1996 AGN OCT 01 I21 - Laserfiche WebLink

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Resolution Approving Issuance of CPFA Rancho Mediterrania Notes - 1996 October 1, 1996 Page 2 DISCUSSION: Staff has met with consultants of the Agency and has determined that a two year note issue should allow the Agency sufficient time to renovate the Park and attract new tenants. The Agency can attract new tenants if it acquires homes to place in the vacant spaces currently existing in the Park or rehabilitates homes existing in the Park. The amount of the 1996 Notes would not exceed $4,500,000. The 1996 Notes would mature in two years and would be payable from the same sources applied to pay the 1995 Bonds, namely rental proceeds, sales proceeds from the lots, tax increment revenues and housing fund moneys. It has 'been proposed that the Agency contribute approximately $450,000 to rehabilitate the Park. This contribution should be sufficient to cause the rehabilitation of the Park in order to increase the occupancy to up to 95%. FINANCIAL IMPACT: Said funds shall be paid from existing funds on deposit in the Agency's low and moderate income housing fund for the 1995/96 fiscal year plus moneys for the 1996/97 fiscal year in an amount equal to $340,000 which shall be divided as follows in the note funds to be held by the Note Trustee: Deposit to the Debt Service Fund $300,000 Deposit to the Rehabilitation Fund 40,000 The Agency shall also apply CDBG funds provided by the City for the acquisition and rehabilitation of units within the Park in the amount of approximately $47,000. RECOMMENDATION: Staff recommends approval of the attached 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. Attachment: Resolution Ish:\wpwin\admin\meetin&0un1001.rp 1 r�