Bond Issue Could Pay Redevelopment Debts
A $4.5-million bond issue to repay redevelopment agency debts could be approved by the City Council on Monday.
The bonds would pay a $1-million obligation to the Capistrano Unified School District and $2 million promised to help build the Kaleidoscope shopping mall currently under construction.
The extra $1.5 million would be set aside to pay for debt service and any unexpected contingencies.
Mission Viejo is obligated to split redevelopment tax revenue with other local government agencies, such as the school district. The Capistrano district agreed to accept $1 million as its share of redevelopment funds in 1992.
Kaleidoscope developers had asked for the city’s help to make the shopping mall a financially viable project. Figuring that their investment would be returned in sales tax revenue, the city agreed last year to support the project.
City finance officers recommended that one bond package be issued for both financial obligations.
“There are certain fixed costs” such as brokerage fees for each bond issue, said city Deputy Treasurer Josephine Julian. “It would be inefficient to go to the bond market for a small issue” separately for the Kaleidoscope and school district debts.
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