TITLE
Recommendation to adopt resolution making certain findings regarding the construction of certain public improvements with funds from the West Long Beach Industrial Redevelopment Project;
DISCUSSION
Facing a $38 million General Fund deficit in Fiscal Year 201 0, staff are reviewing a number of options to increase General Fund revenue. One proposal is to use Harbor Department (Harbor) funding to cover bond debt associated with construction of the Aquarium of the Pacific (Aquarium). By way of background, in 1990, the City arid Agency adopted ordinances allowing the Agency to receive 50 percent of the transient occupancy tax (TOT) generated in the Downtown Redevelopment Project Area from specific hotels. These actions were intended to allow the Agency to repay the Harbor for a portion of their investment in the Convention Center expansion. In 2001, however, the use of the TOT was revised to subordinate the Agency's debt to the Harbor, allowing the TOT to be used to repay a portion of the Aquarium Debt Service.
The concept was presented to the Board of Harbor Commissioners (Harbor Board) on June 22, 2009. They took action and approved the transfer of $8,077,083 with the provision that the Long Beach Redevelopment Agency (Agency) will reimburse the Harbor from future revenues generated by port activities related to the construction of Middle Harbor and Pier S projects. Subsequent to the Harbor action, staff met with the Agency Board and Project Area Committees in the North and West Industrial Redevelopment Project Areas to discuss the plan.
The proposed transaction has three primary elements: (1) the Harbor transfers funding to the City to cover a portion of the Aquarium debt, thus generating savings in the General Fund; (2) the Harbor constructs the Middle Harbor project, which is within the North Redevelopment Project Area (Exhibit A), including certain public improvements (Exhibit B); and (3) future revenue generated from port activity in Middle Harbor wi...
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