Title
Amendment to Resolution R-09-064 Authorizing the Use of Build America Bonds in Place of General Obligation Capital Improvement Bonds to Fund Construction of a Parking Structure at South Fifth Avenue
Memorandum
Recommended for Council is an amendment to resolution R-09-064. The original resolution authorized issuance of general obligation capital improvement bonds in the maximum principal amount of $55,000,000, for the purpose of financing the construction of a 677 space, four story underground parking structure. This amendment authorizes the use of Build America Bonds.
The American Recovery and Reinvestment Act of 2009 created the Build America Bond program, which authorizes state and local governments to issue taxable bonds to finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. State and local governments receive a direct federal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to 35 percent of the total coupon interest paid to investors.
An analysis performed by Stauder, Barch & Associates determined that the City would benefit from issuing Build America Bonds instead of traditional LTGO bonds by virtue of a lower true interest cost. The City’s bond counsel, Dykema Gossett, prepared the resolution with further review by the City Attorney.
A copy of resolution R-09-064 is attached for your convenience.
Staff
Prepared by: Tom Crawford, Chief Financial Officer
Reviewed by: Abigail Elias, Chief Assistant City Attorney
Approved by: Roger W. Fraser, City Administrator
Body
CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
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R-09-321
RESOLUTION to amend
resolution AUTHORIZING GENERAL OBLIGATION BONDS
(2009 Parking Facility Capital Improvement Bonds)
Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan held on the 20th day of July, 2009, at 7:00 o’clock p.m. Eastern...
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