TITLE
Recommendation to adopt resolution approving a deposit/reimbursement agreement relating to the formation of a Community Facilities District for the Douglas Park Project; and authorize City Manager to execute the related documents. (Citywide)
DISCUSSION
The City of Long Beach (City) and the McDonnell Douglas Corporation (Company) have partnered in forming a Community Facilities District (CFD) No. 2007-1, adjacent to the Long Beach Airport. The purpose of the CFD 2007-1 is to put in place the infrastructure to support commercial and residential development of the area. It is common that expenses for formation proceedings are incurred in advance of the actual formation of a CFD, for feasibility studies and other professional services.
Consistent with the Developer's Agreement dated June 2, 2005, the Company is agreeable to depositing with the City the amount of $150,000, provided that funds are reimbursed to the Company from the proceeds of any CFD bonds issued by the City for the CFD's infrastructure work, as legally permitted.
The deposit is to be used by the City to pay initial costs in conducting proceedings for the formation of the CFD and the issuance of bonds for the CFD. The City will maintain records as to the expenditure of the deposit.
This item was reviewed by Assistant City Attorney Heather A. Mahood on December 12, 2006 and Budget Management Officer David Wodynski on December 19, 2006.
TIMING CONSIDERATIONS
[Timing Considerations]City Council action on this item is requested on January 16, 2007, to support activities and proceedings for the formation of the CFD.
FISCAL IMPACT
Funds received from the Company will be deposited in the General Fund (GP) in the Department of Financial Management (FM).
The attached Resolution permits the reimbursement of pre-formation expenses from the proceeds of the Company's deposit. The deposit will be reimbursed to the Company upon the successful formation of the Community Facilities District and afte...
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