City of Colorado Springs
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File #: 19-642    Version: 1 Name:
Type: Resolution Status: Agenda Ready
File created: 10/4/2019 In control: City Council
On agenda: 2/11/2020 Final action: 2/11/2020
Title: A resolution authorizing the Southwest Downtown Business Improvement District to issue debt in the form of Series 2020 Limited Tax Supported and Special Revenue Senior Bonds in a total principal amount not to exceed $50,000,000. (Legislative Item) Presenters: Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Peter Wysocki, Planning and Community Development Director Bob Cope, Economic Development Officer
Indexes: BID, Issuance of Debt
Attachments: 1. Resolution, 2. PowerPoint, 3. Attachment 1- Bond Resubmittal Cover Letter, 4. Attachment 2- Draft Bond Resolution, 5. Attachment 3- Draft Master Indenture, 6. Attachment 4- Draft Supplemental Indenture, 7. Attachment 5- Draft Capital Pledge Agreement, 8. Attachment 6- Redevelopment Financing Analysis, 9. Attachment 7- Infrastructure Cost Worksheets, 10. Attachment 8 - Draft General Counsel opinion, 11. Attachment 9 - Draft Bond Counsel Opinion, 12. Attachment 10 - External Financial Advisor Letter- RBC, 13. SWD Phase 1A PPP - 12272019 - 2, 14. Signed Resolution 10-20.pdf

Title
A resolution authorizing the Southwest Downtown Business Improvement District to issue debt in the form of Series 2020 Limited Tax Supported and Special Revenue Senior Bonds in a total principal amount not to exceed $50,000,000.

(Legislative Item)

Presenters:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Peter Wysocki, Planning and Community Development Director
Bob Cope, Economic Development Officer

Body
Summary:
This is a request to approve issuance of debt by the Southwest Downtown Business Improvement District ("District") in the form of privately placed, tax-exempt Series 2020 Limited Tax Supported and Special Revenue Senior Bonds in a total amount not to exceed $50,000,000. The first Phase 1A bond issuance is proposed to be in the amount of $28,275,000. At this time remainder of the authorized bonds are anticipated to be issued in approximately 2023.

The bonds will be repaid from a combination of limited BID property tax, specific ownership tax along with property and sales/use tax increment financing (TIF) revenues from the overlying urban renewal area. In addition, property taxes from the two related metropolitan districts in the area will be pledged as revenues. The bond proceeds would be used to reimburse previously expended public improvements costs and also as a source of funds to support ongoing and future qualifying improvements within and in the vicinity of the District.

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.

This item was presented to the January 28, 2020 City Council Budget Committee meeting for additional input and discussion, as further described below. The Budget Committee specifically recommende...

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