Staff recommends the approval of the bond resolution for the tax increment bonds for the South TIF district. 

The Council approved a resolution authorizing the issuance and private negotiated sale of tax increment bonds for the South Billings Urban Renewal District on April 14, 2025. The bond proceeds will be used to undertake the design, engineering, and construction of a multi-use recreation center and related improvements, including parking and site pads for an adjacent hockey rink and additional recreation facilities, collectively, the "2025 project".

There is no viable alternative as the City has signed a bond purchase agreement with DA Davidson for the sale of the bonds. 

The April 14 parameters resolution set limitations on the maximum aggregate principal of $24,000,000 and a true interest rate less than 7.25%. DA Davidson agreed to purchase the South Billings Urban Renewal District Series 2025 Bonds at the aggregate purchase price of $20,688,412.50 (representing a par amount of the series 2025 Bonds, less underwriters compensation of $161,587.50 and premium for insurance and reserve of $486,608.62). The true interest rate on the bonds is 5.7832844%, with a final maturity of 7/1/2047.

The debt service payments will be paid from the tax increment funds from the district. These terms are within the parameters authorized by City Council.