For City Council Meeting [January 9, 2018]
TO: Honorable Mayor and City Council
FROM: Robb R. Steel, Interim CA/Development Services Director
Title
Request City Council to Receive and File the Statement of Income and Expenses related to Airport Escrow Account for November 2017.
Body
BACKGROUND:
On September 25, 2012, the City Council approved the Second Amended and Restated Contract of Sale for Areas B, C and D (the "Airport Contract") with Lewis-Hillwood Rialto LLC (LHR). A key provision of the Airport Contract required the City to deposit $30 million into escrow to fund pre-development obligations, including tenant relocation, demolition, remediation and infrastructure (the "Article VI Work" as defined in the Airport Contract).
On January 22, 2013, the City Council approved Joint Escrow Instructions by and among the City of Rialto, LHR, and First American Trust FSB for work related to redevelopment of the Rialto Municipal Airport. On March 14, 2013, the City wired the funds to First American Trust FSB. On April 9, 2013, the City Council adopted Resolution No. 6249 appropriating budget as follows:
On October 13, 2015, the City Council reallocated $3,000,000 from the Demolition budget to the Infrastructure Budget and $1,000,000 from the Remediation budget to the Infrastructure Budget. On February 23, 2016, the City Council reallocated $1,278,168 from the Remediation Budget to the Infrastructure Budget and $30,000 from the Relocation Budget to the new Miscellaneous Expense Budget. The Budget Reports below reflect the adjusted budget.
Since a third party trustee disburses these funds, the financial activities avoid the City's normal financial reporting systems. Because of the substantial size of the expenditures, staff indicated that it would provide a monthly report to the City Council summarizing the income and expenditures related to the Airport Escrow Account.
ANALYSIS/DISCUSSION:
Expenditures from Airport Escrow Account
During November 201...
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