Title
Consider/Discuss/Act on a Resolution Declaring Expectation to Reimburse Gateway Project Expenditures with Proceeds of Future Debt (Certificates of Obligation)
Summary
MEETING DATE: January 15, 2013
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approve resolution
ITEM SUMMARY:
· Authorize a resolution to reimburse project expenditures incurred in the development of a hotel/convention center located in the Gateway site.
· The resolution will provide for the expenditure of funds in advance of debt issuance for the City's contribution towards the project.
· Debt issuance is not to exceed $6.25 million to include costs of issuance.
· The debt will be supported from ad valorem taxes and a limited pledge of the City's hotel occupancy tax revenues.
BACKGROUND INFORMATION:
· Council authorized a letter of intent dated June 5, 2012 among Champ Hospitality LP, Beck Development LLC, MCDC, and the City of McKinney for the development and operation of a hotel and adjoining conference/event center.
FINANCIAL SUMMARY:
· Project funding:
o Debt Issuance (Certificate of Obligation) $6 million
o City's Cash Contribution $6 million
o McKinney Community Development (MCDC) $7 million
BOARD OR COMMISSION RECOMMENDATION: N/A