Title
Adoption of Resolution Authorizing the City to Enter into a Loan Agreement with JP Morgan Chase Bank N.A. to Refund Prior Lease Revenue Bond Obligations Related to Alameda Point in an Amount Not-to-Exceed $7,200,000 and Authorizing City Officers (as Identified Herein) to Execute the Loan Agreement and Related Documents to Take Any Other Necessary Action to Effectuate the Loan. (Finance 10024054)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
This Resolution authorizes the direct placement of the outstanding Alameda Public Financing Authority Variable Rate Demand Revenue Bonds, 2003 Series A and Series B Bonds (Alameda Point Improvement Project).
BACKGROUND
In February 1999, faced with the challenge of financing the gap between lease revenues and maintenance, operating and capital needs for Alameda Point, the City of Alameda (City) retained consultants to review the Business Plan for Alameda Point and recommend a viable financing strategy that would not adversely impact the City's General Fund or other special funds of the City.
Based on information available at that time, it was determined that a financing plan for Alameda Point redevelopment needed to include debt financing in the early years to ensure an efficient redevelopment of the property. Accordingly, the proposed financing plan contemplated for Alameda Point included a reduction in operating costs, deferral of capital projects and the issuance of debt.
City Council approved the financing plan as proposed and authorized the issuance of revenue bonds secured by the leases of the various facilities at Alameda Point.
The City thereafter issued the 1999 Alameda Point Revenue Bonds in the amount of $10 million for the purpose of generating funds to fund certain infrastructure improvements at Alameda Point. The 1999 revenue bonds were issued as variable rate bonds for a period of only twelve years (the term of the leases).
Bec...
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