BURBANK REDEVELOPMENT AGENCY
Tuesday, August 19, 2003
AGENDA
CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE
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6:30 P.M.
INVOCATION:
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 CITY COUNCIL AND THE PUBLIC FINANCING AUTHORITY:
1. Issuance of up to $23 million in Burbank Public Financing Authority, Revenue Bonds 2003 Series C (City Centre Redevelopment Project) and up to $11 million in Burbank Public Financing Authority Revenue Bonds 2003 Series D (Golden State Redevelopment Project):
The purpose of this report is to request authorization to: 1) issue up to $23 million in Burbank Public Financing Authority (Authority), Revenue Bonds 2003 Series C (City Centre Redevelopment Project), to purchase in lieu of redemption $21.285 million of the 1993 Series Tax Allocation Bonds; and, 2) issue up to $11 million in Authority, Revenue Bonds 2003 Series D (Golden State Redevelopment Project), to purchase in lieu redemption Golden State Redevelopment Project $8.53 million of the 1993 Series A Tax Allocation Bonds.
Tax Allocation Bonds for the Golden State Project Area were most recently issued in 2003 in the amount of $87.265 million. The 2003 Tax Allocation Bonds were in-part issued to purchase in lieu of redemption $50.24 million of the 1993 Tax Allocation Bonds. For tax reasons $8.53 million remain outstanding and are eligible to be refunded no earlier than September 1, 2003.
Due to prevailing financial market conditions, it is in the best interests of the Agency to realize interest rate savings by refinancing a portion of the Golden State Bonds, and to refinance all of the City Centre Bonds. In connection therewith, it has been proposed that the Authority purchase the applicable bonds in lieu of redemption. In order for the Authority to raise funds necessary to provide for such purchase, refinancing and financing, the Authority proposes to authorize the issuance of its revenue bonds. The proceeds of the Authority Bonds will be used: 1) to purchase the outstanding City Centre Agency Bonds in lieu of redemption; and, 2) to purchase a portion of the Golden State Agency Bonds in lieu of redemption.
BOND STRUCTURE � CITY CENTRE
Current market conditions have been deteriorating; however, staff believes that it is prudent to authorize the refinancing in the event the municipal bond market will yield a minimum net present value savings related to the refinancing of 3 percent. Current market conditions generate a 3.1percent net present value savings which represents net present value savings of $678,000 and equates to an average annual debt service savings of $51,700. The first payment date would be made December 1, 2003 with final maturity scheduled for December 1, 2023.
Standard and Poor�s and Moody�s Investor Services have been requested to provide a bond rating. Bond insurance is expected to be obtained from AMBAC Insurance or XL Capital.
BOND STRUCTURE � GOLDEN STATE
Current market conditions generate a 3.7 percent net present value savings which represents net present value savings of $315,000 and equates to an average annual debt service savings of $92,700. The first payment date would be made December 1, 2003 with final maturity scheduled for December 1, 2008.
Standard and Poor�s and Moody�s Investor Services have been requested to provide a bond rating. Bond insurance is expected to be obtained from AMBAC Insurance.
Current market conditions will dictate the timing the bonds will be priced and will dictate the ultimate savings related to the bonds. Should the market conditions not generate a minimum of 3 percent net present value savings; the bonds will not be issued.
Recommendation:
CITY CENTRE:
1. Adoption of proposed Burbank Public Financing Authority resolution entitled:
A RESOLUTION OF THE BURBANK PUBLIC FINANCING AUTHORITY AUTHORIZING ISSUANCE OF REVENUE BONDS, APPROVING, AND AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING ACTIONS WITH RESPECT THERETO (CITY CENTRE PROJECT AREA).
2. Adoption of proposed Redevelopment Agency resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING, AND AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN BOND FINANCING DOCUMENTS RELATED TO THE REFINANCING OF REDEVELOPMENT ACTIVITIES WITHIN ITS CITY CENTRE REDEVELOPMENT PROJECT AREA AND AUTHORIZING AND DIRECTING ACTIONS WITH RESPECT THERETO (CITY CENTRE PROJECT AREA).
3. Adoption of proposed City Council resolution entitled:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK MAKING FINDINGS WITH RESPECT TO AND APPROVING THE ISSUANCE OF BONDS BY THE BURBANK PUBLIC FINANCING AUTHORITY (CITY CENTRE PROJECT AREA).
GOLDEN STATE
1. Adoption of proposed Burbank Public Financing Authority resolution entitled:
A RESOLUTION OF THE BURBANK PUBLIC FINANCING AUTHORITY AUTHORIZING ISSUANCE OF REVENUE BONDS, APPROVING, AND AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN FINANCING DOCUMENTS AND AUTHORIZING AND DIRECTING ACTIONS WITH RESPECT THERETO (GOLDEN STATE PROJECT AREA).
2. Adoption of proposed Redevelopment Agency resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AND AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN BOND FINANCING DOCUMENTS RELATED TO THE REFINANCING OF REDEVELOPMENT ACTIVITIES WITHIN THE AGENCY�S GOLDEN STATE REDEVELOPMENT PROJECT AREA AND AUTHORIZING AND DIRECTING ACTIONS WITH RESPECT THERETO (GOLDEN STATE PROJECT AREA).
3. Adoption of proposed City Council resolution entitled:
A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK MAKING FINDINGS WITH RESPECT TO AND APPROVING THE ISSUANCE OF BONDS BY THE BURBANK PUBLIC FINANCING AUTHORITY, APPROVING THE ISSUANCE OF BONDS BY THE BURBANK PUBLIC FINANCING AUTHORITY (GOLDEN STATE PROJECT AREA).
CONSENT CALENDAR: (Item 2)
The following item may be enacted by one motion. There will be no separate discussion on this item unless a Commissioner so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda. A roll call vote is required for the consent calendar.
The City Treasurer's report on investment and reinvestment of temporarily idle funds for the quarter ending June 30, 2003.
Recommendation:
Note and file.
END OF CONSENT CALENDAR
REPORT TO AGENCY:
In October 2002, the Burbank Redevelopment Agency (Agency) was approached by Method Fest representatives, an independent film festival, to relocate their annual festival from Pasadena to Burbank. Method Fest is one of the only festivals that focuses on the actor, honoring the work of new artists and future stars, as well as career-defining performances of established actors. In addition to film screenings, the festival offers panels and discussion groups, educational seminars and workshops, and related parties and receptions.
On December 10, 2002, the Agency approved an agreement for a $25,000 grant for Method Fest. Staff was looking to this event to help with the branding of Downtown Burbank, continuing to establish Burbank as the home to film and film production, and increasing exposure of Downtown through advertising, media publicity, general attendance, street banners, and word-of-mouth.
The Method Fest Film Festival was held between April 11 and 18, 2003 in the Media City Center at the AMC 6 Theater with a week-long attendance of 12,462. Downtown Burbank was visited for the first time by many, and 6,340 tickets were sold for the screenings at the AMC 6 Theater in the Media City Center.
The City of Burbank's contribution of $25,000 provided the foundation for start-up costs for a new location for the fifth annual film festival. An additional $16,500 cash donations and in-kind donations of $85,450 in value were provided from several local businesses.
While it is difficult to measure the economic impacts of the week-long event, it appears that the impact to Downtown Burbank was positive, based on various anecdotal evidence. Not only did the local restaurants participate, their restaurants were filled at the receptions exposing new customers to their venue.
Finally, total attendance at receptions, seminars, workshops and panels was well over 3,000 and total attendance at the 52 festival screenings exceeded 9,000. Of that, 6,340 were sold tickets while 2,784 were provided free of charge to significant filmmakers, actors, sponsors, industry and media. Total festival attendance of all events reached nearly 12,500. This represents Method Fest�s highest attended festival, which should serve as a strong foundation for this event in the future.
Recommendation:
Note and file.
RECESS to continue the Housing Authority, Parking Authority, Youth Endowment Services Fund Board, Burbank Public Financing Authority, and City Council meetings.
ADJOURNMENT.