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Home My WebLink AboutRDA MINUTES 03-21-94 RDA NO. 1 3-21-94 MINUTES REGULAR MEETING OF. THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY CITY OF TUSTIN, CALIFORNIA MARCH 7, 1994 CALL TO ORDER The meeting was called to order by Chairperson Potts at 8:12 p.m. at the Council Chambers, 300 Centennial Way, Tustin, California. ROLL CALL Members Present: Jim Potts, Chairperson Thomas R. Saltarelli, Chairperson Pro Tem Leslie Anne Pontious Charles E. Puckett Jeffery M. Thomas Members Absent: None Recording Secretary: Mary E. Wynn Others Present: William A. Huston, Exec. Dir./City Manager James G. Rourke, City Attorney Christine Shingleton, Asst. Executive Director W. Douglas Franks, Chief of Police Robert Ledendecker, Director of Public Works Ronald A. Nault, Finance Director Robert Ruhl, Field Services Manager Susan Jones, Recreation Superintendent Valerie Whiteman, Chief Deputy City Clerk Dana Kasdan, Engineering Services Manager Richard Zimmer, Redevelopment Program Manager Dan Fox, Senior Planner Bettie Correa, Senior Personnel Analyst Gary Veeh,. Water Operations Manager Doug Anderson, Transportation Engineer Gary Magill, Recreation Supervisor Approximately 30 in the audience REGULAR BUSINESS (ITEMS i THI~UGH 1. APPROVAL OF MINUTES - FEBRUARY 22, 1994 REGULAR MEETING It was moved by Puckett, seconded by Saltarelli, to approve the Redevelopment Agency Minutes of February 22, 1994. Motion carried 5-0. 2. APPROVAL OF DEMANDS It was moved by Puckett, seconded by Saltarelli, to approve Demands in the amount of $74,170.86. Motion carried 5-0. 1987 AND 1991 TAX ALLOCATION BOND REFUNDING Ronald Nault, Director of Finance, reported that staff met with the Agency's financing team and reviewed the proposed refunding options of the 1987 and 1991 bonds, and the potential impact of Assembly Bill 1290 (AB 1290) on refunding. He stated that Katz Hollis, the Agency's financial consultant, analyzed AB 1290 revealing the REDEVELOPMENT AGEN£ Page 2, 3-7-94 INUTES following findings: limiting the current refunding to the term of the 1989 bonds would reduce the amount of tax increment the Agency could receive after the year 2004; the Agency's ability to issue new debt would be limited to twenty years from adoption of the Redevelopment Plan or January 1, 2004, whichever was later; no new Agency debt may be issued after 2004; and the receipt of tax increment was limited to 2026, ten years after the close of the Redevelopment Plan in 2016 for the Town Center Project area. Because of the economic conditions, the near-term growth in the project was expected to be minimal and in order to maximize future capitalization, the Agency could accelerate growth in the project or reduce current debt 'service obligations thereby freeing tax increment dollars for future debt service. Under AB 1290, it was in the best interest of the Agency to maximize the use of tax increment over the next 10 years by reducing the use of current tax increment for debt service. Agency/staff discussion followed regarding no new debt could be issued after 2004; and Agency financial team and bond counsel were in agreement to refund 1987 and 1991 bonds and extend the maturities to 2026. William Huston, Executive Director, stated that AB 1290 was the most significant change in redevelopment agency law in the past 20 years and another change similar to this one could terminate redevelopment agencies in California. He said that based on the advice of the Agency's financial advisors, refunding the 1987 and ~ 1991 bonds and extending the maturities would provide future flexibility to raise capital for the Agency. Agency/staff discussion followed regarding Agency approval of the recommended action would protect the Agency against the State impairing the bond contract; and future tax increments available to the Agency. It was moved by Potts, seconded by Thomas, to direct staff to proceed with the recommendation of the Agency's Fiscal Consultant to refund both the 1987 and 1991 Tax Allocation Bond issues and extend the matUrities not to-exceed the year 2026. Motion carried 5-0. OTHER BUSINESS - None CLOSED SESSION - None ADJO~NT Chairperson Potts adjourned the meeting at 8:21 p.m. The next regular meeting of the Redevelopment Agency was scheduled for Monday, March 21, 1994, 7:00 p.m., at the Council Chambers, 300 Centennial Way. JIM POTTS, CHAIRPERSON MARY E. WYNN, RECORDING SECRETARY