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BURBANK REDEVELOPMENT AGENCYTuesday, October 25, 2005AGENDA
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6:30 P.M.
INVOCATION: Reverend Sally Kinarthy, Unity Church of Burbank and North Hollywood. The Courts have concluded that sectarian prayer as part of City Council meetings is not permitted under the Constitution.
FLAG SALUTE:
ROLL CALL:
JOINT PUBLIC HEARING WITH THE CITY COUNCIL:
The purpose of this report is to request the Council conduct a public hearing and take related actions to: 1) form the City of Burbank Community Facilities District No. 2005-1; 2) levy the special tax on property owners in the District; and, 3) issue and sell special tax bonds in an amount not-to-exceed $6,400,000 to finance certain costs of The Collection Public Parking Facility. The Redevelopment Agency Board (Board) is also requested to adopt a resolution approving certain documents related to such bonds.
On November 23, 2004, the Council and the Board approved an Amended and Restated Owner Participation Agreement with Champion Development, Inc., a Second Implementation Agreement to the Owner Participation Agreement with Burbank Entertainment Village, LLC (AMC), and other documents relating to the proposed development of the Phase II site of the Burbank Entertainment Village Project.
Under the Champion Owner Participation Agreement, the Developer is required to construct a mixed-use project which includes 118 residential units, approximately 40,000 square feet of commercial uses and a six-level parking structure on the Phase II site. The parking structure will consist of parking spaces required for the residential condominium and commercial components of the project and 278 public parking spaces. The parking structure will be subdivided into three legal components: a component to be owned by residential condominium owners; a component to be owned by the commercial owner of the project; and, the public parking component to be owned by the City.
The Developer is required to pay the costs of all improvements on the Phase II site, including the parking structure. However, the Redevelopment Agency is required to provide Community Facilities District financing that will generate $5 million in net proceeds to finance a portion of the costs of constructing the Public Parking Facility. Following the completion of the Public Parking Facility, annual debt service on and annual administrative expenses in connection with the Community Facilities District financing will be paid from 75 percent of the tax increment generated by the Phase I and Phase II improvements. To the extent that tax increment revenues are insufficient to pay all Community Facilities District obligations, the remaining amount of annual debt service and administrative expenses will be paid from special taxes levied and collected by the City on certain property in the Community Facilities District. The Redevelopment Agency�s obligation to contribute tax increment will be triggered upon completion of the Public Parking Facility.
Before the City can issue special tax bonds, it must form the Community Facilities District to be known as �City of Burbank Community Facilities District No. 2005-1 (The Collection Public Parking Facility)� and have the special tax approved by the property owners in the Community Facilities District. The sole property owner in the Community Facilities District is AMC, which will sell the property to the developer for the development of the project on the day before the bond closing, which is expected on December 22, 2005. Once approved, the special tax is levied by ordinance. This process involves both a public hearing and a special election among the Community Facilities District property owners.
On September 13, 2005, the Council took the initial steps toward the implementation of the Community Facilities District financing required under the Champion Owner Participation Agreement by adopting two resolutions of intention. The first one was a Resolution of Intention to Establish the Community Facilities District. This resolution: 1) described the proposed boundaries of the Community Facilities District, the public improvements (i.e., the public parking facility) to be financed, the proposed levy of the special tax described in the Rate and Method of Apportionment, and the proposed issuance of bonds; 2) directed the Interim Financial Services Director to prepare a report regarding the proposed financing (the �Community Facilities District Report�); 3) set a public hearing date of October 25, 2005; and, 4) designated certain firms to represent the City. The second resolution was a Resolution of Intention to Incur Bonded Indebtedness. This resolution evidenced the City�s intention to issue bonds for the Community Facilities District.
The Community Facilities District Report indicates that the estimated bond size as of October 25, 2005 will be $6,150,000, compared with an authorized amount of $8,000,000. The estimated bond size is lower than the maximum amount ($8,000,000) reflected in the Resolution to Incur Bonded Indebtedness adopted on September 13, 2005. The principal reason for the reduced borrowing need is that the developer will fund interest during construction with its own funds rather than through �capitalized interest� funded from bond proceeds. There is also a contingency amount of $250,000 which allows for increased bond sizing at the time of sale over the size that is estimated in the current market environment.
The Council is requested to take the following actions:
� Conduct the public hearing � Adopt the Resolution of Formation of the Community Facilities District � Adopt the Resolution of Necessity to Incur Indebtedness � Adopt the Resolution Calling for the Special Community Facilities District Election � Hold the Election � Introduce Ordinance Levying the Special Tax � Adopt the Resolution approving the legal and disclosure documents necessary to issue the bonds
In addition, the Redevelopment Agency is requested to adopt a resolution approving certain of the disclosure documents necessary to issue the bonds and related actions.
The issuance of the special tax bonds for the Community Facilities District imposes no fiscal obligations on the part of the General Fund. All costs of issuance will be funded from bond proceeds. Debt service on the bonds will be paid from either the tax increment pledged under the Owner Participation Agreement (approved in November 2004) or special taxes levied in the Community Facilities District.
Recommendation:
Adoption of proposed City Council resolutions entitled: 1. A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK OF FORMATION OF CITY OF BURBANK COMMUNITY FACILITIES DISTRICT NO. 2005-1 (THE COLLECTION PUBLIC PARKING FACILITY), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PRELIMINARILY ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT AND SUBMITTING LEVY OF THE SPECIAL TAX AND THE ESTABLISHMENT OF THE APPROPRIATIONS LIMIT TO THE QUALIFIED ELECTORS OF THE DISTRICT.
2. A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS WITHIN CITY OF BURBANK COMMUNITY FACILITIES DISTRICT NO. 2005-1 (THE COLLECTION PUBLIC PARKING FACILITY) AND SUBMITTING PROPOSITION TO THE QUALIFIED ELECTORS OF THE DISTRICT. 3. A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK CALLING SPECIAL ELECTION WITHIN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (THE COLLECTION PUBLIC PARKING FACILITY).
4. A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK DECLARING RESULTS OF SPECIAL ELECTION, AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN.
Introduction of proposed City Council ordinance entitled: AN ORDINANCE OF THE COUNCIL OF THE CITY OF BURBANK LEVYING SPECIAL TAXES WITHIN CITY OF BURBANK COMMUNITY FACILITIES DISTRICT NO. 2005-1 (THE COLLECTION PUBLIC PARKING FACILITY).
Adoption of proposed City Council resolution entitled: A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AUTHORIZING THE ISSUANCE OF SPECIAL TAX BONDS OF THE CITY FOR CITY OF BURBANK COMMUNITY FACILITIES DISTRICT NO. 2005-1 (THE COLLECTION PUBLIC PARKING FACILITY), APPROVING AND DIRECTING THE EXECUTION OF A FISCAL AGENT AGREEMENT AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS.
Adoption of proposed Redevelopment Agency resolution entitled: A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AND AUTHORIZING THE EXECUTION OF DOCUMENTS PERTAINING TO THE CITY OF BURBANK COMMUNITIES FACILITIES DISTRICT NO. 2005-1 (THE COLLECTION PUBLIC PARKING FACILITY), AND APPROVING RELATED ACTIONS.
RECESS to conclude the City Council meeting.
ADJOURNMENT.
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