Agenda - Council - 03/13/2012 - Laserfiche WebLink

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IV. PROJECT SUMMARY The expenditures to be financed through the issuance of bonds under this amended CIP are limited to those listed below. All other foreseeable capital expenditures within the City government will come through other means. (In addition, this CIP supplements and adds to any activities authorized in any prior CIP approved by the City under the Act). The following expenditures have been submitted for inclusion in this CIP: a) Acquire the Municipal Center from the EDA. The Act has established certain criteria that must be met. In accordance with these criteria, the City has considered the following eight points: 1. Condition of the City's infrastructure and need for the project. 2. Demand for the improvement. 3. Cost of the improvement. 4. Availability of public resources. 5. Level of overlapping debt. 6. Cost/benefits of alternative uses of funds. 7. Operating costs of the proposed improvements. 8. Options for shared facilities with other cities or local governments. The City has analyzed the eight points required per statute for the project. Its findings are as follows: PROJECT: Acquire Municipal Center from Ramsey Economic Development Authority ("EDA"). Description: The EDA financed the construction of the Municipal Center in 2005 through the issuance of $19,200,000 Public Facility Lease Revenue Bonds, Series 2005A. The EDA currently leases the facility to the City. The amount of the lease payments is equal to the debt service on the Series 2005A Bonds. The City annually appropriates the funds from the City's general fund to meet the lease payments. The City intends to acquire the Municipal Center through the issuance of approximately $17,735,000 General Obligation Capital Improvement Plan Bonds, Series 2012A, pursuant to the Act. The acquisition will require that the Series 2005A Bonds be refunded and it is propose the final maturity will be extended to December 15, 2031 to lower the City's annual payments. This acquisition will also result in a present value net debt service cost savings to the City of approximately $425,541. In connection with such refunding, the City will prepay the lease with the EDA and will obtain fee title to the Municipal Center.