The tax exempt rate
will be adjusted weekly and interest will be paid semi-annually based upon the weekly
factor which will be the higher of 73% of the 13-week treasury bill rate or 88% of the
30-year constant maturity factor, both of which calculations will be received by the
Trustee from the Federal Reserve in Washington. Responding to members' questions, she
commented that over the 25-year term of the bonds, the interest ceiling is 14% and the
floor is 7%.
After continued discussion concerning the floating interest rate, Mr. Desrochers re-
ported that escrow has been opened and that at closing, a portion of the bond sale
proceeds will be transferred to the Escrow Agent and the property transferred from the
Agency to the Days Inn.
RESOLUTION OFFERED by Member Gillow, the reading of the text was waived by unanimous
consent, passed and adopted unanimously by those present.
ADJOURNMENT at 7:15 p.m. to the adjourned regular of Thursday, July 23, 1981
at 4:00 p.m.
7/14/81