TITLE
Recommendation to adopt resolution transferring the City’s allocation of Recovery Zone Economic Development Bonds to the Redevelopment Agency of the City of Long Beach (Agency), and approving the issuance of tax allocation bonds by the Agency in an amount not to exceed $35,000,000 for its North Long Beach Project Area; and
DISCUSSION
Staff recommends that the City Council transfer the City's allocation of Recovery Zone Economic Development Bonds (RZEDBs) to the Agency, and approve the Agency's issuance of up to $35 million of tax allocation bonds for the Agency's North Long Beach Project Area (Project Area). The total estimated principal amount of the bond issue is approximately $33 million; however, authority for the full amount, $35 million, is requested to cover additional bonding capacity that could result from movements in interest rates between the date of City Council approval and the date of sale of the bonds. The anticipated use of the bond proceeds includes $30 million for various projects within or of benefit to the Project Area, $3 million for a debt service reserve fund, and $330,000 for costs of issuance.
Staff also recommends that the City Council make certain findings regarding the East Police Station and the financing thereof with funds from the Project Area so that a portion of the bond proceeds can be used for that purpose.
The Agency has identified a number of capital projects that it would like to finance with bonds that would be repaid with tax increment revenues from the Project Area. The projects include a new fire station (Fire Station No. 12), and various street and other improvements identified in Exhibit A. The Agency anticipates that approximately $2 million of Project Area tax increment revenues will be needed each year to pay the annual debt service on the bonds, after taking into account certain subsidy payments from the Federal government related to the interest payable on the bonds as discussed below. The Agency approve...
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