Title
Initial Findings Resolution for Special Obligation Bonds
Action
Action:
A. Adopt an initial findings resolution that makes certain statements of fact concerning Special Obligation Bonds and a Commercial Paper Program for Bank of America Stadium and Field House improvements,
B. Provide for issuance of a Commercial Paper Program as part of the Special Obligation Bonds financing plan in an amount not to exceed $650,000,000, and
C. Authorize city officials to take necessary actions to complete the financings including making the application to the Local Government Commission.
Body
Staff Resource(s):
Matthew Hastedt, Finance
Explanation
* On June 24, 2024, City Council authorized an agreement to contribute funding for improvements to the city-owned Bank of America Stadium using funds from the Convention Center Tax Fund. These funds are derived from hospitality and tourism taxes and are legally required to be spent on projects to support the city's tourism economy including funding and maintenance for the Convention Center, venues that seat 60,000 people or more, and amateur sports facilities.
* The Commercial Paper program will provide short-term, interim funding for improvements and renovations for the multipurpose Bank of America Stadium and Field House up to $650,000,000 and is expected to be done in multiple tranches to allow for continuous construction period financing.
* The first tranche of Commercial Paper will be approximately $350,000,000 which is anticipated to cover the first two years of renovations.
* The permanent financing for the first tranche of approximately $350,000,000 of renovations will be secured in long-term debt via Special Obligation Bonds in two to three years.
* Special Obligation Bonds are long-term financing tools that are traditionally used for facility construction or renovation. These types of bonds are not repaid from property taxes, and the city's investment does not require any new taxes to be collected.
* This req...
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