03/21/1978 - Laserfiche WebLink

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.~ ---- . . . MINUTES SPECIAL MEETING COMMUNITY REDEVELOPMENT AGENCY SANTA ANA, CALIFORNIA MARCH 21, 1978 The Special Meeting of the Community Redevelopment Agency of the City of Santa Ana was called to order by the Vice Chairman at 4:30 P.M. in the City Hall Council Chambers, 22 Civic Center Plaza, Santa Ana, California. After the pledge to the Flag, roll was called: PRESENT ABSENT Gordon Bricken Vernon Evans David Ortiz James Ward David Brandt John Garthe Harry Yamamoto Others in attendance: Richard E. Goblirsch, Executive Director James Saffron, Stone & Youngberg Bruce Spragg, City Manager Keith Gow, City Attorney The Times The Reg ister TAX INCREMENT BONDS Vice Chairman called on the Executive Director to report on bond sale. The Executive Director introduced the Agency's tax consultant, Mr. Jim Saffron, President of Stone & Youngberg, who gave a brief report. Mr. Saffron reported that in meeting with the rating agencies, the bonds received an excellent rating, rating assigned by Moody's Investor Service was Baa-I, rating assigned by Standard & Poor's Corporation was A-I. These ratings illustrated that the Santa Ana project is a successful one and was graded as excellent. He further reported that this morning, in spite of the proposed Jarvis amendment, a very good bid of 6.63% was received from Merrill Lynch, Pierce, Fenner and Smith, Incorporated. To put that bond in perspective, Mr. Saffron presented the following information: San Bernardino offered a $23 million bond and received one bid for 7% (San Bernardino had offered these bids for sale three weeks before and then cancelled the sale). Therefore, 6.63% is really an excellent bid compared to others that have been bid. He emphasized that the timing in light of the Jarvis issue could not be.more precise. He stated that in his opinion, this sale may very well be the last sale of tax increment bond prior to the June election. Those cities that do stay in the market face the possibility of high bids. Mr. Bricken questioned how Jarvis is effecting bond presently being offered for sale by other cities. Mr. Saffron replied that most issues are selling, regardless of the times. For instance, the City of Lama Linda received a 5.4% bid for a general obligation bond. In closing, Mr. Saffron related that staff did a good job in New York in getting the bond rated. Bond proceeds will be within $100,000 of those presented in the official statements. The Executive Director added as a closing statement that a good faith . check in the amount of $135,000 was put up by the Merril Lynch Incorporated and recommended that the bond be awarded to Merrill Lynch,