Calaveras County: DLR has closed on two land-secured refundings for Saddle Creek, a golf community in the Sierra Nevadas. The Sales and Trading Desk found buyers who understood the developer’s long-term strategy.  •  Palmdale: DLR was sole Senior Manager on federally taxable Certificates of Participation so the city could acquire 600 acres for a 550-megawatt power plant to attract and retain businesses.  •  Chowchilla: DLR senior-managed a special bond for critical infrastructure improvement until development impact fees can be raised to support $93 million in residential, commercial and industrial projects.  •  Pittsburg: DLR was Senior Manager on a tax-allocation bond that raised almost $100 million for housing and other projects, and saved the city’s Redevelopment Agency another $3.5 million by refinancing earlier bonds.  •  Chula Vista: DLR senior-managed a tax-allocation bond after Chula Vista demonstrated that the future assessed value of the city’s Bayfront-Town Centre offsets a highly concentrated tax base.  •  Los Angeles: As book-running Senior Manager, DLR structured a $34.5-million pooled financing for the city’s Community Redevelopment Agency without a yield spread to adhere to the CRA policy to complete separation between project areas.  •  DLR senior-managed refunding of all outstanding debt at Ontario Airport, increasing the L.A. Department of Airports’ flexibility to define net revenues and its debt-service reserve fund – and reaffirm its “A” rating.  •  Long Beach: The city recently issued more than $190 million in redevelopment project financing, including $115 million of taxable bonds, in a Marks-Roos pooled issue to fund projects in five areas.  •  From naval base to housing space: Few could envision a new community when the Alameda Point Naval Air Station was decommissioned a decade ago. Today, a highly successful development with 300 homes occupies part of the old base.  •  Riverside County: DLR senior-managed a $25-million Mello-Roos financing to improve street, water, sewer, and other public facilities at Lake Hills Crest, a development with 512 single-family detached units.
 

Chowchilla Funds Infrastructure to Maintain Explosive Growth

$8,615,000
City of Chowchilla
Community Facility District No. 2006-1, Improvement Area 1
Special Tax Bonds, Series 2007
In June 2007, De La Rosa & Co. served as sole Senior Manager on an $8.6-million special tax financing for Chowchilla. The city’s master plan identified $93 million of infrastructure critical for proposed residential, commercial and industrial projects. Development impact fees would fund a large portion of the improvements, and bond proceeds would finance projects that must be built before impact fees can support them. The 2007 bonds were issued as the first of three series for the Community Facilities District, and raised $6.65 million in net proceeds.

Property currently in the District represents Improvement Area 1, which will support nearly 57% of the anticipated bonds issued. Area 1 contains residential and commercial properties owned by 14 different owners on 820 acres. Future annexations will form new improvement areas, which will fund their share of the improvements.

The financing was very successful due to low interest rates on the bonds. Because of De La Rosa’s comprehensive pre-marketing effort and the substantial upside potential of the proposed projects, the bonds were priced at near-record lows for non-rated interest rates. Re-offering yields ranged from 3.95% to 5.08%. DLR priced the bonds very aggressively compared to other non-rated, land-secured bonds in the market at the time.
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