Staff recommends that City Council approve the resolution authorizing the sale and prescribing the form and terms for the Tax Increment bonds for the Expanded North 27th Street Urban Renewal Area. 

On January 22, 2024, Council approved a resolution authorizing the issuance and private negotiated sale of tax increment bonds.  The bonds will finance the conversion of one-way to two-way streets downtown. The project will also include upgrading traffic and pedestrian signals, improvements to off-street parking, and landscaping. The purpose of the project is to facilitate pedestrian safety, improve traffic flow, improve public parking, and enhance access to local businesses within the district.  Once council approves this resolution, the closing can take place on August 1, and the bond proceeds will be distributed. 

There are no viable alternatives as the City has signed a bond purchase agreement with Stifel.  

The January 22nd parameters resolution set limitations on the maximum aggregate principal amount, exclusive of premium or discount, not to exceed $5,750,000, with a maximum interest rate of 6.50%. Stifel agreed to purchase the Series 2024B bonds at the aggregate purchase price of $4,173,224.80 (representing the par amount of the Series 2024B Bonds, less underwriter’s compensation of $40,750.00 and plus net original issue premium of $138,974.80).  The true interest rate on the bonds is 4.21% with final maturity of 2043

The debt service payments will be paid from the tax increment funds from the district.