HomeMy WebLinkAbout2011-08-23 RDA Item No. 5CITY OF K
LADE LSINOR,
DREAM EXTREME
REPORT TO REDEVELOPMENT AGENCY
TO: HONORABLE CHAIRWOMAN
AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: AUGUST 23, 2011
SUBJECT: ADOPTION OF ENFORCEABLE OBLIGATIONS PAYMENT
SCHEDULE
Background
On June 29, 2011, the State of California enacted Assembly Bill x1 26 and Assembly
Bill x1 27, both trailer bills to the main state budget. ABx1 26 eliminates redevelopment
agencies and directs the resolution of their activities. Part of those required activities is
for the redevelopment agency to adopt an "Enforceable Obligations Payment Schedule"
or "EOPS" not later than August 28, 2011 and submit the EOPS to the State.
ABx1 27 provides agencies an alternative "voluntary" program requiring various
payments in lieu of elimination. Cities that are willing to make these payments will
exempt their redevelopment agencies from the provisions of ABx1 26 (such as the
EOPS), and these agencies will be authorized to continue to exist and implement
redevelopment activities.
However, this proposed legislative scheme was upset earlier this month when the
California Supreme Court issued a partial stay of ABx1 26 and ABx1 27. By way of a
clarification issued by the Court on Wednesday, August 17, 2011, the Court stated that
even redevelopment agencies that have elected to comply with the voluntary program
(ABx1 27) are still required to adopt an EOPS. This clarification was presumably to
address the possibility that the Court may uphold ABx1 26 but not ABx1 27.
As a result of the Court's clarification, the Agency should adopt a EOPS in order to fully
protects is rights.
Discussion
The City Finance Team has developed a preliminary list of items that should be
included in the EOPS and that list is attached. The preliminary list includes bonded
AGENDA ITEM NO. 5
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Adoption Of Enforceable Obligations Payment Schedule
August 23, 2011
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indebtedness, loans and money borrowed by the Redevelopment Agency and
enforceable contracts, including loan agreements, pass through agreements and
disposition and development agreements, and other enforceable obligations such as
statutory pass through payments.
The City's Finance Team is currently developing a final version of the EOPS that will be
submitted to the Agency Board and be available to the public concurrent with the
Agency's regular meeting on August 23, 2011.
Fiscal Impact
None. Adoption of the EOPS will assure that the Agency's financial obligations have
been properly submitted to the State as required by ABx1 26.
Recommendation
That the Agency Board adopt the Enforceable Obligations Payment Schedule as will be
presented to the Agency Board for consideration concurrent with the Agency's regular
meeting on August 23, 2011.
Prepared by: Barbara Leibold, Agency Counsel
Approved by: Robert A. Brady
Executive Director
Attachments:
1. Preliminary List of Agency Obligations
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PRELIMINARY LIST OF AGENCY OBLIGATIONS
Bonds & Fiscal Agent, Letter of Credit and Bond Disclosure and Related Fees Pursuant to:
(i) Authority's 1995 Series A Tax Allocation Revenue Bonds in the original
principal amount of $13,345,000; Authority's (1995 Series A Refunding) 2010 Series B in the
original principal amount of $10,855,000;
(ii) Authority's 1999 Series A Tax Allocation Revenue Bonds in the original
principal amount of $33,450,000; Authority's (1999 Series A Refunding) 2010 Series C in the
original principal amount of $29,435,000;
(iii) Authority's 1999 Series B Tax Allocation Revenue Bonds in the original principal
amount of $580,000 (fully matured);
(iv) Authority's 1999 Series C Tax Allocation Revenue Bonds in the original principal
amount of $14,180,000; Authority's (1999 Series C Refunding) 2010 Series A in the original
principal amount of $15,435,000;
(v) Authority's 1999 Series D Tax Allocation Revenue Bonds in the original
principal amount of $330,000 (fully matured); and
(vi) the Authority's 1997 Series A Revenue Bonds (Public Facilities Project) in the
original principal amount of $14,680,000 (with the understanding that Agency's obligations with
respect to said bond issue arise out of the Amended and Restated Reimbursement Agreements
between Agency and City dated as of July 1, 2000, for Project Area I, Project Area II, and
Project Area III); and
(vii) the Authority's 2011 Series A Tax Allocation Revenue Bonds (Launch Ramp
Project) in the principal amount of $5,550,000.
Pass-Through Agreements & Statutory Pass-Througb Obligations:
(i) the December 27, 1983, Amended Agreement by and among the City, Agency,
and the Elsinore Valley Municipal Water District for Project Areas I and II;
(ii) the January 10, 1984, Cooperative Agreement by and among the City, Agency,
and the Riverside County Flood Control and Water Conservation District for Project Areas I and
II;
(iii) the February 28, 1984, Agreement by and among the City, Agency, and the
Elsinore Water District for Project Area II;
(iv) the February 28, 1984, Cooperation Agreement by and among the City, Agency,
and the County of Riverside for Project Area II;
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(v) the April 11, 1984, Cooperation Agreement by and among the City, Agency, and
the Elsinore Valley Cemetery District for Project Area II;
(vi) the April 11, 1984, Cooperation Agreement by and among the City, Agency, and
the Lake Elsinore Recreation and Park District for Project Area II;
(vii) the June 14, 1987, Cooperation Agreement by and among the City, Agency, and
the Mt. San Jacinto Community College District for Project Area III;
(viii) the June 14, 1987, Cooperation Agreement by and among the City, Agency, and
the Elsinore Union High School District for Project Area III;
(ix) the June 14, 1987, Cooperation Agreement, by and among the City, Agency, and
the Lake Elsinore School District for Project Area III;
(x) the June 14, 1987, Cooperation Agreement by and among the City, Agency, and
the Riverside County Office of Education for Project Area III;
(xi) the June 14, 1988, Cooperation Agreement by and among the City, Agency, and
the Elsinore Recreation and Park District for Project Area III;
(xii) the June 14, 1988, Amended Cooperation Agreement by and among the City,
Agency, and the Elsinore Valley Municipal Water District for Project Area III;
(xiii) the June 14, 1988, Cooperation Agreement by and among the City, Agency, and
the Elsinore Water District for Project Area III;
(xiv) the June 27, 1989, Cooperation Agreement by and among the City, Agency, and
the Riverside County Flood Control and Water Conservation District for Project Area III;
(xv) the January 23, 1990, Cooperation Agreement by and among the City, Agency,
and the County of Riverside for Project Area III, as said agreement was amended on or about
February 8,1994;
(xvi) statutory pass through obligations for Project Area No. I
Other Contracts:
(i) that certain Lake Elsinore Redevelopment Project Wal-Mart Shopping Center
Owner Participation Agreement by and between Agency and Oak Grove Equities dated as of
March 12, 1993, as clarified by the parties pursuant to that certain letter to Mr. Bob Boone from
Gresham, Savage, Nolan & Tilden, LLP, dated October 6, 1998, regarding such Agreement;
(ii) that certain Redevelopment Disposition and Development Agreement (Wal-Mart
Project) by and between Agency and Wal-Mart Stores, Inc., dated March 12, 1993, as clarified
by the parties pursuant to that certain letter to Mr. Bob Boone from Gresham, Savage, Nolan &
Tilden, LLP, dated October 6, 1998, regarding such Agreement;
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(iii) that certain Cooperative Agreement by and between Agency and Elsinore Valley
Municipal Water District of Riverside County dated as March 18, 1993, relating to Amber
Ridge;
(iv) that certain Owner Participation Agreement (Lake Elsinore Factory Retail Outlet
Project) by and between Agency and Glen Investors, Inc., dated December 26, 1989;
(v) that certain Agreement to Fill and Operate Lake Elsinore by and among the City,
Agency, and Elsinore Valley Municipal Water District dated December 19, 1991;
(vi) that certain Joint Project Funding Agreement (Mission Trail) by and among the
County of Riverside, the City, and Agency dated June 13, 2000;
(vii) that certain Stadium License, Lease And Management Agreement dated as of
July 15, 2007 by and between the Redevelopment Agency of the City Of Lake Elsinore and
Diamond Stadium Group LLC;
(viii) that Amended and Restated Disposition and Development Agreement dated as of
March 8, 2011, by and among the Agency Mcmillin Summerly, LLC, a Delaware limited
liability company, and Civic Partners-Elsinore LLC, a California limited liability company; and
(ix) that Disposition and Development Agreement (Pottery Court) dated for
identification purposes only as of May 26, 2009, by and between the Agency and Pottery Court
Housing Associates, L.P.
Other Obligations:
(i) Repayment of the "City Loan" pursuant to that certain "Agreement Regarding
Advances" dated as of July 1, 2000, entered into by and between Agency and the City;
(ii) Repayment of SERAF to Housing Fund;
(iii) Repayment of the Accrued Housing Fund Deficit
(iv) On-going operational costs related to employees, office overhead, consultants,
County administrative fees, and Agency administrative fees.
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