Finance Highlights 2008 0415 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM Date: April 9, 2008 To: City Council Finance Committee ~i,~ From: Perry Carter, Inte ' mance Director " Cynthia Battenber ssistant to the City Manager Subject: ISSUANCE OF TAX ALLOCATION BONDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN LEANDRO FOR THE JOINT PROJECT AREA SUMMARY AND RECOMMENDATION The Alameda County -City of San Leandro Redevelopment Project Area (Joint Project Area) is scheduled to issue bonds with a maximum par amount of $35 million and average annual interest rate not exceed 6%. Proceeds of the bonds will be used to finance capital projects and pay costs related to issuance. Staff requests that the Finance Committee recommend City Council and the Redevelopment Agency approval of the necessary bond documents to issue up to $35 million in Joint Project Area Tax Allocation Bonds. BACKGROUND The Joint Project Area has experienced significant revenue growth over the past few years and is poised to take advantage of historically low interest rates in order to finance new capital projects through the issuance of municipal bonds. A portion of the 2008 Bond proceeds will be used to finance projects that meet the goals and objectives set forth in the Joint Project Area Redevelopment Plan. They include, but are not limited to, design and construction of a senior center (approximately $13 million), a parking garage (approximately $13 million) and infrastructure improvements on East 14~' Street (remaining bond funds). The senior center is an approximately 21,000 square foot facility including a main hall, kitchen, computer room, crafts room, exercise room, two classrooms and a staff area. The building will also function as the City's Emergency Operations Center in the event of an emergency. The proposed parking garage is a replacement garage for the City's 215 space seismically unsound downtown parking garage. The garage will be expanded to approximately 400 parking spaces in order to meet the parking needs of downtown businesses and public facilities. Infrastructure improvements identified for East 14~' Street include the undergrounding of utilities from the southern border of the City to Blossom Way and complementary pedestrian enhancements such as landscaped medians and crosswalks. Proceeds may also be used to finance other eligible public improvements and redevelopments activities consistent with Redevelopment Plan. Financing Team The complex legal and financial structure of municipal bond issues and the long-term impact of bond financing transactions require that issuing entities rely heavily upon experienced