All Bonds Issued by Victorville's SCLAA to Be Current As of Dec. 1
ALL BONDS ISSUED BY VICTORVILLE’S SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY ARE BEING BROUGHT CURRENT AS OF DEC. 1
Improving Economy, Rising Property Values Reasons for Rebound
FOR IMMEDIATE RELEASE: November 27, 2018
VICTORVILLE, Calif. – Today, following a post to the Electronic Municipal Market Access (EMMA) system, the City of Victorville announced that all nine bonds issued by its Southern California Logistics Airport Authority (SCLAA) will be current with the principal and interest payments due to bondholders on Dec. 1. According to City Officials, an improving economy and rising property values in the redevelopment project area related to the Southern California Logistics Airport (SCLA) are the primary reasons for the turnaround following defaults that first began in 2011. The defaults are attributed to material factors that include the state of California’s dissolution of Redevelopment Agencies and declining property values resulting from the Great Recession.
“SCLA has withstood the biggest recession in our economy since the Great Depression,” said Victorville Mayor Gloria Garcia. “We are pleased that the issues resulting from the recessionary period are now behind us. SCLA and Victorville are a great place in which industry and business succeed.”
The SCLAA first issued bonds in 2001 to garner investment in a redevelopment project area that included the Southern California Logistics Airport on the site of the former George Air Force Base. Bonds issued by the SCLAA in 2008 were the subject of an SEC lawsuit settled earlier this year and dropping the Victorville City Manager as a named defendant. Investment capital raised through the bonds was used for infrastructure improvements at the Airport, which is being transformed into an industrial manufacturing and logistics park home to industry leaders like Boeing, GE Aviation, Newell Rubbermaid and Kuerig Dr Pepper.
Bond payments are being paid from tax increment generated from property value within the redevelopment project area. Following the Great Recession, property values within the project area began to decline in 2010. At the low-point in 2012, assessed property value had declined by 30 percent. While property values began to rebound in 2013, it took five years for assessed value to increase enough to generate the tax increment needed to make bondholders current.
Because the redevelopment project area encompasses approximately 85,000 acres including parts of unincorporated San Bernardino County and the surrounding municipalities of Hesperia, Adelanto and Apple Valley, today’s announcement is good news for Victorville and the broader Victor Valley.
In addition to increased property values, SCLA has experienced other positive indicators in recent months such as accelerated growth in its industrial park with 1.4 million-square-feet of industrial space added in the last 18 months.
Located in Southern California at the high-point between Los Angeles and Las Vegas, Victorville is the leading city for both industry and retail in the High Desert region. Victorville is a growing, vibrant community that is home to approximately 125,000 residents and some of the area’s largest employers. Clean air, abundant mountain vistas, family-friendly recreational activities, spectacular sunsets and breathtaking night skies entice locals and visitors alike to fall in love with this city that is within a few hours of SoCal beaches, National Parks, mountain retreats, other major attractions, and Ontario International Airport.
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