Title
A Resolution of the City Council of the City of Colorado Springs Approving Issuance of Limited Tax General Obligation Series 2020 Bonds by the Interquest Town Center Business Improvement District in an Amount Not to Exceed $2,860,000
(Legislative Item)
Presenters:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request to approve issuance of debt by the Interquest Town Center Business Improvement District ("District") in the form of privately placed, tax-exempt Limited Tax General Obligation Series 2020 Bonds in an amount not to exceed $2,860,000.
The bonds will be repaid from a combination of limited BID property tax and specific ownership tax along with property and a public improvement fee (PIF) of 1.5%. The bond proceeds would be used to reimburse previously expended public improvements costs and also as a source of funds to support ongoing and future qualifying improvements within and in the vicinity of the District.
The City's Special District Policy and the District's approved Operating Plan and Budget require that City Council's approval be obtained prior to issuing any debt. 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 Section 7-100.
This item was presented to the May 26, 2020 City Council Budget Committee meeting. The Budget Committee specifically requested additional background and justification pertaining to the proposed interest rate of 7.0% (see below).
Background:
BIDs are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements in non-residential areas, typically utilizing a property tax mill levy as one revenue source. BIDs are separate legal entities from the City, but their Operating Plans and the Special District Policy require City Council approval...
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