HomeMy WebLinkAboutRDA Minutes 1988-10-12Chairman Jack Drago M I N U T E S
Boardmembers:
Mark N. Addiego Redevelopment Agency
Ri chard A. Haffey
Gus Nicolopulos Municipal Services Building
Roberta Cerri Teglia
Community Room
October 12, 1988
AGENDA ACTION TAKEN
CALL TO ORDER: (Cassette No. 1) 7:15 p.m. Chairman Drago presiding.
ROLL CALL: Boardmembers present: Addie9o, Haffey,
Nicolopulos,
Teglia and Drago.
Boardmembers absent: None.
AGENDA REVIEW AGENDA REVIEW
Executive Director Armas stated that he
had nothing to add or delete from the
Agenda.
1. Motion to approve the Minutes of M/S Haffey/Te§lia - To approve the
the Regular Meeting of 8/24/88, Minutes of the Regular Meeting of
and the Special Meeting of 9/21/88. 8/24/88, and the Special Meeting of
9/21/88.
Carried by unanimous voice vote.
2. Motion to approve the Regular ~o~ M/S Addiego/Haffey - To approve the
Bills of 10/12/88. Regular Bills of 10/12/88 in the amount
of $520.00.
Carried by unanimous voice vote.
3. Staff Report 10/12/88 recommending Treasurer Marx described the documents
adoption of a Resolution for the before the Agency on the tax allocation
sale of bonds: documentation on ~Wo~ refunding notes. She stated that the bid
the Indenture; Notice of Sale; opening was scheduled for 10/26/88, and
Official Statement of Bartle Wells; if this was approved tonight, a report
and the Report by Katz Hollis. would be given on 10/26/88 on the sale.
Boardmember Addie9o stated that he wanted
A RESOLUTION AUTHORIZING THE SALE a full report on the significance of the
AND ISSUANCE OF $7,250,000 GATEWAY Agency action, given the large amount of
REDEVELOPMENT PROJECT 1988 TAX financial implications.
ALLOCATION REFUNDING NOTES;
APPROVING AN OFFICIAL NOTICE OF Treasurer Marx stated that there were a
SALE, AN INDENTURE OF TRUST, AND number of reasons for doing a roll over,
RELATED DOCUMENTS AND ACTIONS rather than doing a bond issue at this
time. She continued, the context of
doing tax allocation financing was that
the Agency wanted to maintain a debt in
the redevelopment area because the City
10/12/88
Page I
3. Staff Report - Continued. continues to receive increments as long
as there was some debt to the City and
the bondholders, noteholders or whatever.
She stated that the previous two note
issues were not ratable on their own
merits, and one of the reasons they were
not was that there was a concentration of
ownership in the redevelopment area, in
that Homart owned 60% of the land and the
City would not be able to get an invest-
ment grade rating for Redevelopment
Agency financing under those circumstan-
ces. She continued, this was likely to
change over the next few years, and the
pickup in the economic slow-down.
She stated that another reason for the
roll over was that the City may have
other plans, other reasons, for wanting
to bond debt in that area for improve-
ments in the next few years and by not
doing long term financing it could go in
and raise more debt for the other pro-
jects. She stated that the Redevelopment
Agency did have a cash balance, and it
would have been possible to pay down some
of the notes.
Executive Director Armas stated that in
the next 60 days something would be sche-
duled for Agency consideration to review
in a more comprehensive manner any obli-
gations or commitments the City may have
made with the developers, with the
current property owner, for the purpose of
reviewing all the agreements and amend-
ments that have occurred for an overview
of financial obligations and commitments
with respect to reimbursing the deve-
loper. He stated that the amendments
made to the basic agreement were quite
complicated and Katz Hollis, the con-
sultants, would provide greater detail to
the Agency for future action to be taken.
Discussion followed: that 2% had been
allowed for the discount; that the Agency
had paid $300,000 on the debt; the debts
incurred in selling bonds; that it was to
the City's advantage to incur the debt
rather than use money in the treasury to
10/12/88
Page 2
AGENDA ACTION TAKEN
3. Staff Report - Continued. pay off indebtedness; Boardmember
Nicolopulos was very concerned over
incurring the $500,000 debt; that this
would allow the Agency flexibility in
finds for consultants and other needs;
that interest rates were lower on short
term financing; that the Agency could
recall the notes before the three years
were up, etc.
M/S Teglia/Haffey - To adopt the
Resolution.
RESOLUTION NO. 13-88
Carried by unanimous voice vote.
GOOD AND WELFARE GOOD AND WELFARE
No one chose to speak.
CLOSED SESSION CLOSED SESSION
4. Closed Session for the purpose of The Agency chose not to hold a Closed
the discussion of personnel matters, Session.
labor relations, property negot-
iations and litigation.
M/S Teglia/Addiego - To adjourn the
meeting.
Carried by unanimous voice vote.
ADJOURNMENT: Time of adjournment was 7:19 p.m.
RESPECTFULLY SUBMITTED, APPROVED.
atta ~/~ck Drago, Chai~an
Redevelopment Agency / /Redevelopment Agency
City of South San Francisco (~//City of South San Francisco
The entries of this Agency meeting show the action taken by the Redevelopment Agency to
dispose of an item. Oral communications, arguments, and comments are recorded on tape.
The tape and documents related to the items are on file in the Office of the City Clerk
and are available for inspection, review and copying.
10/!2/88
Page 3