Title
Adoption of Resolutions Authorizing the City of Alameda and the Alameda Public Financing Authority to Commence Proceedings in Connection with the Substitution of the Letter of Credit relating to the Alameda Public Financing Authority Variable Rate Demand Revenue Bonds, 2003 Series A and Series B (Alameda Point Improvement Project). [City Council and APFA] (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The resolutions authorize the City of Alameda (City) and the Alameda Public Financing Authority (Authority) to replace the letter of credit supporting the outstanding Alameda Public Financing Authority Variable Rate Demand Revenue Bonds, 2003 Series A and Series B Bonds (Alameda Point Improvement Project).
BACKGROUND
For the purpose of providing funds to finance a portion of the costs of the acquisition, construction, installation and equipping of various public capital improvements to Alameda Point, the Authority issued $9,080,000 Alameda Public Financing Authority Variable Rate Demand Revenue Bonds, 2003 Series A (Alameda Point Improvement Project) (the "Series A Bonds"), and its $4,360,000 Alameda Public Financing Authority Taxable Variable Rate Demand Revenue Bonds, 2003 Series B (Alameda Point Improvement Project) (the "Series B Bonds" and, with the Series A Bonds, the "Bonds") in December 2003.
In order to provide for the repayment of the Series A Bonds and the Series B Bonds, the Authority pledged certain revenues, substantially derived from rentals paid to Alameda Reuse and Redevelopment Authority ("ARRA") for certain land, buildings, fixtures and equipment at Alameda Point leased by ARRA to certain subtenants which rentals have been assigned by ARRA to the Authority, which revenues are calculated to be sufficient to enable the Authority to pay the principal and interest on the Bonds. The obligations of ARRA have been assumed by the City.
The Bonds were issued by the Authority pursuant to tha...
Click here for full text