1991-190-Authorize letter Of Intent For Municipal Bond Financing For Infrastructure Improvements Vasona Hills ProjectRESOLUTION 1991 -190
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO SIGN
LETTER OF INTENT FOR
MUNICIPAL BOND FINANCING FOR
INFRASTRUCTURE IMPROVEMENTS
VASONA HILLS PROJECT
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos enter into a Letter of Intent with
VSL Corporation for infrastructure improvements for Vasona Hills project, and that the
Town Manager is authorized, and is hereby directed, to execute said Letter of Intent in the
name and in behalf of the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 19th day of August, 1991 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton
Mayor Brent N. Ventura
NAYES: None
ABSENT: Eric D. Carlson
ABSTAIN: None
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS ATOS
LOS GATOS, CALIFORNIA
MGR /ORD A: \RES0S \MG081991.R1
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THE TOWN OF LOS GATOS
TOWN of LOS GATOS
OFFICE OF THE TOWN MANAGER
(408) 354 -6832
FAX: (408) 354.8431
FAX MAIL - Original to Follow
August 27, 1991
Jeffrey Kimmel
Vice President /General Counsel
VSL Corporation
1077 Dell Avenue
Campbell, California 95008
Subject: Vasona Hills Bond Financing
Dear Mr. Kimmel:
VSL Corporation has presented to the Town a proposal requesting assistance to Ainsley
Development, Incorporated, developers of the property at 300 Blossom Hill Road with
infrastructure improvements. The infrastructure improvements include streets, gutters,
sidewalks, and a portion of the Los Gatos Creek Trail. These improvements are a
condition of the developer's planned development. The development is known as
Vasona Hills.
The VSL proposal requests that the Town create a special assessment district of the
project and that the Town issue special assessment bonds. These municipal bonds
would be tax exempt for the infrastructure improvements and non -tax exempt for the
utilities. The proceeds of the bond would be used to repay VSL Corporation and take
them out of the project. The bonds would be repaid by the developer and subsequent
property owners.
The Town appreciates this proposal as it would provide the required infrastructure
improvements and assist the Town's development of the Los Gatos Creek Trail. The
Town takes the proposal seriously and recognizes the importance of prompt action.
With this in mind, the Town has taken the following steps to demonstrate its interest
and intention in working with VSL Corporation and the project developer.
On August 5, 1991 the Town Council gave conceptual approval of the idea and
authorized staff to work with the project developers in exploring assessment bond
financing. Secondly, the Town has requested proposals from various underwriters and
financial advisors to assist the Town in evaluating the VSL proposal. These proposals
are due to Town staff on August 23, 1991 and a recommendation will be presented to
CIVIC CENTER • 110 EAST MAIN STREET • P.O. BOX 949 • LOS GATOS, CALIFORNIA 95031
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Page Z °._.
-'Jeffrey Kimmel, Vicer`esident /General Counsel -VSL Corporation
Subject: VasonzrbMlls Bond Financing
August 27, 1991'
the Town Council on September 3, 1991. The financial advisor will work with Town
staff, the project developer, and VSL Corporation to thoroughly evaluate the VSL
proposal and bring before the Council recommended actions resulting from such an
evaluation.
Finally, the Town is sending this Letter of Intent to VSL Corporation clearly outlining
the Town's intent to work in good faith with VSL Corporation and the project developer
to quickly and thoroughly evaluate the VSL proposal and take appropriate action. The
Town is excited about the prospect of having the necessary improvements made, and
thanks VSL for their community spirit in presenting this proposal. We look forward to
working together with VSL Corporation and Ainsley Development, Incorporated in this
effort.
�jSincerrelly,, \
D ,�,� �,
P o "l _
DAVID W. KNAP
Town Manager
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MGR035 A: \LETTERS \KIMMEL
cc: Mayor and Town Council
Mark Linder, Assistant Town Manager
Joan Schreiner, Town Treasurer
Kate Anderton, Town Attorney
Bruce Bowen, Ainsley Development, Incorporated - 347 E. Campbell Avenue,
Campbell 95008