Agenda Item Title:
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City Council considering the adoption of Resolution No. 21-41C, a Resolution of the City Council of Sandy City, Salt Lake County, Utah, authorizing the execution of a Loan Agreement by and between the State of Utah (acting through the Utah Department of Transportation - State Infrastructure Bank) and the City.
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Presenter:
Nick Duerksen
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Description/Background:
This item was discussed in detail and presented in the November 9th RDA Board Meeting. On October 22, 2021, the Utah Transportation Commission approved an SIB Loan to Sandy City for the Summit Project. The terms are $15 Million to be paid back in no more than 15 years. The interest rate is the State of Utah’s municipal bond rate plus .5%. The loan is to be secured by transportation funding in HB 244 for cities of the first class for priority projects (“1⁄4 of 1⁄4” transportation funding). The process now is for the City Council to approve a Parameters Resolution acceptance of the loan as the approved applicant and publish a public notice of the City’s intent to accept said loan. Attached is the Parameters Resolution accepting and committing to the SIB loan with UDOT and authorizing staff to publish a notice of the SIB loan as required by State statute.
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Recommended Action and/or Suggested Motion:
Recommendation
Motion to Approve Resolution No. 21-41C. A RESOLUTION OF THE CITY COUNCIL OF SANDY CITY, SALT LAKE COUNTY, UTAH (THE “CITY”), AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT BY AND BETWEEN THE STATE OF UTAH (acting through the Utah Department of Transportation – State Infrastructure Bank) AND THE CITY; SAID LOAN TO BE AUTHORIZED IN AN AGGREGATE AMOUNT NOT TO EXCEED FIFTEEN MILLION DOLLARS ($15,000,000), WITH THE MAXIMUM TERM OF THE LOAN NOT TO EXCEED 15 YEARS, THE MAXIMUM INTEREST RATE NOT TO EXCEED 4% WHICH MAY BE PAID ON THE LOAN; DELEGATING TO CERTAIN OFFICERS OF THE CITY THE AUTHORITY TO APPROVE THE FINAL TERMS AND PROVISIONS OF THE LOAN WITHIN THE PARAMETERS SET FORTH HEREIN; PROVIDING FOR THE PUBLICATION OF A NOTICE OF ENTERING INTO AN AGREEMENT FOR THE LOAN AND INTERLOCAL AGREEMENT WITH THE REDEVELOPMENT AGENCY OF SANDY (“AGENCY”); PROVIDING FOR THE RUNNING OF A CONTEST PERIOD; AUTHORIZING THE USE AND DISTRIBUTION OF THE LOAN; AUTHORIZING AND APPROVING THE EXECUTION OF THE LOAN DOCUMENTS, A TAX INCREMENT INTERLOCAL PLEDGE AND LOAN AGREEMENT, AND OTHER DOCUMENTS REQUIRED IN CONNECTION THEREWITH; AND RELATED MATTERS.