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CC Regular Session <br />Meeting Date: 04/14/2015 <br />By: Diana Lund, Finance <br />4. 8. <br />Information <br />Title <br />Adopt Resolution # 15-04-101 Authorizing the Call of the Outstanding Taxable General Obligation Tax Increment <br />Bonds, Series 2012B (Flaherty & Collins (F&C) -Residence at the COR Project) <br />Purpose/Background: <br />Purpose: <br />When the General Obligation Tax Increment Bond in the amount of $7.32M was issued in 2012 on behalf of the <br />F&C-Residence at the COR project, the bond provided for an early call date of June 1, 2015 to match when the city <br />was to be taken out of its Note #2 by F&C. <br />Background: <br />With the sale and closing of the Residence at the COR scheduled for April 9, 2015, the city will be receiving the <br />funds from F&C for their principal payment of Note #2 and applicable interest. The designated amount of funds <br />required to pay off the outstanding bond will be deposited in a trust account until the June 1, 2015 date. <br />The attached resolution that needs to be adopted is a formality that outlines that the city has the funds to call the <br />outstanding bond. You will note that the amount listed in the resolution states the prepay (early call) amount of <br />$7,145,000. This figure represents the outstanding principal amount attributed to years 2016-2024. The 2015 <br />payment of $175,000 (to bring the total principal amount of the debt to $7.32M) is considered a current principal <br />payment that would have required payment on June 1, 2015 and and not considered an early payment. <br />Observations/Alternatives: <br />No alternatives. Adopting the resolution is required to call the bonds early, which was the purpose of the call feature <br />date matching the payoff date in F&C's development agreement of June 1, 2015. <br />Funding Source: <br />Funds to pay off the debt will be provided from the payoff principal and interest of Note #2 with F&C for the <br />Residence at the COR project. <br />Recommendation: <br />Staff recommends adopting Resolution #15-04-101. <br />Action: <br />Motion for council to adopt Resolution # 15-04-101 authorizing the call of the outstanding taxable General <br />Obligation Tax Increment Bonds, Series 2012B related to the F&C-Residence at the COR Project. <br />#15-04-101 Authorizing Call of 2012B Bonds <br />Attachments <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Kurt Ulrich 04/09/2015 01:40 PM <br />