07-24-2006 RMIC RPT 01 - Laserfiche WebLink

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RIVERSIDE MUNICIPAL IMPROVEMENTS CORPORATION "'''''''''"111'"'"''''''''''''''''''''''''''"'"'''"111''''''''''"",",",",",,,,,'"11''''''''''''''"'''''"111111111'''''''''.'''''11111'"11111'"''"'"''''''."'"1''''"1'"''"'"'''''''''''''"''''''''''"''''"'''''''''''''.'1111'" TO: BOARD MEMBERS OF THE RIVERSIDE DATE: July 24,2006 MUNICIPAL IMPROVEMENTS CORPORATION FROM: CITY MANAGER - FINANCE ITEM NO: 1 WARD: 6 SUBJECT: GALLERIA EXPANSION PROJECT - ISSUANCE OF NOT TO EXCEED ~22,500.000 OF CERTIFICATES OF PARTICIPATION ("COPS") - RESOLUTIONS ISSUE: The Galleria at Tyler expansion project has previously been before the City Council for various approvals, including authorization of the issuance of COPs. Due to a substantial delay in the issuance of the COPs because of a change in ownership of one of the major tenants at the Galleria, it is appropriate for the Riverside Municipal Improvements Corporation to readopt the resolution authorizing the sale of the COPs. Therefore, today's action will authorize the City to issue up to $22.5 million of COPs 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 (and 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 three years, the City Council has given various approvals that allow for the expansion of the Galleria at Tyler being completed by Tyler Mall Limited Partnership, a General Growth company ("GGP/Tyler"). The project consists of the addition of approximately 140,000 square feet of leaseable space, increasing gross leaseable space by approximately 15%, and the addition of 645 parking spaces. The total cost of the expansion is estimated at $65.5 million. COPs have been planned to finance a major portion of the public improvements associated with the expansion project. The public improvements consist of a parking structure addition, certain landscaping and hardscape, consisting of walkways, plazas and other common areas, exterior lighting and storm drain systems. Completion is expected in December 2007. The COPs will mature in 30 years and will generate approximately $17.35 million for the public improvements. The balance of the COPs will be used to fund a debt service reserve fund, prefund interest during construction and pay issuance costs. 1-1