Title
Resolution Approving Issuance of Capital Improvement Bonds (Limited Tax General Obligation) to Fund Construction of a Parking Structure at South Fifth Avenue (Not To Exceed $55,000,000.00) (Roll Call Vote Required)
Memorandum
Recommended to Council is a Resolution approving the issuance by the City of Ann Arbor of its 2009 Parking Facility Capital Improvement Bonds (Limited Tax General Obligation), Series B in the maximum principal amount of $55,000,000 (the “Bonds”), with a currently anticipated bond issue size of $48,050,000. The Bonds are to be issued for the purpose of financing the construction of a 777 space, four story underground parking structure. The project includes a new street running west to east on the north side of the Ann Arbor Public Library, utility improvements under Fifth Avenue and Division Street, and a new downtown alley. The footprint of the project will be from the west side of Fifth Avenue to the west side of Division Street and under Fifth Ave from the northern edge of the current parking lot to William Street. The parking structure will be built in a manner to allow future construction of an up to 25-story building on the site. The Bonds are to be sold through competitive bidding.
The Bonds will mature in the years 2011 through 2035. The principal maturity schedule and other terms of the Bonds, including the right to prepay Bonds maturing March 1, 2020 and thereafter without premium, have been prepared by the City’s municipal financial advisors.
The cost of construction is being funded 15% by Downtown Development Authority reserves and 85% by bond proceeds. Debt service on the Bonds is expected to be paid from revenues of the City’s public parking system and tax increment revenues collected by the Downtown Development Authority. Under the Resolution the City pledges its limited tax full faith and credit for payment of the Bonds.
The Resolution authorized the Mayor, City Clerk, City Treasurer and Chief Financial Off...
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