HomeMy WebLinkAboutRDA 02 LOAN AGMNT W/CITIGROUP (AAE) 04-17-07AGENDA REPORT
MEETING DATE: APRIL 17, 2007
Agenda Item R_ DA ?
Reviewed:
City Manager
Finance Director ~ ~ ~.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL,
REDEVELOPMENT AGENCY, AND PUBLIC FINANCING AUTHORITY
FROM: WILLIAM A. HUSTON, CITY MANAGER
SUBJECT: LOAN AGREEMENT WITH CITIGROUP GLOBAL MARKETS
RECOMMENDATION: That the members of the Tustin City Counal, Redevelopment
Agency and Public Financing Authority approve the attached resolutions which
authorize borrowing $25 million from Citigroup Global Markets.
FISCAL IMPACT: Pursuant to the Note Purchase Agreements, the loan will be secured
by tax increment income derived from the MCAS Tustin Redevelopment Project area.
The loan will be repaid over a four year period and is subject to refinancing. To comply
with IRS regulations, the total loan of $25 million is separated into two components
~Ser~es A and Series B notes}.
DISCUSSION: Pursuant to City Council Resolution No. 07-30, the Edinger widening
and Phase I Newport Avenue Extension Projects benefit the MCAS Tustin
Redevelopment Project Area and are consistent with the Project Area Plan and Five-
Year Implementation Plan for the MCAS Tustin Redevelopment Area. Proceeds from
the loan will be used to complete the acquisition of land needed for construction of the
street improvements.
Citigroup Global Markets is being recommended following discussions with potential
lenders that specialize in short-term loans for public projects. A review of financing
options analyzed by City staff and the City's financial advisor concluded that Citigroup
Global Markets offered terms best suited to meet the City's needs.
REFER TO
CITY COUNCIL AGENDA ITEM #21
FOR BACK-UP DOCUMENTS