Title
a. Receive a report regarding the Fort Ord Reuse Authority's proposal to issue debt against its statutory share of property tax revenue to for building removal in the former Fort Ord area; and
b. Provide direction to staff.
Report
RECOMMENDATION:
It is recommended that the Fort Ord Committee
a. Receive a report regarding the Fort Ord Reuse Authority's proposal to issue debt against its statutory share of property tax revenue to for building removal in the former Fort Ord area;
b. Provide direction to staff.
SUMMARY
On July 12, 2019 the FORA Board received a status update report, including their consultant's preliminary findings (Attachment A). Based on feedback and discussion at the FORA Board meeting, the consultant updated its model and provided the update to the FORA Administrative Committee at its July 16, 2019 meeting.
FORA's Administrative Committee took action to recommend that the FORA Board move forward with debt issuance in the amount of an estimated $36M, specifying that the bond proceeds should only go toward building removal as a first priority and other uses only if there are proceeds remaining after the blight is addressed. County representative abstained from the Administrative Committee vote as staff wanted time to review the updated analysis and seek policy input from the Board. This item is expected to return to Administrative Committee for review again on July 31, 2019, and FORA staff plan to bring the debt issuance proposal to the FORA Board at its August 2019 meeting. FORA's ability to issue new debt expires on June 30, 2020, so there is a general sense of time sensitivity to move forward with the bond, if that is the desire of the FORA Board.
Monterey County has approximately $3M worth of building removal needs, assuming the bunkers remain at the Ammunition Supply parcel. Debt issuance has an effect on revenues such as property taxes that is being evaluated. Staff is seeking input and direction from the County's Fort Ord C...
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