Title
Resolution authorizing issuance of debt by the Barnes Center Metropolitan District in a combined principal amount not to exceed $1,237,120
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Body
Summary:
This is a request to approve issuance of formal debt in an aggregate amount not to exceed $1,237,120 in the form of privately placed and taxable Limited Tax General Obligation Bonds, Series 2021 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 completed public improvements costs for this project area. The draft Council resolution includes limits related to discharge dates, call dates and maximum interest rates,
The bonds will carry an interest rate of 5%.
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 February 23, 2021 Council Work Session, during which there were no requests for follow-up actions.
Background:
The Barnes Center Metropolitan District provides financing and a source of reimbursement for qualifying public improvements within a development located just west of Powers Boulevard near Barnes Road. This district was originally created in 2017 with the expectation that it would be limited to commercial uses. However, this particular service plan was approved with a self-imposed limit of 30.0 mills for debt service rather the than the normal 50.0 for commercial districts. Recently, the proposed uses have been changed to a combination of multi-family and a hotel. Therefore, the maximum Gallagher adjusted debt service mill levy for this district must be limited to no more than 30.0 mills in any cas...
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