Approval of sale of Voluntary Cleanup Tax Credits (VCTC) through FPRA Resolution 18-03 (corrected to 18-04) and the associated agreements with Fallbrook Credit Finance for the sale of Tax Certificate #742.

As part of the remediation of the HD King site, the FPRA has applied for and received tax credits that may be sold to help offset costs of the cleanup.  The Department of Environmental Protection recently provided notification that Certificate Number 742 (Attached) has been issued in the amount of $325,852.57.  Once this Certificate is sold, the FPRA will be able to pay the remaining balance on the revolving loan.  Staff is seeking approval to sell the tax certificate through Fallbrook Credit Finance (Fallbrook).  Fallbrook is an experienced placement agent who has sold tax certificates in the past and has a buyer available (NIMCO) for this certificate.  The agreement to sell is attached utilizing the previously approved sales price of (0.88) cents on the dollar yielding $286,749.76.  These funds will be applied to the remaining balance of the loan and then utilized to offset miscellaneous costs of the remediation.  Fallbrook does not charge the City a fee for facilitating the sale, rather they are paid by the buyer when the tax credits sell. 
 

Approval 

Provide Staff with an alternate direction 

Rebecca Grohall

Linda Cox