Kosmont Companies (Kosmont), Financial Advisor to the City of Walnut and its Redevelopment Successor Agency, announced that its Public Finance team successfully closed an $18 million Tax Allocation Refunding Bond Issue for the City.

Kosmont qualified the deal for a municipal bond insurance policy from Build America Mutual Assurance Company, resulting in the bonds receiving a “AA” credit rating and an underlying credit rating of “A+” from Standard & Poor’s, the highest underlying rating achieved on any Tax Allocation deal in the post-redevelopment era. The bond insurance and a reserve fund surety policy reduce debt service payments and increase savings for the City.

Successor agencies and their host cities are still in the midst of the long process to fully comply with the redevelopment agency dissolution process required under AB 1484. With the loss of redevelopment funds, cities are seeking alternative ways to fund economic development initiatives and infrastructure projects. Kosmont plans to utilize bond refundings alongside financing programs that can be used in conjunction with Property Management Plan to provide these funds.

“This is only the fourth post-redevelopment agency dissolution refunding done in the State. We are extremely pleased with the result of the offering,” said Larry Kosmont, President and CEO of Kosmont Companies. “This deal is a clear example of Kosmont’s ability to assist successor agencies and host cities with post-RDA dissolution activities while emphasizing compliance with AB 1484. This refunding achieved savings for the City and the other affected taxing agencies as prescribed by the Statute”.

Kosmont recently joined forces with Auction.com to help cities sell the estimated 5,000-6,000 property assets required under AB 1484. To learn more about Kosmont’s redevelopment dissolution services, click here or contact Larry Kosmont at lkosmont@kosmont.com.