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 2008, the Redevelopment Agency issued Tax Increment Revenue Bonds with a par value of $12,700,000 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 the 2008 bonds by issuing Tax Increment Revenue Refunding Bonds that are expected to close in October 2016. These refunding bonds being considered by the City of Sparks Redevelopment Agency are anticipated to reduce the interest rate and provide debt service savings of approximately $1.6 million, net present value, over the remaining life of the debt without changing the original year of maturity.

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 2016 Tax Increment Revenue Refunding Bonds and waive the provisions of the DDFA to the extent that those terms conflict with the terms and provisions of the 2016 Tax Increment Refunding Bonds that are under consideration. No other changes to the DDFA are being considered other than as it relates to the proposed 2016 Tax Increment Revenue Refunding Bond issuance.

At the time this staff report was produced, Sparks Legends Development, Inc. (i.e., RED Development), was in the process of reviewing the attached Waiver and Consent Agreement and the expectation is that they are substantially in agreement with the contents and will likely sign the agreement on or before the close of escrow (escrow is anticipated to close in October 2016).

The City of Sparks Redevelopment Agency will be presented with a resolution seeking the Agency Board’s authorization to issue the 2016 Refunding Bonds as well as Board’s authorization to execute the Waiver and Consent Agreement at their meeting today (September 26, 2016) which immediately follows today's City Council meeting.

The attached documents are presented for approval in substantially final form and will be executed prior to the close of escrow.

See Above.

The City Council may choose not to authorize the execution of the attached Waiver and Consent Agreement, preventing the issuance of the 2016 Tax Increment Revenue Refunding Bonds being considered by the Sparks Redevelopment Agency.

I move to approve Resolution No. 3302 authorizing the execution of the Waiver and Consent Agreement in connection with the issuance of the Redevelopment Agency of the City of Sparks, Nevada, Tax Increment Revenue Refunding Bonds, Series 2016.