Title
A Resolution Approving the Issuance of Debt by Copper Ridge Metropolitan District in the Form of a Limited Tax General Obligation Loan. (Legislative Item)
Presenter:
Conrad Olmedo, Comprehensive Planner II, Planning and Community Development
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 of up to $6,000,000 by the Copper Ridge Metropolitan District ("District") in the form of a 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.
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.
Note: Subsequent to introduction of this item at the January 22, 2018 City Council work session, an updated version of the draft loan agreement has been provided and is included as an additional attachment in redline form. This updated version includes some additional details now filled in and also clarifies language associated with how the 25-year tax increment financing (TIF) period will affect the property taxes associated with this loan. The "limited default" language in the draft loan agreement remains unchanged.
Previous Council Action:
The District was established by an election in May 2008 following adoption by Council of a resolution authorizing creation of the District (Resolution No. 51-08). In 2010 City Council approved an urban renewal plan for the area where the District is located. In 2013, Council approved an initial debt issuance of $1,850,000 in the form of a general obligation loan (Resolution No, 111-13). In 2014, Council authorized issuance of up to $3,000,000 in debt as an additional loan (...
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