Staff recommends the City Council approve the bond resolution for the tax increment bonds.  

The Council approved a resolution authorizing the issuance and private negotiated sale of tax increment bonds on May 26, 2020.  The bond proceeds will be used to convert one-way to two-way streets downtown and upgrade the control gates at Park 1, Park 2 and Park 3.  By issuing the bonds, it will also extend the Expanded North 27th Street tax increment district to the year 2044.

The bonds must close by July 11th to meet the deadline of expanding the district. Because of the short time frame, Finance did not meet the Council memo final deadline and has emailed the Council the final bond resolution. The completed bond resolution will be available at the meeting on June 22nd. 

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 3.55% with a final maturity of 7/1/2044.