Title
Resolution Authorizing the Execution and Delivery of an Installment Financing Agreement, a Deed of Trust and Related Documents in Connection With the Financing of a New Performing Arts Center and the Refinancing of Prior Installment Financing Obligations for the City Of Greensboro, North Carolina
Body
Department: Coliseum
Council District: 3
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Rick Lusk, Finance Director, 373-2077
Contact 2 and Phone: Matt Brown, Managing Director, 373-7400
PURPOSE:
The City proposes to finance $30 million of the estimated $65 million Stephen B. Tanger Center ("Center") for the Performing Arts by entering into a bank installment financing agreement ("Agreement"), subject to a public hearing and approval by City Council on November 3, 2014 and the N. C. Local Government Commission on December 2, 2014.
BACKGROUND:
In a public private partnership with The Community Foundation of Greater Greensboro ("Foundation"), representing private donors, the City has agreed to acquire various downtown properties and construct a new performing arts center funded by private donations of $35 million and a contribution of $30 million from the City. The Center is currently in the design stage, with up to $5 million in design services being paid to the City by the Foundation as design contract payments become due. Construction of the facility will commence in mid-2015.
The City intends to close on its construction loan with PNC Bank by the end of the calendar year in order to take advantage of favorable loan rates and fees, and the Foundation intends to close on its loan with Bank of North Carolina no later than March 31, 2014. The City's Agreement will have a variable interest rate during its three-year term, projected to average 1.0% or less, through maturity in 2017. However, we expect to convert the note to permanent financing prior to the maturity date.
Proceeds of the City's loan will be used to...
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