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HomeMy WebLinkAboutRDA Min 1982-02-08 2-8-82 Seal Beach, California February 8, 1982 The Redevelopment Agency of the City of Seal Beach met in regular adjourned session at 6:45 p.m. with Chairman Supple calling the meeting to order with the Salute to the Flag. I ROLL CALL Present: Chairman Supple Agency Members Laszlo, Seitz, Vanderstaay Absent: Agency Member Kredell Laszlo moved, second by Vanderstaay, to excuse the absence of Agency Member Kredell. AYES: NOES: ABSENT: Laszlo, Seitz, Supple, Vanderstaay None Kredell Motion carried Also present: Mr. Parker, Executive Director Mr. Parrington, Special Legal Counsel Mrs. Yeo, Secretary WAIVER OF FULL READING Vanderstaay moved, second by Laszlo, to waive reading in full of all resolutions, and that consent to the waiver of reading shall be deemed to be given by all Agency members after reading of the title unless specific request is made at that time for the reading of such resolution. I AYES: NOES: ABSENT: Laszlo, Seitz, Supple, Vanderstaay None Kredell Motion carried APPROVAL OF MINUTES Laszlo moved, second by Vanderstaay, to approve the minutes of the regular meeting of January 25, 1982 as presented. AYES: NOES: ABSENT: Laszlo, Seitz, Supple, Vanderstaay None Kredell Motion carried I EXTENSION - SETTLEMENT AGREEMENT - RIVERBEACH ASSOCIATES - TOWNHOMES Mr. Parrington, Special Legal Counsel, presented the staff report regarding the proposed amendment to the Settlement Agreement with Riverbeach Associates that would provide a ninety day extension of the Agreement from April 15 to July IS, 1982, and allow additional time to sell, issue and deliver the SB 99 bonds for the development of the townhomes. Mr. Parrington stated that the bond package is now ready for sale, that agreement had been reached with First Inter- state Bank to act as the guarantor, and noted however, that the uncertainty of the current bond market may delay the sale of the bonds until such time as the interest rate drops to approximately thirteen percent, a rate that would allow the developer to market the townhomes on a reasonable basis. Agency Member Seitz indicated concern that the interest rate may not decline and the bonds not sell and suggested that the Executive Oirector negotiate a new agreement with Riverbeach Associates to be effective upon termination of the current agreement which would be financially beneficial to the City, such as requiring the prepayment of tax increment monies. Mr. Parrington explained that should the bonds not be sold under the provisions of the existing agreement, financing would not be available for construction of the townhouse project and the developer would therefore be liable for the one time payment for liquidated damages: Mr. Parrington explained further that First Interstate Bank would act ~s the servicer for the 2-8-82 mortgage loans, reviewing loan applications pursuant to standard loan procedures and also act as the construction lender. The Chairman suggested that the Agency may wish to postpone action on the extension until a later date and that the Executive Director could be prepared to submit an extension or modified agreement at that time. Mr. Steve Gunther, Urban West, referred to the extensive negotiating and docu- mentation process in preparation for the sale of the bonds, the unique financing roll of First Interstate Bank and noted that the bonds had been rated AA by Standard and Poor and assured there is no credit risk or liability on the part of the Agency or the City relating to the bond sale. Mr. Gunther expressed his concern that should the bonds not be sold by the April 15th deadline, the entire process would have to be reinstituted and/or the probability existing that the project would be terminated. Mr. Parrington stated approximately thirty days would be necessary to complete the sale, issuance and delivery of the bonds and suggested the Agency may wish to consider a thirty day extension. Discussion continued. Seitz moved, second by Vanderstaay, that this item be postponed until next meeting and that the Executive Director be directed to negotiate a new agreement with Riverbeach Associates with provisions that may be of financial benefit to the City. I AYES: NOES: ABSENT: Laszlo, Seitz, Supple, Vanderstaay None Kredell Motion carried REQUEST - FINANCIAL ASSISTANCE - SEAL BEACH SCHOOL DISTRICT Laszlo moved, second by Vanderstaay, to postpone this item until next meeting when all Agency Members would be present. AYES: NOES: ABSENT: Laszlo, Seitz, Supple, Vanderstaay None Kredell Motion carried I Agency Member Seitz noted a joint school district meeting to be held February 16th to discuss the annexation of the Seal Beach School District to the Los Alamitos School District. ORAL COMMUNICATIONS There were no oral communications. ADJOURNMENT Vanderstaay moved, second by Laszlo, to adjourn the meeting at 7:38 p.m. AYES: NOES: ABSENT: Laszlo, Seitz, Supple, Vanderstaay None Krede 11 Motion carried ~. Chairman p .,.w I