HomeMy WebLinkAboutRDA REFIN ALLOC BONDS 3-2-87 ,~EDEVELOPMENT AGENCY
Inter- Corn
DATE: MARCH 2, 1987
TO:
FROM:
SU BJ ECT:
HONORABLE CHAIRMAN & MEMBERS OF THE REDEVELOPMENT AGENCY
WILLIA/4 A. HUSTON, EXECUTIVE DIRECTOR
REFINAJJCING OF TAX ALLOCATION BONDS
RECOMMENDATION
That the Board authorize staff to proceed with the steps required to
refinance all or a portion of the Agency's outstanding tax allocation bonds
and issue additional bonds for public projects.
DISCUSSION
In 1982 the Agency issued 8:5 million dollars in tax allocation bonds to
finance projects within the Town Center Project Area. Based on current
market conditions it appears that the Agency- could save approximately
$450,000 in interest costs by refinancing the bonds. Due to the complexity
of the method of refinancing the bonds, staff needs additional time to
evaluate the cost-benefit of a refinancing. In addition, based on the
Agency's current tax increment revenue stream, there may also be an
opportunity to generate additional funds through a bond issue to finance
other public projects deemed appropriate by the Agency.
At this point the Agency would be authorizing staff, the City's financial
advisor and bond counsel to proceed with the steps required to assess the
feasibility of a refinancing. We anticipate that the Agency could make a
final decision on a refinancing within the next 60 days.
William A. Huston
Executive Director
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