Title
A Resolution Approving the Issuance of Debt by Copper Ridge Metropolitan District in the Form of a Limited Tax Obligation Loan in a Principal Amount Not to Exceed a Principal Amount of $6,000,000.
(Legislative Item)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning and Community Development
Body
Summary:
This is a request to approve issuance of additional formal debt in an aggregate amount not to exceed $6,000,000 by the Copper Ridge Metropolitan District ("District") in the form of a tax-exempt commercial bank loan, to be repaid from a combination of property tax and public improvement fee (PIF) 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 loan proceeds are anticipated to be drawn down in the next 18 months or so to reimburse existing and near-term future public improvements costs.
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 item was presented to and discussed by the Budget Committee on January 26, 2021, and then introduced at a Work Session on February 8. 2021.
Background:
Metropolitan districts are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements in commercial areas, primarily utilizing a property tax mill levy as the revenue source. These districts are separate legal entities from the City, but their service plans require City Council approval of all formal debt. The standard of review of the debt instruments is consistency with the Operating Plan and all applicable laws.
The rapidly developing Copper Ridge Metropolitan District has undertaken a series of formal new debt or refinancing issuances, beginning in 2013.
This proposed issuance is anticipated to be in the form of a tax-exempt commercial bank loan that will provide appr...
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