Title
Authorization of Creekwalk Marketplace Business Improvement District to issue debt in the form of Series 2019A and Series 2019B Limited Tax Supported and Special Revenue Bonds.
(Legislative Item)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Body
Summary:
This is a request to approve issuance of debt by the Creekwalk Marketplace Business improvement District ("District") in the form of Series A and Series B 2019 bonds, to be repaid from a combination of limited property tax, public improvement fee (PIF) and property and sales tax increment financing (TIF) revenues. The Series A bonds will be in the approximate principal amount of $18,145,000 and the subordinate Series B bonds will be in the approximate principal amount of $3,030,000. 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.
On April 22, 2019, this item was introduced at a Council Work Session at which time Council was apprised of a request to exclude three (3) parcels currently included in the BID boundaries. There is a separate and discrete statutory process Council needs to follow for those requests. However, City Council did ask for a summary or the potential financial impacts these exclusions if they were to be approved by Council. This summary was provided by the BID on May 7, 2019, and is attached. The impact of these potential exclusions has been calculated to be a reduction of $385,000 against the par amount of the bonds. The BID is requesting that the full debt amount be authorized at this time, with contingencies in place in the event conditions change prior to issuance.
This item will be presented for action at the May 14, 2019 City Council meeting.
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