Title
A resolution of the City Council of the City of Colorado Springs, Colorado approving the issuance of a Chapel Heights Metropolitan District Limited Tax General Obligation Advancing improvement Loan in an amount not to exceed $6,500,000 and related loan documents for a district located northeast of Fountain Boulevard and Academy Boulevard.
Presenter:
Carl Schueler, Comprehensive Planning Manager
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request to approve issuance of formal debt in an approximate aggregate amount of $5,000,000 and not to exceed $6,500,000 in the form of a Limited Tax General Obligation Advancing improvement Loan, Series 2023 to be repaid from a combination of property tax and associated revenues. The City's Special District Policy and this District's service plan require that City Council's approval be obtained prior to issuing any debt by this District.
This will be the first issuance of debt by this district. The net proceeds from this issuance will be primarily used to reimburse developer advances and also to fund anticipated public improvements costs as described in the submitted materials.
The loan is anticipated to be tax-exempt, is based on bids solicited from commercial banks unrelated to the District, and which are expected to carry an interest rate of about 5.00%. (exact rate to be set prior to closing).
Approval of this debt issuance will require a two-thirds majority of the entire City Council (at least six affirmative votes) due to the requested authorization exceeding 10% of the existing valuation of the property as required by City Charter Article 7-100.
This agenda item was presented at the December 13, 2022, City Council Budget Committee meeting and then introduced at a Council Work Session on January 9, 2023 (see discussion below).
This property is located in Council District No. 4.
Background:
The Chapel Heights Metropolitan District ("District") was origin...
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