TITLE
Recommendation to receive supporting documentation into the record regarding the debt issuance by the City of Long Beach; adopt resolution authorizing the issuance of the Tidelands Revenue Bonds Series 2017A (Aquarium of the Pacific Project) and Series 2017B (Queen Mary Improvements), in an aggregate principal amount not to exceed $30,250,000; and, authorize the execution of all necessary related documents and actions. (District 2)
DISCUSSION
On November 1, 2016, the City Council approved up to $23 million in infrastructure repairs for the Queen Mary (Attachment A). The Queen Mary infrastructure improvements were expected to be funded by approximately $5.8 million from Tidelands Fund reserves that were designated for the Queen Mary. The remaining $17.2 million in repairs were expected to be funded by a Tidelands bond issue and intended to be repaid entirely by passenger fee revenues and base rent received by the Urban Commons, the lessee of the Queen Mary.
On May 9, 2017, the City Council approved a loan to the Aquarium of the Pacific Corporation (Corporation) of up to $10.5 million from the Tidelands Fund to provide funding for the construction of the Corporation's Pacific Visions Project (Attachment B). The loan was expected to be funded by a Tidelands bond issue, intended to be repaid
from "restricted" Corporation assets such as donations and grants.
The City proposes to issue the Tidelands Revenue Bonds, Series 2017 A (Aquarium of the Pacific Project) and 20178 (Queen Mary Improvements), which, collectively, would be the Series 2017 Bonds. The aggregate principal amount of the Series 2017 Bonds is not to exceed $30,250,000. Proceeds from the Series 2017 Bonds will be used to: 1)
fund the loan to the Corporation of $10.5 million for the Pacific Visions Project; 2) pay for Queen Mary Improvements, or reimburse the Tidelands Fund for expenses already incurred associated with the Queen Mary improvements under the Urban Commons Lease; and, 3) fund the ...
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