HomeMy WebLinkAboutrda min 1979/08/21
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA
Tuesday - 8:17 p.m. Augus t 21, 1979
An adjourned regular meeting of the Redevelopment Agency of the City of Chula Vista
was held on the above date beginning at 8:17 p.m. immediately followin9 the regular
City Council meeting in the Council Chambers, Public Services Building, 276 Fourth
Avenue, Chula Vista, California with the following:
MEMBERS PRESENT Chairman Hyde; Members McCandliss, Scott
Members Absent Members Gillow, Cox
STAFF PRESENT Executive Director Cole, Community Development Director
Desrochers, Special Counsel Reed
ITEM NO. 2 - RESOLUTION NO. 198 - AUTHORIZING CHAIRMAN TO EXECUTE AGREEMENT
WITH MILLER & SCHROEDER MUNICIPALS, INC.
FOR INVESTMENT BANKING SERVICES
Staff, special counsel, consultants and Centre City Associates have been attempting
to package the construction and permanent financing of the condominium development as
part of the Town Centre Redevelopment Project. House Resolution 3712 proved to be a
roadblock, but legal counsel has advised that problems have been resolved and the
City can proceed with an SB99 Mortgage Revenue Bond issue under the Transition Rules
of the Committee. Staff recommended that an agreement be approved with Miller &
Schroeder for investment banking services at 3% of the entire issue when sold.
Stone & Youngberg will remain as the Agency's financial consultants, and all financing
costs will be the obligation of the developer.
Agency members and staff discussed various aspects of HR3712, Transition Rules,
urgency for taking action at this time, Miller & Schroeder ready to proceed immedi-
ately at lower cost, the difference in the function of the investment bankers (who
actually secure the money) and Stone & Youngberg who advise the Agency on various
means of financing.
Special Counsel Reed outlined in detail the services of the investment banking firm
in securing funds for construction loans, the terms and conditions of the agreement,
the need to proceed immediately due to possible legislative changes and also discussed
the fact that the City is not committed at this point but additional resolutions will
be presented to the Agency at the next meeting to actually issue the notes and provide
for the issuance of bonds. He said if all goes well and action is taken on September
6th, it is possible that construction can begin on September 10th.
In answer to a query from Chairman Hyde, Mr. Reed said that Stone & Youngberg recom-
mended that this resolution be adopted.
Mr. Michael Cowett, legal counsel for Centre City Associates, briefly commented on
possible problems with proposed legislation in Washington. He said his firm has been
working closely with staff, Stone & Youngberg, and bond counsel to determine what the
Agency can do and he recommended that the agreement with Miller & Schroeder be approved.
8/21/79
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Redevelopment Agency Adjourned
Regular Meeting August 21, 1979
Mr. Michael McCann, 220 Sansome Street, San Francisco (representing Miller & Schroeder)
briefly discussed the background and qualifications of the firm and answered questions
of Agency members concerning the number of issues pending under SB99 (approximately
15 to 20 qualifying under the Transition Rules), rates for long-term municipal bonds
under SB99, and the finite supply of these bonds.
RESOLUTION OFFERED
Offered by Member Scott, the reading of the text was waived by unanimous consent of
those present, passed and adopted by the following vote, to-wit:
AYES: Members Scott, Hyde, McCandliss
Noes: None
Absent: Members Gillow and Cox
ADJOURNMENT
The meeting was adjourned at 8:43 p.m. to the regular meeting of the Redevelopment
Agency scheduled for September 6, 1979.
8/21/79
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