TITLE
Recommendation to adopt resolution authorizing the issuance of the Tax Allocation Refunding Bonds Series 2021 by the Successor Agency to the Redevelopment Agency of the City of Long Beach; authorize City Manager, or designee, to execute all necessary documents; and, authorize staff to take the necessary actions to complete the refunding, subject to Oversight Board approval. (Citywide)
DISCUSSION
In 2010, the Redevelopment Agency of the City Long Beach (former Redevelopment Agency) issued the following bonds: $22,235,000 Taxable Recovery Zone Economic Development Bonds, 2010 Series A, and $10,745,000 Taxable Build America Bonds, 2010 Series B, collectively the “Series 2010 Bonds.” The Series 2010 Bonds were issued to finance capital improvements within the North Long Beach Redevelopment Project Area including construction of a new fire station, library, streetscape improvements, and renovation of a building for a new police station.
Under State law (Health and Safety Code Section 34177.5), the Successor Agency to the Redevelopment Agency of the City of Long Beach (Successor Agency) may refinance the former Redevelopment Agency’s bond issues if that refinancing produces debt service savings. Staff recommends the Successor Agency issue the Tax Allocation Refunding Bonds Series 2021 (Series 2021 Bonds) to refund the outstanding principal amount of approximately $26.3 million of the Series 2010 Bonds, and pay the cost of issuance. It is anticipated that refunding the Series 2010 Bonds will save the Successor Agency approximately $7.3 million in interest costs throughout the life of the bonds. City staff estimates the issuance of the Series 2021 Bonds will result in (1) a true interest cost of 2.11 percent, (2) finance charges of $426,312, (3) an escrow deposit of $27.4 million; and, (4) total debt service of $30.7 million.
The attached Resolution authorizes the refunding bonds to be issued by the Successor Agency and establishes parameters for the terms th...
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