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 TIF district on October 10, 2022.  The bond proceeds will be used to reimburse the street construction improvements in the district.  By issuing the bonds it will also extend the life of the district to 2047.  Once Council approves this resolution, the closing can take place and the bond proceeds will be disbursed to the construction accounts.     

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

The interest rate on the bonds is 5.76% with the final maturity of 7/1/2047.  The debt service payments will be paid from the tax increment funds from the district.