Loading...
HomeMy WebLinkAboutrda min 1975/07/15 REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Held Tuesday July 15, 1975 A regularly scheduled meeting of the Redevelopment Agency of the City of Chula Vista, California, was held on the above date beginning at 9:01 p.m. in the Council Chamber, City Hall, 276 Fourth Avenue, with the following Members present: Chairman Hamilton, Members Scott, Hyde Members absent: Members Egdahl, Hobel Staff present: Executive Director Cole, Assistant City Manager Asmus, City Attorney Lindberg, Director of Public Works Robens, Director of Planning Peterson, Director of Community Development Desrochers APPROVAL OF MINUTES It was moved by Member Scott, seconded by Chairman Hamilton and unanimously carried that the minutes of the meeting of July 1, 1975 be approved, copies having been sent to each Member. Motion for procedural It was moved by Member Scott, seconded by resolution Member Hyde and unanimously carried that a resolution be brought back to the Redevel- opment Agency for adoption of the same plans and procedures the Council now follows. Conflict of Interest Member Scott asked the City Attorney the legality of a conflict of interest on his part since he is employed by Merrill Lynch. City Attorney Lindberg determined there would be no conflict regarding Member Scott's voting on the matter. The examina- tion of Member Scott's position with Merrill Lynch indicates that Member Scott can proceed with consideration of these matters. -71- Member Scott stated for the record that he has been given this opinion, he does work for Merrill Lynch, a firm in the under- writing business that may bid on these bonds. RESOLUTION NO. 17 Community Development Director Desrochers AUTHORIZING THE ISSUANCE reported that the resolution was prepared OF $3,400,000 BONDS OF by the Agency's special bond counsel, SAID AGENCY TO FINANCE A O'Melveny and Myers, under contract for PORTION OF THE COST OF A services in connection with the Bayfront REDEVELOPMENT PROJECT Bond Sale. The resolution places the KNOWN AS THE BAYFRONT Agency's stamp of approval on the bond REDEVELOPMENT PROJECT sale and determines the extent and limita- tions of the issue as well as the wording of the bonds. Mr. Terrance McCarthy Mr. McCarthy explained the contents of the Stone and Youngberg three (3) resolutions before the Agency San Francisco for adoption. There is a notice of sale giving everyone formal notice and the terms under which they are to bid. The resolution which sets forth the issuance of the bonds sets forth the terms and conditions of the bonds. The resolution becomes a contract between the Agency and the bond holders when the bonds are sold and delivered. The other resolution is the adoption of the official statement of the Agency that summarizes the provision of the resolution and some of the terms of the sale. It lists where the sources of revenues are going to come from to pay those bonds. Tax exemption In answer to Member Hyde's question, bonds Mr. McCarthy stated that if the Federal government removed the exemption on tax- allocated bonds, all municipal bonds would no longer be exempt from Federal taxation. In all probability, they would not be going back and abrogating contracts. -72- Discussion on Member Scott and Mr. McCarthy discussed ratings the rating of the City as it now stands (BAA+l) and the possibility of getting this rating upgraded. Mr. McCarthy said it would be his opinion that the Agency can get a BAA Moody's or triple B Standard rating. The Agency may even get a BAA-l from Moody's and possibly a BBB+ from Standard and Poor. Member Scott asked if there would be any advantage in having Mr. McCarthy and Mr. Desrochers apply to the rating firms on their trip to New York for an A rating for the City. Mr. McCarthy said that would only help the owner of the present City's general obligation bonds. It would make their bonds more valuable to them. The cost for each agency's rating would be approxi- mately $1,100.00. Mr. McCarthy felt there would be no advantage to this, because if the City did come up with a new issue of general obligation bonds, it would have to apply for a new rating. Assessed valuation Alan Miller, Stone and Youngberg, explained the assessed valuation of the project noting that there would be an extra increment of at least 6.4 million. The tax revenues would come from that increment and this will be used to support the bonds. Resolution offered Offered by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Scott, Hamilton, Hyde Noes: None Absent: Members Hobel, Egdahl -73- RESOLUTION NO. 18 The Notice Inviting Bids was prepared by DIRECTING THE SECRETARY TO O'Melveny and Myers. It stipulates the GIVE NOTICE INVITING date of the sale as August 19, 1975, SEALED BIDS FOR BONDS OF 11:00 a.m. in the offices of O'Melveny SAID AGENCY and Myers in Los Angeles. At the meeting that evening, August 19, the Agency will be asked to accept the low bid. Resolution offered Offered by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Scott, Hamilton, Hyde Noes: None Absent: Members Hobel, Egdahl RESOLUTION NO. 19 Mr. Desrochers, Community Development APPROVING AS TO FORM THE Director, explained that as part of their OFFICIAL STATEMENT FOR THE consulting services, Stone and Youngberg BAY FRONT TAX ALLOCATION has prepared the draft of the Official BOND SALE Statement relative to the bond sale for the Bayfront Project. The text details the specifics of the issue and provides a capsule narrative on the City and the Bayfront project. Member Scott remarked that this Official Statement was a fascinating document and recommended its reading to anyone interested in the finances of Chula Vista. Resolution offered Offered by Member Scott, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Scott, Hamilton, Hyde Noes: None Absent: Members Hobel, Egdahl RESOLUTION NO. 20 On January 22, 1975, the Agency adopted Rules AMENDING RESOLUTION NO. I and Regulations in accordance with Section OF SAID AGENCY RELATING TO 33126 of the Health and Safety Code of the THE RULES AND REGULATIONS State of California. In light of pending OF SAID REDEVELOPMENT AGENCY issuance of bonds on the Bayfront Project, DESIGNATING THE DIRECTOR Community Development Director Desrochers OF FINANCE OF THE CITY OF stated it was now necessary to create a CHULA VISTA AS AGENCY new section under Article II - Officers TREASURER AND DESCRIBING designating the City's Finance Director THE DUTIES AND FUNCTIONS as the Agency Treasurer. RELATIVE THERETO -74- Resolution offered Offered by Member Hyde, the reading of the text was waived by unanimous consent, passed and adopted by the following vote, to-wit: AYES: Members Hyde, Scott, Hamilton Noes: None Absent: Members Hobel, Egdahl MOTION REGARDING Mr. Desrochers remarked that 800 of these OFFICIAL STATEMENT statements will be printed. It was moved by Member Hyde, seconded by Member Scott and unanimously carried that the Redevelopment Director contact the Chamber of Commerce to see if they want copies, and reconsider whether or not the City will receive enough copies, and whether there is a need for more and recommend this to the Agency along with the cost involved. TRIP TO NEW YORK Mr. Desrochers asked for Agency's approval of a trip to New York for himself and Mr. McCarthy for two (2) days in August in regard to the bond sale. The cost for the trip would come out of the bond sale. Motion for approval It was moved by Member Scott, seconded by Member Hyde and unanimously carried that the trip be approved. PROPOSAL TO PLANNING Community Director Desrochers commented COMMISSION that on August 23, 1975, he will be presenting a proposal to the Planning Commission regarding the Street property on Bay Boulevard and "B'Street. The plan developed by Mr. Street is an exciting one and will be an asset to the Bayfront project. -75- Mr. Desrochers further commented that he will also be presenting a proposal from Rohr (in September) for a two-story credit union on Bay Boulevard and "I" Street. ADJOURNMENT Chairman Hamilton adjourned the meeting at 9:25 p.m. to the meeting scheduled for July 22, 1975. /'1 i.' ~~ \ . '. / . 1 ../'(~,t..--~ / -; -ð/ . / Secre ary (.,.-//1 -76-