HomeMy WebLinkAbout11/09/2000, C5 - FINANCING FOR THE MARSH STREET GARAGE EXPANSION counc�L `°�°�
j ac En ba Repout ImC51�
CITY O F SAN LUIS O B 1 S P 0
er Director of Finance
FROM: Bill Statl
Prepared By: Linda Asprion, Revenue Manager ��
SUBJECT: FINANCING FOR THE MARSH STREET GARAGE EXPANSION
CAO RECOMMENDATION
Adopt a resolution preserving the City's ability to debt finance $8,000,000 for the Marsh Street
Parking Garage Expansion.
DISCUSSION
Marsh Street Parking Garage Expansion Financing Plan
On September 28, 2000, the Council approved construction documents for this project along with
funding of $7.9 million of the total project cost (about $10.1 million) through debt financing.
Typically, the debt financing would consist of issuing lease-revenue bonds for this type of
project through a competitive sale in the private market. Under this structure, the General Fund
would have the underlying obligation for repayment, although the Parking Fund would be
financially responsible for making the debt service payments under the lease agreement.
However, as approved by the Council on July 18, 2000, we are also planning to submit an
application to the California Infrastructure and Economic Development Bank for financing for
the Marsh Street Garage Expansion. This resolution simply ensures that any advance costs for
this project are eligible for debt financing.
FISCAL IMPACT
There is no fiscal impact associated with adopting this resolution. This resolution merely retains
the City's option to debt finance the Marsh Street Parking Garage Expansion at a later date,
either through CIEDB loan program and/or a future fiscal analysis determines debt financing to
be the best source of funding for the City. This information and fiscal analysis should be
completed by mid-January of 2001.
CONCURRENCES
The City's bond counsel — Jones Hall — drafted the proposed resolution and concurs with its
adoption by the Council.
ATTACHMENT
Resolution preserving the City's ability to debt finance the Marsh Street Parking Garage
Expansion.
C5-1
RESOLUTION NO. (2000 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
DECLARING INTENTION TO REIMBURSE EXPENDITURES
RELATING TO MARSH STREET PARIGNG GARAGE EXPANSION
FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS OF THE CITY
WHEREAS, the City Council of the City of San Luis Obispo (the "City") is
undertaking proceedings to finance the expansion of the existing Marsh Street Parking
Garage (the"Marsh Street Parking Garage Expansion Project"); and
WHEREAS, in order to provide funds to finance the Marsh Street Parking
Garage Expansion Project, the City Council intends to participate in a tax-exempt lease
revenue bond or certificate of participation financing in the aggregate principal amount of
approximately$8,000,000(the"Bonds"); and
WHEREAS, in order to use the proceeds of the Bonds to reimburse advances
made by the City for the Marsh Street Parking Garage Expansion Project before the date
of issuance of the Bonds, but not more than sixty (60) days before the date of adoption of
this Resolution, Section 1.150-2 of the United States Income Tax Regulations requires
that City Council declare its intention to reimburse such advances from the proceeds of
the Bonds; and
WHEREAS, it is in the public interest and for the public benefit that the City
declare its official intent to reimburse the expenditures referenced herein;
NOW THEREFORE BE IT RESOLVED by the Council of the City of San
Luis Obispo as follows:
SECTION 1. Declaration of Intent. The Council hereby declares that it
reasonably expects to issue the Bonds and to use a portion of the proceeds thereof to
reimburse expenditures made by the City for the Marsh Street Parking Garage Expansion
Project before the date of issuance of the bonds, and not more than sixty (60) days before
the date of adoption of this Resolution. The Bonds shall be issued in an aggregate
principal amount which is sufficient to raise funds for the Marsh Street parking Garage
Expansion Project in the approximate amount of$8,000,000.
SECTION 2. Effective Date. This Resolution shall take effect from and after the
date of its passage and adoption.
Upon motion of , seconded by
and on the following roll call vote:
C5-2
1
AYES: r
NOES:
ABSENT:.
The,foregoing resolution was adopted this 9th day ofNovember, 2000.
Mayor Allen.Settle
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
G org _ — ity Attomey
i
C5-3