Title
Resolution Directing Filing of Application for Approval by Local Government Commission of $20,000,000 Limited Obligation Bond Anticipation Notes to Finance Improvements to the War Memorial Coliseum Complex
Body
Department: Financial and Administrative Services
Council District: N/A
Public Hearing: April 5, 2016
Advertising Date/By: March 24, 2016/ Bond Counsel
Contact 1 and Phone: Rick 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 directing the filing of an application with the Local Government Commission requesting the approval of the financing arrangement with Wells Fargo Bank, N.A.
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