TITLE
Recommendation to adopt resolution authorizing issuance and sale of the 2006 Open Space lease revenue bonds to fund the expansion of parks and open space in underserved communities, in an amount not to exceed $25 million, and authorize City Manager to execute all necessary documents. (District 1,2,4,6,7,9)
DISCUSSION
On June 20, 2006, the City Council approved an action authorizing the City Manager to envelope bond documents in preparation to finance the expansion of parks and open space in under served communities ; and return to the City Council with the proposed financing and issuance of debt in an amount not to exceed $25 million (Attachment A).
This action was subsequent to an action taken at the Council meeting of August 9, 2005 directing staff to research possible financing options for such a debt issue. The proposed projects (Attachment B) will go a long way in addressing the City's open space policy to expand park space in the central, north and west neighborhoods. 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 being proposed in areas where parks do not currently exist . As the sites exist within Community Development Block Grant (CDBG) and Redevelopment areas, staff is recommending these funds be used to support a new park bond.
This item was reviewed by Assistant City Attorney Heather A. Mahood and City Treasurer David Nakamoto on September 6, 2006.
TIMING CONSIDERATIONS
Although long-term interest rates continue to be relatively low, they also remain volatile and are projected to rise. City Council action on this item is requested on September 19, 2006, as a delay could result in the bonds being issued at a higher interest rate resulting in an additional interest expense, and less net bond proceeds available for projects.
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