Title
Adopt an Initial Finding Resolution and Set a Public Hearing for a Draw Program for the Spectrum Arena Upgrades and Refunding of Outstanding Arena Certificates of Participation
Action
Action:
A. Adopt an initial findings resolution making certain findings and calling for the execution of various documents necessary to issue a draw program and refunding of Outstanding Arena Certificates of Participation,
B. Adopt a resolution setting a public hearings for August 28, 2023, for a draw program for up to $110,000,000 for arena upgrades, and refunding of Outstanding Arena Certificates of Participation series 2003F and 2013G up to $100,000,000, and
C. Authorize the City Manager, or his designee, to take necessary actions to complete the financing, including submitting the application to the Local Government Commission.
Body
Staff Resource(s):
Teresa Smith, Finance
Matthew Hastedt, Finance
Tracy Dodson, Economic Development
Explanation
* On June 13, 2022 City Council authorized the City Manager to negotiate and execute an agreement between Hornets Sports Entertainment and the City of Charlotte in amount not to exceed $215,000,000 for arena improvements and repairs and $60,000,000 for new Performance Enhancement Center.
* The city will enter into a construction period financing in the form of a drawdown program for not to exceed $110,000,000; 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 will be the first of two financing tranches for the total project financing not to exceed $215,000,000.
* A drawdown construction period financing reduces interest cost and provides flexibility in the timing of the spending.
* The projects being funded will assist with contractual obligations of the city to provide capital repairs and improvements, and also finance other renovations and upgrades to meet the National Basketball Association requirements, to keep...
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