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