Title
Resolution Approving and Authorizing the Sale and Issuance of Limited Obligation Bonds and the Execution and Delivery of a Third Supplemental Trust Agreement and Related Documents in Connection with the Financing of Parking Facilities
Body
Council Priority: Ensure Fiscal Stewardship, Transparency, & Accountability
Department: Financial & Administrative Services
Council District: 3
Public Hearing: NA
Advertising Date/By: NA
Contact 1 and Phone: Richard L. Lusk, 373-2077
Contact 2 and Phone: Charles D. Watts, 373-2320
PURPOSE:
To approve and authorize the sale and issuance of up to $37 million taxable limited obligation bonds on or about January 14, 2021 to finance the land acquisition, design, site preparation and construction of the February One Parking Garage, and related financing costs, including capitalized interest during construction. Based on projected interest rates, the par amount of the bonds on the sale date should not exceed $36.12 million. Issuance of the bonds to finance the parking facilities is subject to approval by City Council and the Local Government Commission.
BACKGROUND:
This proposed financing will fund the land acquisition, design, site preparation and construction of the February One Deck, including reimbursing the City for expenses already incurred toward these projects.
To finance the project, the City will issue taxable limited obligation bonds pursuant to a master trust agreement with U.S. Bank (bond trustee) and a bond purchase agreement with Wells Fargo Bank, N.A. The interest on this installment financing will have a 25-year term with a projected average interest rate of approximately 3.0%.
BUDGET IMPACT:
Annual debt service on the parking facility will be included in the Parking Fund budget, estimated at $2.15 million annually. Increases in monthly parking fees and property and sales tax revenue generated from related downtown development will fund the debt service.
RECOMMENDATION / ACTION REQUESTED:
T...
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