1996 AGN OCT 01 I21 - Laserfiche WebLink

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r^N CITY OF COLTON AGENDA REPORT for the City Council Meeting of October 1, 1996 TO: Chairperson and Agency Members FROM: Malik D. Freeman, Interim Executive Director SUBJECT: Consideration and Adoption of a Resolution of the City Council of the City of Colton, Approving the Issuance of Not -To -Exceed $4,500,000 Colton Public Financing Authority Rancho Mediterrania Mobile Home Estates Refunding Notes, Issue of 1996, the Borrowing by the Redevelopment Agency for the City of Colton of the Proceeds therefrom Pursuant to that Certain Loan Agreement and the Granting of CDBG Funds to the Agency for Rehabilitation of the Project DATE: September 25, 1996 BACKGROUND: In June 1993, the Redevelopment Agency for the City of Colton (the "Agency") purchased the Rancho Mediterrania Mobile Home Estates (the "Park") in order to convert the lots within the Park to single family ownership. In order to finance said purchase, the Colton Public Financing Authority (the "Authority") provided a loan to the Agency from the proceeds of its bonds entitled Rancho Mediterrania Mobile Home Estates Notes, Issue of 1993, in the principal amount of $6,325,000 (the "1993 Bonds"). A few of the units were sold, and thus transferred to single family ownership between 1993 and 1994. The proceeds of the sales were applied to redeem a portion of the 1993 Notes. The 1993 Bonds were then refinanced by a one year note entitled "$4,125,000 Rancho Mediterrania Mobile Home Estates Notes, Issue of 1994" (the "1994 Bonds"), and said 1994 Notes were then refinanced by another one year note entitled "$4,075,000 Rancho Mediterrania Mobile Home Estates Notes, Issue of 1995 (the "1995 Notes"). The 1995 Notes mature on November 1, 1996. The current outstanding balance of the 1995 Notes is $4,075,000. Although the tenants expressed interest in purchasing the lots, financially only few were able to make such purchase. The Park has experienced a decrease in tenants because it has been unable to attract new tenants. Thus, the Agency must now increase tenant occupancy in order to ensure that the Park can support itself. Item No. 21