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AGENDA ITEM REVIEW FORM |
6.B.
Regular City Council Meeting
- Meeting Date:
- 08/14/2019
- Department Head:
- Sonia Cornelio
- Submitted By:
- Sonia Cornelio, City Clerk, City Clerk's Office
Action Requested:
Motion
ITEM:
Discussion on any and all matters regarding a guaranty letter for the refinancing process of Greater Yuma Port Authority. (Monica Castro, Director of Finance)
SUMMARY:
Greater Yuma Port Authority (GYPA) is an agency whose members are the City of San Luis, the City of Yuma, the County of Yuma and the Cocopah Indian Nation. It was created to develop industrial uses Port of Entry 2. It purchased land for Gary Magrino Industrial Park. The outstanding financial obligation on the land is approximately $1.7 million, with about 129 acres remaining. GYPA recently sold ten (10) of the remaining acres in two (2) separate transactions, leaving 119 acres for future sale and development.
GYPA intends to allocate approximately $300,000 from the sale of the two properties towards the outstanding financial obligation, leaving a principal amount of $1.4 million. GYPA want to refinance on more favorable terms to pay down both principal and interest. Under the current financing, GYPA is making interest-only payments. The remaining land will be collateral for the loan. Much of the land is subdivided with infrastructure and utility services. The property should exceed the $1.4 million debt, so the refinancing sought is 60% loan to value ration.
The lenders require the written commitments from each GYPA member government before final refinance. Yuma County and the City of Yuma have submitted theirs. Cocopah's is pending.
Approving this motion authorizes the attached Guarantor letter that each entity will act as Guarantor on a one fourth (1/4) share each.
GYPA intends to allocate approximately $300,000 from the sale of the two properties towards the outstanding financial obligation, leaving a principal amount of $1.4 million. GYPA want to refinance on more favorable terms to pay down both principal and interest. Under the current financing, GYPA is making interest-only payments. The remaining land will be collateral for the loan. Much of the land is subdivided with infrastructure and utility services. The property should exceed the $1.4 million debt, so the refinancing sought is 60% loan to value ration.
The lenders require the written commitments from each GYPA member government before final refinance. Yuma County and the City of Yuma have submitted theirs. Cocopah's is pending.
Approving this motion authorizes the attached Guarantor letter that each entity will act as Guarantor on a one fourth (1/4) share each.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE GUARANTOR LETTER AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- TBD
- CITY/STATE/FEDERAL FUNDS:
- TBD
- TOTAL:
- TBD
- BUDGETED AMOUNT:
- TBD
- AVAILABLE AMOUNT TO TRANSFER:
- TBD
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- TBD
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
To Be Determined