The Long Beach Redevelopment Agency has voted to sell $50 million in bonds to Smith, Barney, Harris and Upham & Co. Inc., and Kidder Peabody & Co. Inc., to support projects in the Downtown Redevelopment Project area. The agency will pay $77.5 million in interest and $1.5 million in fees for the money, which amounts to a 25-year loan.
The New York brokerage houses submitted a joint bid of 9.29%. Salomon Brothers, Shearson-Lehman Brothers, and Paine Webber and Lazard Freres submitted a single bid of 9.32%. A third bid from Merrill Lynch Pierce Fenner & Smith Inc. was returned because it was incomplete, said Roger Anderman, assistant executive director of the Redevelopment Agency.
The bonds will be sold sometime next month, Anderman said, and be repaid by the agency out of tax money twice a year over the next 25 years.
The agency will receive a lump payment of about $30 million. The rest of the money will go into a trust account and reserves to ensure repayment of the bond, and for loan fees.