TITLE
Recommendation to authorize City Manager to develop bond documents in preparation of financing the expansion of parks and open space in underserved communities; and, once the documents are prepared, return to the City Council with the proposed bond financing and issuance of debt in an amount not to exceed $25 million. (Districts 1,2,6,7,9)
DISCUSSION
On August 9, 2005, the City Council approved an action authorizing the City Manager to develop and recommend a financing structure to provide funding for the acquisition and development of new open space (attachment A). The action was taken to aggressively address the lack of sufficient park space in densely populated, underserved neighborhoods identified in the City's Open Space Element of the General Plan, and in the Strategic Plan of the Department of Parks, Recreation and Marine.
The proposed projects (attachment B) are within Community Development Block Grant (CDBG) and Redevelopment areas. The proposed locations were selected by targeting existing parks in densely populated communities that could be expanded. This approach of leveraging existing locations is believed to be the most cost effective given the high cost of land. Some new parks are also being proposed in areas where parks do not currently exist.
The development of parks and open space is an eligible use of CDBG funding.
Typically, communities receiving CDBG use it for capital projects, like new parks. While Long Beach has allocated some CDBG funding for public improvements, the majority of funding has traditionally been used for programs and services.
Based on extensive financial analysis, that included input from a team of bankers and financial consultants, staff is recommending the City issue Open Space Bonds in the amount of $25 million. The financing structure will carefully take into account fiscal constraints, with annual debt service being covered in the early years by current CDBG allocations, and in later years with Redevelopmen...
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