2005 AGN MAY 03 I13 - Laserfiche WebLink

Browse Search

CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF MAY 3, 2005 TO: Honorable Mayor and Council Members FROM: Al Holliman, Assistant City Manager SUBJECT: Supplement to Item # 13 DATE: May 2, 2005 Not applicable — see item # 13 DISCUSSION! ANALYSIS In discussions with the City Attorney subsequent to the finalization of agenda item # 13 (Community Reinvestment Fund Loan (CRF) for the Big League Dreams project), it was concluded that a public hearing on May 17 is not feasible due to the additional processes necessary to finalize this transaction. Should the City Council decide to authorize the scheduling of the related public hearing, the date will be June 7, 2005. Following is a list of the items which need completion prior to the June 7 public hearing: 1. Significant amendments of the various legal documents between Big League Dreams and the City, evidencing the contractual relationship. 2. Formal "sign-ofr by bond counsel (Fulbright and Jaworski) that the CRF loan and "pass-through" loan to Big League dreams does not violate the bond covenants. 3. Finalization of the CRF loan documents. 4. Responses to enough bid requests under the "multiple prime" bidding and contracting approach to better assure the City Council and staff that the project can be completed with the available funds, assuming approval of the CRF loan. FINANCIAL IMPACT Approximately $700,000 per year in debt service for the proposed CRF loan, subject to revenues that may be received from Big League Dreams to be applied towards such debt service. Although the City would be primarily obligated for the repayment of the CRF loan, subject to finalization of a written agreement with Big League Dreams and Big League Dreams generating the revenues it anticipates from operation of the sports park over the first ten (10) years of operation, the net financial impact to the City could be around $350,000 to $450,000 per year, as described in more detail in Item #13. ENVIRONMENTAL IMPACT Not applicable — see item # 13 Note and File — see item # 13 for actual recommendation Attorney: Finance Director: Manager., OTHER: