AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 09/18/2019
TO: Honorable Mayor and City Council Members
FROM: Management Services Department
SUBJECT:
Title
City Council consideration of options regarding forgiveness or repayment of a General Fund Loan to the Park Development Fund for the acquisition of parkland.
End
RECOMMENDED ACTION:
Recommended action
That the City Council take any of the following:
1. Adopt Resolution 2019-083 retroactively cancelling, forgoing and discharging, as of July 1, 2019, the previously authorized loan from the General Fund to the Park Development Fund for the acquisition of Parkland and repealing Resolution 2017-057.
Or
2. Adopt Resolution 2019-084 specifying terms of repayment for a previously authorized loan from the general fund to the Park Development fund for the acquisition of Parkland, directing the appropriation of the loan repayment amounts in a specified manner and repealing Resolution 2017-057.
Or
3. Provide further or different direction.
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ANALYSIS:
In 1989 Public Improvement Revenue Bonds ("1989 Bonds") were issued by the Corona Public Financing Authority ("Authority") to finance the acquisition of approximately 98 acres of property throughout the City of Corona ("City") to be developed as park sites. The 1989 Bonds were refunded through the issuance of refunding bonds in 1993 ("1993 Bonds") and the 1993 Bonds were refunded through the issuance of refunding bonds in 2001 ("2001 Bonds").
The payment of principal and interest on the Bonds was secured by lease payments to be made by the City to the Authority; and the lease payments were intended to be paid from parkland dedication in-lieu fees ("Quimby Fees") imposed upon new development and collected by the City. The amount of Quimby Fees collected and deposited into the Park Development Fund were insufficient to make the lease payments in several years. Commencing in 1993, loans from the City's General Fund to the Park Development Fu...
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