The City recently sold $31.1 million in bonds to refinance the 2001 and 2002 University Avenue Area Off-Street Parking Assessment District bonds. The City was able to lock in exceptionally low interest rates, which will save downtown property owners and tenants approximately $413,000 annually or more than $7.5 million over the remaining 18 years of the bonds. This was the first City bond sale where local bond purchasers were given first priority.

The success of the bond offering on February 22, 2012, was based in part on the City's new marketing program to sell bonds directly to Palo Alto residents. The City advertised the bond sale in local newspapers and implemented a special website dedicated to educating citizens on the bond sale.

"Over the past week, we saw a tremendous amount of interest in the City’s bond offering from residents and high profile institutional investors. The City’s website received over 750 hits and De La Rosa & Company (the City’s bond underwriter) received over 150 calls from interested residents," Joe Saccio, the City’s Assistant Administrative Services Director said. 

The City received over $141 million in orders from investors for the $31.1 million offering, which caused the bonds to be sold out within less than 4 hours. Given first priority, Palo Alto residents purchased over $6.1 million or 20 percent of the bonds while the remainder was sold to institutional and other retail investors.  This bond sale demonstrates extraordinary confidence by investors in the City of Palo Alto. 

For more information please visit http://www.cityofpaloalto.org/civica/press/display.asp?layout=1&entry=781 or contact the City of Palo Alto at 650-329-2100.