Title
Resolution authorizing the Allison Valley Metropolitan District No. 2 to issue debt in the form of general obligation limited tax refunding bonds in principal (par) amount not to exceed $13,500,000.
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
This is a request by Allison Valley Metropolitan District No. 2 ("District") to approve issuance of formal debt in an approximate aggregate amount not to exceed $13,500,000 in the form of General Obligation Limited Tax Refunding Bonds, Series 2020 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 this issuance will be used to refund a previously existing Series 2015A and 2015B commercial bank loans issued by this District for this same maximum amount.
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 an August 10, 2020 City Council Work Session, at which time there was discussion of the difference between loans and bonds, but no requests for changes or for additional information.
Note: A single combined PowerPoint presentation that summarizes both this debt issuance and a similar issuance for Allison Valley District No. 1, is included the agenda item immediately preceding this one
Background:
The Allison Valley Metropolitan District Nos. 1 and 2 were originally organized in 2006 to provide financing and a source of reimbursement for qualifying public improvements within what is now known "The Farm" development located in northern Colorado Springs. These Districts were largely inactive for a period following the 2008-2009 economic downturn. In...
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