DATE: May 3, 2016
TO: Chair and Members of the Redevelopment Successor Agency Board
FROM: Director of Finance
SUBJECT:
Title
Authorization for the Redevelopment Successor Agency to Issue Tax Allocation Refunding Bonds in an Amount Not to Exceed $45 Million to Refinance the Outstanding 2004 and 2006 Tax Allocation Bonds
End
RECOMMENDATION
Recommendation
That the Hayward City Council, acting as the governing board of the Redevelopment Successor Agency of the City of Hayward ("Successor Agency"), adopts the attached resolution (Attachment I) approving the issuance of Refunding Tax Allocation Bonds ("Refunding Bonds") to refund the outstanding Tax Allocation Bonds, Series 2004 and Tax Allocation Bonds, Series 2006 (collectively, the "Outstanding Bonds") in the principal amount not to exceed $45 million.
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BACKGROUND
On June 2, 2004, the Redevelopment Agency of the City of Hayward ("Redevelopment Agency") issued $44,790,000 of Tax Allocation Bonds, Series 2004 ("2004 Bonds") with a final maturity of March 1, 2034. In addition, on June 20, 2006, the Redevelopment Agency issued $11,800,000 of Tax Allocation Bonds, Series 2006 ("2006 Bonds") with a final maturity of March 1, 2036. The 2004 and most of the 2006 bond proceeds were used to finance the joint development by the former Redevelopment Agency and the Hayward Unified School District of the new Burbank Elementary School, the development costs of the new 14-acre Cannery Park and play fields, and associated street, water and sewer improvements.
NHA Advisors, LLC serving as the City's municipal advisor, has determined that the Outstanding Bonds can now be refinanced with significantly lower interest rates and substantially lower debt service. Lower bond debt service will allow a greater amount of tax increment to be allocated to all taxing entities (including the City) in the same proportion as existing tax increment revenues.
DISCUSSION
The Successor Agency resolu...
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