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Recommendation to authorize City Manager to amend certain existing loan agreements between the City of Long Beach and the Redevelopment Agency of the City of Long Beach for the Downtown, Central and Poly High Redevelopment Project to update their repayment provisions. (Districts 1,2,4,6,7)
DISCUSSION
At various times during the implementation of the Redevelopment Plans for the Poly High, Central Long Beach and Downtown Redevelopment Projects, the City of Long Beach has loaned the Long Beach Redevelopment Agency (Agency) funds to assist with projects for the eradication of blight. As of October 1 , 2010, the total outstanding balance of the loans is $102.3 million. These agreements have various provisions for their repayment. It is recommended that the repayment provisions of these agreements be standardized to include specified amortization schedules. The proposed schedules are attached as Exhibits A through C.
This letter was reviewed by Chief Assistant City Attorney Heather A. Mahood on January 16, 2011, and by Budget and Performance Management Bureau Manager Lou Palmer on January 16, 2011.
TIMING CONSIDERATIONS
City Council action is requested on January 18, 2011, in order to ensure that the proposed changes may be implemented as soon as possible.
FISCAL IMPACT
The proposed changes update the repayment provisions of existing loans between the City and the Agency and do not represent new revenue sources. The proposed changes will provide the City's General Fund nearly $10.3 million during the period from Fiscal Year 2011 (FY 11) through FY 17. Starting in FY 17, debt repayment from the Downtown and Poly High Redevelopment Project Areas will accelerate significantly. The annual payment will be approximately $9.2 million in FY 18 through FY 31, of which approximately $2.3 million has been identified to pay for debt service on the 2006 Open Space Bonds. The total debt repayment is approximately $154 million by FY 33. The majority ofthese funds a...
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