OCII authorizes Mission Bay South refunding bonds and approves underwriter panel; commission later clarifies scope with a re‑vote

The Commission on Community Investment and Infrastructure on June 20 authorized issuance of tax allocation refunding bonds for the Mission Bay South redevelopment project area and approved the underwriter selection for the planned refunding.

OCII’s debt manager, John Daigle, described the item as a two‑series refunding of the existing 2016D Mission Bay South bonds, intended to capture interest‑rate savings and benefit from an expected credit upgrade. He said the refunding would move subordinate, non‑rated bonds into a senior, A‑rated credit and that investors’ pricing would determine structuring decisions and any premium. The staff report cited California Health and Safety Code language in the item title and referenced California Government Code provisions related to the enabling authority.

During discussion commissioners asked about anticipated savings. Staff reported a net present value savings figure of approximately $4,800,000 (and mentioned savings could be a higher percentage depending on market conditions). The commission approved selection of Citibank Global Markets as lead manager and Wells Fargo as co‑manager for the underwriting team and subsequently recorded a vote approving the refunding resolution (not to exceed $85,000,000 principal).

Legal counsel later clarified that an earlier vote had approved only the underwriter selection and that the commission’s intent was to approve the full resolution authorizing the refunding. The commission rescinded the narrower prior vote and then voted to approve the entire resolution on the record.

Daigle said subsequent steps include oversight‑board consideration (scheduled June 29) and Department of Finance review; if DOF approves the team will return with a preliminary official statement and final approval and then go to market when market conditions make savings achievable.

The commission recorded the refunding approval and underwriter selection by roll call votes. No members of the public spoke during the public comment period for this item.