HomeMy WebLinkAboutPOWERPOINT PRESENTATION - COMMUNITY FACILITIES DISTRICT NO. 07-1 BONDS (ITEM #6)City of Tustin Community Facilities
District Na. 07-1 (Tustin
Legacy/detail Center)
Resolution Authorizing the Issuance of Bonds
Resolution Authorizing the Issuance of Bonds for CFD 07-1
November 3, 2015 2
Resolution Authorizing the Issuance of Bonds for CFD 07-1
March 1, 2004 the City's Mello -Roos Goals &
Policies were adopted and staff were authorized to
form Community Facility Districts (CFDs) to develop
the former Marine Corps Air Station known as
Tustin Legacy
As of today, the City has formed five CFDs,
1 , 2006-1 , 2007-1 , 2013-1 and 2014-1
Tustin Legacy area that fund infrastructure
services
2004 -
in the
and/or
November 3, 2015
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Resolution Authorizing the Issuance of Bonds for CFD 07-1 continued:
CFD 07-1 was formed in 2007 pursuant to the
provisions of the Mello -Roos Act and was
authorized to issue up to $16 million principal
amount of bonds to finance the acquisition of
public improvements incident to the development
of the Retail Center constructed by Vestar/Kimco
On September 1 1, 2007, the District issued
$13.680 million City of Tustin Community Facilities
District No. 07-1 (Tustin Legacy/Retail Center)
Special Tax Bonds, Series 2007 (the "2007 Bonds")
There is currently $13.250 million principal amount
of the 2007 Bonds outstanding maturing in 2037
November 3, 2015 4
Resolution Authorizing the Issuance of Bonds for CF® 07-1 continued:
To date the District has issued $13-680 million
principal amount out of the authorized $16.0
million, thus having additional bonding
authority of $2.320 million
Due to favorable interest rates, the District
wants to issue a series of special tax bonds to
refund the 2007 Bonds as well as another
series of special tax bonds in order to provide
financing for approved facilities not yet
completed
November 3, 2015
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Resolution Authorizing the Issuance of Bonds for CFD 07-1 continued:
The Retail Center is known as the District at Tustin
Legacy and consists of approximately 1.0 million
square feet of open air lifestyle and entertainment
center. The special taxes are levied on approximately
35.5 net acres of land owned by Vestar/Kimco and
leased out to many tenants such as Whole Foods, Tj
Max and Lucilles BBQ
The average annual savings until maturity are
approximately $50,000, totaling approximately X1.2
million over the remaining twenty two years of the
bonds, and will be applied toward reducing property
ownersspecial tax payments starting in FY 2016-
7 of-tiini m"in"e nro Aohondent upon the market.
November 3, 2015
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Resolution Authorizing the Issuance of Bonds for CFD 07-1 continued:
The proposed Bonds' final maturity is in 2037 (same
as the refunded bonds) and the Bonds are expected
to have an initial par amount of $14.805 million and
net $880,000 for facilities
On August 18, 2015, the City Council authorized the
commencement of proceedings for the issuance of
special tax refunding bonds and appointed the
finance team
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Resolution Authorizing the Issuance of Bonds for CFD 07-1 continued:
Staff recommends City Council:
Adopt Resolution 15-74 authorizing the issuance of
Bonds and approving a Fiscal Agent Agreement, Escrow
Agreement and POS and certain other actions in
connection with the issuance of the bonds
The POS has been prepared by the City's Disclosure
Counsel, Quint and Thimmig and reviewed by City Staff
and the City's Finance Team. The Bonds are expected to
be offered to investors for sale pursuant to the POS
which contains specific information about CFD No. 07-1
to enable potential investors to make an informed
decision about purchasing the Bonds
The POS was prepared pursuant to the City's adopted
Continuing Disclosure Procedures approved by the City
Council on December 16, 2014
November 3, 2015
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Resolution Authorizing the Issuance of Bonds for CFD 07-1 continued:
The POS details the current development status
of CFD No. 07-1 and provides potential
investors with information related to the Retail
Center as well as the current assessed value of
the property located in CFD 07-1
Following the Council approval, the proposed
bond issuance schedule is as follows:
December 2, 2015 -Bond Sale
December 15, 2015 -Bond Closing
November 3, 2015
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