HomeMy WebLinkAboutPOWERPOINT PRESENTATION (SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY ITEM #1) OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY
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June ia, 2016
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Background
• The former Tustin Community Redevelopment Agency issued two
series of tax allocation bonds in 2010:
$26.170 million Tax Allocation Bonds, Series 2010 (the "2010 Housing Bonds")
to refinance low and moderate income housing activities within the City
A $44.170 million Tax Allocation Bonds (MCAS-Tustin Redevelopment Project
Area), Series 2010 (the "2010 Redevelopment Bonds") to finance
redevelopment activities within and for the benefit of the MCAS-Tustin
Redevelopment Project
• The current outstanding par amount of the 2010 Housing Bonds is
$21.225 million and the bonds are callable on any date on or after
September 1, 2020 at par
• The current outstanding par amount of the 2010 Redevelopment
Bonds is $40. 160 million and the bonds are callable on any date on
or after September 1, 2018 at 102% of par
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Background - continued
• The Dissolution Act (ABx1 26, as amended by AB 1484)
authorizes the Successor Agency to issue refunding bonds for
the purpose of achieving debt service savings
• Staff has determined in consultation with its Municipal
Advisor that current market conditions allow for the issuance
of refunding bonds to refinance the 2010 Housing Bonds and
2010 Redevelopment Bonds to provide annual savings of
approximately $507,000
A All taxing entities' shares are provided on page 4
Taxing Entities ' Shares of the •
VOW**
Proiected Savin (w, s
% of Projected Average
Taxing Entity Annual Savings $507,348
Orange County General Fund 6.93% $35,170
Orange County Public Library 1.88% $9,518
Orange County Flood Control District 2.23% $11,311
O.C. Harbors Beaches & Parks CSA 26 1.72% $8,737
Educational Revenue Augmentation Fund 17.72% $89,879
Orange County Cemetery Fund- General 0.06% $293
City of Tustin 6.80% $34,501
East Orange County Water Dist.- General Fund 0.27% $1,378
Orange County Vector Control District 0.12% $629
Orange County Water District 0.88% $4,485
Orange County Transit Authority 0.32% $1,598
Orange County Sanitation District 1.84% $9,318
Irvine Unified General Fund 11.45% $58,085
Santa Ana Unified General Fund 0.90% $4,543
Tustin Unified General Fund 35.12% $178,197
Rancho Santiago Community College General Fund 0.20% $999
South Orange County Community College Dist-General 9.74% $49,439
O.C. Dept. of Education- General Fund 1.83% $9,265
TOTAL 100.00% , .
Source: HdL
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Today' s '
• Approval of today's Oversight Board Resolution will authorize
the issuance and sale of the Successor Agency to the Tustin
Community Redevelopment Agency Tax Allocation Refunding
Bonds, Series 2016 to refund the outstanding 2010 Housing
Bonds and 2010 Redevelopment Bonds
• Today's Resolution also appoints the financing team
comprised of Quint and Thimmig as Bond/Disclosure Counsel,
Fieldman, Rolapp & Associates as Municipal Advisor, HdL as
Fiscal Consultant, and BNY Mellon as Trustee/Escrow Agent
• The bond documents approved with this Resolution include:
A Indenture of Trust
Escrow Deposit and Trust Agreements
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Today' s • continued
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• Indenture of Trust — The Indenture of Trust ("Indenture") is by and
between the Successor Agency and BNY Mellon Trust Company, N .A. as
Trustee. The Refunding Bonds shall be issued pursuant to the law
governing the dissolution of redevelopment agencies and pursuant to the
Indenture.
A The Indenture describes the terms of the Refunding Bonds, and contains
provisions relating to the redemption, prepayment, defeasance, default and
amendment of or to the Refunding Bonds.
A Pursuant to the Resolution, the Successor Agency authorizes the delivery and
performance by the Successor Agency of the Indenture and approves the
covenants set forth in the Indenture.
• Escrow Deposit and Trust Agreements — The Escrow Deposit and Trust
Agreements are by and between the Successor Agency and the Trustee
(BNY Mellon Trust Company, N.A.) acting as escrow agent and specify the
terms and conditions to provide for the payment and redemption of the
outstanding 2010 Housing Bonds and 2010 Redevelopment Bonds.
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Next Steps IIqW
• Oversight Board approval of Successor Agency action to issue the
Refunding Bonds and make determination of savings — 7/14/16
• Submission of Successor Agency and Oversight Board Resolutions to
the Department of Finance — June 15, 2016
• Secure underlying credit ratings and bond insurance and reserve
fund surety — July/August 2016
• Department of Finance approval to proceed with the Refunding
Bonds — August 2016
• Oversight Board of the Successor Agency approval of the
Preliminary Official Statement — August 16, 2016
• Price the bonds — late August 2016
• Bond closing and payoff of outstanding Former Agency obligations —
September 2016
June 14, 2016
Questions