pages: CityCouncil/2007-10-16.pdf, 5
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CityCouncil | 2007-10-16 | 5 | for the bonds; there is multi layer financing through tax credit and soft money; qualified institutional buyers are lending the funds for the bonds. Mayor Johnson inquired whether the documents clearly state that the City's contribution is $4 million. Mr. Stoecker responded the documents are not complete; stated standard documentation states that the bonds are payable solely by RCD; there is no State, County, or City obligation. Mayor Johnson inquired who would be managing the construction. Mr. Stoecker responded RCD; stated RCD is a very well respected firm. Mayor Johnson inquired whether RCD's projects have been on time and on or under budget. The Development Manager responded RCD was selected by the City in 2002 to develop the 52-unit and 10-unit Bayport project; stated both projects were completed on time and on budget. Mayor Johnson inquired whether the proposed project would be design-build, to which the Development Manager responded in the affirmative. Mayor Johnson stated that the City needs to be clear that someone else would have to find the money if there is a shortfall at the end. The Development Manager stated that RCD understands the City's funding limits; all financing documents are separate. Mayor Johnson inquired whether the City would not fund operation, to which the Development Manager responded in the affirmative. Mayor Johnson stated it is important that the City has the ability to make sure that anyone considered to operate the project has adequate funding and management skills if there is a change in management or operation. Councilmember Gilmore inquired whether the City's remedy would be to give consent to a new construction entity and operator with adequate financing if RCD did not have enough funds to pay the bond obligation. The Development Manager responded the decision is not solely the Regular Meeting Alameda City Council 5 October 16, 2007 | CityCouncil/2007-10-16.pdf |