pages: CityCouncil/2009-11-03.pdf, 23
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CityCouncil | 2009-11-03 | 23 | The Economic Development Director gave a brief presentation. Vice Mayor/Commissioner deHaan inquired whether the CIC residential profit participation revenue is over and above the base price. The Economic Development Director responded in the affirmative; stated the $19.3 million pays for project obligations; stated all of the profit participation and land sale proceeds received from the project go back into the project to retire obligations; a $7 million obligation for the developer advance still remains; profit participation expectations were higher two years ago. Vice Mayor/Commissioner deHaan inquired whether State level problems and redevelopment fund take away will have any affect on the bond. The Economic Development Director responded in the affirmative; stated the State's financial condition has hurt the bond market. stated redevelopment bonds have done much better than other types of bonds; today's bond market is much higher than a couple of years ago; nobody will allow the City to bond until how the City will make the State payment is determined; the City has the capacity to issue a bond much larger than recommended by staff; that she recommends not to bond to capacity because of State uncertainties. Vice Mayor/Commissioner deHaan inquired whether staff would provide a complete bond overview, to which the Economic Development Director responded in the affirmative. Councilmember/Commissioner Matarrese stated the City has the capacity on paper: estimates were raised as the project was built; using revenue streams to pay bonds back is subject to the State take away; the State's structural problems are not going to be remedied. The Economic Development Director stated that she has had conversations with the Interim City Manager/Executive Director regarding consideration of strategies for just using tax increment generated off the project for the next year or SO. Mayor/Chair Johnson inquired what is the annual tax increment from the project. The Economic Development Director responded over $3 million; stated there is $866,000 per year in existing debt service payoff of old bonds that anchor the project. Special Joint Meeting Alameda City Council and Community Improvement Commission November 3, 2009 | CityCouncil/2009-11-03.pdf |