HomeMy WebLinkAboutAgenda Statement 1982/03/23 Item 8COUNCIL AGENDA STATEMENT
Item 8
Meeting Date 3/23/82
ITEM TITLEI
Resolution /p~'d~Approval of Criteria for Project Eligibility for
Commercial Development Bond Financing
SUBMITTED Y: Community Development Director (4/5ths Vote: Yes No X )
The Coun it passed Ordinance 1970 on February 9, 1982, which authorizes the financing
of comme cial development projects within the City which are deemed to be in the
public i terest. In order to insure that projects financed in this manner have a
public p rpose, I am proposing
RECOMMEN ATION: That the Council approve the Resolution and adopt the Criteria for
root ligibility.
BOARDS/CaMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSIdN:
The powe to issue commercial development bonds is authorized under the City's
Charter. These bonds are distinct from industrial developr~~ent bonds and differ
in sever 1 important ways:
1. Commercial bonds do not require the establishment of an Industrial Devel-
pment Authority;
2. lthough the State must be notified before commercial bonds may be issued,
eview and concurrence by the Industrial Development Financing Advisory
ommission is not required;
3. here is no interest limitation;
4. ommercial bonds can finance commercial projects which are precluded under
he Industrial Development Bond Program; and,
5. ommercial bonds cannot finance industrial projects which are eligible
nder the Industrial Development Bond Program unless the State cannot
pprove the program due to lack of funds.
Commercia development bonds are similar to the SB99 bonds used to finance the Day's
Inn and M rie Callender projects. However, commercial bonds are applicable Citywide
while the SB99 bonds are only applicable within redevelopment project areas.
FINANCIAL~IMPACT: Not applicable.
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Form A-113 KRev. 11/79)