Title
Consider/Discuss/Act on a Resolution Approving and Authorizing Publication of Notice of Intention to Issue Tax Exempt Series 2014A Certificates of Obligation
Summary
MEETING DATE: July 15, 2014
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Resolution
ITEM SUMMARY:
· This Resolution will begin the process of issuance of Certificates of Obligation in a not to exceed amount of $3,000,000 for the purposes of acquiring, constructing including parking related to, improving, and equipping convention center facilities at the Gateway Conference Center.
BACKGROUND INFORMATION:
· The City of McKinney went under contract for the construction of the hotel and conference center in 2012.
· At the time of the contract, final numbers had not been completed for total construction of the project.
· Original contributions totaled $18 million. The new construction estimates for the project have now reached the City's contractual not to exceed obligation of $20.25 million resulting in this requested additional funding.
· Council approved enhancements also require additional funding.
FINANCIAL SUMMARY:
· The issuance of these Certificates of Obligation will be financed over a 20 year period for the principal and interest payments with the first year payment as an interest only payment to coincide with the financing structure currently in place.
BOARD OR COMMISSION RECOMMENDATION: N/A