Agenda - Council - 12/08/1998 - Laserfiche WebLink

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I I '1 I I I I I I I I I I I I I I I I RECOMMENDATIONS Re: Recommendations for the Issuance of $1,195,000 General Obligation Tax Increment Bonds, Series 1999A Proceeds of the bonds will be used to finance a portion of the acquisition, construction, and equipping of a 50-unit senior rental housing facility in the City (the "Project"). The Anoka County Housing and Redevelopment Authority is issuing $3,000,000 Housing Development Revenue Bonds, Series 1998 to finance the balance of costs for this project. The Anoka County HRA Bonds are also an unlimited tax general obligation of the City. However, both the HRA issue, as well as these bonds, are expected to be payable primarily from net revenues of the Project, including tenant rentals. We recommend the following for the bonds: Action Requested To establish the date and time of receiving bids and establish the terms and conditions of the offering. Sale Date and Time Tuesday, January 12, 1999 at 11:00 A.M., with award by the City Council at 7:00 P.M. on the same day. o Authority for the Bond Issue The bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. 4. Principal Amount of Offering $1,195,000 o Repayment Term The bonds will mature annually each January 1, 2001 through 2013. Interest will be payable semi-annually each January 1 and July 1, commencing July 1, 1999. Source of Payment In addition to its general obligation pledge, the City pledges tax increment income from Tax Increment Financing Districts Nos. 1, 2, and 4 for payment of the bonds. However, we understand the City expects to use net revenues of the Project to pay debt service on the bonds. Capitalized interest included in the issue will be used to cover the interest payments due through January 1, 2000, the Project's construction period. Prepayment Provisions The bonds maturing on or after January 1, 2009 will be callable on January 1, 2008, and on any day thereafter, at a price of par plus accrued interest. Credit Rating Comments An application will be made to Moody's Investors Service for a rating on the bonds. The City is currently rated "Al" by Moody's Investors Service.