APFA2010/11/16ANAHEIM PUBLIC FINANCING AUTHORITY
REGULAR MEETING OF
N 16, 2010
The Anaheim Public Financing Authority met in regular session and was called to order at 5:19
P.M. for a joint public comment session with the Anaheim City Council, Redevelopment Agency
and Housing Authority.
Present: Chairman Curt Pringle and Board Members: Lord Galloway, Bob Hernandez, Lucille
Kring and Harry Sidhu.
Staff Present: City Manager Tom Wood, City Attorney Cristina Talley, and Secretary Linda
Andal
A copy of the agenda for the meeting of the Anaheim Public Financing Authority was posted on
November 12, 2010 on the kiosk outside City Hall.
ADDITIONS /DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS: No remarks offered during the joint public comment session related to
the Anaheim Public Financing Authority meeting.
AGENDA ITEM:
1. RESOLUTION NO. APFA 2010 -003 A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing the
B137.1 issuance of a lease revenue note, providing the terms and conditions for the issuance of
said note, and other matters relating thereto (related to Council Public Hearing, Item No.
29).
Tom Morton, Executive Director of Convention, Sports & Entertainment, announced this item
related to public hearing Item No. 29 on the City Council agenda and was a result of the joint
efforts of this City Council, the hotel community, the Resort and Platinum Triangle businesses
as well as the Orange County Visitors & Convention Bureau (OCVCB) in creating the Anaheim
Tourism Improvement District (ATID) to fund the expansion of the Anaheim Convention Center.
In 2006, the Convention Center completed extensive enhancements to the exterior of the
Convention Center Arena which became the Arena Plaza, a sought after space for receptions
and gatherings associated with events. He remarked there was value placed on open, campus -
like space surrounding the Convention Center and walk - ability to adjacent hotels. To build on
these strengths and further market the Anaheim Resort to meetings, conventions and trade
shows, staff worked with a design architect and appropriate stakeholders to create a new
element to the Convention Center campus. This addition, he reported, would be known as the
Anaheim Convention Center Ground Plaza and would create a vibrant exterior pedestrian plaza
while expanding the exterior space for the center with up to 100,000 square feet of outdoor
programmable space. The plaza would feature landscaping, walkways, hardscape and pavers,
water features, street furniture, lighting features and associated infrastructure and utilities
necessary to support programs and events related to the Convention Center. It would also
APFA Minutes of November 16, 2010
Page 2 of 3
provide for pedestrian circulation, vendor and concession opportunities and passive recreational
areas.
He explained the overall project area would be along Convention Way extending from Hotel
Way at the eastern border and then continuing west and curving around to the southeast corner
of Exhibit Hall D. The project would also necessitate vehicular street improvements including
the construction of a vehicular turnaround and modifications to shuttle pickup and drop off
areas. He added the interest and response from the Anaheim OC V &CB tourism improvement
district rate payers, the local hospitality community and many of the convention center's long-
term key clients who bring large conventions and trade shows to Anaheim had been
overwhelmingly positive.
Kristine Ridge, Acting Finance Director, announced that since the adoption of the resolution in
September which authorized the overall financing plan for the convention center expansion,
staff had been working on obtaining needed funding for this element of the expansion. Based
on the nature of the project and the completion schedule, it was determined that a short-term
borrowing by the Public Financing Authority would be most appropriate. The short term
borrowing was structured keeping within the parameters of the Convention Center financing
plan including future obligations expected to be incurred for the remainder of the expansion
project. The short-term financing would be sufficient to fund the interim improvements such as
the Grand Plaza, as well as the design cost in advance of the complete expansion project
expected in one to two years.
In consultation with the City's financial advisor, she remarked, staff determined that because of
the short-term nature of the financing, a private placement would be most cost effective and a
lender solicitation was prepared and distributed to four qualified lenders: Bank of America, Wells
Fargo, GE Capital and US Bank. The City received two proposals, one from Bank America and
the other from Wells Fargo and after review, including discussions with the two proposers, Wells
Fargo Bank was selected as their proposal had less restrictive conditions and provided the
needed flexibility regarding the payment terms. The key terms of the financing which took the
form of a lease revenue note included proceeds of $20 million with a four year term from the
closing date which was expected to be next month, at a fixed interest rate of only 1.85 percent.
She added such amounts owed under the note could be prepaid at any time and would require
prepayment upon execution of the long term financing required for the remainder of the
convention center expansion plans.
At 6:10 P.M., Board Member Kring moved to approve RESOLUTION NO. APFA 2010 -003 OF
THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing the issuance of a lease revenue
note, providing the terms and conditions for the issuance of said note, and other matters relating
thereto; seconded by Board Member Hernandez. Roll Call Vote: Ayes — 5: Chairman Pringle
and Board Members: Galloway, Hernandez, Kring and Sidhu. Noes — 0. Motion Carried.
APFA Minutes of November 16, 2010
Page 3 of 3
ADJOURNMENT:
There being no further business, Chairman Pringle adjourned meeting of the Anaheim Public
Financing Authority at 6:15 P.M.
Re pectf ly sub 'tted,
Linda N. Andal, CMC
Secretary, Anaheim Public Financing Authority