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).
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