Southern California Logistics Airport seen in Victorville Thursday, July 28, 2005./STAFF PHOTO
A technical payment mistake hits the city and the Southern California Logistics Airport
BY KIMBERLY PIERCEALL
Published: 28 December 2011 08:29 PM
Victorville has defaulted on two of several municipal bonds used to make improvements to the Southern California Logistics Airport, according to letters from the Bank of New York Mellon.
The city tried to pay $535,000 in principal payments by Dec. 1 with money held in a reserve account, an action the bank doesn’t allow which triggered the default, according to the bank’s letters.
The airport is the result of public and private efforts to redevelop 8,500 acres of the former George Air Force Base. Victorville owns the airport and the City Council oversees it as the Southern California Logistics Airport Authority.
The two bonds, issued in 2007 and 2008, are valued at $55.3 million not counting interest.
As first reported by the Daily Press in Victorville, a majority of bondholders could demand that the entire amount still owed — $173 million — be paid immediately. Other alternatives include litigation or amending the bond agreements, according to the letters.
To read entire story, click here.