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CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of May 16, 1989 <br />TO: Honorable Mayor and City Council AND CHAIRPERSON AND MEMBERS OF THE AGENCY <br />FROM: JENNIFER THORNBERRY, ECONOMIC DEVELOPMENT DIRECTOR <br />SUBJECT: MULTI -PROJECT AREA BOND ISSUE <br />Date: MAY 10, 1989 <br />After evaluating the increased flow of tax increment in several project areas <br />our financial advisor, Rod Gunn, legal counsel, Best, Best & Krieger, and staff <br />recommend as follows: <br />1. that additional tax allocation bonds be sold for Cooley Ranch, Santa <br />Ana River and Downtown Project No. 1; and <br />2. that the City Council and Redevelopment Agency form a public <br />financing authority in order to issue bonds for all three projects at <br />one time. <br />By issuing additional tax allocation bonds for these Redevelopment Projects, we <br />will be fulfilling the necessary legal requirement to create debt in excess of <br />revenues. Also, the new money generated from the sell of the bonds will allow <br />us to continue and to expand our Redevelopment programs. The following chart <br />illustrates the current size of the proposed issue. <br />Cooley Ranch Santa Ana Downtown Total <br />River #1 <br />New Money 6,340,000 6,505,000 730,000 13,575,000 <br />Refunding 16,360,000 4,135,000 20,495,000 <br />Total 22,700,000 10,640,000 730,000 34,070,000 <br />Examples of the use of the funds are as follows: <br />Downtown Project No. 1 <br />1. Pay off existing debt to the City (approximately $100,000). <br />2. Upgrade streets, traffic signals and landscaping. <br />3. Participate in a Neighborhood Preservation Program. <br />Cooley Ranch <br />1. Continue and expand circulation improvements <br />2. Purchase furnishing and equipment for Fire Station No. 4 <br />Attachments3. Contribute additional funds for expanded water storage facilities. <br />Page 1 of___3__ Item No. <br />