HomeMy WebLinkAboutUnbudgeted Expenditure - Appropriate Funds from the RedeveloCouncil/Agency Meeting Held:'
Deferred/Continued to:
XApproved ❑ Conditionally Approved ❑ Denied
Vs)eCity Jerk's Signature
Council Meeting Date: August 18, 2003
Department ID Number: ED 0AJI 8
4prueA CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY _
MEMBERS
SUBMITTED BY: RAY SILVER, Executive DirectoryJ�``�='r
7-Z
PREPARED BY: DAVID C. BIGGS, Deputy Executive Director C-)
SUBJECT: Appropriate Funds for the "Developer Advance" Paymentf'orihe
Hyatt Project to Mayer Financial, LP
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: The Second Implementation Agreement to the Amended and
Restated Disposition and Development Agreement between the Redevelopment Agency and
Mayer Financial, LP approved February 5, 2001, describes the Agency's obligation to repay
the Developer Advance based upon the success of the Hyatt and the generation of sufficient
public revenues. As an unbudgeted item in FY 2002/03, the Agency needs to appropriate
the funds.
Funding Source: Agency's Unencumbered Capital Projects Fund Balance.
Recommended Action: Motion to:
1. Appropriate $1,050,000 from the Agency's unencumbered Capital Projects fund balance
to the Redevelopment Agency's Debt Service Account No. 40740101.88030 for the
September 30, 2003 payment of the Developer Advance for the Hyatt project.
Alternative Action(s): None.
Analysis: The Mayer Financial, LP paid all of development costs for the Hyatt project with
the Agency obligated to repay the developer for a portion of these costs, now referred to as
the "Developer Advance." The principal amount of the Developer Advance was $16,461,000.
Through a $6 million HUD Section 108 Loan and a $2 million HUD-BEDI grant, the Agency
has repaid $8 million of the Developer Advance. The remaining amount owed will be repaid
over a 20-year period beginning with the first payment due on September 30, 2003. The
interest rate is fixed at 6.3185%, the total interest rate for the Community Facilities District
Bonds sold to fund public improvements.
REQUEST rOR REDEVELOPMENT AGENCY ACTION
MEETING DATE: August 18, 2003 DEPARTMENT ID NUMBER: ED 03-18
The Second Implementation Agreement to the Amended and Restated Disposition and
Development Agreement approved February 5, 2001, describes the Agency's obligation to
make annual payments to Mayer Financial, LP based upon the success of the Hyatt project.
Project generated Tax Increment (TI) and Transient Occupancy Tax (TOT) are the only
revenue sources used to make this payment. Reductions are made for Housing Set -Aside
(20%), Pass Through payments, ERAF payments, and Section 108 Loan payments. In the
future, the Agency may opt to make a March payment to save additional financing costs long-
term.
The Hyatt Regency opened in January 2003 with the first payment due on the first
September 30t" after the opening. The amount of the payment was dependent upon the
financial success of the project. The budgeted amount could not be determined until the TI &
TOT figures were determined. The project has generated sufficient TI and TOT to make the
payment. A fiscal impact statement states that if this request is approved, then the
undesignated Redevelopment Agency Captial Project's fund balance at September 30, 2002
will be reduced to $1,896,000. The future annual payments will be budgeted within the
Agency's regular budget cycle.
Environmental Status: Not applicable.
Attachment(s):
RCA Author: Runzel - 5224
G:\Carol\Administration\RCA\ED03-18.doc -2- 8/6/2003 7:44 AM
FISCAL IMPACT STATEMENT
i. CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICA TION
To: Ray Silver, City Administrator
From: Clay Martin, Director Of Administrative Services
Subject: FIS 2003-30 - Appropriate funds for the "Developer
Advance" Payment for the Hyatt Project to Mayer Financial, LP
Date: July 31, 2003
As required by Resolution 4832, this Fiscal Impact Statement has
been prepared for "Appropriate funds for the "Developer Advance"
payment for the Hyatt Project to Mayer Financial, LP"
If the City Council approves this request (total appropriation
$1,050,000), the estimated unappropriated, undesignated
Redevelopment Agency Capital Project's Fund Balance at September
30, 2002 will be reduced to $1,896,000.
Clay Martin
Director oVAdministrative Services
RCA ROUTING SHEET
INITIATING DEPARTMENT:
Economic Development
SUBJECT:
Appropriate funds for the "Developer Advance" payment for
the Hyatt Project to Mayer Financial, LP
COUNCIL MEETING DATE:
August 18, 2003
.... .
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Attached
Bonds (If applicable) Not Applicable
Staff Report If applicable Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
....
;EXPLANATION FOR MISSING ATTACHMENTSI
EXPLANATION FOR RETURN OF ITEM:
10
RCA Author: Runzel