06-13-2005 RMIC RPT 01 - Laserfiche WebLink

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RIVERSIDE MUNICIPAL ..................... BOARD MEMBERS OF THE RIVERSIDE DATE:I MUNICIPAL IMPROVEMENTS CORPORATION SUBJECT: June 13, 2005 ITEM NO: 1 GALLERIA EXPANSION PROJECT - ISSUANCE OF NOT TO EXCEED $22,500,000 OF CERTIFICATES OF PARTICIPATION ("COP'S") - RESOLUTIONS ISSUE: The Galleria at Tyler expansion project has previously been before th~City CounciJ for various approvals. Today's action seeks the Riverside Municipal Improvements CorporatiOn's ,a, uthodzation to execute various agreements associated with the issue of up to $22.5 million of~OP s to fund the public improvements associated with the project. / RECOMMENDATION: That the Riverside Municipal Improvement Corporation approve the attached Resolution Authorizing Execution and Delivery of a Lease Agreement, a Trust Agreement (an~other various agreements related to the expansion project); and Approving a Purchase Contract and OffiCial Statement. BACKGROUND: At a series of Council meetings over the last two years, the City Coun( allow for the expansion of the Galleria at Tyler being completed by Tyler Growth company ("GGP/Tyler"). The project consists of the addition of a leaseable space, increasing gross leaseable space by approximately 1 .~ spaces. The total cost of the expansion is estimated at $65.5 million. COP's have been planned to finance the public improvements compor public improvements consist of a parking structure addition, certain lands walkways, plazas and other common areas, exterior lighting and sto expected in November 2006. The COP's will mature in 30 years and million for the public improvements. The balance of the COP's will be fund, prefund interest during construction and pay issuance costs. il has given various approvals that vlail Limited Partnership, a General )proximately 140,000 square feet of %, and the addition of 645 parking ent of the expansion project. The ;aping and hardscape, consisting of Tn drain systems. Completion is Jill generate approximately $17.35 sed to fund a debt service reserve The COP's are a General Fund obligation and will be repaid by Generall Fund revenues. However, per the terms of the "Agreement Regarding Financing and Construction of Parking Facility and Other Public Improvements," the majority of the debt service will be reimbursed to~,,h.e City's General Fund by way of special tax payments levied on a new Community Facilities District ("CFD ) on property owned by GGP/Tyler, and J.C. Penney. The annual debt service not covered by the special,axes will be paid from incremental property and sales taxes directly associated with the Gallefia at Tyler. 1-1