Title
Resolution Providing for Issuance of $20,000,000 Limited Obligation Bond Anticipation Notes by the City of Greensboro, North Carolina to Finance up to $20,000,000 in Improvements for the War Memorial Coliseum Complex, Approving Certain Documents and Actions
Body
Department: Financial and Administrative Services
Council District: N/A
Public Hearing:
Advertising Date/By: March 24, 2016/ Bond Counsel
Contact 1 and Phone: Richard Lusk, Finance Director 373-2077
Contact 2 and Phone: Thomas Carruthers, City Attorney 373-2320
PURPOSE:
The City plans to finance $20,000,000 capital improvements to the Greensboro War Memorial Coliseum Complex. The City will enter into an Installment Financing Agreement to finance the improvements, subject to a public hearing (April 5, 2016) and approval by City Council and the Local Government Commission.
BACKGROUND:
This proposed financing provides $20,000,000 for the renovation to existing Coliseum structures as well as site improvements, the acquisition and installation of equipment, and debt issuance costs. The improvements will be financed pursuant to a master trust agreement with U.S Bank (bond trustee) and a bond purchase and advance agreement with Wells Fargo Bank, N.A. The interest on this installment financing will be on a variable rate basis during the approximate three-year construction period, projected to average approximately 1.0% through maturity in 2019 at which time the note will be converted to permanent financing.
BUDGET IMPACT:
Payment of the debt service on the proposed installment financing agreement will be included in future annual budgets. Under current economic conditions, the bond can be marketed at a reasonable rate of interest.
RECOMMENDATION / ACTION REQUESTED:
The Finance and Legal Departments recommend approval of the attached resolution authorizing the approval of the financing arrangement with Wells Fargo Bank, N.A.
COMMITTEE ACTION: This item was referred to Council by the Infrastructure Committee.