ARA2007/11/27ANAHEIM REDEVELOPMENT AGENCY MINUTES OF NOVEMBER 27, 2007
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Elisa Stipkovich, Community Development Director, reported Item No's. 4, 10 and 51 related to
the issuance of redevelopment bonds up to a maximum of $218 million for the purpose of
refunding all existing Agency debt of approximately $150 million and borrowing of approximately
$52 million in new monies to be used to pay off existing property acquisition loans with the
remaining designated for public improvements and future property acquisitions. She added
based on the Agency's earlier action to maximize the City's redevelopment program by merging
all redevelopment project areas into one and extending the life of those project areas by 10
years, it was now possible to refinance the existing debt as well as issue new debt for the longer
term utilizing all of the project area's revenue streams in order to support this bond issue. By
taking this action, she remarked, the City would be lowering the annual debt service and still
have the ability to issue new debt in the future as there was capacity remaining in
redevelopment tax increment funds. She remarked if the Agency were to solely refinance
existing debt, it would have resulted in an $8 million savings, however, because new monies
were also borrowed, those savings would push out the debt service and the City would be
receiving a lower debt payment for the next 10 to 15 years.
Chairman Pringle commented he was comfortable with the efforts of this finance team and
would support the recommendation. He had participated in a rating agency meeting with the
team as well as meeting with bond insurance companies in San Francisco and due to those
efforts the City recently learned Standards and Poor's rating on this bond allocation had been
increased from A minus. to A, one of the strongest positions in the state. He pointed out that
Anaheim had taken two actions most other cities had not taken, and that was to combine the
redevelopment project areas together, the largest of which was the Canyon as it connected to
the downtown area (Project Alpha) and the only area with existing debt. By combining all the
project areas and merging them into one, the City was not tapping into the potential debt
capacity which made this offering very strong. He added Anaheim was also the only city that
took advantage of state law and extended the life of the project areas for 10 years and this
refinancing allowed reinvestment in the City by capturing additional revenues for those 10 years.
He believed this would be a real benefit to the residents of Anaheim and commended staff on
their actions.
Agency Member Sidhu requested a breakdown of the $218 million; Ms. Stipkovich responded
the City would not know the exact amount until the date of issuance as it was dependent on
interest rates and other factors. She indicated the maximum amount of the tax allocation bonds
issued would be $218 million. Of that, $181.5 million would be for general redevelopment
purposes, $44.8 million of which would be new monies and the remainder was for refinancing of
existing debt. The housing bonds component reflected $36.5 million, most of which would be
refunded and with $7.6 million allocated for affordable housing purposes. Agency Member
Sidhu remarked this was similar to a homeowner refinancing a mortgage loan, paying off credit
card debt at the same time and resulting in an interest rate and payment that was lower than the
initial mortgage payment and complimented staff on their efforts.
Agency Member Hernandez moved to approve RESOLUTION NO. 2007-004 OF THE BOARD
OF DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing the
purchase and sale of Tax Allocation Refunding Bonds for the Anaheim Merged Project Area and
approving certain related documents and authorizing certain other actions, seconded by Agency
Member Sidhu. Roll call vote: Ayes - 5; Chairman Pringle, Agency Members: Galloway,
Hernandez, Kring and Sidhu. Noes - 0. Motion Carried.
ANAHEIM REDEVELOPMENT AGENCY MINUTES OF NOVEMBER 27, 2007
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ADJOURNMENT:
There being no further business, Chairman Pringle adjourned the Anaheim Redevelopment
Agency meeting at 5:52 P.M.
Respec Ily submitted,
Linda Nguyen
Secretary, Anaheim Redevelopment Agency