Title
A resolution of the City Council of the City of Colorado Springs, Colorado approving the issuance of Lowell Metropolitan District Limited General Obligation Refunding Term Loan and Limited Tax General Obligation Refunding Bonds in an aggregate amount not to exceed $7,120,000 and related bond documents for a district located in the southeastern area of downtown Colorado Springs.
Presenter:
Carl Schueler, Comprehensive Planning Manager
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request to approve issuance by the Lowell Metropolitan District ("District") of formal debt in an approximate aggregate amount of $6,471,000 and not to exceed $7,120,000 in the form of a senior refunding loan and subordinate refunding bonds, series 2023. This debt would be repaid from a combination of property tax and associated revenues. The City's Special District Policy and this District's service plan require that City Council's approval be obtained prior to issuing any debt by this District.
This proposed debt structure represents a "renegotiation" of the original 2004 bonds issued by this District. As further described in the submittal materials and presentation, payments on the originally issued debt are sufficiently in arrears that this debt is not projected to pay off. The revised structure would provide the bondholders with a return on their original investment, while also writing off some of the existing debt, and establishing a fixed discharge date for the remaining debt. The board of this District, which is comprised entirely of resident property owners or tax-obligated business owners, is in support of this proposed refinancing.
Approval of this debt issuance will require a two-thirds majority of the entire City Council (at least six affirmative votes) due to the requested authorization exceeding 10% of the existing valuation of the property as required by City Charter Article 7-100.
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