Agenda Item Title:
Title
Administrative Services Department recommending that the Council Adopt Resolution 21-38C authorizing the execution and delivery of a bond purchase agreement, a supplemental indenture of trust, and a sales tax interlocal pledge and loan agreement between the City and the Redevelopment Agency of Sandy City, Utah
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Presenter:
Brian Kelley, Administrative Services Director
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Description/Background:
The Administrative Services Department and the Redevelopment Agency (RDA) are requesting approval of resolutions to authorize the refinancing of the Series 2007 A&B that were issue for the soccer stadium project.
The debt service has heretofore been paid from Transient Room Tax (TRT) and will continue in the same manner. However, we are recommending an interlocal agreement (ILA) pledging sales tax as a backstop to achieve a lower interest rate. We anticipate net present value savings of approximately $1.2M to $1.3M based on market rates as of last week. An analysis of our sales tax coverage ratio for future potential issuances shows ample coverage for any foreseeable bonding needs utilizing a sales tax pledge.
The RDA will still be the issuing agency, as with the original series, with the City backstopping the debt service via the ILA sales tax pledge agreement. Consequently, there are authorizing resolutions in both the RDA meeting and City Council meeting.
Please find attached a PDF of the City Resolutions with exhibits inserted. It can be a little confusing to track the exhibits (since some of the exhibits have exhibits themselves), but if you refer to the document numbers at the bottom left of the pages, it helps to show where the documents end and begin. In sections containing blanks, those will be filled in once the transaction details are finalized
Fiscal Impact:
Further action to be taken:
This authorization will require approvals from both the City Council and the RDA Board
Recommended Action and/or Suggested Motion:
Recommendation
Motion to adopt Resolution 21-38C.