Loading...
2003-12-2 ARRA and APFA minutesMINUTES OF THE SPECIAL JOINT ALAMEDA REUSE AND REDEVELOPMENT AUTHORITY AND ALAMEDA PUBLIC FINANCING AUTHORITY MEETING TUESDAY - - --DECEMBER 2, 2003 - - - 7 :27 P.M. Chair Johnson convened the Special Joint meeting at 8:18 p.m. ROLL CALL - Present: Authority Members Daysog, Gilmore, Kerr, Matarrese and Chair Johnson - 5. Absent: None. AGENDA ITEM ARRA Resolution No. 33, "Approving an Assignment Agreement by and between the Alameda Reuse and Redevelopment Authority and the Alameda Public Financing Authority in Connection with the Issuance by the Alameda Public Financing Authority of Its Revenue Bonds to Finance and Refinance the Acquisition, Construction, Installation and Equipping of Various Capital Improvements to Alameda Point (the Former Alameda Naval Air Station) and Approving Related Documents and Official Actions." Adopted. (03 -04) APFA Resolution No.03 -14, "Authorizing the Issuance and Sale of Revenue Bonds by the Alameda Public Financing Authority in the Maximum Aggregate Principal Amount of $15 Million to Finance and Refinance the Acquisition, Construction, Installation, and Equipping of Various Capital Improvements to Alameda Point (the Former Alameda Naval Air Station) and Approving Related Documents and Official Actions." Adopted. Authority Member Daysog stated a $10 million bond issuance from several years ago is being retired; an additional $3.5 million is being issued for a total of $13.5 million; however, the amount requested is not to exceed $15 million; inquired why a $1.5 million difference is included. The Finance Director responded that bond resolutions typically have a "not to exceed" amount to allow staff to price the bonds; stated the $10 million from 1999 is being refunded; $3.5 million, which includes issuance costs and reserve funds, is being issued for new projects. Authority Member Daysog inquired how much financing the $3.5 million would cost in principal plus interest. Bill Reynolds, Gardner and Associates, responded debt is being issued as a taxable, variable rate debt; the total cost is not known; the rates should be very low; the rates on the 1999 tax - exempt issuance have averaged well under 20; the current issuance Special Joint Meeting Alameda Reuse and Redevelopment Authority 1 and Alameda Public Financing Authority December 2, 2003 will be slightly higher. Authority Member Daysog inquired what a minimum rate for a 30 -year period. Mr. Reynolds responded assuming 70, anticipated rate, the City would pay interest. the amount would be assuming which is higher than the approximately $2 million in Kira Grisgavage, JP Morgan, stated assuming a $4.4 million initial issuance, the total for the taxable portion was` -$8.8 million. Authority Member Daysog stated if the initial issuance were $3.5 million, the total probably would be $7.5 million. Authority Member Kerr inquired whether money would be borrowed to pay salaries, to which the Executive Director responded in the affirmative. Authority Member Kerr stated cutting the budget was discussed, however, the budget seems to be expanding; that she has concerns about borrowing money since the future of Alameda Point is unknown. The Executive Director stated that the delay in property conveyance made borrowing additional funds necessary; expenditures have been reduced by $1.3 million; staff would continue to review ways to further reduce costs at Alameda Point. Chair Johnson noted borrowing money is necessary because General Fund money cannot be spent to finance Alameda Point operations. Chair Johnson inquired when a budget would be presented, to which the Executive Director responded within two weeks. Authority Member Matarrese stated that the $3.5 million is necessary to allow the conveyance and entitlement process to move forward and would provide leverage for projects that must be completed prior to development of the land. Authority Member Gilmore thanked staff for providing an explanation on bond counsel and consultant selection procedures. Authority Member Daysog stated that by issuing debt, many generations of Alamedans would pay for the $3.5 million; the cost would be about $7 million over the life of the project; cutting the budget is another way of financing services. Special Joint Meeting Alameda Reuse and Redevelopment Authority and Alameda Public Financing Authority December 2, 2003 Chair Johnson stated the budget should be reviewed; ARRA /APFA members need to review the spending cycle throughout the process. The Executive Director stated monthly progress reports and quarterly financial reports would be provided. Authority Member Matarrese inquired when the $3.5 million would begin to be repaid, to which the Finance Director responded that the bonds could begin to be repaid as soon as cash is available. Authority Member Matarrese stated the debt would be covered by the value of the land conveyed from the City to the master developer; the only risk is whether the Navy will convey the land to the City. Authority Member Gilmore inquired whether the debt type and amount precludes acquiring fixed rate financing, to which Mr. Reynolds responded variable rate debt provides flexibility to pay down debt at any time without worrying about call protection. Chair Johnson noted development must go forward regardless of who is the master developer. Authority Member Matarrese moved adoption of resolutions. Authority Member Gilmore seconded the motion, which carried by the following voice vote: Ayes: Authority Members Gilmore, Matarrese and Chair Johnson - 3. Noes: Authority Members Daysog and Kerr - 2. Authority Member Matarrese inquired whether the requested monthly and quarterly reports would be presented in open session, to which the Legal Counsel responded in the affirmative. ADJOURNMENT There being no further business, Chair Johnson adjourned the Special Joint.meeting at 8:48 p.m. Respectfully submitted, Lara Weisiger, Secretary Alameda Public Financing Authority The agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting Alameda Reuse and Redevelopment Authority and Alameda Public Financing Authority December 2, 2003