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NEW ISSUES- FULL HOOK-ENTRY ONLY RA TINGS: (see "Ratings" herein) In the opinion of Kutak Rock LLP, Bond Counsel, interest on the Series J-Taxable Bond;· and the Series K-Taxable Bonds is includoble, under existing statutes and court decisions, in the gross income of the recipients thereof.for federal income ta.., purposes pursuant to Section 103 of the internal Revenue Code of l 986, as amended (the "Code"). In the opinion ofBond Counsel, under existing laws, regulations, rulings andjudicial decisions and assuming the accuracy ofcertain representations and continuing compliance with certain covenants, interest on the Series J-Tax Exempl Bond;· is excluded from gross income for federal income tax purposes and is not a specific preference item for purposes of the federal alternative minimum tax. Bond Counsel is of the opinion that interest on the Bond~ is exempt from the State of California personal income taxes. Bond Counsel expresses no opinion regarding other tax consequences related to the ownership or disposition of, or accrual or receipt ofinterest on, the Bonds. For a more complete description see "TAX MATTERS" herein. COMMUNITY REDEVELOPMENT FINANCING AUTHORITY OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA $ POOLED FINANCING BONDS CRAILA ..... ,.... $17,970,000 $4,500,000 -- SERIES J-TAXABLE SERIES J-TAX EXEMPT (Council District 9, Pacoima!Panorama City and Rcseda/Canoga Park (Reseda/Canoga Park Project) Projects) $4,645~000 SERIES K-TAXABLE (Laurel Canyon and East Hollywood/Beverly-Normandie Projects) Dated: Date of Delivery Due: September 1, as shown on the inside front cover The Community Redevelopment Financing Authority of The Community Redevelopment Agency of the City of Los Angeles, California is issuing three series of its Pooled Financing Bonds: Series J-Taxable (Council District 9, Pacoima/Panorama City and Reseda/Canoga Park Projects) (the "Series J-Taxable Bonds"), Series J-Tax Exempt (Reseda/Canoga Park Project) (the "Series J-Tax Exempt Bonds" and together with the Series J-Taxablc Bonds, the ''Series J Bonds"), and the Series KhTaxable (Laurel Canyon and East Hollywood/Beverly-Normandie Projects) (the "Series K Bonds,'' and together with the Series J Bonds, the "Bonds"). The Bonds are being issued pursuant to the Constitution and the laws of the State of California (the "State"), including the joint exercise of powers act constituting Articles I through 4, commencing with Section 6500 of Chapter 5, Division 7, Title J of the Ca1ifomia Government Code, and for the Series J Bonds, an Indenture of Trust, dated as of Septen1ber 1, 2003 (the "Series J Indenture"), by and between The Community Redevelopment Financing Authority of The Community Redevelopment Agency of the City of Los Angeles, California (the "Authority") and U.S. Bank National Association, as trustee (the "Trustee"), and for the Series K Bonds, an Indenture of Trust, dated as of September I, 2003 (the "Series K Indenture'' and coJlectively with the Series J Indenture, the "Indentures"), by and between the Authority and the Trustee. Proceeds of the Bonds will-be used to make loans (the "Loans") to The Community Redevelopment Agency of the City of Los Angeles, California (the "Agency") pursuant to five separate loan agreements, each dated as of September 1, 2003 (the "Loan Agreements"), and each by and among the Authority, the Tn1stee and the Agency. The Agency's obligations under each Loan Agreement are secured by a pledge of and lien upon certain separate Tax Revenues to be received by the Agency from the respective project areas (defined and described herein and co11ectively referred to herein as the "Project Areas"). See "SECURITY FOR THE BONDS" herein, and APPENDIX A ·"FISCAL CONSULTANT'S REPORT" hereto. The Agency is entering into the Loan Agreements to (i) separately fund and, as applicable, refund redevelopment in each Project Area, (ii) establish a separate reserve account under each L-Oan Agreement, and (iii) pay costs of issuance related to the Bonds and the making of the Loans. See "PLAN OF FINANCE" herein. All capitalized tenns not defined on this cover page shall have the meanings ascribed to them in this Official Statement. Interest on the Bonds will be payable semiannually on September 1 and March l of each year, commencing on March I, 2004. Principal of the Bonds is payable in the amounts and on the dates described on the inside cover page, subject to prior optional and sinking fund redemption as described herein. See "THE BONDS-Optional Redemption" and "-Mandatory Sinking Fund Redemption" herein. The Bonds will be issued in book-entry fonn, without coupons, and will be initially registered in the name of Cede& Co., as nominee of The Depository Trust Company. New York. New York ("DTC"). The Bonds will be issued in denominations of $5,000 or any integral multiple thereof. Purchasers of Bonds wi11 not receive physical certificates from the Authority, the Agency or the Trustee representing their interests in the Bonds purchased. DTC will act as securities depository for the Bonds. The principal of and interest on the Bonds ·will be payable directly to DTC by the Trustee from the funds specified herein. Upon receipt of payments of such principal and interest, DTC is obligated to remit such principal and interest to the participants in OTC for subsequent disbursement to the beneficial owners of the Bonds. The scheduled payments of principal of and interest on each series of the Series J Bonds will be guaranteed under a bond insurance policy (the "Policy") to be issued concurrently with the delivery of the Series J Bonds by XL Capital Assurance Inc. (the "Insurer"). See "DESCRIPTION OF THE INSURER" herein and APPENDIX G - "SPECIMEN BOND INSURANCE POLICY" hereto. }!~CAPITAL ASSURANCE THE SCHEDULED PAYMENTS OF PRINCIPAL OF AND INTEREST ON THE SERIES K BONDS ARE NOT GUARANTEED UNDER TllE POLICY. Neither the Bonds nor the Loans are a debt of the City of Los Angeles. the State of California or any of its political subdivisions (other than the Authority and the Agency to the extent set forth herein), and neither the Authority nor the Agency has taxing power. Principal of and interest on the Bonds and the Loans are payable solely from and s~ured separately by Tax Revenues (as described herein) allocated to the Agency from the applicable Project Areas described herein and from certain limited funds held by the Trustee under the applicable Loan Agreement. Tax Revenues from one Project Area are not pledged to repay Loans from other Project Areas, so a default under a Series J Loan Agreement may cause a default on the Series J-Taxable Bonds, and a default under a Series K Loan Agreement may cause a default on the Series K Bonds. The Bonds do not constitute an indebtedness of the Agency or the Authority within the meaning of any constitutional or statutory debt limitation or restriction. This cover page contains certain infonnation for quick reference only, and is not intended as a summary of this financing. Investors must read the entire Official Statement, including the section on Bondowners' Risks, to obtain information essential to the making of an informed investment decision. The Bonds are offered, when, as and !f issued and accepted by the Underwriters, subject to an opinion as to legality of the Bonds by Kutak Rock, LLP, Pasadena, California, Bond Counsel. Certain legal marrers wilf be passed upon for the Authority and the Agency by the City Allorne:v of the City of Los Angeles, California and by The Law Offices of Afarilyn L. Garcia, as Disclosure Counsel. It is anticipated that the Bonds wil! be available for delivery Jo DTC in book-enil}' form in New York, New York on or about September 17, 2003. Stone & Youngberg LLC Date: August 26, 2003 MATURITY SCHEDULES CO'.\fMUNITY REDEVELOPME'.'IT fINA'.'ICI'.'IG AUTHORITY Of THE COMMUNITY REDEVELOPMENT AGENCY Of THE CITY Of LOS ANGELES, CALIFORNIA POOLED FINANCING BONDS (Base CUSIP Number: 54438E) $17,970,000 SERIES J.TAXABLE (Council District 9l PacoimafPanorama City and Reseda/Canoga Park Projects) Sl,305,000 4.18% Term Bonds due September 1, 2008: Yield-4.18% CUS!P: EV6 Sl,620,000 5.30% Tenn Bonds due September 1, 2013: Yield- 5.30% CUSIP: EW4 SS,050,000 6.23% Term Bonds due September 1, 2023: Yield - 6.23% CUS!P: EX2 S9,995,000 6.38% Term Bonds due September l, 2033: Yield - 6.38% CUSlP: EYO $4,500,000 SERIES J-TAX EXEMPT (Reseda/Canoga Park Project) $1,655,000 Serial Bonds Maturi:,t Date Principal Interest (Se11tem er I) Amount Rate Price CUSIP 2004 S 90,000 2.00% l.05% EZ7 2005 85,000 2.00 l.45 FA! 2006 90,000 2.50 2.05 FB9 2007 85,000 3.50 2.60 FC7 2008 90,000 3.50 2.95 FD5 2009 85,000 3.50 3.30 FE3 2010 95,000 3.75 3.70 FFO 2011 100,000 4.00 3.95 FG8 2012 100,000 4.15 4.15 FH6 2013 100,000 4.25 4.30 FJ2 2014 I 10,000 4.25 4.40 FK9 2015 I 15,000 4.50 4.55 FL? 2016 120,000 4.50 4.65 FM5 2017 125,000 4.60 4.75 FN3 20!8 130,000 5.00 4.85 FPS 20!9 135,000 5.00 4.95 FQ6 $2,845,000 Tenn Bonds $615,000 5.00% Term Bonds due September 1, 2023: Yield- 5.15% CUS!P: FR4 52,230.000 5.00% Term Bonds due September I, 2033: Yield- 5.25% CUSIP: FS2 $4,645,000 SERIES K·TAXABLE (Laurel Canyon and East Holly'\\'Ood!Beverly-Normandie Projects) 5280,000 6.98% Term Bonds due September l, 2008: Yield - 6.98% CUSIP: FTO $370,000 8.00% Term Bonds due September I, 2013: Yield-8.00% CUS!P: F\J7 Sl,430,000 9.18% Term Bonds due September 1, 2023: Yield- 9.18% C\JIP: FV5 S2,565,000 9.38% Tenn Bonds due September I, 2033: Yield -- 9.38% CUSIP: FW3 CITY OF LOS ANGELES MAYOR James K.