1992 12 01 FA Minutesd_" LA QUINTA FINANCING AUTHORITY
MINUTES
DECEMBER 1, 1992
Regular meeting of the La Quinta Financing Authority was called to
order by Chairman Pena.
PRESENT: Mrs. Bangerter, Mr. Perkins, Mr. Sniff, Chairman Pena
ABSENT: Mrs. Franklin
BUSINESS SESSION
1. ADOPTION OF RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY
OF BOND PURCHASE CONTRACTS BY AND AMONG THE LA QUINTA
REDEVELOPMENT AGENCY, LA QUINTA FINANCING AUTHORITY AND
WESTOFF-MARTIN & ASSOCIATES.
Mr. O'Reilly, Finance Director, advised that the action before
the Board is adoption of a resolution finalizing a bond issue
for Redevelopment Agency Project Area #2 which deals with the
111 La Quinta Center and some of the commercial development
along Highway 111 and some of the OPA's we have with
developers in that area. The bond issue un-rated" and Tom
DeMares, the Financial Advisor and Mark Holmstedt, with
Westhof f-Martin, the Underwriters, are present to address that
particular issue. With the Underwriter buying the bonds, the
Agency is under no risk as far as being able to sell the
bonds.
Tom DeMares reviewed the history of this issue and advised
that Westhof f-Martin was selected as the Underwriter and
shortly afterwards they started preparation of the documents
thinking that they would be able to go to the rating agencies
and insurance companies for possible rating and insurance.
Because of the state of the economy and the State's budget
crisis in September, the rating agencies and insurance
companies balked concerning Redevelopment Agencies and bond
financing. Also, because it's a new project area, there was
no historical increment that we could rely on even though the
projections were conservative. The rating agencies and
insurance companies declined to go ahead. In discussing the
matter of proceeding unrated with staff, they didn't feel that
it would hurt the City at all. As we go forward, we plan to
keep the rating agencies and insurance companies apprised of
the developments within Project Area 2 so that they can stay
on top of how it's developing. The advantage to proceeding at
this time is that interest rates are favorable. Additionally,
TDC is going to need a payment soon.
Mark Holmstedt, with Westhoff-Martin, advised that because of
the economy and State's budget crises along with the New York
mentality about California at this point, the coverage ratio
was unreasonably high. Even though they're paying a little
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d_" more in interest, slightly over 7% it provides more proceeds
and flexibility leverage. He advised that as of this morning,
out of a $5,845,000 they have over $5,000,000 in orders for
it, so they feel very comfortable with the issue.
In response to Mr. Sniff, Mr. Genovese advised that the TDC
comitment is approximately $3.75 million.
RESOLUTION NO. FA 92-1
A RESOLUTION OF THE LA QUINTA FINANCING AUTHORITY AUTHORIZING
THE EXECUTION AND DELIVERY OF BOND PURCHASE CONTRACTS BY AND
AMONG THE LA QUINTA REDEVELOPMENT AGENCY, LA QUINTA FINANCING
AUTHORITY AND WESTHOFF-MARTIN & ASSOCIATES.
It was moved by Mr. Sniff seconded by Mrs. Bangerter that
Resolution No. FA 92-1 be adopted. Motion carried
unanimously.
CONSENT CALENDAR None
DEPARTMENT REPORTS
a. Transmittal of Statement of Financial Position July 1, 1992
September 30, 1992.
There being no further business, the meeting was adjourned.
Res?ctfjly submitted,
RAL.J?,secretary
La Quinta Financing Authority
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