Bonds Concept Wins City’s Approval
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The Glendale City Council this week endorsed the concept of issuing tax-exempt bonds to pay for streets, utilities and other public improvements in the proposed Rancho San Rafael subdivision.
City Manager James Rez said he asked for the council’s vote because extensive paper work and staff time would be required to prepare the bond issue. Council members unanimously approved the concept.
Marlene T. Roth, consultant for the developers, said streets and other improvements in the subdivision would cost $25 million to $50 million. The funds will be raised by selling tax-free bonds.
The bonds would be repaid over a period of years by the developers and home buyers in the proposed 542-unit residential subdivision.
Roth said new state legislation frees the city from any liability in the transaction.
In addition, the developers, Homes by Polygon of Costa Mesa and the S. T. MacDonald family of Montrose, have pledged to repay the city for all costs incurred in issuing bonds and collecting payments.
The proposed development, the largest to be undertaken in Glendale, is planned for the San Rafael Hills above Glendale College and east of the Glendale Freeway. About 190 acres of the 316-acre site will be preserved as open space.
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