S&P: San Diego Redevelopment Agency, CA Parking Revenue Bond Rating Raised To 'A' On Improved Coverage
"The raised rating reflects our view of improving debt service coverage due to reduced debt service requirements, pledged revenues' continued good performance and a closed lien," said S&P Global Ratings credit analyst Paul Dyson.
The series 1999A bonds (fixed rate) are outstanding in the amount of $5.825 million. Securing the 1999A bonds are net parking revenue from the Sixth and Market garage ($1.74 million in 2016), a share of downtown parking meter revenue ($1.91 million), and a subordinate pledge of $300,000 of tax increment revenue from the Centre City Redevelopment Project. The parking meter revenue is pledged so long as San Diego appropriates the revenue to the agency, which it has consistently done.
The agency, through its Centre City Development Corp. (CCDC), issued the bonds to provide funds to construct the seven-story, 500-space parking structure. The garage provides additional off-street parking for the Gaslamp Quarter area. The Gaslamp is within Downtown Community Parking District, which includes almost 65% of all parking meters in San Diego.