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File #: 15-15527    Version: 1 Name:
Type: Business Item Status: Agenda Ready
File created: 4/1/2021 In control: City Council Business Meeting
On agenda: 4/26/2021 Final action:
Title: Set a Public Hearing for an Installment Financing Contract for Hospitality and Convention Facility Projects
Attachments: 1. Initial Findings Resolution w_public hearing call - City of Charlotte Conv. Center_MLS COPs, Series 2021

Title

Set a Public Hearing for an Installment Financing Contract for Hospitality and Convention Facility Projects

 

Action

Action:

A.                     Adopt an initial findings resolution making certain findings and calling for the execution of various documents necessary to complete an installment financing contract, and

 

B.                     Adopt a resolution setting a public hearing for May 10, 2021, for an installment financing contract not to exceed $50,000,000.

 

Body

Staff Resource(s):

Kelly Flannery, Finance

Tracy Dodson, Economic Development

 

Explanation

§                     The city will enter into a construction period financing in the form of a $50,000,000 privately placed drawdown program, allowing the city to reimburse expenses on a monthly basis during construction and eliminating interest expense on funds not yet expended on the projects.

§                     This financing approach reduces interest cost and provides flexibility in the timing of the spending.

§                     The projects being funded are concentrated in two different areas:

-                     Bank of America Stadium improvements related to Major League Soccer and improvements to the former Eastland Mall site not to exceed $35,000,000 which was approved by City Council on November 9, 2020.

-                     Convention Center improvements not to exceed $11,900,000 which includes additional funding for Convention Center Phase I that was approved by City Council on September 23, 2019.

§                     The debt issuance is planned in two steps; a short-term construction period draw program lasting up to 36 months which will then be converted into permanent fixed-rate financing and/or available fund balance from the Convention Center Tax Fund once construction nears completion.

§                     These actions will adopt an initial findings resolution and set a public hearing for May 10, 2021.

§                     The North Carolina Local Government Commission is expected to review and approve this financing on June 1, 2021. 

 

Fiscal Note

Funding:  Convention Center Tax Fund

 

Attachments

Attachment(s)

Resolution