No. 0819 authorizing issuance of bonds on parity with COSB redevelopment district tax increment revenue bonds of 1985 & 1986 for purpose of raising money for property acquisition and redevelopment in SBCAA

Home Browse Search

WHEREAS, the Commission has heretofore issued certain tax incre- ment revenue bonds in the aggregate principal amount of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000), designated Tax Increment Revenue Bonds of 1986 ( "Series 1986 Bonds "), issued pur- suant to Resolution No. 775 and Amending Resolutions Nos. 779 and 780) (Resolution No. 775, as amended, shall hereinafter be referred to as the "Series 1986 Bond Resolution "), adopted May 23, 1986, July 11, 1986, and July 25, 1986, respectively, which bonds in the amount of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000) are outstanding as of November 1, 1987 and will mature in various amounts annually on February 1 of each year beginning on February 1, 1992, through and including February 1, 2004; and WHEREAS, the Series 1985 Bond Resolution and the Series 1986 Bond Resolution authorizing the issuance of Series 1985 Bonds and Series 1986 Bonds, respectively, provide at Section 6 that the Redevelopment District reserves the right to authorize and issue additional bonds ( "Parity Bonds "), payable out of Tax Increment (as hereinafter de- fined), ranking on a parity with the Series 1985 Bonds and the Series 1986 Bonds for the purpose of raising money for future property acquisition or redevelopment in the Allocation Area; and WHEREAS, Section 6 of both the Series 1985 Bond Resolution and the Series 1986 Bond Resolution provide that the authorization and issuance of Parity Bonds shall be subject to the following conditions precedent: (a) All interest and principal payments with res- pect to all bonds payable from the Tax Increment shall be current to date in accordance with the terms thereof with no payment in arrears. (b) The balance in the Reserve Account shall equal the Debt Service Reserve Requirement. (c) The Commission shall have received a certi- ficate prepared by an independent certified public accountant or an independent financial consultant ( "Certifier ") certifying that the Tax Increment estimated to be received in each succeeding year, adjusted as provided below, is estimated to be equal to at least 150% of the principal and interest requirements for each respective year during the term of the Bonds with respect to the bonds and the Parity Bonds. In estimating the Tax Increment to be received in any future year, the Certifier shall base his calculation on assessed valuation actually assessed or to be assessed as of the assessment date immediately preceding the issuance of the Parity Bonds; provided, however, the Certifier shall adjust such assessed values for the current and future reductions of real property tax abatements granted ZIC