TITLE
Recommendation to adopt resolution authorizing the issuance and sale of lease revenue bonds to refund the 1999 Rainbow Harbor Refinancing Bonds and to refund the 1997 Certificates of Participation (Queensway Bay Parking Facility "Aquarium"), in an amount not to exceed $55,000,000, and authorize City Manager to execute all necessary documents. (Citywide)
DISCUSSION
In continuance of staffs efforts to reduce debt service costs, attached for City Council review and adoption is the resolution authorizing the issuance and sale of the Long Beach Bond Finance Authority's (Authority) Lease Revenue Bonds to refund the Authority's Rainbow Harbor Lease Revenue Bonds (1999 Bonds) and to refund the City's 1997 Certificates of Participation (Queensway Bay Parking Facility "Aquarium") (1997 COPs), and fund the cost of issuance. This action to refund the remaining $46,280,000 of the 1999 Bonds and to refund the remaining $4,315,000 of the 1997 COPs is anticipated to result in a reduction of annual debt payments of $184,000, without extending the term of the 1999 Bonds or the 1997 COPs. Please see the attached June 15, 1999 City Council letter authorizing the issuance of the 1999 Bonds (Attachment A) and the April 22, 1997 City Council letter authorizing the delivery of the 1997 COPs (Attachment B). This refunding opportunity is available due to the low longterm interest rates.
In 1999, the Authority issued the 1999 Bonds to repay a 1995 loan from the United States Department of Housing and Urban Development (HUD), which funded the dredging and expansion of Rainbow Harbor, Pine Avenue Pier, Esplanade, Rainbow Harbor area landscaping, and utility buildings. The annual payments for the 1999 Bonds are paid by the Tidelands Fund and average approximately $3,883,000. This action is anticipated to result in lowering the debt payments to approximately $3,739,000.
The 1997 COPs were delivered to finance a portion of the costs of a 1,471-space parking structure at 200 Shoreline...
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