1993-07-15 Resolution 79 - Laserfiche WebLink

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SECURITY FOR THE TAXABLE 1993 BONDS (Cont'd) (For additional information on Tax Increment as it relates to the Refunding Bonds, please refer to the "Accounting Report" in Appendix B, and to the "Airport Economic Development Area" section, and to the "Procedures for Property Assessment, Tax Levy and Collection" section of this Official Statement.) The repayment of the Taxable 1993 Bonds has been structured so that estimated Tax Increment would be sufficient to meet the semi-annual Lease Rental payments when due on both the Taxable 1993 Bonds and the outstanding $2,355,000 (Tax-Exempt) Lease Rental Revenue Bonds (of 1991) (the "Tax-Exempt 1991 Bonds") when due and to allow coverage of the semi-annual Lease Rental by the estimated semi-annual Tax Increment ranging from 129% to 212%, as shown in the "Analysis of Lease Payments on the Taxable 1993 Bonds and Existing Bonds and Estimated Tax Increment" schedule provided in the Accounting Report in Appendix B. This schedule also shows that estimated cumulative Tax Increment surplus is expected to be sufficient to meet the Lease Rental Requirement. The Commission's pledge to the payment of Lease Rental is effective only to the extent and for the term that the Commission is obligated to pay Lease Rental under the Lease. The term of the Lease will end on the date which is no more than twenty-two (22) yeazs following substantial completion of the Project. If the Project .(including the Improvements) should ever be substantially or totally destroyed, the Lease Rental will be abated during the period in which the Project (including the Improvements) aze unfit or unavailable for their intended use. In such a case, rental value insurance will be available to make Lease Rental payments due during this time for a period of up to two yeazs. Insurance proceeds will be used to repair the Project (including the Improvements) or in some cases, to redeem outstanding Taxable 1993 Bonds. (Please refer to the Lease in Appendix D, and also to the section entitled "Risks to Bondholders" contained in this Official Statement.) FUNDS AND ACCOUNTS The Escrow Agreement and the Trust Agreement establish certain funds and accounts and the flow of funds. (For greater detail, refer to the excerpts of the Trust Agreement provided in Appendix E. The complete Trust Agreement and Escrow Agreement may be obtained from Baker & Daniels. Refer to "Availability of Documents and Financial Information" section herein.) Concurrent with the delivery of the Taxable 1993 Bonds, the Escrow Trustee will acquire Government Obligations with proceeds of the Taxable 1993 Bonds and deposit such Government Obligations into the Escrow Fund, in accordance with an Escrow Agreement to be executed between the Authority and the Trustee. (Please also refer to the "Refunding Program" section of this Preliminary Official Statement). Approximately $187,000 of the Taxable 1993 Bond proceeds to be used to fund a portion of the Improvements, together with approximately $104,066 of Taxable 1993 Bond proceeds to be used to pay issuance costs, will be deposited in the Construction Fund held by the Trustee. Any remaining proceeds, together with accrued interest, will be deposited in the Sinking Fund. Approximately $124,516 of funds held in the Construction Account for the Taxable 1991 Bonds will be transferred to the Construction Fund for the Taxable 1993 Bonds to fund a portion of the Improvements. Approximately $35,000 of funds held in the Bond Interest Account of the Construction Fund for the Taxable 1991 Bonds will be transferred to the Sinking Fund for the Taxable 1993 Bonds. All Lease Rental payments from the Commission to the Trustee will be deposited into the Sinking Fund in the manner described in the Trust Agreement. 1 L 6 ~