City of Colorado Springs
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File #: 19-686    Version: Name:
Type: Ordinance Status: Mayor's Office
File created: 10/24/2019 In control: City Council
On agenda: 12/19/2019 Final action: 12/19/2019
Title: Ordinance No. 19-100 Authorizing the Execution and Delivery by the City of Colorado Springs of a Site Lease Between the City, as Lessor, and DNT Asset Trust, a Wholly Owned Subsidiary of JPMorgan Chase Bank, N.A., as Lessee, and, in Connection Therewith, a Lease Purchase Agreement Between the City, as Lessee, and DNT Asset Trust, a Wholly Owned Subsidiary of JPMorgan Chase Bank, N.A., as Lessor, with Respect to Certain Real Property for the Purpose of Refinancing Current Obligations of the City; Authorizing Officials of the City to Take All Action Necessary to Carry Out the Transactions Contemplated Hereby, and Providing for Related Matters Presenter: Charae McDaniel, Chief Financial Officer Thomas J. Florczak, Deputy City Attorney
Attachments: 1. Colorado Springs CAB Refinancing Lease Ordinance-v11-26-2019.pdf, 2. Colorado Springs 2019 (CAB Refinancing) Site Lease.pdf, 3. Colorado Springs 2019 (CAB Refinancing) Lease Purchase Agreement.pdf, 4. Signed Ordinance 19-100.pdf

Title
Ordinance No. 19-100 Authorizing the Execution and Delivery by the City of Colorado Springs of a Site Lease Between the City, as Lessor, and DNT Asset Trust, a Wholly Owned Subsidiary of JPMorgan Chase Bank, N.A., as Lessee, and, in Connection Therewith, a Lease Purchase Agreement Between the City, as Lessee, and DNT Asset Trust, a Wholly Owned Subsidiary of JPMorgan Chase Bank, N.A., as Lessor, with Respect to Certain Real Property for the Purpose of Refinancing Current Obligations of the City; Authorizing Officials of the City to Take All Action Necessary to Carry Out the Transactions Contemplated Hereby, and Providing for Related Matters

Presenter:
Charae McDaniel, Chief Financial Officer
Thomas J. Florczak, Deputy City Attorney

Body
Summary:
Attached is an ordinance authorizing a lease/lease purchase agreement with DNT Asset Trust, a Wholly Owned Subsidiary of JPMorgan Chase Bank, N.A. ("Chase"), to refinance the City's 2013 Building Lease and Lease Purchase Agreement with U.S. Bank National Association for the City Administration Building (the "CAB") in an amount not to exceed $4,750,000 including costs associated with the transaction.

Also attached are the Site Lease and Lease Purchase Agreement which are referenced in the ordinance.

Background:
The City seeks to take advantage of low interest rates to amortize a 2020 scheduled balloon lease payment through a directly placed lease/lease purchase agreement with Chase.

Under the current U.S. Bank lease/lease purchase agreement, a balloon payment of $4,022,419.99 is due on or before September 1, 2020.

Under the proposed transaction, the City, as lessor, will enter into a site lease with Chase, as lessee, for the CAB property in exchange for a lump sum payment from Chase, which the City will use to make the balloon payment to U.S. Bank. The City will simultaneously lease back the CAB from Chase in exchange for annual rentals paid by the City to Chase. As with the prior refinancings, th...

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