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RA1980/11/12ANAHEIM REDEVELOPMENT AGENCY NOVEMBER 12, 1980, 1:00 P.M. Council Chamber Anaheim City Hall PRESENT: AGENCY MEMBERS: Kaywood, Bay, Roth and Overholt ABSENT: AGENCY MEMBERS: Seymour PRESENT: CITY MANAGER: William 0. Talley CITY ATTORNEY: William P. Hopkins SECRETARY: Linda D. Roberts EXECUTIVE DIRECTOR: Norman J. Priest REDEVELOPMENT MANAGER: Susan Schick Chairman Pro Tem Overholt called the regular meeting of the Anaheim Redevelopment Agency to order at 1:23 P.M. MINUTES On motion by Mrs. Kaywood, seconded by Mr. Roth, minutes of the Anaheim Redevelopment Agency regular meeting held August 19, 1980, were approved. Agency Member Seymour was absent. MOTION CARRIED. FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of $178,994.29, in accordance with the 1980 -81 Budget, were approved. 161.128: AUDIT REPORT - REDEVELOPMENT RELOCATION ACCOUNT - SEPTEMBER 30 1980 In accordance with recommendations by the Executive Director, Mr. Roth moved that Audit Report of the Redevelopment Relocation Account for the three -month period ending September 30, 1980, be ordered received and filed. Mr. Bay seconded the motion. Mr. Seymour was absent. MOTION CARRIED. 161.177: DESIGNATION OF PRIVATE MORTGAGE INSURANCE COMPANY FOR PROPOSED MARKS -FORAN HOUSING BOND ISSUE Pursuant to report and recommendation by the Executive Director, Mrs. Kaywood moved that designation of Private Mortgage Insurance Company as mortgage insurance firm for the proposed Marks -Foran Housing Bond Issue, be approved. Mr. Bay seconded the motion. Mr. Roth abstained from voting. Mr. Seymour was absent. MOTION CARRIED. 161.177: DESIGNATION OF SECURITY PACIFIC BANK AS TRUSTEE FOR THE PROPOSED MARKS -FORAN HOUSING BOND ISSUE In accordance with report and recommenda- tion by Executive Director Norm Priest, it was moved by Mr. Bay, seconded by Mrs. Kaywood, that designation of Security Pacific Bank as trustee for the proposed Marks -Foran Housing Bond Issue be approved. Mr. Roth abstained from voting. Mr. Seymour was absent. MOTION CARRIED. 161.177: APPROVAL OF PRELIMINARY OFFICIAL STATEMENT - MARKS -FORAN H BOND ISSUE Mr. Priest reported on Preliminary Official Statement for distribution on behalf of the proposed Marks -Foran Housing Bond Issue, advising that by Congressional mandate, the bond issue must be sold by December 31, 1980. He noted the instability of the bond market, which was expected to continue through mid -1981, and could only estimate that the sale would be at an interest rate of 10 3/4 to 11 %. This would necessitate the Agency's expenditure of $300,000 to $500,000 at the begin- ning to meet costs of the bond issuance and the non -asset portions thereof. :1 • ANAHEIM REDEVELOPMENT AGENCY NOVEMBER 12 1980 1:00 P.M. In addition, Mr. Priest expected to recommend that the Agency consider writing down interest costs, inasmuch as 10 3/4 to 11% would probably be close to the actual costs of mortgages. The Redevelopment staff believed this would be in order, for placement of those mortgages for rehabilita- tion. He estimated another $300,000 to $500,000 would be recommended to write down those costs. Mr. Priest further reported that a mortgage pool would be utilized; there were now commitments from the lenders designated by the Agency. He was of the opinion that such preliminary investment of Agency funds was appropriate, and noted that half a million dollars had already been budgeted this year for the program. He recommended that the Preliminary Official Statement be approved. Responding to question by Mrs. Kaywood, Mr. Priest reported that it was not anticipated that any part of the program would suffer as a result of utilizing the already budgeted funds in the beginning, and the number of mortgages should not be affected. He briefly outlined the necessary steps precedent to sale of the bond issue together with the time con- straints. In response to question by Mr. Bay, Mr. Priest advised that Redevelopment Agency money would be used in the project only; in addition, under the Block Grant Program there was already in place a program wherein Block Grant money was utilized to write down interest costs in the target areas, and proceeds from the bond issue could be so utilized. He pointed out, however, that if interest costs on the issue rose to above the 112% level, he would have to demonstrate to the Agency some substantially different methods of handling that money, or recommend that the Agency not go forward, Mr. Bay was of the opinion that when recommendations were made for action on the final sale of the bond issue, the Executive Director should report on the differential between what percentage the mortgage loans %vuld be going for, rather than prime interest rate vs, where the Agency stood, with or without subsidies. Mr. Priest further reported that the market for first mortgages was currently substantially above what he had discussed, but a homeowner hold- ing an older loan at a substantially lower rate might not be interested in refinancing in order to rehabilitate his property; therefore, it could be important to assist that homeowner in his rehabilitation. He called attention to the fact that many neighborhoods were showing increased interest in Block Grant funding. Responding to question by Mrs. Kaywood, Mr. Bobby McDonald of James Lowry and Company, financial consultants to the Agency, briefly outlined the procedure of negotiated bids for the bond issue, with a final purchase agreement expected to be presented to the Agency on December 9. Although there probably would not be sufficient time to renegotiate the bids at that time, there should be opportunity to delay the sale one week, if there was reason to believe there might be some improvement in the bond market at that time. ANAHEIM REDEVELOPMENT AGENCY NOVEMBER 12 1980 1 :00 P.M. At the conclusion of the discussion, Mr. Overholt offered Resolution No. ARA80 -4 for adoption. Refer to Resolution Book. RESOLUTION NO. ARA80 -43 A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY APPROVING THE PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO, (Residential Rehabilitation Mortgage Revenue Bonds, 1980 Series A) Roll Call Vote: AYES: AGENCY MEMBERS: NOES: AGENCY MEMBERS: ABSTAIN: AGENCY MEMBERS: ABSENT: AGENCY MEMBERS: Kaywood, Bay and Overholt None Roth Seymour Mayor Pro Tem Overholt declared Resolution No. ARA80 -43 duly passed and adopted. 161.160: PURCHASE - ANTI - GRAFFITI CHEMICALS Mr, Priest briefly reported on proposed purchase of an anti - graffiti product for application on Downtown Project Alpha street improvements, advising the special material would coat the improvements so that any graffiti could be washed away. The recommended product had been tested for a six-month period, along with other similar products,and was found to have superior long -term maintenance and cleaning properties, Mr. Roth moved that purchase of anti - graffiti chemicals from Textured Coatings of America, Inc., in the amount of $11,500, be authorized. Mrs. Kaywood seconded the motion. Mr. Seymour was absent. MOTION CARRIED. ADJOURNMENT There being no further business to come before the Anaheim Redevelopment Agency, Mr. Roth moved to adjourn. Mr. Bay seconded the motion. Mr. Seymour was absent. MOTION CARRIED. ADJOURNED: 1:52 P.M. LINDA D. ROBERTS,