File #: LB 16-046   
Section: Legislative Business Status: Agenda Ready
Meeting Body: City Council
Agenda Date: 5/3/2016 Final action:
Subject: 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
Attachments: 1. Attachment I RSA Resolution, 2. Attachment II Indenture Trust, 3. Attachment III Irrevocable Refunding Instructions
Related files: LB 16-104, LB 16-064


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.

Body
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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