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<br /> <br /> <br />Page | 2 <br /> <br />Previously, you approved the lease that provides the security for the bonds that <br />is a twenty-year lease and has a maximum lease rental. We talked about when <br />the bonds are sold that lease rental will be reduced to match that service. The <br />Redevelopment Commission has approved the lease. Common Council <br />approved the lease and their resolution for the issuance of the bonds at their last <br />meeting. This resolution authorizes the issuance. The debt service is paid by the <br />lease rental payment of the Redevelopment Commission will pay and those lease <br />rental payments will come primarily from the PSCDA revenues. The PSCDA <br />revenues were enabled for the city in a legislative session in 2023 that expanded <br />PSCDA revenues to be collected by the city. There are more than sufficient <br />revenues to cover the debt service on the bonds. <br /> <br />There is a tax back up, but I want to be clear on the record that the tax backup <br />will not be needed. The PSCDA revenues, the city by statute can collect up to <br />$5M of those revenues. The maximum lease rentals are $4M and it is expected <br />to be significantly less than that. Crowe Horwath went back with the <br />Department of Revenue and looked at PSCDA legislation back to 2017 and the <br />revenues generated at that time are over $7M. State law limits that at $5M but <br />it was at $6M even during COVID. There is plenty of security in place so backup <br />will never be needed. The resolution before you authorizes bonds in an <br />aggregate principal amount. Everything done thus far has been parameters, so <br />we have a not to exceed interest rate in this resolution of 6%. This is a twenty- <br />year bond that is subject to redemption. <br /> <br />This resolution also appoints US Bank as the trustee for the bonds. That is the <br />bank the Commission will pay the lease rental to. US Bank will then pay the <br />bondholders. We will have a trust indenture in place that lays that out. The <br />bonds will be sold via a negotiated sale. Anticipated sale will be May/June 2024. <br />The plan is to have bonds sold and closed by mid-June so the city can place <br />orders for steel etc. Construction will happen at the end of the baseball season <br />and continue through 2026. Construction will be scheduled around the next <br />season. <br /> <br />Secretary Klee asked about authorizing a legal option, which happens <br />automatically? <br /> <br />Mr. Rampola stated yes legally. We are anticipating getting bond insurance. <br /> <br />Dick Naussbaum provided positive feedback for this resolution to the <br />commissioners via a letter on file. <br /> <br />Upon a motion by Secretary Klee and seconded by Vice-President Fitts, the <br />motion carried unanimously, the Authority approved the Resolution No. 217 on <br />May 1, 2024.