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File #: 15-15630    Version: 1 Name:
Type: Public Hearing Item Status: Agenda Ready
File created: 4/16/2021 In control: City Council Business Meeting
On agenda: 5/10/2021 Final action:
Title: Public Hearing on an Installment Financing Contract for Hospitality and Convention Facility Projects
Attachments: 1. Public Hearing Minutes - 2021 installment financing for MLS_Convention Center
Title
Public Hearing on an Installment Financing Contract for Hospitality and Convention Facility Projects

Action
Action:
Conduct a public hearing regarding an installment financing contract not to exceed $50,000,000 for hospitality and convention facility projects.

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.
* City Council will be asked at a later time to provide final approval for this financing; after which, the North Carolina Local Government Commission is expected to review this financing and provide approval, as well.
* In compliance with North Carolina General Statute 166A-19.24. Remote meetings during certain declarations of emergency, written comments on the public hearing topic will be accepted by the Clerk's Office through May 11, 2021, at 11:59 p.m. Any additional comments received will be provided t...

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