Joint Item to Authorize a Loan From the City of Culver City to the Culver City Redevelopment Agency for Bond Reallocation. City of Culver City California City Council Agenda Item Report Meeting Date: 05/29/07 AGENDA ITEM: Joint Item to Authorize a Loan From the City of Culver City to the Culver City Redevelopment Agency for Bond Reallocation. Item Number: J 2 Contact Person/Dept.: Todd Tipton/CDD Phone Number: 310 253 5700 Fiscal Impact: Yes X No General Fund: Yes X No Public Hearing: Action Item: X Public Notification: Master Notification List (05/24/07). Attachments: X Department Approval: Todd Tipton (05/10/07) City Controller Approval: Marlee Chang (5/21/07) City Attorney Approval: Carol Schwab (by H. Iker) (05/16/07) City Manager Approval: Jerry B. Fulwood (05/23/07) RECOMMENDATION: Staff recommends the City Council approve a $9 000 000 loan to the Culver City Redevelopment Agency (the Agency ) for the purpose of bond reallocation and consider loan options and terms. BACKGROUND/DISCUSSION: Over the past few years the Agency has acquired a number of properties throughout the City in furtherance of the Redevelopment Plan. While a number of the properties were purchased with tax increment funds several properties were purchased with bond funds due to the anticipated project/proforma structure. the properties at Tax exempt bond Washington/Centinela with the expectation that the residual land value would not result in a return greater than five percent ($1.5 million) of the total bond issuance ($28 million). The Agency also acquired properties at Washington/National with tax exempt bond funds with the expectation that any portion of the residual land value that exceeded the available return (after Washington Centinela) would be applied to public traffic improvements etc.) related to the project. Due to the upcoming five year anniversary related to the 2002 bonds and scope/schedule alterations for both projects it has become necessary to reallocate unrestricted monie...
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