The City has been consistently investing efforts to revitalize the Civic Center to make it a safer, more pedestrian friendly place with improved amenities, safe and clean neighborhoods, and high quality public safety services for all current and future residents.

On November 6, 2018, Garden Grove voters approved Measure O, a one-cent (1%) local sales tax to support annual funding for public safety and vital city services. Voters approved Measure O to support police recruitment, maintaining 9-1-1 response times, and to evaluate the need to modernize or replace existing Police Department public safety facilities.

In January 2020, a police facilities space needs assessment was conducted to address current and future needs of the Garden Grove Police Department (GGPD). Findings of the report identified deficiencies in the existing GGPD facilities and insufficient spacing available for building, parking, and site needs to accommodate current and future demands of our growing community.

In January 2023, the City Council directed staff to advance the Public Safety Facility and Civic Center Revitalization Project (the Project) and identify opportunities to accelerate project delivery. In July 2023, the City released the Civic Center Revitalization Project Request for Qualification.  Six quality development teams submitted responses, and on September 26, 2023, the City Council authorized staff to enter an exclusive negotiation agreement with Edgemoor/Clark/AC Martin development team.

Staff started working with the development team on formulating financing strategies since beginning of October 2023.  Five potential financing options were proposed and evaluated, including General Obligation Bonds, City issued Lease Revenue Bonds, Conduit Lease Revenue Bonds, Certificates of Participation, and Project Certificate Revenue Bonds.  The options were evaluated based on the cost of issuance, timeline, and the ongoing cost and administrative requirements.  Staff also engaged the City’s municipal advisor, Filedman Rolapp & Associates, as well as our bond counsel, Stradling Yocca Carlson & Rauth to evaluate the proposed financing options. 

Staff along with consultants came to a conclusion that given the City’s strong credit rating, sufficient cash on hand, aggressive project schedule, and the current market condition, it is most cost effective to finance the Project through debt issued by the Garden Grove Financing Authority, in the form of lease revenue bonds or certificates of participation.  

The estimated project cost is approximately $150.0 million. The cost includes the construction of an approximately 90,000 square-foot Police Department building, a standalone parking structure for 450 vehicles, and a new 2.7 acre park expansion. The City has set aside $17.5 million to advance the Project. These funds are paying for pre-development work. Much of the cost are directly related to capital improvement and is eligible for bond financing. The remaining costs will be financed through tax-exempt debt.

The par amount of the proposed debt will not exceed $140,000,000. Annual debt service is estimated to be approximately $9.0 million, and will be paid by the general revenues collected by the City's General Fund. Cost of issuance will be paid from the proceeds of the debt. The issuance of the debt will not result in additional taxes or fees to our tax payers.

The attached resolution authorizes the use of the debt proceeds to reimburse the City for direct costs incurred prior to the issuance. It also provides direction to staff to work towards accomplishing the debt financing, including hiring a financing team.

It is recommended that the Garden Grove Public Financing Authority:

• Adopt the Resolution approving the issuance of federally tax-exempt lease revenue bonds or certificates of participation to finance the City of Garden Grove public safety facility and Civic Center Park project and approving certain acts in connection therewith.