HomeMy WebLinkAboutAgenda Statement 1981/01/20 Item #N/A
COUNCIL AGENDA STATEMENT
Item
ITEM TITLE: Resolution
Meeting Date 1/20/81
Authorizing Lease Financing for the Purpose of Providing
For the Construction, Development and Financing of Certain
Marina, Recreation and Related and Appurtenant Facilities by
a) Chula Vist~ark, Inc. b) Chula Vista Marina, Inc.
Development Director ~ ID ~~1'{4/5ths Vote: Yes___ No~)
SUBMITTED BY: Community
For the past several months, I have been exploring, )lith Agency concurrence, the
possibilities of financing the development of an RV park, 600-slip marina and support
facilities on the City's tidelands in the vicinity of the J Street marina. After con-
siderable discussion and research, it is my
RECOMMENDATION:
That the two resolutions presented herewith be adopted. This action will initiate
the preparation of the necessary documents for the Council to consider prior to placing
securities on the market for sale. While this action does not commit the City to
actual sale, it provides the consultants and the developer with assurances that the
City will cause the securities to be sol~ at an appropriate time and under certain con-
ditions which are subject to your review.
BOARDS/COMMISSION RECOMMENDATION: Not applicable.
DISCUSSION:
lhe idea of J Street marina development was brought to the Port District's attention
by the City many years ago when the District was formed. Since that time, considerable
funds have been expended in order to accommodate public access and enjoyment of the
area. To date, there are no berthing facilities, supply outlets, or visitor facilities.
The Wilson Group of Chula Vista, for the past three years, has been involved in an
attempt to remedy this situation and to develop a major portion of the site into a
200+space RV park and 600-slip marina. In November 1980, architectural rendering~ of
the proposal were presented. In December, consideration of financing this project
through the sale of tax exempt lease revenue certificates in an amount close to
$10 million was requested.
It is now proposed that the City sponsor the issue and thus, utilize its credit to
finance the development. Because of the magnitude of this endeavor, I have attempted
to provide safeguards that would protect the City in the case of a default. With
the advice and assistance of consultants, I feel that the proposed issuance will pro-
vi~a most desirable financial package to the developers, and more important, to
the City and the general public.
Present this evening to discuss the technical aspects of the proposal are:
Mr. Fred Waldeck - Municipal Funding Corpo~ation of America
Mr. Kenneth Ough - Merrill Lynch White Weld, Capital Markets Group
Mr. Charles Adams - Jones Hall Hill & White
For further discussion of this item, please refer to the attached report.
Continued
/03g(
Form A-113 (Rev. 11/79)
.
Page 2, Item
Meeting Date 1/20/81
FISCAL IMPACT:
City liability for that portion of the issue that is outstanding, the maximum of
which would be $7.5 million.
City income of over $150,000 annually in transit occupancy tax and sales tax, property
tax in excess of $100,000 annually.
An economic study/evaluation by an independent
order prior to the City's actual authorization
Lynch suggests an amount not to exceed $10,000
reimbursed from the proceeds of the bond sale.
this amount at the February 5th meeting.
fiscal consultant will also be in
to proceed with the sale. Merrill
be appropriated, said cost to be
I will ask the Agency for a loan of
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