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SUMMARY: Authorize the City Manager to Negotiate and Execute an Extension of the Letter of Credit Related to Two Types of Revenue Bonds
Recommendation to Authorize the City Manager to Negotiate and Execute an Extension of the Letter of Credit with the Combined Entity, Mitsubishi UFJ Financial Group (MUFG)-Union Bank, N.A., Related to the Current Outstanding $6,800,000 Alameda Public Financing Authority (APFA) Variable Rate Demand Revenue Bonds (Alameda Point Improvement Project), 2003 Series A, and the Current Outstanding $3,400,000 APFA Taxable Variable Rate Demand Revenue Bonds (Alameda Point Improvement Project), 2003 Series B, on Similar Terms and Conditions as the Existing Letter of Credit. [City Council and APFA] (Finance 2410)
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To: Honorable Mayor and Members of the City Council
Honorable Chair and Members of the Alameda Public Financing Authority
From: Jill Keimach, City Manager
Re: Authorize the City Manager to Negotiate and Execute an Extension of the Letter of Credit with the combined entity, Mitsubishi UFJ Financial Group (MUFG)-Union Bank, N.A., Related to the Current Outstanding $6,800,000 Alameda Public Financing Authority (APFA) Variable Rate Demand Revenue Bonds (Alameda Point Improvement Project), 2003 Series A, and the Current Outstanding $3,400,000 Alameda Public Financing Authority Taxable Variable Rate Demand Revenue Bonds (Alameda Point Improvement Project), 2003 Series B, on Similar Terms and Conditions as the Existing Letter of Credit
BACKGROUND
The Alameda Public Financing Authority (the Authority), issued a total of $13.44 million in variable rate bonds related to Alameda Point in 2003. The source of repayment for these bonds is the rental income received from properties managed by the City's Base Reuse Department. The credit and liquidity support for the bonds is currently provided by a direct pay letter of credit from MUFG Union Bank, N.A., which expires on June 14, 2017. The indenture of trust for the...
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