Title
Resolution Approving The Issuance And Sale Of Limited Obligation Bonds By The City of Greensboro, North Carolina To Finance Improvements To The Greensboro War Memorial Coliseum Complex And Refund An Outstanding Limited Obligation Bond Anticipation Note, Approving Certain Documents And Actions Relating Thereto And Authorizing Other Official Action In Connection Therewith
Body
Department: Finance and Legal
Council District: 5
Public Hearing: August 19, 2014
Advertising Date/By: August 8, 2014/City Clerk
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Tom Carruthers, Interim City Attorney, 373-2320
PURPOSE:
To hold a public hearing to authorize the issuance and sale of up to $26.5 million limited obligation bonds on September 24, 2014 to finance capital improvements to the Greensboro War Memorial Coliseum Complex. The par amount of the bonds on the sale date is not expected to exceed $25.65 million. Issuance of limited obligation bonds to finance the improvements is subject to a public hearing and approval by City Council and the Local Government Commission.
BACKGROUND:
This proposed financing will fund Coliseum Complex improvements of $25.65 million, including the refinancing of a $24 million limited obligation note issued June 2012. City Council authorized additional Coliseum improvements of $1.65 million at its August 4, 2014 meeting. The improvements will be financed by the issuance of 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 3.80%.
BUDGET IMPACT:
Annual debt service on the proposed installment financing agreement is included in the Hotel/Motel Tax Fund budget, estimated at $1,625,000 annually.
RECOMMENDATION / ACTION REQUESTED:
The Finance and Legal Departments recommend approval of the attached resolutions (1) ratifying the filing of an application with the Local Government Commission requesting approval of the sale of a limited obligation bond and (2) approving the issuance of a limited obligation bond to finance improvements to the Greensboro War Memorial Coliseum in an amount not to exceed $26.5 million.