Title
Resolution Approving the Recommendation of the City Administrator for the Timing of Bond Issuance for the Arbor South Project
Memorandum
The attached resolution directs the City Administrator to structure the terms of the Arbor South Project so that the anticipated bond issuance will occur prior to construction of the public parking decks, rather than after their completion.
Budget/Fiscal Impact: Issuing bonds prior to construction, rather than upon project completion, would avoid an estimated additional $30.6 million in the ultimate purchase price for the parking structures. While the actual amount may be lower, it represents a reasonable projection of costs the City would not incur under the proposed approach.
Staff
Prepared by: Joe Giant, Economic Development Director
Reviewed by: Marti Praschan, CFO
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, City Council Resolution R-25-118 authorized the City Administrator to negotiate City participation in the Arbor South Project (the "Project"), including the potential for City ownership and operation, of three public parking decks in the development;
Whereas, The City is considering issuing bonds either to fund the construction of the parking decks directly or to purchase the completed decks from the developer after construction is finished;
Whereas, PFM Group Consulting LLC and PFM Financial Advisors, LLC, the City's municipal financial advisors, are conducting ongoing due diligence on the Project, including review of the development proposal and associated financial and economic analyses;
Whereas, This due diligence indicates that if the City purchases each of the three public parking decks after completion, requiring the developer to finance construction, the resulting difference in costs to the City are estimated to be $30.6 million, due to higher private interest rates that the developer will incur and then pass to the City, as compared to municipal bond financing;
Whe...
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