HomeMy WebLinkAbout1993-08-24 - AGENDA REPORTS - GOLDEN VALLEY ASMT DIST BOND (2)AGENDA REPORT
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Item to be presented by:
Ken Pulskamp
UNFINISHED BUSINESS
DATE: August 24, 1993
SUBJECT: GOLDEN VALLEY ASSESSMENT DISTRICT ISSUANCE OF BONDS
DEPARTMENT: City Manager
BACKGROUND
City Council previously established an assessment district in conjunction with five developers
(Amcal, Showcase Homes, G. H. Palmer Associates, Hunt/Heeber, and Watt/Parker) for the
connection of Golden Valley Road from SR 14 to Sierra Highway. This item Is the final approval
allowing Issuance of bonds, generation of funds, and construction to begin on the project.
The Planning Commission recently extended the life of the Golden Valley Road devetopers'tentative
maps. All maps now expire June 1, 1994.. The developers have represented to us that this
extension was necessary in order for the bond sale to occur. The developers were required to
provide sureties and agreement forms which then guarantee the shortfall between the value of -the
properties today and the value required by the City's Municipal Funding Guidelines. Once
construction of the road begins, incremental value will be added to the properties, thereby
eliminating the need for long term surety agreements.
On. July 12, 1993, the Assistant City Manager met with developers' representative and the City's
financial consultants and mutually agreed on a schedule for performance on the part of the City and
the developers. The City has submitted all required Items and can proceed no further until the
developers also follow through. There are two significant outstanding Items: The due diligence
forms and/or financial statements for two of the developers were received on Monday, August 16,
1993, and sufficient time does not exist for them to be adequately reviewed prior to the Council
meeting. In addition, the developers were to have provided surety agreements for two of the
developers on or before August 4, 1993. As of today, August 17, we have not received any surety
commitment, but Instead have received a letter from a surety provider stating Its willingness to
provide bonds "upon receipt of proper collateral from G. H. Palmer and Showcase Homes."
RECOMMENDATION
Continue this Item until the next meeting on September 14, 1993, to allow the developers a final
opportunity to submit required financial information and sureties.
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Continued To:9-/Y-93 {tem:
Agenda