Title
Ordinance in the Amount of $2,530,720 Amending Coliseum Improvements Bond Fund (Series 2012)
Body
Department: Finance
Council District:
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Matt Brown, Managing Director, 373-7400
Contact 2 and Phone: Rick Lusk, Finance Director, 373-2077
PURPOSE:
To consider amending the Coliseum Improvements Bond Fund Budget (Series 2012), in the amount of $2,530,720, to complete planned improvements to Coliseum Complex facilities and to reimburse the Hotel/Motel Tax Fund for advances to the bond fund authorized October 2013.
BACKGROUND:
On May 15, 2012, the City Council authorized the issuance of a 3-year $24,000,000 limited obligation bond anticipation note, under the City's construction loan draw program, to fund improvements to the Greensboro Coliseum Complex. On June 5, 2012, the NC Local Government Commission approved sale of the note to Wells Fargo Bank.
On October 15, 2013, the City Council authorized increasing the budget by $1,430,000 to $25,430,000, advancing $920,720 from the Hotel/Motel Tax Fund and also appropriated project-related sales tax refunds of $335,000 and a $174,280 contribution from the ACC to the Coliseum Improvements Bond Fund to complete renovation of the new Greensboro Convention & Visitors Bureau (CVB) offices and arena improvements, at a total cost of $1,430,000.
At this time we are proposing to increase the budget by $2,530,720 to $27,960,720. This includes refinancing the $24,000,000 note with a 25-year limited obligation bond issue and increasing the amount borrowed to $25,650,000 in order to (1) reimburse the Hotel/Motel Tax Fund $920,720, and (2) to appropriate funds for the demolition of the auditorium (excluding the lobby area), connecting the lobby to the Terrace, and fund parking improvements, at a cost of $748,000, and (3) fund the $200,000 replacement of an arena concert stage. This ordinance amends the capital project budget so that the Coliseum may proceed with these improvements and reimburse the Hotel/Motel Tax Fund. Also, it includes appropriations for the purchase of a SportCourt in the amount of $290,000 that is funded by a transfer that was included in the current year's Hotel/Motel Tax Fund budget. The SportCourt was requested by the CVB for use in volleyball and in-door soccer tournaments to be held in the Special Events Center.
BUDGET IMPACT:
Increase Coliseum Improvements Bond Fund Budget by $2,530,720; (1) appropriating an additional $1,238,000 for improvements, and (2) appropriating an additional $1,292,720 for the $920,720 reimbursement of the Hotel/Motel Tax Fund and $372,000 in bond issuance costs. This will increase the Coliseum Improvements Bond Fund Budget from $25,430,000 to $27,960,720. The $2,530,720 increase will be funded from bond proceeds of $1,650,000, additional sales tax refunds of $218,720, bond premiums of $372,000 and a $290,000 transfer from the Hotel/Motel Tax Fund. Payment of the debt service on the proposed limited obligation bonds will be included in future annual budgets of the Hotel/Motel Tax Fund.
RECOMMENDATION / ACTION REQUESTED:
The Coliseum and Finance Departments request City Council approval of the attached budget ordinance amending the Coliseum Improvements Bond Fund Budget (Series 2012), in the amount of $2,530,720.