HomeMy WebLinkAboutrda min 1979/11/06
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
Tuesday - 7:15 p.m. November 6, 1979
An adjourned regular meeting of the Redevelopment Agency of the City of Chula Vista
was held on the above date beginning at 7:15 p.m. in the Council Chambers, Public
Services Building 276 Fourth Avenue, Chula Vista, California with the following:
MEMBERS PRESENT Chairman Hyde; Members Gillow, Cox, McCandliss, Scott
Members Absent None
STAFF PRESENT Executive Director Cole, Special Counsel Reed,
Community Development Director Desrochers
ALSO PRESENT Michael McCann, Andrew Hall
ITEM NO. 1 - RESOLUTION NO. 214 - AUTHORIZING ISSUANCE OF RESIDENTIAL MORTGAGE
REVENUE BONDS FOR THE PURPOSE OF PURCHASING
MORTGAGE LOANS TO PROVIDE FINANCING FOR
RESIDENTIAL CONSTRUCTION PROJECTS
ITEM NO. 2 - RESOLUTION NO. 215 - SUPPLEMENTAL TO RESOLUTION NO. 214 AUTHORIZING
THE ISSUANCE OF RESIDENTIAL MORTGAGE REVENUE
BONDS IN THE PRINCIPAL AMOUNT OF $26,300,000
Community Development Oirector Desrochers introduced Mr. Michael McCann, Miller &
Schroeder Municipals, Inc., and Mr. Andrew Hall, Jones Hall Hill & White, (bond
counsel) .
Mr. McCann explained that the rating agencies visited the City on October 16, 1979
and submitted their documentation on the ratings. The City received an "A-" rating
on the $26,300,000 amount of bonds. The bonds were offered on October 30, 1979.
The interest rates are varied ranging from 7.1% for short maturity bonds to 8-5/8%
for the longer maturity bonds.
Mr. Mcr.ann added that his firm put together a large account comprising of 65 members
in order to market the bonds quickly so that they would not have the risk of the
interest rates moving faster than the bonds.
Upon the Agency's acceptance of the resolutions, a pre-closing session will be held
on Friday, November 9 with the closing of the documents scheduled for Monday,
November 12, 1979 in San Francisco.
The interest rate to the purchaser of the homes will be 9.7%.
Agency discussion followed regarding the bonds being sold or subscribed to by the
Underwriters Syndicates; difference in any rating if the bonds had gone out immedi-
ately after Agency's approval; Moody's rating; term versus serial bonds, and ser-
vicing bonds in the future along with borrowing costs.
Mr. Hall, Jones Hall Hill & White, reviewed the background of the issuance of the
bonds up to this point stating the Agency is now ready to implement the program
with the adoption of the two resolutions on the agenda.
11/6/79
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Adjourned Regular Meeting -
Redevelopment Agency November 6, 1979
Mr. Hall remarked that a previous Resolution 201 established the rules and regulations
for the program and set up the procedures for the paperwork.
Resolution No. 214 establishes the relationship with the Trustee bondholders; sets
maximum authorizations; states what the trustee is to do in case of default; and how
the bondholders can participate in the event of a default.
Resolution No. 215 is a supplement to Resolution No. 214 which contains specifics of
financing; who is going to be trustee; who will be the paying agents; what the coupon
rates are going to be; what the rates are going to be on the term bonds; and what the
premium will be. By this Resolution (No. 215), the Agency enters into an agreement
with Miller & Schroeder agreeing to sell the bonds for the purchase price stated.
Mr. Hall briefly reviewed the procedures to follow at this time commenting that before
the bond contract is executed, the developer is required to make his deposits--this
will be ready on Thursday, November 8.
An added requirement is that the City Council will have to adopt a resolution approv-
ing the issuance of these bonds by the Redevelopment Agency.
As to questions of usury, Mr. Hall explained that the Redevelopment Agency is subject
to a usury limit of 10%. The stated rate is 9.70% plus the fees which total will not
exceed the 10%. He added that his firm will be required, as part of the bond purchase
contract, to render an opinion to the Redevelopment Agency that the mortgage loans
will not violate the usury.
RESOLUTION NO. 214 OFFERED
Offered by Member Cox, the reading of the text was waived by unanimous consent,
passed and adopted by the following vote, to-wit:
AYES: Members Cox, Hyde, McCandliss, Scott, Gillow
Noes: None
Absent: None
RESOLUTION NO. 215 OFFERED
Offered by Chairman Hyde, the reading of the text was waived by unanimous consent,
passed and adopted by the following vote, to-wit:
AYES: Chairman Hyde; Members McCandliss, Scott, Gillow, Cox
Noes: None
Absent: None
ADJOURNMENT
The meeting was adjourned at 7:45 p.m. to the regularly scheduled Redevelopment
Agency meeting of December 6, 1979.
Secretary
11/6/79
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