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HomeMy WebLinkAbout01/13/1997 BAKERSFIELD //~ Randy Rowles, Chair Al,~/l~ar~dy, Cit~-t~/lan~ Irma Carson Staff: Dolores Teubner Kevin McDermott AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, January 13, 1997 12:15 p.m. City Manager's Conference Room 1. ROLL CALL Call to Order at 12:30 p.m. Present: Councilmembers: Randy Rowles, Chair; Irma Carson; and Kevin McDermott 2. APPROVAL OF THE DECEMBER 9, 1996 MINUTES Approved as submitted. 3. PRESENTATIONS None 4. PUBLIC STATEMENTS None - 5, DEFERRED BUSINESS A. ALTERNATIVE FUNDING SOURCES FOR THE PLAZA PROJECT The Chamber of Commerce has voted to accept the City's offer to relocate to a new facility. The approval was conditioned on using no CDBG funds for the relocation. APPROV[i) AS SUBt. t-I~TED FEBRUARY 3, 1997 FILl[ C§P¥ AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, January 13, 1997 Page -2- Alternative funding for the project will come from Council Contingency, available cash and from possible property sales. Staff will identify General Fund projects approved in the FY 96-97 Budget that could qualify for CDBG, thereby making some additional General Fund monies available for the Chamber relocation. Staff indicated that all projects proposed to be funded with CDBG fully met all federal guidelines. B. PROPOSED 1997 MEETING SCHEDULE The schedule of meetings was approved as amended. The final 1997 schedule is attached. 6. NEW BUSINESS A. REQUEST FOR TAX-EXEMPT FINANCING The Finance Director distributed a summary of the City's participation in tax- exempt financing projects since 1980. The request from National Healthplex, Inc. for assistance in purchasing the Camlu Retirement Apartments is consistent with past projects. Staff clarified to the Committee that this financing mechanism involves the City as the project sponsor, but does not financially obligate the City in any way. Any qualified non-profit organization is eligible to request tax- exempt financing from the City. A representative of National Healthplex, Inc. assured the Committee that the project would be managed locally even though they are a national company. The Committee voted unanimously to recommend Council approval of the project. B. SUMMARY OF ARENA FINANCING The Finance Director provided a flow chart of how the proposed CDDA financing would work for the Convention Center arena project. The City will lease the property to the CDDA for a nominal fee and will enter into an agreement with the CDDA to act as their agent on the project. The CDDA will receive the proceeds of the Certificates of Participation and use it to make the improvements to the Convention Center. The City will then purchase back the property from the CDDA through an installment agreement using revenue generated from the facility, which the CDDA will in turn use to make payments to the COP holders. It is estimated that the bond issue for the arena will be $25 to $29 million in addition to $12 million. in existing CDDA debt that will be refinanced at a lower interest rate, but with the same payback period. The trustee for the issue will be a bank and the issue will be AGENDA SUMMARY REPORT BUDGET AND FINANCE COMMITTEE Monday, January 13, 1997 Page -3- rated by both Moody's and Standard and Poor and will be insured. The complete financing package will go before the Council on or before March 12, 1997. 7. ADJOURNMENT The meeting was adjourned at 1:30 p.m. cc: Honorable Mayor and City Council DBT:jp