HomeMy WebLinkAboutAgenda Statement 1979/03/08 Item 03CITY OF CHl1LA VISTA
- ~ COUNCIL AGENDA STATEMENT ~~' Item~'No.
For meeting of 3/8/79
ITEM TITLE Resolution Authorizing a Loan to the Redevelopment Agency
For Bayfront Project Area Expenses
SUBMITTED BY Community Development Director ~,~, '
,~ . i
ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES. NO X
In order to receive tax increment revenues in the Bayfront Project it will be necessary
to maintain an indebtedness at least equal to the increment due. Any interruption in
the project's liability will require a twelve to eighteen month wait to resume the flow
of tax increments. The proposal to defease the outstanding Bayfront bonds will effec=
tively nullify our $6 million liability (bonds plus interest coupons). Defeasance is,
however, necessary at this time due to the obligations of the Town Centre Project. The
action would otherwise be scheduled to coincide with the merger of both projects.
Releasing of the liability will only be temporary, since upon the passage of AB 405
(Me.rger Bill) anew sale of bonds is proposed to finance activities of both projects.
Thus, for the next few months it is important to maintain a Bayfront Project indebted-
ness. After consulting with our legal and financial advisors it is recommended that
the City loan the Bayfront Project $350,000. The loan would be at the current earning
rate for a period ending with the fiscal year but recallable for any municipal purpose.
The resolution provided herewith will authorize the loan; similarily, a resolution at
tonight's meeting will accept the loan on behalf of the Agency.
PGD:rd
Agreement
Resolution X
EXHIBITS -
Ordinance
Plat Notification List
Other ENVIRONMENTAL DOCUMENT: Attached Submitted on
FINANCIAL IMPACT
$350,000 must be appropriated from the General Fund Reserve balance as a loan to
the Bayfront Redevelopment Project. The interest on the loan will be at a rate
of 10%
STAFF RECOMMENDATION
Adopt resolution.
BOARD/COMMISSION RECOMMENDATION
COUNCIL ACTION
Form No. F-229 r ' ' ~ -"
~ ~~._".e...~~
12 7 3 "`"
~ OR~tinrAt
CERTIFICATE OF CITY/DIRECTOR OF FINANCE ~------~s1~!~sr!
Certification of Unappropriated Balance
241
I HEREBY CERTIFY that the money required for the
appropriation of funds for the purpose set forth in the attached
resolution is available in the Treasury, or is anticipated to
come into the Treasury, and is otherwise unappropriated.
Amount $ 350,000
Purpose Bayfront Project Area Expenses
Bidder ~/A
Director of Finance
The City of Chula Vista
Date 3/3/79 By
Certification of Unencumbered Balance
I HEREBY CERTIFY that the indebtedness and obligation
to be incurred by the contract or agreement authorized by the
attached resolution can be incurred without the violation of any
of the provisions of the Charter of the City of Chula Vista, or
the Constitution or the laws of the State of California, that
sufficient monies have been appropriated for the purpose of said
contract, that sufficient monies to meet the obligations of the
contract are actually in the Treasury, or are anticipated to come
into the Treasury to the credit of the appropriation from which
the same are to be drawn, and that said monies now actually in
the Treasury, together with the monies anticipated to come into
the Treasury, to the credit of said appropriation are otherwise
unencumbered.
Amount Not to Exceed $
Director of Finance
The City of Chula Vista
Fund General Fund
By
Dept./Activity
Certificate No. 65
Date
Fund
Purpose
Bidder
/8