2004 AGN JUN 09 I01 - Laserfiche WebLink

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REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Colton Public Financing Authority Meeting of June 9, 2004 Honorable Chairperson and Boardmembers FROM: Dilu de Alwis, Finance Director 0'0� Michael J. Williams, City Treasurer SUBJECT: Consideration and Approval of a Resolution Authorizing the Issuance, Sale and Delivery by the Redevelopment Agency for the City Colton of 2004 Series A Subordinate Housing Tax Allocation Bonds. DATE: June 2, 2004 Background In 2001, the Redevelopment Agency issued $6,550,000 in Subordinate housing Tax Allocation Bonds. These bonds refunded the Redevelopment Agency's 1990 multifamily housing revenue bonds that financed the Colton Palms Project. The 2001 bonds have a claim on low and moderate income funds of the Agency. The bonds are not secured by revenues of the Colton Palms project. They are not collaterized by the project land or building. The Agency has appointed a financing team to prepare the necessary financing documents and sell the bonds on a negotiated basis. The financing team is: Underwriter Disclosure Counsel Bond Counsel Financial Consultant Trustee Verification Agent Discussion Purpose of Bond Issue US Bancorp Piper Jaffray Nossaman, Gunther, Knox & Elliot LLP Best Best & Krieger LLP HDL Coren & Cone US Bank Trust National Association McGladrey & Pullen LLP The Agency has two purposes in the refinancing. The first goal is to receive an investment grade rating on the debt and to obtain bond insurance. Bond insurance will provide a guarantee to bondholders that debt service will be paid in the event the Agency is unable to make the debt service payments. The other financing goal is to lower the debt service on the bonds. Interest rates have risen since the beginning of the year however current analysis shows that, after all expenses, there are savings on the refinance.