Title
Public Hearing and Initial Findings Resolution on Draw Program for the Spectrum Center Upgrades and Refunding of Outstanding Certificates of Participation
Action
Action:
A. Conduct a public hearing related to issuance of a draw program for up $136,500,000 for Spectrum Center upgrades, and refunding of outstanding arena certificates of participation, series 2023A up to $130,000,000,
B. Adopt an initial findings resolution calling for the execution of various documents necessary to issue a draw program for Spectrum Center upgrades,
C. Adopt an initial findings resolution calling for the execution of various documents necessary to refund outstanding arena certificates of participation, series 2023A, and
D. 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
Shahid Ran, 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 a new Performance Enhancement Center.
* On March 25, 2024, City Council approved an amended proposal to update the city's investment for arena improvements and repairs in amount not to exceed $245,000,0000 and $30,000,000 for a new Performance Enhancement Center. The total city investment remained $275,000,000.
* The Spectrum Center Upgrades debt issuance for this tranche 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.
* The city will enter into a construction period financing in the form of a drawdown program for not to exceed $136,500,000 for this tranche, allowing the city to reimburse expenses on a mo...
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