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Home My WebLink AboutAddendum to Agenda Item No. SA3ADDENDUM TO AGENDA ITEM NO. SA3 -- REPORT TO CITY COUNCIL OF THE CITY OF LAKE ELSINORE, AS SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: THOMAS P. EVANS, INTERIM CITY MANAGER DATE: AUGUST 28, 2012 SUBJECT: ADDENDUM TO AGENDA ITEM CITY OF LAKE ELSINORE, AS REDEVELOPMENT AGENCY OF OF RECOGNIZED OBLIGATION FOR JANUARY 2013 — JUNE 201 Discussion NO. SA3 -- ADOPTION BY THE SUCCESSOR AGENCY OF THE THE CITY OF LAKE ELSINORE PAYMENT SCHEDULE (ROPS) A draft ROPS was distributed to the City Council with the agenda packet on August 22, 2012. Following that distribution, staff held a follow -up meeting with Diamond Stadium representatives. Additional information was provided to staff regarding the Stadium electrical utilities and administrative costs. Accordingly, the ROPS attached to this addendum report has been updated to reflect the most recent expense numbers, adjusted for the six month reporting period. Recapping the numbers, we initially reported that the Successor Agency's obligations under the "New Stadium Agreements" for ongoing operation and maintenance of the Stadium would result in a shortfall of $250,476 for the first six months of 2013. Based on the updated information, estimated Successor Agency costs (in excess of the costs covered by revenue generated by the New Stadium Agreements) to operate and maintain the stadium is $299,321 for the six months ended June 13, 2013 and is listed on line 32 of the updated ROPS. Additionally, the total cost estimate in excess of the revenue anticipated to be generated by the New Stadium Agreements and included in the ROPS through 2016 has been increased from the earlier reported $2,085,374 to $2,492,092. Addendum -- Approval of ROPS August 28, 2012 Page 2 Prepared By: Barbara Leibold, City Attorney Approved By: Thomas P. Evans, Interim City Manager Attachments: 1) Recognized Obligation Payment Schedule of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore for the period of January 2013 through June 2013 [Updated 8/23/2012] cn U) U) U) m m m m 0 0 0 0 Q- 0. Q n m v m v 1:21:21,11:2 0000 0 0 0 0 m v v v 0 0 0 0 m -o --Iz 0 N m CDCD Qz C Q- R 3 (n m 0 C) 0 0 v v 00 m -v 0 m Dz Cl C: Q3 CD cr vn m D -o -v M. M. CD MW cn 1:2 1:2 nn v v cu 3 CD 0 m S 3 CD o cn 0 0 m cn 0 D c0 CD (0 c�g� Xmcn C-n rn 0 � m -�, 0 c� a) O � CD r— Qm v' y Co C 0 o CD .� Q m c ca 3 CD 0 0 J) m 0 h CD m cn C7 CD 0 o CD ( r- m CD cn c U) U) 0 D c0 CD 0 n I< n 0 0 Lt 0 0 SUMMARY OF RECOGNIZED OBLIGATION PAYMENT SCHEDULE Filed for the January 1, 2013 to June 30, 2013 Period Name Of Successor Agency: Successor Agency of the City of Lake Elsinore Certification of Oversight Board Chairman: Pursuant to Section 34177(m) of the Health and Safety code, Name Title I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named agency. Signature Date Total Outstanding Debt or Obligation Outstanding Debt or Obligation $ 163,599,814 Current Period Outstandina Debt or Obliaation Six -Month Total A Available Revenues Other Than Anticipated RPTTF Funding 252,474 B Anticipated Enforceable Obligations Funded with RPTTF - 5,299,497 C Anticipated Administrative Allowance Funded with RPTTF 157,500 D Total RPTTF Requested B + C = D 5,456,997 Total Current Period Outstanding Debt or Obligation (A + B + C = E) Should be the same amount as ROPS form six -month total 5,709,471 E Enter Total Six -Month Anticipated RPTTF Funding (Obtain from county auditor - controller) 5,408,152 F Variance (E - D = F) Maximum RPTTF Allowable should not exceed Total Anticipated RPTTF Funding is IPH Period (Januan1 1, 2012 through June 30, 2012) Estimated vs. Actual Payments (as required in HSC section 34186 (a)) G Enter Estimated Obligations Funded by RPTTF (Should be the lesser of Finance's approved RPTTF amount including admin allowance orthe actual amount distributed) 5,648,900 H Enter Actual Obligations Paid with RPTTF 5,241,793 1 Enter Actual Administrative Expenses Paid with RPTTF 497,005 J Adjustment to Redevelopment Obligation Retirement Fund G - H + I = J K Adjusted RPTTF (The total RPTTF requested shall be adjusted if actual obligations paid with RPTTF are less than the estimated obligation amount.) $ 5,456,997 Certification of Oversight Board Chairman: Pursuant to Section 34177(m) of the Health and Safety code, Name Title I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named agency. Signature Date Name Of Successor Agency: Successor Agency of the City of Lake Elsinore County: Riverside County RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 111) .lanuam 1. 2013 thrnuah June 30. 2n13 Oversight Board Approval Date: Funding Source Total Total Due During Contract/Agreement ContracUAgreement Outstanding Debt Fiscal Year Bond Reserve Admin Item # Project Name / Debt Obligation Execution Date Termination Date Payee Description/Project Scope Project Area or Obligation 2012 -13 LMIHF Proceeds Balance Allowance RPTTF Other Six -Month Total Grand Total $ 163,599,814 $ 10,555245 $ - $ - $ $ 157,500 $ 5,299,497 $ 252,474 $ 5,709,471 1 Tax Allocation Revenue Bonds, 2010 2/1/2010 9/1/2033 Union Bank, N.A. Bond issue to fund housing & non - housing projects All 27,247,135.47 1,146,581.26 494,716 494,716 Series A 2 Tax Allocation Revenue Bonds, 2010 Series B 5/1/2010 911/2025 Union Bank, N.A. Bond issue to fund housing projects Housing 12,936,687.52 1,218,550.00 468,825 468,825 3 Tax Allocation Revenue Bonds, 2010 Series C 11/1/2010 9/1/2030 Union Bank, N.A. Bond issue to fund non - housing projects Project I and II 41,640,692.10 2,788,313.76 1,109,707 1,109,707 4 Tax Allocation Revenue Bonds, 2011 Series A 1/1/2011 9/1/2021 Union Bank, N. A. Bond issue to fund non - housing projects Project 1 7,260,081.25 964,112.50 371,356 371,356 5 LAocal Agency Revenue Bonds, 2011 Series q/1/2011 9/1/2038 Union Bank, N.A. Bond issue to fund non- housing projects Project II and III 9,787,253.75 471,152.50 213,516 213,516 6 Fiscal Agent Fees 2/1/2010 9/1/2038 Union Bank, N.A. Annual fiscal agent fees for bonds issues All 204,925.00 54,674.96 5,900 5,900 7 Bond Disclosure Services 2/15/2038 HdL Coren & Cone Annual continuing disclosure for bond issues All 93,500.00 5,250 5,250 5,250 8 MG/Chelsea Outlet OPA 12/26/1989 2015 MG /Chelsea Property tax revenue reimbursement Project 1 2,085,243.50 109,513 109,513 109,513 9 Walmart DDA 1993 Completed Wal -Mart Stores Property tax revenue reimbursement Project II 0.00 10 Oak roves DDA 12/12/1993 1/30/2016 Oak Grove Equities Property tax revenue reimbursement Project It 2,329,952.77 66,610 66,610 66,610 11 EVMWD -Amber Ridge 3/18/1993 2038 EVMWD Property tax revenue reimbursement Project III 223.282.00 60,740 60,740 60,740 DDA pledges a portion of property tax revenues through 12 Summerly DDA 3/1112011 McMillin Summerry LLC and Civic 2038. Total outstanding debt or obligation is estimated Project II and III 8,555,538.00 324,485 95,776 95,776 Partners - Elsinore LLC based on projections of tax revenue growth at 2% per 2038 annum. If property values and corresponding revenues grow at a higher or lower rate than 2% per annum, the total obligation will similarly increase or decreased. DDA 13 Summerry DDA Extraordinary Infrastructure 3/11/2011 Mc Millin Summery LLC pledges a portion of tax increment for so long as the Project II and III 2,085,293.00 - - - Agency receives tax increment 2038 14 Summer DDA Special Counsel Fulbri ht & Jaworski L.L.P.. Legal Services Project II and III Not Applicable - 15 Surnmerly DDA Annual Report HdL Coren & Cone Fiscal Reporting Services Project 11 and III Not Applicable - 16 Stadium Agreement 7/1512007 Terminated Diamond Stadium Group Annual Capital Contribution All 0.00 - 17 Seismic Retrofit Project Completed FEMA\City of Lake Elsinore Seismic Retrofit Project Project 1 0.00 - 18 City Reimbursement LERA 7/112000 2/1/2032 City of Lake Elsinore City Reimbursement LERA- Debt Service All 14,080,000.00 704,000 352,000 352,000 19 Housing Fund Loan Amount repayable by TBD Housing Fund Repayment of SERAF All 2,250,000.00 - operation of law Payments on principal and interest on loan of bond proceeds from the housing fund. Payments made in any given fiscal year 20 Housing Fund Loan 12/1/1995 Housing Fund are calculated and disbursed based on available property tax All 28,691,594.70 1,385,448 1,385,448 1,385,448 revenue funds after deductions for payment of all other debts 7/30/1905 and obligations of the Agency. The 1997 Lease Advances and the Additional Advances shall 21 City Bond Debt Service Requirements 7/1/2000 Until Paid City of Lake Elsinore be repayable from all available surplus revenues of the Agency All 146,069.17 146,069 146,069 146,069 after payment of scheduled debt services on outstanding bonded debt of the Agency. 22 Legal Services 9/27/2005 Leibold McClendon & Mann Legal services for projects, bonds & DDAIStadium Agreement All To be determined based on services 192,000 96,000 - compliance. provided 96,000 To be determined 23 Consultant Fees 10/23/2007 HdL Coren & Cone Tax Projections for bond & DDA compliance All based on services 37,500 18,750 provided 18,750 24 Tax Sharing Calculations 7/24/2009 HdL Coren & Cone Annual tax sharing calculations updates All 0.00 - 25 Contract for Auditing Services 4/28/2010 Diehl, Evans & Co., LLP Bond disclosure compliance All 13,700 - 26 Employee Costs City of Lake Elsinore City Staff Support reimbursement All - 27 Other Administrative Costs City of Lake Elsinore Other Administrative Costs All - - 28 Estimated Admin Cost City of Lake Elsinore City. Staff Support/other admin reimbursement 2012 -13 All 314,760 157,500 1 157,500 29 Stadium License Agreement 3/15/2001 12/31/2016 Lake Elsinore Storm, LP License to use stadium for baseball games Project 111 575,293.96 69,099 69,099 69,099 30 Stadium Maintenance Agreement 3/15/2001 12/31/2016 Lake Elsinore Storm, LP Agreement to maintain baseball field and facilities Project III 915,230.18 109,929 109,929 109,929 31 Stadium Concession Agreement 1/30/2002 12/31/2016 Golden State Concessions and Provision of concessions for baseball games Project III TED 17,000 17,000 17,000 Catering 32 Stadium Operation and Maintenance 1/1/2013 Various Operation and maintenance of the baseball stadium Project III 2,492,042.00 355,757 299,321 1 56,446 355,767 Name of Successor Agency: Successor Agency of the City of Lake Elsinore County: Riverside County RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 111) -- Notes (Optional) Item # Notes /Comments 16,29-32 Effective December 31. 2012, the existing tenant, Diamond Stadium Group, has exercised its right to terminate the Stadium Agreement referenced in line 16 of page 1 of the ROPS. The Stadium Agreement required that certain other agreements entered into before the date of the Stadium Agreement be tolled during the term of the Stadium Agreement. Those agreements (the Stadium License Agreement, Stadium Maintenance Agreement and Stadium Concession Agreement— collectively the "New Stadium Agreements') spring back into operation by their terms upon the expiration or earlier termination of the Stadium Agreement. The New Stadium Agreements are listed in lines 29, 30. and 31 of page 1 of the ROPS. In addition, the Agency will incur additional costs to operate and maintain the stadium as a result of the termination of the Stadium Agreement, such as utilities, materials. grounds maintenance. staff and stadium administration. The ongoing operation and maintenance of the Stadium is necessary for the Agency to fulfill its obligations under the New Stadium Agreements. The additional Agency costs to operate and maintain the stadium are listed on line 32 of the ROPS. The new Stadium License Agreement requires that the licensee pay a license fee to the Agency for its use of the stadium for baseball games and certain other events, and the new Stadium Concession Agreement requires payment to the Agency of a percentage of concession revenue. The Agency will use the proceeds of such fees to pay certain costs associated with the Stadium. The costs paid with the fees are reflected in the column entitled 'Funding Source — Other." The costs tooperate and maintain the stadium in excess of the fee income are reflected in the column entitled 'Funding Source — RPTTF.' On line 32 of page 1 of the ROPS, in the column entitled -Total Outstanding Debt or Obligation." the Agency has estimated such amount through 2016 based on 2% annual increases through 2016. The actual costs will vary based on how long the Agency owns the stadium, how much costs to operate and regularly maintain the stadium increase or decrease over time, and what kind of capital outlay is required over time to maintain the stadium in its current condition. Capital expenses over time could be substantial and cannot be estimated at this time. Name of Successor Agency: Successor Agency of the City of Lake Elsinore County: Riverside County Pursuant to Health and Safety Code section 34186 (a) PRIOR PERIOD ESTIMATED OBLIGATIONS vs. ACTUAL PAYMENTS RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 1) January 1. 2012 throunh June 30. 2012 LMIHF Bond Proceeds Reserve Balance Admin Allowance RPTTF Other Page/Form Line Project Name /Debt Obligation Payee Description/Project Scope Project Area Estimate Actual Estimate Actual Esti�3'880 Estimate Actual Estimate Actual Estimate Actual Grand Total $ 290,144 $ 290,144 $ $ $ 14 $ 796,700 $ 497005 $ 5240374 $ 5,241793 $ $ 1&2 1 Tax Allocation Revenue Bonds, 2010 Union Bank, N.A. Bond issue to fund housing & non - housing projec All 100,419 100,419 241,447 241,447 651,866 651,866 Series A 1&2 2 Tax Allocation Revenue Bonds, 2010 Series B Union Bank, N.A. Bond issue to fund housing projects Housing 189,725 189,725 749,725 749,725 1&2 3 Tax Allocation Revenue Bonds, 2010 Union Bank, N.A. Bond issue to fund non - housing projects Project I and II 538,607 538,607 1,678,607 1,678,607 Series C 1 &2 4 Tax Allocation Revenue Bonds, 2011 Series A Union Bank, N. A. Bond issue to fund non - housing projects Project 1 147,756 147,756 592,756 592,756 1&2 5 Local Agency Revenue Bonds, 2011 Union Bank, N.A. Bond issue to fund non- housing projects Project II and III 167,636 167,636 257,636 257,636 Series A 1 & 2 6 Fiscal Agent Fees Union Bank, N.A. Annual fiscal agent fees for bonds issues All 1,829 1,829 9,146 1,863 1 & 2 7 Bond Disclosure Services HdL Coren & Cone Annual continuing disclosure for bond issues All 4,000 4,000 1 5,750 5,750 1&2 8 MG /Chelsea Outlet OPA MG /Chelsea Property tax revenue reimbursement Project 1 54,757 54,757 54,757 54,757 1 & 2 9 Walmart DDA Wal -Mart Stores Property tax revenue reimbursement Project 11 113,799 138,219 113,799 138,220 1 & 2 10 Oak roves DDA Oak Grove Equities Property tax revenue reimbursement Project 11 33,305 33,305 33,305 30,789 1 11 EVMWD - Amber Ride EVMWD Property tax revenue reimbursement Project 111 60,740 60,740 McMillin Summedy LLC DDA pledges a portion of property tax revenues is 1 & 2 12 & 11 Summed DDA Y and Civic Partners- rough 2038. do n outstanding debtor obligation estimated baser on projections of tax revenue growth Project II and III 1 Elsinore LLC at 2 % per annum. If property values and corresponding revenues grow at a higher or lower rate than 2% per annum, the total obligation will 270,689 270,689 226,662 226,662 1 & 2 13 & 12 Summedy DDA Extraordinary Mc Millin Summerly LLC similarly increase or decreased. DDA pledges a Project II and III Infrastructure Fund portion of tax increment for so long as the Agency receives tax increment 1,975,924 1,975,924 1 & 2 14 & 13 Summerly DDA Special Counsel Fulbri ht & Jaworski L.L.P.. Legal Services Project II and 111 1 & 2 15 it 14 Summerly DDA Annual Report HdL Coren & Cone Fiscal Reporting Services Project II and III 1 & 2 16 & 15 Stadium Agreement Diamond Stadium Group Annual capital Contribution All 300,000 300,000 300,000 300,000 2 16 Seismic Retrofit Project FEMA \City of Lake Seismic Retrofit Project Project 1 125,653 132,439 Elsinore 1 1 & 2 17 City Reimbursement LERA City of Lake Elsinore City Reimbursement LERA - Debt Service All 352,000 352,000 352,000 352,000 1 & 2 18 Housing Fund Loan Housing Fund Repayment of SERAF All 1,500,000 Payments on principal and interest on loan of bond proceeds from the housing fund. Payments made in any given fiscal year are 1 & 2 19 Housing Fund Loan Housing Fund calculated and disbursed based on available All property tax revenue funds after deductions for payment of all other debts and obligations of the Agency. 5,512,653 5,512,653 The 1997 Lease Advances and the Additional 2 20 City Bond Debt Service City of Lake Elsinore Advances shall be repayable from all available All Requirements surplus revenues of the Agency after payment of scheduled debt services on outstanding bonded debt of the Agency. 3,513,884 3,513,884 1&2 20 & 21 Legal Services Leibold McClendon & Mann General Counsel Services All 55,000 55,000 125,000 123,847 1&2 21 & 22 Consultant Fees HdL Coren & Cone Tax Projections All 19,625 9,270 19,625 16,575 1 & 2 22 & 23 Tax Sharing Calculations HdL Coren & Cone Annual tax sharing calculations updates All 800 800 - 1 & 2 23 & 24 Contract for Auditing Services Diehl, Evans & Co., LLP Annual Auditing Services All 8,665 8,665 9,000 3 1 Em to ee Costs City of Lake Elsinore City Staff Support reimbursement All 492,600 492,600 3 2 Other Administrative Costs City of Lake Elsinore other Administrative Costs All 57,800 4,405 3 3 Estimated Admin Cost City of Lake Elsinore 2012 -13 All 246,300