Does refinancing the former redevelopment agency’s bonds and loans create more density in Coronado?

The short answer is no.

The refinancing of these bonds and loans - otherwise known as the outstanding debt of Coronado's former redevelopment agency - by its governing body, the Successor Agency, cannot possibly affect the density of the town. There is no correlation. No new development is needed to pay off the outstanding debt, which was the result of funds used over the past 15 years to build City facilities and Coronado Unified School District schools. What is currently paying off that outstanding debt is tax increment revenue from the School District's share of property taxes and there is more than enough collected annually to pay off the bonds and loans, and then some.

Property taxes in Coronado have risen steadily over the years due to a very strong real estate market. Many of these homes pay today's tax rates because they were sold after 1978. But there are many homes in Coronado that continue to pay a property tax rate that is more than 40 years old. Approximately 82% of all single-family homes are assessed below the May 2018 median sales price. Proposition 13, which voters approved in 1978, rolled back most real estate assessments to 1975 market value levels, limited the property tax rate to 1%, and limited future property tax increases. Under Proposition 13, properties are reassessed only upon a change of ownership or the completion of new construction. Eventually, homes will be reassessed once sold, which will continue to increase the City's property tax revenues.

The refinancing of the outstanding debt of the former Coronado Development Agency, an entity separate from the City of Coronado, by the Successor Agency has been misconstrued by some in the community. The Successor Agency acted to refinance the outstanding debt solely to help the Coronado Unified School District. The Successor Agency could have continued paying the outstanding debt with the current tax increment revenue. The City is not benefitting nor is it harmed in any way from the refinancing action. It stands to gain nothing from the early payoff of the outstanding obligations of its former redevelopment agency. However, the School District will realize substantial benefits once the bonds and loans are paid off early, and for this reason, it is a benefit to the community. The sooner the debt is refinanced and paid off, the more revenue the School District will receive. The School District will receive the full amount of its allotted property tax revenues, or 32.46%, instead of it going to the former agency's debt.

The initial repayment schedule would have had the redevelopment agency's obligations paid by 2036. However, by restructuring the agency's obligations - a process similar to refinancing a home mortgage to take advantage of lower interest rates - the debt will be paid off seven years sooner. The steady rise in Coronado property values and lower interest rates are the means by which the debt will be paid off sooner. Once the restructured obligations have been paid off, the School District can remove itself from the California School Funding formula and achieve the financially preferred "basic aid" status. The School District will then receive its entire allocation of property taxes from the San Diego County Auditor-Controller.

Understanding how the refinancing works will help people understand the Successor Agency's reasons for taking this action and the School District's full support. For a full breakdown of Coronado's tax increment please view the Coronado Tax Increment Breakdown (DOCX).

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1. Was the Coronado Senior Association moved out of the John D. Spreckels Center to make room for the City’s Cultural Arts senior management analyst?
2. Since the Spreckels Center does not have the word “senior” anywhere on the facility, does the City have a true “senior center” that addresses the needs of those 50 and older?
3. Do I have to recycle my food waste now that EDCO has announced its new Organic Recycling Program?
4. Why does the City waste money watering the synthetic turf at the Lawn Bowling Green?
5. Does the City’s affordable housing provider San Diego Interfaith Housing treat tenants in an arbitrary, unpredictable, discriminatory fashion and evict people without cause?
6. Are the current asphalt repairs simply “make-work” and unnecessary?
7. Are there fresh water aquifers in Coronado that could be used for a supply of potable water?
8. Did the City of Newport Beach successfully challenge a state law, Senate Bill 2, that mandates a city's zoning codes accommodate emergency shelters and transitional housing?
9. Did the new traffic signal at Alameda Boulevard and Fourth Street cause a back-up of traffic east of the intersection on Wednesday, November 6?
10. Does refinancing the former redevelopment agency’s bonds and loans create more density in Coronado?
11. Does the City’s affordable housing provider San Diego Interfaith Housing treat tenants in an arbitrary, unpredictable, discriminatory fashion and evict people without cause?
12. How can the City leave the lights on at the Coronado Public Library overnight especially during the current heat wave and with potential rotating outages?
13. How does a City get selected to Dr. Beach’s Top 10 Best Beaches in America list?
14. Is it true that enterococci bacteria can be caused by decaying kelp and why doesn’t the City think the current advisory at Avenida del Sol is related to sewage impacts from the Tijuana River or Mexico
15. Is the City going to make changes at Coronado Cays Park?
16. Is the City not respecting its beautiful historic sidewalks?
17. Is the City trying to extend San Diego’s Lindbergh Field into Coronado?
18. Is the water quality being affected in South Beach and is Central Beach being tested for the Fourth of July?
19. Is there still time to have a say on the Coronado Cays Park Master Plan?
20. It has been reported in national news stories based on a local report that the City of Coronado’s beach was closed for several weeks. Is that true?
21. Questions have come up in the community about what uses are allowed in the City of Coronado’s R-1A residential zoning code. What are those uses?
22. The City has fire rings at North Beach that get very busy during the summer. What is the City’s fire ring policy? How does the City monitor behavior at the fire rings and is it enough?
23. What are the white cones along the Silver Strand State Highway?
24. Is the National Citizen Survey conducted by the National Research Center valid?
25. What is the current status of the Golf Course Water Recycling and Turf Care Facility project or the environmental review? How are the potential environmental impacts being addressed?
26. What role does the City have in the redevelopment of the Coramart building and has the City prevented its redevelopment?
27. What was the odor in Coronado on Easter Sunday?
28. Why are there two construction sites at Spreckels Park? And why is the site near Seventh only a concrete pad?
29. Why is the City ending its participation in the Rotary Santa program?
30. Why isn’t the City extending service to the Cays this year?
31. Why were two palms recently removed from the beach?
32. Why is the Glorietta Bay Boat Launch Ramp closed and when will it reopen?