Title
Resolution authorizing issuance of debt by the Bradley Heights Metropolitan District No. 2 in a combined principal amount not to exceed $35,000,000
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 $35,000,000 in the form Limited Tax General Obligation Bonds, Series 2021 A and B. The bonds will be issued by Bradley Heights Metropolitan District No 2, but will also have pledge of revenues from Bradley Heights Metropolitan District No. 3, and will be repaid from a combination of property tax and associated development fee revenues. The amount of the senior series A bonds is anticipated to be about $27,750,000, with the subordinate Series B bonds expected to be issued in an amount of about $4,978,000.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 fund anticipated public improvements costs for this project area, including the extension of major roadways. The draft Council resolution includes limits related to discharge dates, call dates and maximum amount for the combined debt issuance.
The Series A bonds are expected to carry an interest rate of 5.25% with the Series B bonds having an interest rate of 7.75%. Actual rates will be set immediately 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 item was introduced at the Council Work Session on April 12, 2021, at which time there were no questions or requests for further information.
Background:
The Bradley Heights Metropolitan Districts provide financing and a source of reimbursement for qualifying public improvements within a development located in the...
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