Agenda

Return

C.118

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	July 12, 2016

Contra

Costa

County

Subject:

REQUEST FOR SUBORDINATION - SUCCESSOR AGENCY TO THE FORMER EL CERRITO REDEVELOPMENT AGENCY

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 07/12/2016

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

John Gioia, District I Supervisor

Contact:

Timothy Ewell, 925-335-1036

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: July 12, 2016
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the County Administrator, or designee, to sign a letter acknowledging subordination of revenue due to the County, Library and Flood Control and Water Conservation Districts from certain pass-through payments, pursuant to and required by the Fiscal Agreement, dated December 21, 1993, between the parties and the former El Cerrito Redevelopment Agency.

FISCAL IMPACT:

No anticipated fiscal impact. The County (including the Library and Flood Control and Water Conservation District) share of negotiated property tax pass-through payments is anticipated to be $471,598 in fiscal year 2016/17 following the scheduled refunding of tax allocation bonds of the former El Cerrito Redevelopment Agency.

BACKGROUND:

The subordination of pass-through payments for debt issuances by the former El Cerrito Redevelopment Agency was pre-negotiated in a December 1993 fiscal agreement between the County and the Agency. In that agreement, the County agrees to subordinate future pass-through payments to assist the Agency in providing investors with a more senior lien position on tax-increment revenue. This provides additional security to investors, which should translate to more favorable interest rates for the Agency (now the Successor Agency).

CONSEQUENCE OF NEGATIVE ACTION:

The Successor Agency to the former El Cerrito Redevelopment Agency will be unable to secure the subordination of pass-through payments from all taxing entities, which may have a negative impact on interest rates available to the Successor Agency as part of it's refunding of outstanding tax allocation bonds.

CHILDREN'S IMPACT STATEMENT:

No impact.