$18 Million Tax Allocation Refunding Bond, 2013
Kosmont announces that its Public Finance team has successfully closed an $18 million Tax Allocation Refunding Bond issue for the City of Walnut.
- Achieved Highest Underlying Rating of Any RDA Dissolution TAB to Date (A+)Financial Advisor to the City of Walnut and its Redevelopment Successor Agency, obtained a “AA” credit rating on the Bonds from Standard & Poor’s, based on successfully qualifying the deal for a municipal bond insurance policy from Build America Mutual Assurance Company (“BAM”). Additionally, S&P assigned its underlying credit rating of “A+” to the Bonds, which is the highest underlying rating achieved on any Tax Allocation deal in the post-RDA era. In compliance with AB 1484, the bond insurance and a reserve fund surety policy reduce debt service payments and increase savings for the City.
- 4th Tax Allocation Refunding Bond Deal Since AB26 Dissolved Redevelopment Agencies“This is only the fourth post-RDA dissolution refunding done in the State. We are extremely pleased with the result of the offering,” said Larry Kosmont, President. “This deal is a clear example of Kosmont’s ability to assist successor agencies and host cities with post-RDA dissolution activities while emphasizing compliance with AB 1484. This refunding achieved savings for the City and the other affected taxing agencies as prescribed by the Statute”.
- Kosmont Expects More TAB Refundings as Dissolution Process UnwindsSuccessor agencies and their host cities still have many unprecedented tasks remaining to be accomplished to comply with the requirements of the RDA dissolution process. The Kosmont Team is a leader in this area and is currently providing RDA dissolution and financial advisory assistance to cities pursuing refunding activities that save money and comply with AB 1484.
- Economic Development Financing Alternatives During Post-RDA EraKosmont is focusing its efforts on redevelopment TAB refundings and financing programs that can be used in conjunction with Property Management Plan properties to fund economic development and infrastructure projects. Kosmont continues to actively assist successor agencies and their host cities with their Long Range Property Management Plans (“PMP”) and subsequent property disposition in compliance with Assembly Bill 1484.