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Successor agency says 2009 tax-allocation bond must be prioritized; board accepts reporting schedule
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Summary
An agency staff member told the Paradise Redevelopment Agency Successor Agency that the 2009 tax-allocation bond is in default and must be paid in full before any 2016 bond allocation; the board voted to accept the reporting schedule that lists $336,000 for 2009 and $77,868 for 2016.
An agency staff member told the Paradise Redevelopment Agency Successor Agency on a routine meeting that both the 2009 and 2016 tax-allocation bonds are in default and that the 2009 bond must be paid in full before any funds can be allocated to the 2016 bond. The board voted to accept the reporting schedule staff presented.
The staff member said the agency’s payment priority follows a required order of operations and cited the amounts staff included in the schedule: $336,000 needed for the 2009 tax-allocation bond this year and $77,868 associated with the 2016 bond. “Both bonds are in default, so we are not able to actually pay for those things,” the staff member said, adding that the agency had listed the maximum amounts it could be due so it would remain eligible for an allocation even if full funding is unlikely.
The staff member told the board that under the written allocation order, payments to the 2009 bond must be completed before any allocation may begin for the 2016 bond. “We have to pay all of 2009 before we can even start the allocation for the 2016,” the staff member said.
A board member asked about historical receipts. The staff member estimated that recent receipts were about $130,000 plus an additional $50,000–$60,000 in another line item, noting that when the staff member began work the agency was receiving roughly $50,000. The staff member said those increases meant bondholders were currently receiving some payments on the older debt, but reiterated that the 2016 bond would not receive allocations until the 2009 bond is paid in full.
The board moved and voted to accept the reporting schedule. The motion was moved by Director Bowen and seconded by Director Culliton. Directors Bowen, Culliton, Lang and Lassonde and Chair Crowder each voted “Aye,” and the presiding officer announced the motion passed.
The staff member said the reporting schedule will go to the county for approval, with an estimated county approval date of January 29. The board also moved to approve successor-agency minutes from the July 8, 2025 meeting; that roll-call began but the transcript cuts off before the chair’s vote was recorded, so the minutes-vote outcome is not recorded in the available transcript.
Next steps: staff will forward the accepted reporting schedule to the county for approval as noted by staff, and the successor agency will await the county’s action before any final allocations are made to the 2016 bond.
