(18)AR 032007 Mt Vernon Corridor

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ITEM #18 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON Redevelopment Agency Board and City Council Meeting of March 20, 2007 TO: Honorable Agency Chairperson and Boardmembers Honorable Mayor and Councilmembers FROM: Candace Cassel, Economic Development Director1T SUBJECT: Consideration and Approval of Agency Resolution No. 859 and City Council Resolution approving Amendment No. 2 to the Mt. Vernon Corridor Public Works Projects Funding and Construction Management Agreement. DATE: March 8, 2007 BACKGROUND In September 1999, the Colton Public Financing Authority (the "CPFA") issued $5.29 million in Tax Allocation Bonds secured by tax increment revenues in the Mt. Vernon Corridor Project Area. Approximately $2.0 million was used to refund existing debt from outstanding 1996 Notes, $500,000 was set aside for reserve and to pay for the cost of issuance, and the remaining $2.7 was identified and reserved for various Redevelopment projects. The Agency entered into a loan agreement with the CPFA on September 7, 1999 to draw down $5.29 million in bond proceeds for eligible projects including the installation and construction of various public improvements situated in or of benefit to the Mt. Vernon Project Area. After satisfying the Underwriter's Discount and Agency Contribution, the Agency's total funding available from the bond proceeds equaled $5.3 million. The total amount of the expenditures equaled $2.5 million. Approximately $466,539 was used for the projects identified below, leaving a funding balance of $2.3 million. Fundina Sources Principal Amount of the Bonds $ 5,290,000 Less: Underwriter's Discount (70,886) Agency Contribution 90,086 Total Sources $ 5,309,200 Approved Expenditures Costs of Issuance Fund $ (125,000) Reserve Account (367,965) Refunding of 1996 Notes (2.000,000) Total Expended/Encumbered $(2,492,965) Estimated Bond Fund Balance $ 2,816,235