HomeMy WebLinkAbout10/04/2005, C9 - INTENTION TO ISSUE TAX EXEMPT BONDS FOR 919 PALM PARKING-OFFICES PROJECT council DM 10-4-2005
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CITY OF SAN LUIS OBISPO
FROM: Bill Statler, Director of Finance &Information Technology
SUBJECT: INTENTION TO ISSUE TAX EXEMPT BONDS FOR 919 PALM
PARKING-OFFICES PROJECT
CAO RECOMMENDATION
Adopt a resolution of intention to issue tax exempt bonds in financing the 919 Palm parking-
offices project and to reimburse from the proceeds costs incurred prior to their issuance:_
DISCUSSION
Construction of the 919 Palm parking-offices project is well underway. Under the purchase
terms of the acquisition agreement with the Copelands; payment for the building itself will not
be due until completion and acceptance of the structure by the City. This is likely to occur in
Spring 2006, and we will not issue bonds until then. In the interim, it is possible that some
limited costs related to the project may be incurred, such as tenant improvements. In order to
preserve our ability to include these costs in the subsequent bond issue, federal rules require
adoption the attached resolution.
CONCURRENCES
The City's bond counsel (Jones Hall) and financial advisor (Fieldman Rolapp) concur with this
recommendation.
FISCAL IMPACT
There_are no direct impacts to approving this resolution: it simply preserves our option of
including in the subsequent bond issue any costs related to the project that might be incurred
prior to its issuance. As summarized below, the current project budget of$17.4 million calls for
$14.6 million of this amount to be funded from the sale of bonds:
Parking,Fund General Fund Total_
Proceeds from Sale of Court Street Property 1,510,000 452,000 1,962,000
Parking In-Lieu Fees 512,000 512,000
General Fund Parking Space Reimbursement 145,000 145,000
Pay-As-You-Go Appropriations 75,300 157,100 232,400
Proceeds from Sade of Bonds 1 7,907,500 6,705,100 1 14,612,600
Tota! $10,149,800 $7,314,200 1 $17,464,000
ATTACHM ENT
Resolution of intention to issue tax exempt bonds for 919 palm Parking-offices project
G:Debt.Financings/919 Palm/Documents/Council Agenda Report ^
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RESOLUTION NO. (2005 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
DECLARING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS
TO ASSIST IN FINANCING THE PALM PARKING-OFFICES PROJECT AND THAT
A PORTION OF THE PROCEEDS MAY BE USED TO REIMBURSE RELATED
EXPENDITURES INCURRED PRIOR TO THEIR ISSUANCE
WHEREAS, the Council of the City of San Luis Obispo (the "City") is undertaking
proceedings to acquire, furnish and equip an parking garage and administrative office building to
be located on property owned by the City at 919 Palm Street (the "Project"); and
WHEREAS, in order to providefunds to finance the Project the City, either on its own
behalf or through the City of San Luis Obispo Capital Improvement Board (the"Board"),intends
to issue and sell its tax-exempt Lease.Revenue Bonds or Certificates of Participation in the
aggregate principal amount of approximately $14.6 million for the Project (the `Bonds");and
WHEREAS, in order to use the proceeds of the Bonds to reimburse advances made by
the City for the 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 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 the Bonds to be issued by the (2 -or the Board, and that a portion of the proceeds
thereof maybe used reimburse expenditures made by the City for the 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 Project in the approximate amount of$14.6 million.
SECTION 2. Effective Date. This Resolution shall take effect from and after the date
of its passage and adoption.
eq a-
Resolution No. (208 Series)
Page 3
On motion of _ , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted on October 4, 2005.
David F. Romero, Mayor
ATTEST::
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
Jon Lowell — - - — - -
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