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Title
Resolution authorizing issuance of debt not to exceed $1,400,000 by the Chaparral Pointe Metropolitan District located west of Powers Boulevard north of Barnes Road
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Body
Summary:
This is a request to approve issuance of formal debt in an approximate aggregate amount of $1,272,000 and not to exceed $1,400,000 in the form of Limited Tax Senior Cash Flow General Obligation Bonds, Series 2021A(3) to be repaid from a combination of property tax and associated revenues. The City's Special District Policy and the District's service plan require that City Council's approval be obtained prior to issuing any debt.
The net revenues from these issuances will be used to reimburse the costs of completed or soon-to-be completed public improvements.
The bonds are anticipated to be tax-exempt, externally marketed and to carry an average interest rate of about 5.25% (rate to be set prior to closing).
Approval of this debt issuance will require a 2/3rds majority of the entire City Council (at least six affirmative votes) pursuant to City Charter Article 7-100.
This agenda item was introduced at a May 24, 2021 Council Work Session. There were no major questions or requests for additional information, and Council directed this item be placed on the consent agenda.
Background:
The Chaparral Pointe Metropolitan District was created in 2018 and provides financing and a source of reimbursement for qualifying public improvements within this small residential development. This District is located along Powers Boulevard, and is actively developing. A total of about 68 single-family and duplex dwelling units are anticipated at buildout, which is expected to be complete by 2022.
The bonds would be rated and marketed with an expected total interest rate of 5.25%. The bonds will be structured and marketed as "cash flow bonds" thereby not requiring capitalized ...
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