PREPARED BY: ARTURO E. CASTILLO DATE OF MEETING: 09/3/2024
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE LOCAL SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN PABLO AUTHORIZING THE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A SECOND SUPPLEMENTAL INDENTURE AND BOND PURCHASE AGREEMENT; APPROVING AN OFFICIAL STATEMENT; AND AUTHORIZING RELATED DOCUMENTS AND ACTIONS
CEQA: This proposed action is not a project as defined by CEQA.
Label
RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
This item is not directly related to a specific policy within the FY 2023-25 City Council Priority Workplan adopted May 1, 2023, but is necessary or desirable in connection with ongoing City operations.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA.
BACKGROUND
In June 2014, the Local Successor Agency to the Redevelopment Agency of the City of San Pablo (the "Successor Agency") issued $47,595,000 of tax allocation refunding bonds (the "Series 2014A Bonds"), for the purpose of refinancing at lower interest rates, certain outstanding bonds that were previously issued by the Redevelopment Agency of the City of San Pablo (the "Redevelopment Agency") in 1999, 2001, 2004 and 2006.
Currently, $24,150,000 of the Series 2014A Bonds remain outstanding.
An opportunity now exists for the Successor Agency to refinance the outstanding 2014A Bonds at lower interest rates, and in so doing realize significant debt service savings. Such a refinancing, which is similar to refinancing a home mortgage, is accomplished via the issuance of Refunding Bonds by the Successor Agency. Proceeds from the Refunding Bonds will then be used to prepay all of the outstanding Series 2014A Bonds.
The attached "Preliminary Debt Service Savings Analysis" provides an estimate of the debt service savings to be achieved by this refinancing, based on interest rates as of August 5, 2...
Click here for full text