In 2008, the City of Sparks entered into an agreement with the Redevelopment Agency of the City of Sparks as well as with Sparks Legends Development, Inc. (i.e., RED Development) called the “City of Sparks, Disposition, Development and Financing Agreement” (DDFA) for the Legends at the Sparks Marina Project. In 2009, the Redevelopment Agency issued Subordinate Lien Tax Increment Revenue Bonds with a par value of $7,230,000 for the benefit of the Legends at the Sparks Marina project in accordance with provisions of the DDFA.

The Redevelopment Agency is now seeking to refund and defease the 2009 bonds by issuing Subordinate Lien Tax Increment Revenue Refunding Bonds that are expected to close in August 2014. These refunding bonds being considered by the City of Sparks Redevelopment Agency are anticipated to reduce the interest rate and save the Redevelopment Agency (Area No. 2) nearly $100k per year over the remaining life of the debt without changing the original maturity date.

The attached Waiver and Consent Agreement is an agreement between the City of Sparks, the Redevelopment Agency of the City of Sparks, and Sparks Legends Development, Inc., to consent to the issuance of the 2014 TIF Refunding Bonds and waive the provisions of the DDFA to the extent that those terms conflict with the terms and provisions of the 2014 TIF Refunding Bonds that are under consideration. No other changes to the DDFA are being considered other than as it relates to the issuance proposed 2014 TIF Refunding Bonds.

Sparks Legends Development, Inc. (i.e., RED Development), has reviewed the attached Waiver and Consent Agreement and is in agreement with the contents and will likely sign the agreement at or before the close of escrow (escrow is anticipated to close in August 2014).

The City of Sparks Redevelopment Agency will be presented with a resolution seeking the Agency Board’s authorization to issue the 2014 Refunding Bonds as well as Board’s authorization to execute the Waiver and Consent Agreement at their meeting today (July 14, 2014) which immediately follows todays City Council meeting.

I move to approve Resolution No. 3260 authorizing the execution of the Waiver and Consent Agreement in connection with the issuance of the Redevelopment Agency of the City of Sparks, Nevada, Subordinate Lien Tax Increment Revenue Refunding Bonds, Series 2014.