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CITY OF COLTON <br />CITY COUNCIL <br />For the City Council Meeting of September 7, 1999 <br />TO: Mayor and Council Members <br />APPROVAL: Henry Garcia, City Man#),", <br />FROM: Robb Steel, Redevelopment Directo <br />SUBJECT: Consideration and Approval of a Resolution of the City of Colton <br />Approving the Issuance by the Redevelopment Agency for the <br />City of Colton of its Mount Vernon Corridor Redevelopment <br />Project 1999 Tax Allocation Bonds and its First Amendment to <br />West Valley Redevelopment Project 1999 Tax Allocation Bonds <br />DATE: August 25, 1999 <br />Background <br />The Redevelopment Agency intends to issue bonds to finance project activities in the Mount <br />Vernon and West Valley Redevelopment Project Areas. The proceeds of these bonds along <br />with other funds will be used as follows: <br />• To refund the outstanding notes for the Rancho Mediterrania Project <br />• To finance projects in the Mount Vernon Project Area <br />• To finance projects in the West Valley Project Area <br />Because a portion of the Mount Vernon Bond Proceeds ($2 million) is intended to refund a <br />portion of the 1996 Rancho Mediterrania Notes, the Agency published a public hearing <br />notice as required by law. To preserve the Agency's ability to engage a future non-profit to <br />participate in a Rancho Mediterrania exit strategy, the law requires a noticed hearing that <br />the bond proceeds may be used in this manner. The Agency may or may not use this <br />approach but this hearing preserves our flexibility to make that choice at a later date. <br />The public hearing notice was published on August 24, 1999 and August 31, 1999 (see <br />Exhibit A). <br />Discussion <br />Redevelopment law requires that the legislative body of the City approve the issuance of <br />redevelopment bonds by the Agency. The Agency has prepared a comprehensive staff <br />report regarding the terms of such financing and that staff report scheduled for consideration <br />concurrently with this action is incorporated herein by reference. The City Council's <br />approval will allow the bonds to be issued to finance the above noted activities. <br />Item #2 <br />