03-23-15 Agenda. Packet & Committee Meeting Notice

Home Browse Search

The attached ordinance both approves the contract (Exhibit 1 of Ordinance) and approves the financing terms for the improvements to Century Center. The total cost of the improvements is $4,855,897.00. These will be financed through an Installment Payment contract, Series 2015 with Bane of America Leasing & Capital or affiliated entity, which may bear taxable or tax- exempt interest rates. To the extent the interest rate is taxable, it will be issued as a direct pay qualified energy conservation bond as provided in certain Sections of the Internal Revenue Code, in a sum not to exceed $4,250,000.00. A portion of the cost of improvements, i.e., the sum of $558,000.00, will be paid from Century Center's allocations from the St. Joseph County Hotel -Motel Tax Fund for 2014 and 2015. The Hotel Motel Tax Board has also made a commitment to service the bond debt beginning in 2018, and its formal action to undertake this debt service will take place at a meeting on March 25, 2015. The attached ordinance appropriates an additional $242,000.00 toward the costs of the energy conservation improvements from the Century Center Capital Improvement Fund No. 671. A separate debt service fund is required for this transaction, which will be known as the Century Center Energy Conservation Debt Service Fund (No. 672), and the sum of $50,000.00 from the ordinance appropriation of $242,000 will be transferred to that new Fund for debt service purposes. Century Center is enthusiastic about this transaction which will significantly improve the facility and enhance its market competitiveness, while saving substantial energy costs. Presenting this ordinance at the Council's second reading and public hearing and at its appropriate Committee meeting will be City Controller John Murphy; the City's Director of Sustainability Therese Doran; Public Works Director Eric Horvath or his designee; Century Center Board President Greg Downes; a representative from Ameresco, and a member of the City Department of Law, most likely myself. Also available to respond to technical questions about the project financing will be a member of the law firm of Barnes & Thornburg. We hope the Common Council will share the enthusiasm of Century Center for this project as it considers the attached ordinance. 7 Sin 1y, adean M. DeRose City Attorney and Legal Counsel to Century Center Board of Managers