Victor mary confesses might be able to talk about that. Well, we actually discovered when we approached the agency over 5 years ago to try to see if we could have a part of the loan forgiven at that time, navigate we scheduled the item to come before the commission over 5 years ago but we decided that that was better to just let the time run because it was going to be an impossibility it was not dlofrdz until i reviewed the loan document and brought it to the council more and more wills this was a mistake that had been made in 1994 unfortunately yeah. Do you have any questions i want to raise before the impanel supervisor bustos thats not here. I have questions so when we make this loan there are interests payment that have to be made were those payments made and the Interest Payments under the loan are only made in it was in default and custodial due otherwise no interest payment. No Interest Payments so thank you sure. Supervisor bustos is not here obviously he had a a lot they could
Finance to determine it is in the best interests board of supervisors acting a protective body it remains the effort authority to review the material to the ocii Affordable Housing those actions will happen later this month and early december i want to point out you have a revised reducing resolution in front of you basically, we made editing changes and fixed some type were recommending approval of t the First Amendment and we may make some minor changes Going Forward as we near the end of the transaction im here as well as at representative if the Transbay Joint Powers Authority to answer questions thank you. Thank you do we have speaker cards. I have no speaker cards okay and do we have questions or comments concerns Board Members of the commission . Commissioner mondejar yes. Id like to hear from the tjpa representatives for their comments. Obviously you need the financing. Im Deborah Miller the egyptian and one of the principles in norwalk this transaction i have scott the electiv
Million in net tax increment and so not enough to go out for a short term loan. On our own and be solely backed by tax increments. And the tifia loan does have conditions for disbursement and the two key conditions are selling 429 Million Dollars worth of the former state owned parcel and we are at 222 million now with the sale of parcel t, last year and 2013 and the block, 6, 7, this year and we anticipate reaching the 429 next fall, when blocks five and eight close in september and october respectively, dem nation of the full funding for the project and you will recall, approving the tifia amendment this past may, and under that amendment, the formation of the cfd, which you have been hearing about, in other board meetings is sufficient evidence, for tifia of the full funding for the project and the bonds do not have to be sold yet, but the formation of the district is sufficient to demonstrate the full funding to tifia. The project is defined as phase one. Yes, it is just specific t
Term repayment source, for a long term loan like tifia with a 35 year plan and, we have a rating for a 35 year loan with tifia and it is not a mature, credit, yet. Though. And we received our first tax increment this year, about a million and a half dollars over the next four years, until 2018 and it has paid it that we will collect about 9 and a half million in net tax increment and so not enough to go out for a short term loan. On our own and be solely backed by tax increments. And the tifia loan does have conditions for disbursement and the two key conditions are selling 429 Million Dollars worth of the former state owned parcel and we are at 222 million now with the sale of parcel t, last year and 2013 and the block, 6, 7, this year and we anticipate reaching the 429 next fall, when blocks five and eight close in september and october respectively, dem nation of the full funding for the project and you will recall, approving the tifia amendment this past may, and under that amendme
At that time, and early 2015, we have the cash flow needs and we need to certify the contracts and keep the project moving on schedule to maintain our schedule and we did as many as you know, did request from tifia has far back as 2012, that we be able to draw down on the loan earlier, and perhaps, in proportion to the amount of land sales that already had been achieved after months of discussions, they were not able to accommodate that request. But they did agree to amend the loans to allow us to pursue a bridge financing to get us to the tifia draw, point. And that was, a key item to be able to bring this transaction to you. We began to talk to tifia in 2012, about this issue. And this, it has allowed tjpa to maximize the sale prices for the former state owned parcels and block 8 that will close next october for 70 Million Dollar Purchase Price was put out to bid, originally in 2011, and received a high bid of 14 Million Dollars. And so, we made the decision at that time, to put off